Aldain Reid, president of the Young Entrepreneurs' Association, an affiliate group of the Jamaica Employers' Federation. - Contributed

Young Entrepreneurs' Association (YEA) president Aldain Reid is batting for the inclusion of entrepreneurial principles in the curriculum of primary, secondary and tertiary institutions, saying Wednesday it was an effective route to developing and imbuing young Jamaicans with the spirit of enterprise.

Reid, addressing members of the business fraternity as part of a six-member panel at the launch of consultations on the YEA's 'Public Policy Paper on Entrepreneurship' at King's House on Wednesday, seemed to be suggesting that Jamaica's future ability to compete in global commerce will rest on innovation and risk taking, hallmarks of the entrepreneur.

"Entrepreneurship is first and foremost a mindset that represents one of the key components of national development," he said.

"If this value is inculcated at an early stage, young entrepreneurs will be better able to recognise opportunities and take calculated risks."

Jamaica is already seen as being entrepreneurial in spirit, but it is the financing and sustainability of the businesses that are at issue.

In comparison to other middle-income, high-growth countries, it has a high level of enterprise. A combined count for entrepreneurs and new business owners is 17 per cent, based on a recent survey,while the prevalence rate for established business owners stands at 9.5 per cent.

These figures mean that approximately 391,000 individuals were actively planning or had recently established new businesses.

The calls to develop and establish greater entrepreneurial activity come against the background that based on the Global Entrepreneurship Model Report, of the 35 countries ranked by the GEM report, Jamaica was number 28 in terms of the extent to which early-stage entrepreneurship can translate to a full-fledged business.

Rationale behind policy paper

Explaining the rationale behind the policy paper, Reid made a distinction between the necessity-based entrepreneur, who starts a business because he/she has no othe and the opportunity-based entrepreneur who has identified a commercial opportunity.

"Entrepreneurs are starting businesses more out of necessity rather than seizing opportunities that already exist," said Reid. "It is usually the opportunity-based entrepreneur who will contribute to the real economic growth as these businesses tend to utilise a more global reach and provide more employment."

The policy paper, while suggesting the need to shift from necessity-based to opportunity-based entrepreneurship, also points out that motivation had to exist for young persons to become entrepreneurs, Reid added.

"A support system has to exist both educationally and financially for persons entering into businesses."

With this comment, the YEA president said most businesses have no access to traditional funding sources and would need access to venture capital. But that source of financing is virtually non-existent, requiring direct policy intervention by government and its agencies, Reid suggested.

"Unless adequate funding can be made available for young entrepreneurs, with low interest rates, they will have to resort to non-traditional sources to obtain funding," he said.

The YEA, in discussing its paper, has called on the government to facilitate a more strategic direction on how funding - such as the $1.1 billion NIF loan fund - can be disbursed to the entrepreneurial class with optimum effect.

Where the YEA policy touches on education, it suggests that training be offered through peer networks, short courses and incubators.

Policy paper on entrepreneurship

The paper covers five areas:

Government policy
Financial support
Education and training
Cultural and social environment
Attitudes to entrepreneurship.

business@gleanerjm.com