We are happy that the administration has reaffirmed its commitment to the Youth Entrepreneurship Programme (YEP) and that Prime Minister Golding has clearly placed the authority of his office behind the project he announced earlier this year.

For no matter the claims to the contrary, it was obvious that the project was feeling the stress of the Government's proposed $16.8 billion, or 20 per cent cut in what it deemed discretionary spending from this year's Budget, as it struggles to control its fiscal deficit.

But even with the prime minister's imprimatur, it is clear that YEP would not have been a smooth, free-flowing scheme, which this newspaper and, we expect, many tens of thousands of expectant young people, had hoped it to be. In the context of the economic situation, that is understandable.

YEP, as conceived, is a scheme to provide a head start for secondary and tertiary school leavers who want to be entrepreneurs, have a clear idea of the businesses they want to start, but who have no capital.

Prospective borrowers

The Government, through the Development Bank of Jamaica (DBJ), is to put up $250 million, 80 per cent of which is to be loaned to the prospective borrowers. The other 20 per cent, or $50 million, is to cover administrative costs.

These young entrepreneurs, having gone through weeks of formal orientation, can individually borrow up to $100,000, to be repaid at 10 per cent on the reducing balance.

It is clear that given the obvious needs - a labour market with youth unemployment at more than 20 per cent, more than 40,000 school leavers joining the work-force annually, and an economy in decline - the $250 million allocation would not be enough. It seemed it would provide loans for at least 2,500 youngsters, although up to four could combine for a maximum loan of $400,000. The project, nonetheless, represents a start on two fronts: the fight against youth unemployment, and building entrepreneurship among young Jamaicans.

Orientation and training

After a scare that the project might be under threat, the Government has said that the $250 million is still in the Budget. Except that it is now expected that only 100 graduates will find funding from the scheme this year, the first 30 of whom are now completing the orientation and training. No money, therefore, has yet been paid out and this cannot happen until the micro-finance institutions which will retail the money have completed their assessments for delivery to the DBJ.

In other words, the pace of disbursements will be much slower than originally anticipated, or the $250 million might remain in the Budget, but it is unlikely that anywhere near all of it will be loaned this fiscal year.

We hoped, particularly in the current conditions, this would not be the case, but perchance it is. It is better that the Government declare, upfront, what is possible and move to an orderly delivery of the project rather than raising expectations, only for them to be dashed, for YEP remains a good idea.

Indeed, we would suggest that entreprenuership, as opposed to principles of business, be made a formal and obligatory part of Jamaica's high-school curriculum, obviating the need for the kind of preparatory training that is part of the YEP initiative.

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