young entrepreneurs

We've spoken about the 80 Million Strong coalition a lot on here, and FM is one of the co-chairs of the July event that will discuss youth jobs in the troubling economy. A major portion of the discussion will be Youth Entrepreneurship and helping create an outreach similar to the small business administration for young people who are starting businesses.

Matthew Segal touched on this when he appeared on CNN last week to talk about the July Conference. Segal said on CNN that if we apply the successful model of the SBA to young entrepreneurs we can help young people create their own jobs from the skills that they have that are sometimes outside of the mainstream. Online jobs, tech jobs, new media jobs, not to mention young people who have heard the call to service from President Obama and wish to start their own community based non-profits.

The SBA gives business the credibility to obtain grants and start-up capital, but they also provide tools for businesses that need help with tax forms, start-up forms, and processes a business must go through to get off the ground. Having that be a point of contact or having a youth specific arm for the SBA that can help young people get started will be a great way to start small businesses run by young people across the country.

This weekend, Cambridge University in conjunction with the Gates Foundation hosted an amazing panel for young people to help give guidance for young entrepreneurs.

The panel featured Andrew Klaber, founder and President, Orphans Against AIDS, Svitlana Kobzr the Founder of Forgotten Children of Eastern Europe, Robyn Scott, the Co-Founder and Trustee of Mothers for All, and Casey Wilson the Co-Founder and CEO of Wokai but also included Philip Rucker a National Correspondent for the Washington Post as a moderator

Via the Gates Coffeehouse Events:

"Increasingly, youth around the world are taking it upon themselves to engage social challenges and effect positive community change. A new generation of socially responsible ventures has emerged that addresses urgent global and local issues such as health, poverty, violence, racism, environmental destruction and civic apathy. This wave of youth social entrepreneurship offers new set of solutions and energy, but also brings with it its own set of professional, financial and personal challenges."

The panel began with a discussion about how to get started, particularly for organizations that have an international focus and building strategic relationships between leadership, developing funding structures, basically anything you can think of.

Orphans Against AIDS Founder Andrew Klaber remembers being in college and says

"Being a student is an ideal time to start an organization, and there are a few reasons for that. For one, you're surrounded by incredibly talented people, and secondly your schedule is your own and that's really the mark for an entrepreneur. You can work on projects between classes, before school, at night, early in the morning, its really a great time. Thirdly, you have university as a resources whether they can help subsidize your travel, or provide other services.

For example, with Orphans Against AIDS I would come back [from abroad] and I had this idea in my head of what I wanted [the organization] to be, in terms of the mission, in terms of providing academic scholarships, giving health care.... but quite frankly, as a twenty year old I had no idea how to run or even legally start a non-profit organization and this is where the university really helped out. I went to the law school where I was studying, and they had a non-profit law clinic. And for free students that were in law school helped me incorporate the organization and then apply for 501c3 status...."

Another thread of discussion was naturally the funding and fundraising mechanism of starting an organization. Klaber continued that having a strong board of directors is key to developing a more diverse funding profile. His organization receives funding from a variety of donors including corporate sponsorship, foundations, individual donors, and they still host fundraisers and events regularly as well. He also noted that while grants and major donations from corporate sponsorship are key to helping the organization keep its doors open, the sustainable donations aren't always from those types of funders, thus the importance for a diversified funding model.

Another tool he mentioned was Echoing Green which is in many ways a venture capitalism firm for young entrepreneurs who want to start organizations that do acts of good works and develop civic organizations in communities around the world.

Their fellowship program gives leadership development to build organizations that promote social causes that don't necessarily make money the way a traditional company would but these opportunities help build companies that make an impact and can also create similar jobs for more young people who are seeking civic jobs. At the same time the connections with Echoing Green open up doors and create relationships with affiliated partners who can be potential funders.

Echoing Green also has been a contributor for the Jobs for Change site, as well as podcast geared toward people who are looking for "careers with impact."

Svitlana Kobzr the Founder of Forgotten Children of Eastern Europe echoed concerns of all of the panelists in raising money in a tough economy, but said that for organizations that are founded or developed on college campuses have also an amazing alumni pool from which to choose. Her organization connected with the foundation of an alumni at her school who not only provided essential capital but also considerable help with other fundraising advise and recommendations for additional funding.

Kobzr's second recommendation was for civic clubs like Rotary and the like who want to do matching grants or do fundraisers where donations can be sent to causes like Kobzr's.

The panel was a great event, and had helpful comments for the young people who participated. I highly recommend taking part in the Gates Foundation Coffeehouse events if you haven't in the past. There are many helpful resources for young entrepreneurs available through their outreach and programs. Also a special thanks to Cambridge University for helping put on the event and my good friend alumni Tristan Brown who told me about the event.

Don't forget, if you haven't signed up to be a part of the July conference for 80 Million Strong for Youth you must apply now. Scholarships are available on a first come first serve basis so get in on the ground floor for that as well.

There was a great piece this weekend in the NY Times about young people who are struggling for jobs simply creating their own by developing new small businesses.

The Small Business Administration agrees this is a great new way to help both develop young people but further to develop our small businesses.

"The future of American enterprise is being shaped by young people of today who are filled with dreams, have a passion for change, hope for the future and a desire to succeed. Pursuing business knowledge at an early age is an important ingredient for future success."

The Times story talks about a young worker who was laid off and frustrated searching for work that wasn't there. Therefore young people instead decide to start their own businesses.

"Plenty of other laid-off workers across the country, burned out by a merciless job market, are building business plans instead of sending out résumés. For these people, recession has become the mother of invention.

Economists say that when the economy takes a dive, it is common for people to turn to their inner entrepreneur to try to make their own work. But they say that it takes months for that mentality to sink in, and that this is about the time in the economic cycle when it really starts to happen - when the formerly employed realize that traditional job searches are not working, and that they are running out of time and money."

Technology and social media is a huge part of that. While the 90's brought a dotcom boom the new millennium has brought a new kind of media consistent with the kind of social world young people love. Multimillion dollar companies like Facebook, MySpace, YouTube, Mozilla, Threadless, and MyYearbook were all founded and continue to be run by young people.

As our economy continues to flounder and young people search for jobs we have a lot of opportunity to invest in both young people and in developing our small businesses simply by encouraging young entrepreneurs.