Promoting Business Incubation Strategies to Support Entrepreneurship and Startup Businesses of Young Talents

Future of Work Platform
Policy Brief
Promoting Business Incubation Strategies to Support Entrepreneurship and Startup Businesses of Young Talents
31 January 2025
Labour & Civil Service, Youth
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Executive Summary

  • Persistent youth unemployment and inequality threaten sustained economic productivity in ASEAN Member States (AMS). Fostering the development of youth as startup entrepreneurs is a viable way to improve their productivity and labour force participation. Startups are a source of new products and services to fuel economic growth and, when successful, employment.
  • The current ASEAN Guidelines on Fostering a Vibrant Ecosystem for Startups were developed for general entrepreneurs of all ages and did not specifically target youth or their entrepreneurial development.
  • Excellent case studies in AMS offer inspiration for the potential creation of ASEAN-wide policies to foster business development support programmes aimed specifically at youth.
  • This brief discusses two case studies: youth-oriented incubation programmes at Indonesian universities, and the enabling role played by the Government of Singapore to attract investors and startups. Policy directions are derived from two different contexts: Indonesia, where the youth unemployment rate is among the highest in ASEAN, and Singapore, which uses best practices in building startup ecosystems.
  • AMS and ASEAN should consider adapting lessons from these and other cases into holistic policy approaches.
  • Given that ASEAN’s youth population will remain sizeable until 2050, supporting youth entrepreneurship offers AMS an excellent opportunity to ensure their economies are more forward looking, inclusive, and sustainable.

Recommendation

This brief recommends that ASEAN consider developing polices to:

  • foster the creation of enabling ecosystems in AMS to develop youth-led, future-oriented startups;
  • strengthen the innovation capabilities of universities;
  • help ensure that university business incubation is more responsive to the needs of leading youth entrepreneurs; and
  • revise the ASEAN Guidelines on Fostering a Vibrant Ecosystem for Startups Across Southeast Asia to support youth enterprises.
 
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