Evidence to the UK Parliament International Development Committee

Strengthening Entrepreneurial Ecosystems to Address Youth Unemployment in Africa

About Me
I am Dr Abiodun Egbetokun, a researcher specialising in innovation, entrepreneurship, and economic development. I am based in the Leicester Castle Business School of De Montfort University, UK and work with universities and research institutes, including a Nigerian research organization and international bodies like UNIDO and the African Union Commission. My research includes assessing the long-term impacts of entrepreneurship education interventions in Nigeria, demonstrating their effectiveness in reducing youth unemployment (Olofinyehun et al, 2018; Egbetokun et al., 2024). This would be my first submission to a Committee of the Parliament, and I am happy to take a day return journey to London to pitch my idea, if invited.

My proposition

This evidence draws on my expertise and research to propose targeted interventions that can advance the UK’s international development goals. I specifically propose that the UK will benefit significantly from supporting evidence-driven interventions for youth employment in developing countries, starting from Africa where at least 1.4 million of current UK residents were born and which accounts for a large share of youth migration into the UK. This is directly relevant to higher education and other ODA interventions currently managed by the FCDO.

Why Should the Committee Care?
Africa is experiencing a youth population boom, projected to double by 2050. However, youth unemployment remains alarmingly high, exacerbating poverty, migration pressures, and social instability. Entrepreneurship, supported by robust ecosystems, is a proven solution to create sustainable employment and drive economic transformation (Egbetokun et al., 2024). My work highlights that while programs like entrepreneurship education and incubation yield positive outcomes, systemic barriers such as inadequate financing, limited mentorship, and weak regulatory frameworks undermine their potential. The UK, as a leader in global development, can address these barriers by enabling evidence-driven interventions.

Why Government Intervention?
Despite the potential of entrepreneurship, market failures, such as lack of access to startup capital and weak infrastructure, hinder progress. Government-led interventions can correct these failures by:

• Providing funding to scale incubators and innovation hubs.
• Expanding knowledge exchange and mentorship programs.
• Streamlining trade policies to integrate African startups into global markets.

Why Should the UK Government Care?
It aligns with the UK’s ODA strategic objectives of promoting economic growth, reducing poverty, and addressing migration challenges. Leading efforts to promote entrepreneurial ecosystems not only meets the development goals of the UK but also strengthens trade, reduces instability, and creates a blueprint for mutually beneficial partnerships.

Why Now?
The timing is critical for two reasons:

1. Migration management: One of the top agenda of the current government is how to manage migration and keep it at sustainable levels for the UK. My research suggests that when young people have gainful and productive employment in their home countries, they are less likely to want to migrate.
2. Global stability: Addressing youth unemployment aligns with the UK’s Integrated Review of Security, Defence, Development and Foreign Policy. It will also promote stability in regions vital to UK interests.
3. Post-COVID recovery: The pandemic severely disrupted African economies, with youth disproportionately affected by job losses. Strengthening entrepreneurial ecosystems now can catalyse recovery and build resilience.

How Could Existing Policy Be Improved?

1. Create programmes to support the integration of entrepreneurship and apprenticeship into higher education. Universities receiving students under existing funding programmes (such as Commonwealth Scholarship and British Chevening Scholarship) could integrate support to African universities in their offerings. 
2. Support incubators and accelerators: The home return requirement of the existing scholarship programmes would do much better if they embed entrepreneurial support for returning graduates trained in the UK. The Alexander von Humboldt Foundation in Germany runs a very successful model that could be emulated.
3. Enhance trade policies: Reduce barriers for African startups to access UK markets, thereby promoting global economic integration rather than just migration opportunities.
4. Strengthen evidence-based policy: Invest in longitudinal studies to monitor and evaluate programme outcomes, with a view to ensuring sustainability and accountability.

Benefits to the UK Economy and Government
Enhanced entrepreneurial ecosystems in Africa directly benefit the UK through:

• Trade opportunities: Supporting African startups to integrate into global value chains creates new export markets for UK businesses, particularly in technology, agriculture, and renewable energy.
• Strategic influence: Strengthened UK-Africa partnerships solidify the UK’s position as a global leader in sustainable development and innovation.

5. Reduced aid dependency: The economic independence of African countries means that the UK can achieve more cost-effective and impactful development outcomes.

References

• Egbetokun, A., Olofinyehun, A. & Adelowo, C. (2024). Built to last? The long-term impact of entrepreneurship education on entrepreneurial attitude. Entrepreneurship Education 7:41–66 https://doi.org/10.1007/s41959-024-00114-9
• Olofinyehun, A. O., Adelowo, C. M., and Egbetokun, A. A. (2018). The supply of high-quality entrepreneurs in developing countries: evidence from Nigeria. Science and Public Policy 45(2): 269–282.