Expert views

Harnessing the impact of youth to achieve a sustainable future

18 September 2024
Felipe Paullier, Assistant Secretary-General for Youth Affairs, United Nations Youth Office

 

As the United Nations Assistant Secretary-General for Youth Affairs, my mandate is clear: to ensure that young people are not only included in decision-making spaces at all levels but are empowered to drive change, particularly in areas that matter most to their future — including employment and financial inclusion.

Nearly half of the world's population is under the age of 30, with the majority residing in developing countries. Despite this, young people remain largely underrepresented when it comes to policymaking, economic empowerment initiatives, and access to finance.

The Summit of the Future will be a critical opportunity to reflect on how we can foster a global environment that supports young entrepreneurs, enables better access to financial resources, and ensures meaningful youth engagement at all levels.

 

ASG Paullier in China for International Youth Day, 2024
© UN Youth Office

Breaking down barriers to employment and entrepreneurship

Youth employment remains one of the most pressing issues globally. Even before the disruptions caused by the COVID-19 pandemic, young people were three times more likely than adults to be unemployed — and this challenging situation has only been further exacerbated by limited access to quality education, training and opportunities in the labour market.

Investing in youth entrepreneurship is one important way to help address these challenges — particularly for young people in developing countries — recognizing that young people often bring innovative solutions to achieving the Sustainable Development Goals (SDGs).

Supporting young entrepreneurs requires more than just skills training; it demands a robust ecosystem that includes access to finance, mentoring and networks. Yet, financial barriers often prevent young people from starting or scaling their businesses. The high cost of capital, lack of credit history, and perceived risk associated with young entrepreneurs often make it difficult for them to access loans or find investors.

This is where innovative financing solutions — such as impact investing, microfinance, and digital financial platforms — can play a crucial role in providing youth with the resources they need to thrive.

Access to finance: A critical lever for youth empowerment

Access to finance is one of the most significant obstacles young people face in launching their businesses and scaling their impact. Traditional financial systems are often not designed to cater to the needs of young entrepreneurs. High-interest rates, strict lending criteria and a lack of collateral are just a few of the barriers that make it difficult for youth to secure funding. To address this, we need to rethink how financial systems engage with young people.

We need to encourage partnerships between governments, international organizations and the private sector to create youth-friendly financial products. These could include low-interest loans, credit guarantees and venture capital funds specifically targeting young entrepreneurs. Additionally, digital financial services offer new avenues for access. By leveraging technology, we can help youth bypass traditional banking barriers, providing them with direct access to crowdfunding, peer-to-peer lending and mobile banking services.

The role of youth engagement in shaping the future

To truly unlock the potential of youth in the global economy, we must prioritize meaningful engagement in policymaking and governance at all levels. Young people must not only have a seat at the table but also be empowered to actively shape policies that affect their lives. This means creating platforms for youth to engage with leaders, contribute to decision-making processes, and hold those in power accountable.

The upcoming Pact for the Future, which will be adopted during the Summit of the Future, presents an unprecedented opportunity to institutionalize youth engagement across all sectors. By embedding youth participation into global governance structures, we can ensure that the perspectives of young people are not only considered but acted upon.

Mainstreaming meaningful youth engagement is one of the greatest tools at our disposal to drive innovation, increase trust in public institutions and foster inclusive economic growth.

© UN Youth Office

Charting the path ahead

© UN Youth Office

As we look to the future, it is clear that the challenges young people face — including in employment and access to finance — are deeply intertwined with the broader challenges of sustainable development. To create a world where youth can thrive, we need a comprehensive approach that addresses financial inclusion, job creation and the removal of systemic barriers that prevent youth from reaching their full potential.

At the United Nations Youth Office, we are committed to ensuring that the Pact for the Future reflects these priorities, making meaningful youth engagement a key enabler of global progress. Together, with governments, private sector partners and civil society, we can build a future where young entrepreneurs and small business owners are equipped with the tools and resources they need to succeed, and where youth employment and financial inclusion become catalysts for ending poverty and fostering a better world for all.

Our common future depends on it.