Youth economic empowerment is tied to the future of small and medium-sized enterprises (SMEs).

 Firm-level data show that access to finance is more of a challenge for youth-led firms than firms with older leaders.

Small and medium-sized enterprises (SMEs) struggle to find the skilled employees they need to be competitive and to trade.

Although SMEs account for more than a third of gross domestic product (GDP) in developing countries, skill shortages restrict their capacity to change, compete and connect to key markets.

The problems of youth unemployment and SME competitiveness can and should be solved jointly.

Youth economic empowerment is an objective in and of itself: indeed, Sustainable Development Goal (SDG) 8 urges the international community to provide ‘full and productive employment and decent work’ for young people.

The aid for trade programmes which improve access to financial services for youth entrepreneurs, and improve the skills of young people, promote competitiveness for trade while helping young people find gainful employment.

The question of whether and how trade contributes to inclusive growth remains high on the policy agenda.

Decades of trade liberalisation have helped reduce poverty, but have been accompanied in many countries by a growing gap between the rich and the poor.

Although economies are increasingly interconnected, world trade growth appears to be stagnating (WTO, 2019).

This has led some people to question the ability of trade to deliver benefits for all.

Policies that boost the participation of women, youth and other marginalised groups can make trade more inclusive and promote economic empowerment.

A focus on youth in trade is particularly relevant today, given that young people account for a large and growing pro-portion of the population in many developing countries.

There are 1.2 billion youth aged 15–24 years around the world (UNESA, 2015), yet 66 million young men and women are jobless and 145 million are working, but poor.
Youth are three times as likely as adults to be unemployed (ILO, 2017), and this can lead to migration pressures.

Youth feel empowered economically when they have well-paid, interesting jobs.

This is more likely to happen when companies are competitive and hire young people.

Education and skills are important to youth development, and they influence economic and social outcomes.

The human capital of youth is especially important, given their current and future role in national economies.

One of three people in the world today is younger than age 25 when infant mortality rates decline but fertility rates remain high, the result is a so-called youth bulge: a high proportion of young people in the country.

In the world’s 48 least developed countries, children and adolescents comprise a majority of the population.

Meanwhile, youth unemployment refers to the share of the labour force ages 15–24 without work, but available for and seeking employment.