Youth, employment and micro-credit

Chakriya Yoeur from Cambodia

Hana Yousef, recent university graduate and CARE International UK Volunteer, discusses what microfinance could mean to the rising number of unemployed young people in developing countries ...


Historically, micro-finance has never been something typically associated with youth. It seems as though the general pre-conception of young people moving around and being less likely to ‘stay put’ make them less desirable recipients of a micro-credit loan. 


However, things are forever changing in the micro-finance sector, and maybe it has become time for young people to become micro-finance institutions' new generation of clients!

In the same way that the younger generation may not be at the top of the micro-finance Institutions’ loan distribution list, micro-finance is not the generic ‘go-to’ for the entrepreneurial youth of today.

Having recently graduated myself, I blame my previous ignorance to micro-finance not only on a lack of awareness, but also on an irrational fear of the word itself; Micro-finance immediately conjured up notions of complex mathematical equations in my mind.  I learned recently that some micro-finance institutions provide financial services for low income clients.  So,  I strongly believe that having access to micro-credits is something that could be of huge benefit to both the youth and MFIs.

Youths suffer considerably with unemployment in many countries around the world. I imagine there are several young people today with exciting and innovative business ideas and even business plans in areas from agriculture to tailoring facing the daunting question of: “how will I kick-start this business plan?” This question is even more poignant for youths in developing countries, and the difficulty in having access to banks in rural areas can be enough to deter them from fulfilling their dream or at least giving it a go. 

 But this shouldn’t be the end to these entrepreneurial endeavours. I understand that raised awareness about micro-finance alone will not immediately result in thousands of young, fresh and innovative new businesses – but it is a start. By highlighting micro-credits as an option to youths around the world, be it through lectures or informal meetings, we are already one step in the right direction, and young people will have more opportunities to follow their dreams!