YouthWorks, Philippines
By providing tools for grassroots youth to develop their own business, Audrey Codera is developing economically independent entrepreneurs and catalysing young people?s energy to build a generation of concerned citizens.
1. The new idea
Social development resulting in poverty eradication, Audrey is using her expertise to encourage grassroots young people and women to make their lives better through entrepreneurship. As a micro-finance institution, YouthWorks provides very low interest credits without collateral. Information, ideas, training, materials, research, toolkits and other capacity-building activities are available to everyone through the use of Information and Communication Technologies. Audrey believes that this is the first step in fostering responsibility, thirst for knowledge, innovation and a a desire to contribute to society. This program, first led in Nanpindan and Cebu, aims to create a ripple effect to other communities.
2. The problem
There are 85 million unemployed youth around the world, at least twice higher than adult unemployment. The youth unemployment rate in South East Asia and the Pacific is 15.8 % representing 1.4 million people in the Philippines out of a total population of 76.5 million. In the city of Taguig, Metro Manilla, half of the 532,641 people are aged between 15 and 30, 33 % of which are below the poverty line. Companies cannot keep up anymore with the increasing numbers of young graduates. The lack of jobs creates serious low self-esteem among young people. Poverty and thus frustration leads to destructive activities such as gang wars and crimes.
Grassroots youth and women entrepreneurs encounter numerous barriers to receiving credit because of the minimum guarantees required by most traditional banks. Other micro-finance institutions don?t usually demand collateral, but most do some paper work which can impede the process. They also propose relatively high interest rates and processing fees. Black market credits, charging 20 % interest rates, tend to attract the poorest because of their accessibility. YouthWorks proposes the same facilities but at a very low interest rate.
3. The strategy
Audrey?s approach works by engaging young people into sustainable businesses. A stable income would enable them to support themselves and their families, a first and necessary step before developing social consciousness among them. The pilot project originally concerned the city of Napindan but it rapidly expanded to include Cebu where young people demonstrated a strong desire and commitment to take part in the program. With a small group, outcomes can easily be measured. Once YouthWorks is proven successful in these cities, the same scheme could be replicated in other parts of the Philippines.
Audrey and her group propose uncollateralized start-up capital loans with very low interest rates. By September 2007, YouthWorks plans to reach 50 entrepreneurs, youth or women. At least 60 % of borrowers will be starting or maintaining their micro-entreprise. So far, 12 loans have already been offered. YouthWorks is collaborating with individuals and organizations to provide entrepreneurs with a concrete support system through toolkits, references, wellness programs, capacity-building programs implemented with partner organizations. Different trainings have already been implemented such as training on business planning and a basic orientation on what is a cooperative. Youthworks now concentrates on individual consultations. In the near future, training on accountancy, marketing and the use of ICT will be supplied. A virtual market where young and women could sell their products and services will be accessible by September 2007.
The main sources of income for YouthWorks are the interest rates and the processing fees. Added capital comes from the initial contributors of the cooperators and from grants or loans. The presentation of YouthWorks activities, mainly within the academic world is used to raise awareness among the people in the Philippines.
4. The person
Apart from Audrey, YouthWorks is employing 8 part-time people and 5 volunteers. Audrey has a Bachelors degree in Humanities with a certificate in Political Economy. She is currently studying for a Masters in Public Management at the University of the Philippines. Audrey has been engaged in youth work for eight years. She started with volunteer work for various non-governmental organizations, has experienced working in the business sector and has returned to her passion - youth development work. She is the Chairman of the Philippines Youth Employment Network (PYEN) and has worked with the National Youth Commission and ILO-Manila among others. Audrey received the GKP Youth and ICT Award in 2005. She is a Foreign Guest at the International Center for Tolerance Education and a Visiting Scholar at Columbia University.
