[Sub ID 4805] Millennial Microenterprise (Good Shepherd Microfinance)

Submission ID: 4805
Organisation name: Good Shepherd Microfinance
Contact name: Mr Peter McNamara
State: VIC
Contact email: PMcNamara@gsmicrofinance.org.au
Contact number: 94959635

Which priority group of the Try, Test and Learn Fund does your idea support?
Young carers, Young parents, Young students at risk of long-term unemployment

What need or issue are you trying to address?
Australia is facing some of the highest youth unemployment and underemployment rates in recent times. The Deloitte 2017 Millennial Survey found that only eight per cent of young Australians believe they will be financially better off than their parents. In addition, young people are more likely to experience high or severe financial stress (NAB/CSI 2005).

At the same time, we’re seeing more young people want to break away from traditional employment to start their own business. This is symptomatic of a sensible response to a lack of employment opportunities: self-employment is a logical pathway for people who experience unemployment in local economies where jobs are scarce. This is especially the case for young people who may lack the experience or qualifications that employers are looking for, but have high levels of energy and enthusiasm and a rich well of new, innovative business ideas to draw upon.

Good Shepherd Microfinance operates the No Interest Loan Scheme (NILS) with support from the Australian Government and NAB. Whilst NILS loan purposes are targeted at essential household goods, we know that 1000’s of young people seek to access the loan to fund equipment needed for self-employment, such as lawn mowers and laptops.

What is your idea?
Millennial Microenterprise (working title) will support disadvantaged young people to conceive, develop, launch and operate their own small business. Instead of helping young people to find a job, this program will enable young people to create their own job.

We strongly believe that entrepreneurialism, innovation and invention are a major part of the future of work, and that young people in particular will need, more than ever, to become economically self-reliant rather than depend on existing employers and industries to furnish them with a job. We also believe that young people are extremely well-placed to leverage the digital opportunities inherent in the global, 21st century economy.

Our unique Millennial Microenterprise Program would provide six component services that are needed to assist people to start their own business:

  1. 1:1 coaching
  2. 1:1 business mentoring
  3. business planning
  4. business networking
  5. skills development
  6. business finance

This program would be informed by key learnings from microenterprise programs domestically and internationally.

Importantly, the Program will include a digital dimension that will be scalable beyond an initial period and occupy the digital landscape that young people will both expect, and be comfortable with.