Brasília, June 21, 2004 (Agência Brasil) - Helping 16 thousand young people in its first year of operation and making it easier for at least 12.5 thousand of them to start their own businesses are the initial goals of the Young Entrepreneur Project, launched last Thursday (17) by the Minister of Labor and Employment, Ricardo Berzoini, and the president of the Brazilian Micro and Small Business Support Company (Sebrae), Silvano Gianni. The project intends to stimulate the creation of small businesses by young people between 16 and 24.
According to Berzoini, this is another measure within the scope of the First Job Program, which should expand year by year. He stressed that the First Job is not an emergency program, but a policy adopted by the Ministry to give substance to governmental policies to insert young people into the job market. "The process of entrepreneurialism is one of the dimensions that can bring young people closer to the workplace," the Minister added.
In Berzoini's view, the chance for young people to have access to credit, guidance, and training, through efficacious means, represents a decisive factor for the success of these small enterprises. He appealed to state and municipal governments to support the program, in order to provide opportunities for growth to low-income youth most susceptible to social exclusion. "What is important is for young people to have access to training and credit," he underlined.
Sebrae intends to train the young people and give technical guidance throughout the enterprise's incubation period. Participants will be able to obtain financial backing through the Income Generation Program (Proger), administered by official banks.
The Workers Assistance Fund (FAT) has already allocated US$ 31.9 million (R$ 100 million) for the project. The resources will be made available in three tiers: self-employment, eligible for up to US$ 3.1 thousand (R$ 10 thousand); micro and small firms, eligible for up to US$ 15.9 thousand (R$ 50 thousand); and associations and cooperatives, eligible for up to US$ 31.9 thousand (R$ 100 thousand). According to technical personnel from Sebrae, the integration of training with directed loans and technical assistance will give the young people greater security in their enterprises.
The situation of Brazilian youth in relation to the job market is considerably difficult, said the Sebrae expert in charge of the Young Entrepreneur Program, Raimundo Nunes Pereira. At the ceremony to launch the program, he explained that of Brazil's current youth population of 33 million, 80% live in urban areas, and 3.7 million don't have jobs. According to Pereira, this youth contingent suffers from an 18% unemployment rate.
The Sebrae expert declared that access to school is a further complicating factor. "Seventeen million don't study," Pereira pointed out, adding that, among those who do study, only 13.3% manage to reach the university.
Participation in the project is limited to unemployed youth who belong to families that earn no more than half a minimum wage per capita and are attending or have completed fundamental school (eight years of education) or secundary school (eleven years of education).
Reporter: Benedito Mendonça
Translator: David Silberstein
