Youth Entrepreneurs Promotion

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This Multilateral Investment Project (MIF) project boosts private investment in innovative business initiatives by the country's youth, age 18 to 25, by strengthening ties between young entrepreneurs,private enterprise, and civil society. The project supports two national competitions in three years that will offer guarantees for the financing of 120 young start-ups to create jobs and income for 500young people. The components are: (a) expansion and consolidation by the Association for Welfare and Development (PROBIDE) of mechanisms for promoting, analyzing, and selecting new youthbusiness proposals; and (b) creation and strengthening of the Private Guarantee Fund to finance the start-up enterprises. Counterpart funds for the Private Guarantee Fund come from PROBIDE, theguarantors, sponsors, and banks. Component one funds: (a) training at three levels û trainers, youth participants, and regional coordinators; (b) strengthening of analysis mechanisms and selection ofinnovative, feasible proposals; (c) promoting the competition; (d) monitoring and oversight, advisory services, and promoting business ties to the wining new businesses; and (e) institutional strengtheningof PROBIDE. Component two offers a financial guarantee mechanism for projects selected in future PROBIDE competitions, in order to increase the creation of small businesses, boost the number ofcredits to this sector, and obtain longer terms, significant grace periods, and lower interest rates than are traditionally given in the financial system. Activities to be funded include: (a) advisory services fororganization of the Fund; and (b) expansion of the Fund.