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USAID Mission Director Reed Aeschliman launching the free online mentoring platform for Entrepreneurs. Group from left: Mentor Peter D’ Almeida, President Sasanka Sansada, Hasitha Wijesundera, and Youlead entrepreneurship Director Harsha de Alwis – Pic by Shehan Gunasekara
By Sandesh Jayasinghe
The YouLead Entrepreneurship Service was launched last week to give budding entrepreneurs an opportunity to gain valuable advice from business leaders acting as their mentors.
The service via www.yes.youlead.lk will be free for all who register and is available in all 3 languages.
YouLead is working alongside Sanasaka Sansada Foundation with support from the USAID for this initiative.
The website has been created in an easy-to-use method, where an individual has to put down a question that will be directed at a mentor who is experienced in the field. Over 60 leading business leaders have already voluntarily signed onto mentors for entrepreneurs, connecting Sri Lankan youth with leaders of its previous generations. Furthermore, more business executives have shown interest in mentoring for the project.
The core concept surrounding the project is to empower young entrepreneurs by providing them valuable advice that will help them further their business. The focus is to endure the survival and continued growth of small and medium-sized enterprises (SMEs).
YouLead is funded through an $ 18 million, seven-year grant from the United States and implemented by the International Executive Service Corps (IESC) to improve vocational education and training, link youth to productive careers, and strengthen entrepreneurship in Sri Lanka. Sanasaka Sansada Foundation is a community organisation that has helped increase the potential of Sri Lanka’s youth since 1997.
Sanasaka Sansada Foundation President Hashitha Wijesundara said that an estimated 3% of the Sri Lankan population are considered entrepreneurs but of the calculated 640,000 SMEs that should be active only 85,000 were registered in the last census.
The underwhelming number of businesses can be accredited to the generally short-lived nature of start-ups over the years. An international census noted that in the first year 25% of start-ups are closed and that increases by 10% in year two, to ultimately 55% by year five. He made the case that the unviable business climate in Sri Lanka likely reduced the percentage of start-ups at a higher rate.
Considering that 50% of the GDP is from SMEs, there is a case to be made that developing SMEs will lead to the expansion of the economy. The YouLead Entrepreneurship Service intends to reduce the number of failed start-ups by intervening with business and financial advice to help small firms maintain sustainability over a long period of time.
USAID for Sri Lanka and Maldives Mission Director Reed Aeschliman said the initiative supports sustained and inclusive entrepreneurship.
“Mentoring is very often the missing link in the success of many startups, especially for those owned by women or located outside the urban centres with limited access to networking opportunities and support facilities. USAID’s YouLead project is strengthening entrepreneurship in Sri Lanka by giving business owners an online platform to discuss their plans and receive objective guidance from experts, free of charge,” he added.
The extenuating circumstances that make SMEs less viable in Sri Lanka were discussed in detail at the launch. The problems of financing and the lack of information were made note of. Solutions that could be provided through the service were also considered. The limitations to gaining finances by an entrepreneur in the conservative banking system were established. Finances are the most crucial element to any start-up and the lack of information and the discriminatory system that the banking sector has been built around creates barrier to entry and further growth and development. It also hinders the sustainability of a firm since most start-ups fall under SMEs.
The online mentorship system, which connects a mentee with an expert from the relevant field of their question, would help entrepreneurs overcome hurdles that may hinder them. Furthermore, if a business leader notices a start-up that interests them, they have the possibility of acquiring equity stakes. Once a start-up achieves financial stability, the development of their sectors will lead to them falling behind the competition when competing alongside larger firms with more resources. Once again, the free mentorship advice on a variety of issues from marketing to the production could prove vital to help entrepreneurs maintain a grasp on their firms.
The long-term goal of the project is to establish an entrepreneurship ecosystem using a sustainable system with mentorship. Creating a strong network of business executives to help prop up local firms and lead to the economic and social growth of Sri Lanka seems to be the final vision of the project.
Guest speaker N-able Founder and former CEO Peter D’Almeida said the goal was to develop entrepreneurs who will succeed in the long run whilst being socially conscious. The project made clear to include women with equal opportunities in the competitive business sector, indicating a clearly socially conscious message that slightly departs from the profit-making incentive of a firm.
He said this was partially due to the hands-on approach taken by USAID.
Transparency has been assured by the organisers who have understood the concern of revealing private information. Video evidence and testimony was provided at the launch to assure audiences of the safety of the website assuring complete privacy between the mentor and mentee in regard to any confidential information that could be revealed. For further convenience, a mobile app was announced and said to be released in the near future on both Android and IOS. If one is interested in further information or intends to take advantage of the services on the website, visit www.yes.youlead.lk.
