Analysis of the Youth Entrepreneurship Programme in Cape Verde

Youth entrepreneurship is a crucial component for the economic and social development of any country, and Cape Verde is no exception.

Pro Empresa plays a decisive role in offering technical and financial support, preparing young entrepreneurs to face the challenges of the global and local market.

With this article S&D Consultancy takes a closer look at Pro Empresa's strategies and initiatives under the Youth Entrepreneurship Promotion Programme, highlighting opportunities, challenges and the impact on the archipelago's MSMEs.

Financial Support: Boosting Ideas and Businesses

Access to financial resources is one of the biggest challenges facing young entrepreneurs, especially in emerging economies like Cape Verde.

Recognising this difficulty, the Youth Entrepreneurship Programme, managed by Pro Empresa, features a set of financial mechanisms designed to reduce initial barriers and facilitate the growth of new businesses.

These mechanisms include credit lines, subsidies and tax incentives, each designed to meet the specific needs of micro, small and medium-sized enterprises (MSMEs).

Lines of Credit and Subsidies

The credit lines offered by Pro Empresa are structured to provide favourable conditions for young entrepreneurs. The main benefits include:

• Low interest rates: The loans are offered at rates below those practised by the market, allowing for more sustainable financial management.
• Extended payment deadlines: Entrepreneurs have flexible deadlines for repaying capital, reducing financial pressure in the first few years of operation.
• Focus on Strategic Investments: The funds can be used in critical areas such as equipment acquisition, technology implementation, marketing and expansion of operations.

In addition to credit lines, the programme offers subsidies which cover part of the initial costs of projects. These subsidies are especially useful for expenses such as:

• Costs related to the energy transition, such as installing solar panels
• Purchase of equipment.

• Development of prototypes and samples.

Tax Exemptions and Benefits

Another important pillar of financial support is the granting of tax incentives. This type of support is designed to reduce startups' initial costs and improve their sustainability. The main benefits include:

• Income tax reductions: New companies can benefit from tax exemptions or reductions in the first few years of activity, allowing more resources to be reinvested in the business.
• Exemption from social security contributions: For an initial period, entrepreneurs can be exempted from paying some contributions, reducing operating costs.
• Export support: Companies wishing to enter the international market can obtain additional tax advantages to boost their competitiveness.

Personalised Support for Specific Projects

The programme also offers funding adapted to innovative and sustainable projects. Examples include:

• Energy Transition: Co-financing for the purchase and installation of photovoltaic systems, allowing companies to reduce energy costs and adopt more sustainable practices.
• Digital and Technological Production: Support for implementing digital solutions and acquiring business management software.
• Participation in fairs and events: Funding to cover the costs of participating in international events, helping young entrepreneurs to establish contacts and expand markets.

Impact of Financial Support

The impact of these financial instruments is already evident:

• Young entrepreneurs find it easier to access the capital they need to start or expand their businesses.
• Reducing tax burdens allows businesses to be sustainable and more likely to succeed in the long term.
• Diversification of funding sources helps mitigate financial risks and encourages innovation.

The financial support offered by Pro Empresa is undoubtedly one of the fundamental pillars for transforming ideas into successful businesses in Cape Verde. It not only makes new projects viable, but also promotes the creation of a more robust and innovative entrepreneurial ecosystem.

Training and Mentoring: Skills for Success

In the entrepreneurial journey, knowledge and guidance play as important a role as access to finance.

Recognising this need, Pro Empresa's Youth Entrepreneurship Promotion Programme relies heavily on training and mentoring as pillars for the success of micro, small and medium-sized enterprises (MSMEs).

Training Programmes: Technical and Practical Training

The training programmes offered by Pro Empresa cover a wide range of areas critical to business success. The practical, results-orientated approach prepares entrepreneurs to face real-world challenges. Key training areas include:

1. Financial Management:
   • Preparation of budgets and financial forecasts.
   • Cash flow management and cost planning.
   • Understanding financial indicators to make informed decisions.
2. Marketing and Communication:
   • Development of digital marketing strategies, including SEO and social networks.
   • Creation of effective advertising campaigns to reach the target audience.
   • Customer loyalty and branding techniques.
3. Leadership and Team Management:
   • Motivation and people management strategies.
   • Conflict resolution and team decision-making.
   • Development of a solid, results-orientated corporate culture.
4. Innovation and Sustainability:
   • Adoption of innovative business practices.
   • Integration of sustainable business models, such as the circular economy.
   • Development of products and services that meet social and environmental needs.

In addition, the programmes are often taught by industry experts and include workshops, seminars and interactive sessions that promote the exchange of knowledge between participants.

Mentoring Networks: Personalised Support

Mentoring is another essential element of the programme, offering young entrepreneurs the chance to learn directly from experienced professionals. This personalised accompaniment helps to fill knowledge gaps and guides entrepreneurs in strategic decisions. The mentoring networks provide:

1. Strategic Orientation:
   • Support in defining short-, medium- and long-term objectives.
   • Identifying market opportunities and analysing competition.
2. Practical Support:
   • Resolving specific business challenges, such as crisis management or expanding operations.
   • Improving internal processes and operational efficiency.
3. Access to contact networks:
   • Connections with investors, suppliers and strategic partners.
   • Participation in business events and forums that promote networking.

Mentors act as guides and counsellors, helping young entrepreneurs to avoid common mistakes and exploit their full potential. This ongoing support is especially valuable in the early stages of the business, when decisions can have a significant impact on the company's future

Practical and specialised training

The programme also offers opportunities for practical and specialised training, both in Cape Verde and abroad. These include:

• Participation in short courses focused on specific technical skills, such as project management or product design.
• International training activities which expose entrepreneurs to global practices and business models, broadening their vision and innovation capabilities.

These initiatives are essential for equipping young entrepreneurs with practical, strategic and behavioural tools to ensure the sustainability and growth of their businesses.

Infrastructure and Resources: An Enabling Environment

The programme also stands out for offering infrastructure support:

• Incubators and Accelerators: Spaces that combine technology and consultancy for start-ups.
• Digital Platforms: Online tools that allow access to markets and contact networks.

Incubators and Accelerators: Catalysing Success

Incubators and accelerators are central to Pro Empresa's strategy to support young entrepreneurs. They function as collaborative spaces that combine infrastructure, technical expertise and networking, creating a favourable environment for transforming ideas into viable businesses. The main benefits include:

1. Shared Workspaces:
   • They offer infrastructure such as offices, meeting rooms and equipped laboratories, reducing the initial costs for startups.
   • They promote interaction and the exchange of ideas between entrepreneurs from different sectors, stimulating innovation.
2. Consultancy and monitoring:
   • They provide specialists who guide young people in areas such as financial management, marketing and product development.
   • They offer continuous support during the critical phases of launching and expanding the business.
3. Access to finance and partnerships:
   • They connect entrepreneurs with potential investors, financial institutions and strategic partners.
   • They organise pitch events where young people can present their projects to investors and public institutions.

In Cape Verde, Pro Empresa has encouraged the creation of specific incubators and accelerators for strategic sectors such as tourism, the green economy and technology, in line with national sustainable development priorities

Digital Platforms: Connecting with the Future

In today's context, digital tools play an essential role in supporting entrepreneurs. Pro Empresa invests in digital platforms to ensure that young people have access to important information and resources in a practical and affordable way. These platforms include:

1. Information and Education Portals:
   • They offer access to educational content such as business guides, tutorials and webinars on relevant topics.
   • They act as hubs for publicising opportunities such as competitions, workshops and funding programmes.
2. Business Management Tools:
   • They offer software and systems that help with inventory management, invoicing and financial analysis.
   • They make it easier to automate processes, allowing entrepreneurs to focus on innovation and growth.
3. Online Networking:
   • They connect young entrepreneurs with mentors, investors and other professionals through forums and discussion groups.
   • They create opportunities for collaboration and the formation of strategic partnerships, even at a distance.

Using these tools helps young entrepreneurs overcome geographical and financial barriers, increasing their competitiveness in local and international markets

Technical Support and Specific Resources

In addition to physical and digital spaces, Pro Empresa offers access to specific technical resources that boost the quality and efficiency of business operations. Examples include:

• Prototyping labs: Equipped to create and test new products.
• Specialised consultancies: Services to help entrepreneurs obtain quality certifications and comply with technical standards.
• Support for internationalisation: Programmes that offer consultancy and logistical support for exporting and entering new markets.

Strategic Partnerships and Sustainability

Public-private partnerships and international collaborations strengthen the programme, allowing access to technologies, foreign markets and innovative business models.

This approach not only promotes social inclusion, but also encourages sustainable practices that boost social and economic impact.

We conclude that:

Pro Empresa's support for youth entrepreneurship has generated significant positive impacts in Cape Verde, contributing to job creation and innovation.

However, there is always room for improvement, especially in simplifying processes and expanding technological accessibility.

Do you need guidance to turn your idea into reality?
At S&D Consultoria, we help young entrepreneurs navigate the stages of the Youth Entrepreneurship Promotion Programme.