Use joint youth friendly saving systems. Buy on the short term joint products in small groups and share. For example: a motor bike, land, machines, seeds. Self-saving system creates ownership but is not for scaling up. (see for example Cool farming)
Create rapid income activities, stimulate savings of youngsters on the bank and triple their investments - design business plans and roll out in the market. (see for example UNDP 3x6)
Shared Products & Services
Shared economy is a new trend, like shared input (seeds), tools and machines through cooperatives.
Invest in community modern kitchen with high tech machines for testing, designing new products and improve quality and package. (See for example Spark Burundi)
Investors & Microcredit
Identify the best financial options in the districts (micro credit, banks, own saving systems) and inform youngsters. Banks are too far away and too complicated for start-ups in rural areas. Good examples are: Land a hand and KIVA.
New trend: investors/donors allow enterprises or companies to make profit out of their subsidies to stimulate sustainability and independence. Crowd funding through social media.
Ensure investors involvement from the start. To have only online connection/matchmaking or only later in section stage is not working. Involve them in the product design of start-up to BDS. Advice for rural Hub, build up pipeline with ecosystem including local government and focus on products and quality. Organize small community projects with give and take services.
New trend: microcredit banks as safe guarantee funds to avoid that your family is taking your money or for high transition costs of traditional banks. Micro saving has better impact than the microcredit investments. Asian banks are accessible, but bureaucratic and asking for high interest.
Adapting Existing Financial Services
Enabling existing financial organizations to design services and products tailored to the needs of rural young entrepreneurs increases the number of people in rural areas with access to financial services, and eventually, helps to introduce them to the formal economy through commercial financial institutions. (See for example Rural Youth Economic Empowerment Program, IFAD).
Build a pipeline from community till big investors and focus on urgent local issues. Banks are often not trusting rural investment in youngsters. Sign MoUs with investors or donors like UN Habitat (See for example Sote Hub)
