Financial Times

A decade after the Hambantota Youth Business Trust (HYBT) came to the aid of the unemployed youth of Hambantota under an internationally-guided programme helping unemployed arts graduates like A.P. Karunasena, the organisers now want to promote the concept across the island.

Under the guidance of the UK-based Youth Business International (YBI) and the Hambantota Chamber of Commerce, HYBT has helped many a young entrepreneur to lay the foundation to a successful business.

A.P. Karunasena was a 24-year old unemployed arts graduate keen on entrepreneurship who found his loan applications rejected by state and commercial banks due to inadequate collateral. He then applied to the HYBT which grants loans at very low interest rates and was among 10 young hopefuls selected under the scheme. Today Mr Karunasena is a well established businessman in Tangalle and in 2002 won the award for the Best Entrepreneur of the Southern Province.

“This loan scheme was a big support to lay a strong foundation to my business,” recalled Mr. Karunasena whose catering service he began in 1997 has developed in the past 10 years. It is now known as Pathum Renters and Caterers with new plans to add a reception hall that is near completion.

The Youth Business Trust was launched on a national level last week at the Ceylon Chamber of Commerce.

“What we are trying to achieve is an outreach with the auspicies of the Youth Business International and the Chamber of Commerce of Hambantota,” Mahen Dayananda, Deputy Chairman of the Ceylon Chamber of Commerce said. He pointed out that in view of the success in Hambantota, the whole country could benefit when this programme is expanded nation wide.

Andrew Devenport, Executive Director of YBI gave a brief overview on the concept and implementation of the loan scheme. He said that many young entrepreneurs take over family businesses or receive financial backing from families. “Our network replicates this for young people who don’t have that advantage,” said Devenport who stressed that YBI is neither a micro-finance scheme nor a charity.

Hambantota joined the YBI in 1997 and five years later HYBT was certified as an accredited and valued network member. Up to now it has granted loans to 155 young entrepreneurs on a revolving basis and 80% of these loans have been recovered. Some 60% of the businesses have succeeded.

Mentoring is viewed as essential by YBI and this plays a major role in the success of HYBT. Each young entrepreneur has to nominate or request a mentor for him or herself. “The mentors give sound advice and give the entrepreneurs the confidence to try new ideas,” said Mr Karunasena who appreciated the support given to him by his advisor when learning the ropes in the catering business.

Azmi Thassim, HYBT Chairman and the Director General of the Hambantota District Chamber of Commerce will act as a National Trustee for the programme. The National Board will comprise business and community leaders. As district level programmes begin, it is the district leaders who will form local boards under the guidance of their respective Chambers of Commerce.

The Chamber of Commerce will soon be calling organisations and corporations to support the programme by offering their services as Trustees and Mentors. They will also be encouraged to link their businesses to the district based youth business funds.

Mr Thassim’s words reflect the biggest advantage the national launch of the Youth Business Trust would have on Sri Lanka. “Youth come to Colombo looking for employment and then there’s unrest among the unemployed youth. This could be prevented by district based Youth Business programmes”.