YouthWorks Inc.
Pasig City, Philippines
Recommendation from The Global Fund for Children
The context
In the Philippines, there are currently 24 million youth between the ages of 15 and 22; of these, only 30 percent are employed, and over 40 percent are living below the poverty line. Filipino society has addressed poverty and the ensuing crime, gang wars, illegal substance markets, and prostitution with “solutions” that do not address the root causes, especially for youth. The current policy framework and institutions do not foster youth development and do not help youth realize their full potential. The national and local governments do not offer appropriate vocational skills training, and the private sector is reluctant to invest in “unproven” youth. However, when given the opportunity, youth can gain independence and financial security, becoming exemplary leaders and creators in their communities.
The organization
YouthWorks was started by a group of individuals to support young people’s economic development beyond training and education. YouthWorks believes that when young people are provided with opportunities to engage in productive and sustainable activities such as microenterprise development, they are able to get themselves out of the vicious cycle of poverty. Based on this principle, YouthWorks provides microfinance loans to underprivileged youth entrepreneurs and women and will soon be offering access to an online marketplace to facilitate the distribution of the borrowers' products and services. This two-tiered support structure will help to ensure the sustainability of the program and its participants. Since its inception in 2006, YouthWorks has received recognition and awards for its work in microfinance and youth-related activities from the Association of Southeast Asian Nation's Youth Department, the International Labor Organization, and UNDP, among others. YouthWorks was also a 2007 finalist for Echoing Green, Global Junior Challenge, and Business in Development Network.
The project
Microfinance for Youth and Online Marketplace: YouthWorks currently works in metro Manila and Cebu, two cities with a large concentration of underprivileged youth. During its 2006–2007 fiscal year, YouthWorks provided loans to 22 youth and had only a 14 percent late payment rate and a 100 percent repayment rate. Two groups of borrowers have provided over 1,300 jobs through the establishment of their businesses in compost production and bags made from recycled tarpaulin. In addition, YouthWorks is developing an online marketplace called ySHOP, an Internet portal where borrowers can bring their products and services to consumers locally and globally, and is in discussion with eBay and PayPal to facilitate entrance into the US market, where there is a stronger demand for socially responsible goods. To capture the interest of underprivileged youth, YouthWorks has established a long-term partnership with the Philippine Youth Employment Network, and together they implement a business plan contest for high-school students. The contest promotes enterprise development, community development, and environmental stewardship among the students.