Empowering Youth in Ethiopia: 60 Refugee and Host Entrepreneurs Win Business Grant

Following the GYB phase, 120 of the most promising entrepreneurs were chosen for advanced training using the “Start and Improve Your Business” (SIYB) methodology.

In a significant stride towards economic inclusion and youth empowerment, the International Labour Organization (ILO), under its PROSPECTS partnership, has announced the selection of 60 outstanding enterprises led by 181 young entrepreneurs—comprising both refugee and host community members—as winners of the Business Plan Competition (BPC) in the North Gondar Zone of Ethiopia’s Amhara Regional State.

The announcement was made during a celebratory award event held in Dabat, Ethiopia, which gathered local government officials, community leaders, representatives from financial institutions, and international development partners.

This marks the second successful round of the BPC initiative in Ethiopia, following its initial implementation in the Somali Regional State. The competition was launched in August 2024 with support from the Government of the Netherlands and implemented in collaboration with Digital Opportunity Trust (DOT) Ethiopia. It aims to support economic resilience, promote dignified livelihoods, and advance social cohesion among refugee and host populations.

Inclusive Growth Through Youth Entrepreneurship

The competition attracted widespread interest, with over 6,100 young people submitting 2,200 business ideas. Among them were 1,153 refugees and 5,038 host community members, demonstrating broad engagement and shared aspirations for self-reliance and prosperity.

“This initiative recognizes the critical role inclusive labour markets play in empowering individuals—especially youth—through self-employment and enterprise development,” said Stephen Opio, Chief Technical Advisor for the ILO PROSPECTS Programme in Ethiopia and Sudan. “We aim to go beyond funding and training. We are facilitating access to the local economy and promoting strong ties between refugees and host communities.”

Rigorous Selection and Capacity Building

A multi-stage screening and selection process, led by Business Development Service (BDS) providers in collaboration with local institutions, narrowed down the submissions to 600 high-potential business ideas. These shortlisted participants received initial training through the ILO’s “Generate Your Business Idea” (GYB) methodology, which guides aspiring entrepreneurs in identifying viable business opportunities based on market demand and personal skills.

Following the GYB phase, 120 of the most promising entrepreneurs were chosen for advanced training using the “Start and Improve Your Business” (SIYB) methodology. This training covered in-depth topics including business planning, financial management, marketing strategies, and operational planning.

Participants then pitched their refined business plans before a jury composed of representatives from woreda offices (local government), the Refugees and Returnees Service (RRS), financial service providers, private sector actors, and BDS professionals. Business ideas were evaluated on criteria such as sustainability, innovation, market demand, and job creation potential.

A Path Forward for 60 Winning Enterprises

The final 60 winners, comprising both refugee and host community entrepreneurs, were each awarded seed funding to kickstart their businesses. The total number of individuals involved in these enterprises is 181—many working in teams to bring their visions to life.

These emerging business leaders will continue to receive tailored business coaching and mentorship to help ensure the long-term success of their ventures. Mentorship will focus on market linkages, customer acquisition, business formalization, and expansion strategies.

In alignment with the Directive on the Right to Work for refugees in Ethiopia, the RRS, along with the Amhara Regional Skills and Job Creation Bureau, is facilitating the issuance of official work permits and business licenses for refugee entrepreneurs among the winners—paving the way for legal and sustainable enterprise development.

Training and Community Integration Highlights

Key focus areas during the competition included:

• Entrepreneurship and Business Skills Development: Participants received extensive training in areas such as business planning, operations management, and financial literacy.

• Financial Access and Trust-Building: Through engagement with local financial institutions, the initiative bridged the gap between underserved communities and formal financial services, helping establish trust and promote long-term access to capital.

• Community Collaboration and Networking: The program strengthened relationships among refugees, host community members, and local institutions including Technical and Vocational Education and Training (TVET) colleges, financial providers, and BDS organizations.

Broader Impact and Future Prospects

This initiative not only empowers young people with the tools to create and grow businesses but also fosters social cohesion by encouraging cooperation and mutual support between refugees and host communities. It contributes to local economic growth, job creation, and peacebuilding through enterprise development.

The ILO, through the PROSPECTS partnership, envisions scaling this model across more regions in Ethiopia. By strengthening partnerships with local governments, private sector actors, and international donors, the program seeks to reach more youth and expand its impact.

The Business Plan Competition in Dabat is a testament to the transformative power of inclusive economic development—where vision, opportunity, and collaboration come together to build a better future for all.