 Thank you. The topic of this paper is use entrepreneurship broadly in Africa, then we focus on Swaziland and it's co-authored with Tuli Kuba and Cheri Kanguye from African Development Bank. So first outline of the presentation, we will first outline some facts about use unemployment in Africa, especially southern Africa, some obstacles to entrepreneurship that are based on the well bank enterprise surveys, then analytical framework that we use, then we compare with the data we have from Swaziland, it's a fairly new survey collected last year. And finally with some experiences in intervention in other countries in Africa and elsewhere. So this is actually from African Economic Outlook 2012 and it shows unemployment rates for adults and for youths. What stands out that in particular in southern Africa, the use unemployment is very high. Very good papers on features of African labor markets and use is John Page 2012 that he portrays the different types. So southern Africa are middle income countries where the challenge is really unemployment less so of informal sector employment or working poverty. And here just shows specifically for Swaziland that even within such a small country as the picture on the right, we can have major regional differences, the rates are high everywhere. And also the potential use dividend or use ticking time bomb, whichever the things that will go, showing us the demographic trends and in particular how young population is prominent in the Swazi labor force. So then what are some of the constraints to entrepreneurship in Sub-Saharan Africa? Especially after the global financial crisis, entrepreneurship became again popular policy topic with a view that basically people can help out themselves in challenging economic situation and it could contribute, it would not be the main driver, but it could be a contributor to inclusive growth. So then if that's the case, if we believe this is a reasonable possibility, what are some of the impediments and how can they be overcome? So then we look at the Wellbank Enterprise Survey and they find of course constrained on both firms and workers and these change over time. So actually this next graph shows it quite well. So at the early stages of development here we have the GDP per capita log. We see that infrastructure on access to finance matter, but this time other constraints become more important such as skill or labor regulations. And here just again from mostly from Wellbank databases like governance or entrepreneurship database, we see some of the constraints such as regulation, cost of startup of business and education which then impacts technology adoption and innovation. So then we just construct a very simple one period model. It's a model of structural transformation. So we're looking at economy that is changing and what would in such situation could be maybe policies to help facilitate such transformation. So we have two types of agents. We have workers and entrepreneurs and then portion of them are young and portion of them are adult. Then entrepreneurs spend their time searching for business opportunity. Basically it's a search model with friction and the friction is the search for business opportunity which comes at a cost, gamma being the parameter of efficiency of search. If they succeed and open a business then they produce output according to standard cobb Douglas production function below. And entrepreneurs who do not succeed though finding business opportunity in this in this productive sector, we will not say whether formal or informal they will be in subsistence sector. We call it here informal sector and earn income B. And workers also are for them it's also costly undertaking to work in this productive sector. They need to acquire some skills again comes at a cost. Then we have the very standard maximization solution or optimization solution. And here is some outcome of that and basically it comes to that workers search to the point, I mean entrepreneur search to the point that the marginal cost of search equals the expected profit. And workers train to the point that the marginal cost of training equals the expected wage. Then we compare it with wage solution. We find these conditions to be very similar with one condition that the factor in the informal sector is one of the distortion that basically discourages entrepreneurs to search for business opportunities. So here we show the outcome. Then we ask how can policies help and then then we derive what would be optimal subsidies where if we were to derive the optimal solution. Never realize what we see that even with the so-called optimal solution we would have the inequalities would not change. So then we ask basically what type of government intervention would be needed in a society that values equity and wants equal outcomes. And these are some of the findings. Now if we want to be a little bit more formal about it and derive it from some kind of optimization because that was not coming as a result under standard solution we need a society that derives this utility from unemployment which is not so unreasonable or this utility from use unemployment again not unreasonable especially after our up spring. So once we do that we will find what the optimal subsidies etc be from that point of view. So basically the findings of this is that you know support to start up capital and also support to training for entrepreneurs is something that the governments may like to consider. Then we want to see what first of all is the data from Swaziland telling us and then what are some of the experiences some of the experiences from other countries. So this was just actually it was meant to be at the beginning. This is showing that the private sector in Swaziland is very underdeveloped. Maybe I should give a little bit more background. Yes Africa is growing, Africa is rising but Swaziland is not part of that you know take off. This is one of the least growing countries in Africa for almost two decades and it's probably it's reasonable to say it's caught in a middle income trap and majority population lives below the equivalent of it lives in poverty. And then of course part it has to do with business environment but not only. So then we this is this is from the survey of entrepreneurs that was undertaken about a year ago in Swaziland and we indeed what we want to document here is that young entrepreneurs have basically less experience and fewer skills so are disadvantaged that way relative to adults and we can see from tertiary education whether they previously owned business whether they were employed with some relevant experience and etc. is that their first business and then we also looked at the outcomes and indeed we found that young across several indicators young entrepreneurs do not perform as well as the adults when it comes to sales they are not operating at full capacity as much as the adults also their firms are smaller and here just another example of the estimate of sales shows the differences between young entrepreneurs and adults. Then finally so we would still say okay would it be reasonable to to discuss some of the policies and what are the findings as elsewhere and probably one should say you know findings that the actual experience is mixed with these types of programs so one should be careful and nevertheless one wants to look at some of the experiences so in Europe the OECD 2012 study of youth entrepreneurship has looked into high potential entrepreneurs so a specific group not everybody so then they find that the interventions are more effective you know if then indeed high potential use is well well selected so the careful selection of the project also more and more support for per entrepreneur rather than spreading resources. That's by the way what we found also in Swaziland made some attempts to support young entrepreneurs but at the end the support per entrepreneur was very low that was the complaint we also supplemented the quantitative survey with focus group discussion so that that was what we were getting from the focus group discussions and then also it's usually more than just one thing it's several measures together so for example startup cost and and skill development and good news is that we see that being being now implemented in Swaziland in various forms usually when when young entrepreneurs ask for credit it is conditional on obtaining training. Then there was also experience with disadvantage to you so that's something else then you know high potential use and the experience is yes if subsidies are provided there needs to be credible exit so otherwise this could go on forever and then that's of course not the idea and also the training schemes should be and we heard that in Swaziland as well but this is from international experience that they should be administrated by private sector that better understands the needs rather than than the government even though the government has a role to play in in facilitating that thank you