Globally, youth entrepreneurship is being given much attention because the youth are the dynamic forces and engine of development of nations. However, while the role of entrepreneurship is well recognized, attempts to identify factors that are motivating or inhibiting the development of youth entrepreneurship have received less attention in many African countries. In this study, we assess the behaviour of youth towards entrepreneurship, identify key supportive and constraining factors, and finally recommend actions needed to promote youth entrepreneurship in Eritrea. For this purpose, survey was conducted during the months of July to October 2014 to collect quantitative and qualitative data on the situation of youth entrepreneurs using a semi-structured questionnaire administered on a sample of manufacturing enterprises. The sample selection method employed consists of two steps. During the first stage of selection, a stratified random sample of manufacturing enterprises were selected from a sampling frame of establishment listing obtained from the Ministry of Trade and Industry (MOTI). During the second stage of selection, proportional and purposive sampling methods were used to select 100 respondents for interview. Ranking and Point Score System was used to identify major motivating and constraining factors. The major motivating factors were found to be self-reliance and wealth accumulation while the major constraining factors for youth entrepreneurship were access to finances (bank credit), administrative barriers and fears related to financial risks. The study found that instruction in entrepreneurial skills offers a potentially transformative impact on the work and career focus of young people. The study concludes that for youth entrepreneurship to flourish there should be collaboration efforts among the government, key stakeholders such as financial institutions, educational and training institutions, and development partners.
Keywords: Motivating and Constraining Factors, Youth Entrepreneurship