In emerging markets across the globe, a powerful shift is taking place. Young people – especially those aged 18 to 24 – are increasingly turning to entrepreneurship and self-employment as pathways to financial independence. But while the ambition is there, access to financial tools and services often is not.
Airvantage believes that financial inclusion is the first step toward opportunity. And for the young adults of emerging economies, that inclusion needs to be relevant, accessible, and digital.
Young Adults Are Underserved, but Ready to Lead
- Globally, only 53% of young adults (15-24) in low- and middle-income countries (LMICs) have access to formal financial services – well below the 66% of adults aged 25+.
- Young adults in East Asia & Pacific exhibit the narrowest inclusion gap, yet even here, only half of 15-24 year-olds bank formally.
- In Sub‑Saharan Africa, cash is still king, with younger populations less likely to have bank accounts – mobile-based services bridge that gap. Women aged 15-24 have the lowest financial inclusion rates, just over half the rate of young men.
- Young adults are 1.6× more likely than adults to want to start a business, especially in East Asia, South Asia, Latin America, and Sub-Saharan Africa
Why It Matters
Unemployment in young adults is one of the most urgent challenges facing emerging markets today. In South Africa alone, unemployment aged 15-24 reaches as high as 60%. Across the African continent, an estimated 18 million new jobs will be needed annually through 2035 – a demand that cannot be met without empowering young people to create their own opportunities through entrepreneurship. Globally, there are 1.2 billion young people in this age group, the majority of whom live in low- and middle-income countries (LMICs).
What Young Adults Need to Succeed and How Fintech Can Help
Airvantage partners with mobile network operators, retailers, and digital wallet providers in underserved regions to deliver four vital services:
- Airtime & Data Advances – enabling connectivity even when funds run dry, critical for work, education, and networking.
- Merchant Lending & Floats – providing working capital to young adults-led micro-businesses and informal retailers, so local shops can stay stocked and operations can grow.
- Handset Financing – breaking down barriers to device ownership to enable young people to access digital platforms, education, and the gig economy.
- Micro‑loans & Credit Lines – supporting small-scale initiatives, from freelance work to online ventures, without the need for formal credit history.
These solutions are fast, AI-powered, and embedded in platforms young adults already use, ensuring adoption is seamless and responsible.
Building the Next Generation of Entrepreneurs
Financial inclusion is about giving young people the ability to build something of their own, on their terms. With the right tools, airtime, data, a device, capital, and connectivity, today’s young adults can become tomorrow’s entrepreneurs, freelancers, digital workers, and innovators.
Sources:
https://sdgs.un.org/sites/default/files/2020-07/Young adults_Entrepreneurship.pdf
https://www.afi-global.org/wp-content/uploads/2024/10/AFI_YFI_PM_AW_digital.pdf