In Person with Youth Entrepreneurs: Progress Update on the Business Innovation Challenge

Business Innovation Challenge 5 has progressed with application screening and is conducting site visits with youth entrepreneurs.

September 9, 2025

The joint site visit mission of the UNDP–YEES Project and the Ministry of Commerce and Industry (MCI) team observing the kitchen of youth entrepreneur Mr. Domingos, who produces detergents using local ingredients at his business location.

Julia Belo/ UNDP Timor-Leste

Timor-Leste, September 2025: With more than 72% of the population under 35 (Census 2022, Demographic Dividend Report 2025), Timor-Leste is one of the youngest nations in the world. While this creates opportunities, youth unemployment and underemployment remain a challenge, with nearly one-third of young people not in education, employment, or training (UNDP Labour Market Outlook 2023). Recognizing this, the Government of Timor-Leste has placed youth and entrepreneurship at the heart of its Strategic Development Plan 2011–2030 and the National Youth Action Plan 2023–2027, aiming to build skills, create jobs, and diversify the economy.

In Timor-Leste, hundreds of young people are striving to realise their entrepreneurial dreams: setting up and expanding their businesses. However, this journey is not an easy one by any means. The Business Innovation Challenge, a business incubation programme implemented by the UNDP-YEES Project in partnership with the Ministry of Commerce and Industry (MCI), sets out to help the young Timorese entrepreneurs scale up their enterprises.

The joint site visit mission of the UNDP–YEES Project and the Ministry of Commerce and Industry (MCI) team conducting interviews with Business Innovation Challenge 5 applicant.

Julia Belo/ UNDP Timor-Leste

Following its launch in June, the fifth batch of the BIC – “Path to Business” – received 398 applications from 13 municipalities. Reflecting a wide variety of business ideas, the applications were carefully reviewed and processed by the dedicated MCI and YEES Project staff. After the document selection, the MCI-YEES team visited selected applicants who passed the initial assessment to evaluate their business sites and status in person. This site visit helps the BIC support those who can generate a meaningful impact on the entrepreneurial scene of Timor-Leste.

Reaching Applicants in Every Corner, Near and Far

In August, the MCI-YEES team travelled across 60+ aldeias in 11 municipalities to interview applicants and inspect their business sites. MCI Municipality staff also provided valuable support to facilitate the site visits, demonstrating the project’s continued partnership with the MCI at the municipality level.

Youth entrepreneur Mr. Domingos shares his business journey during an interview with the joint site visit mission of the UNDP–YEES Project and the Ministry of Commerce and Industry (MCI) team at his production site.

Julia Belo/ UNDP Timor-Leste

During field visits, applicants shared what motivated them to apply for the BIC 5. Mr Domingos, who manufactures kitchen detergents using local ingredients, noted that “the training on business planning and funding support through the BIC will be a great opportunity to scale up his enterprise”. Another applicant, Ms Firmina, who runs a big tilapia farm, shared her aspirations to further support her family by expanding her entrepreneurship potential.

The joint site visit mission of the UNDP–YEES Project and the Ministry of Commerce and Industry (MCI) team visiting youth entrepreneur Ms. Firmina at her tilapia farm, where they observed the ponds and discussed her aspirations to expand her business to support her family.

Julia Belo/ UNDP Timor-Leste

Next Step: Bootcamp Training and Beyond

After the evaluation of the findings from the site visits, the results of the application will be announced. Successful applicants will subsequently participate in Bootcamp designed to equip them with advanced knowledge and skills needed to formulate robust business plans.

Ms. Firmina shares her expectations with the joint site visit mission of the UNDP–YEES Project and the Ministry of Commerce and Industry (MCI), expressing how the Business Innovation Challenge can provide an opportunity to expand her tilapia farming business and strengthen support for her family.

Julia Belo/ UNDP Timor-Leste

About the Project

The Youth Employment and Entrepreneurship Skills (YEES) Project is jointly funded by the Korea International Cooperation Agency (KOICA), the Government of Timor-Leste through the MCI, and UNDP. It aims to improve the economic opportunities in Timor-Leste by enhancing youth skills, increasing employment access, and fostering youth-led entrepreneurship. It contributes to the Sustainable Development Goals 4 (Quality education), 5 (Gender equality), and 8 (Decent work and economic growth).

The BIC, a joint initiative between the National Directorate of MSMEs and the YEES Project, is designed to help youth refine and implement their business ideas. Since its inception in 2021, the BIC has supported numerous young entrepreneurs with technical training. Up to now, over 300 youths received grant and equipment support worth more than $1.7 million, contributing to employment creation and economic diversification.