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A Study On Barriers and Problems of Young Entrepreneurs
A Study On Barriers and Problems of Young Entrepreneurs
A Study On Barriers and Problems of Young Entrepreneurs
Author(s):
K.Bagavathi (Assistant Professor, Department of commerce, Madurai Institute Of
Social Sciences, Madurai )
S.Amarnath(IInd year MBA, Department of Management studies, Madurai Institute
Of Social Sciences, Madurai, Tamilnadu, India)
ABSTRACT
Entrepreneurship and business creation are the growing alternative for young people whose age
group often faces a labour market with double digit unemployment rates. Traditional career paths
and opportunities are disappearing rapidly. A growing number of young people are taking up
challenge of starting their own business and much is being learned about how the odds for
success can be improved through various types of assistance and through the creation of a
supportive environment.This paper analyse the various barriers and problems faced by the young
entrepreneurs and also factors influence the young entreoreneurship.
A STUDY ON BARRIERS AND PROBLEMS OF YOUNG ENTREPRENEURS
Introduction
Promoting youth entrepreneurship will not only help in reducing unemployment but more
importantly make young people understand that they have alternatives to create their own destiny
by starting their own companies and they need not keep waiting to get a job. Some of the major
perceived barriers to youth entrepreneurship identified are lack of capital, no prior experience
and lack of guidance. The growing educated, idle, jobless and underemployed youth is a major
societal problem which if not tackled and controlled timely could turn into a bigger trouble for
the state government. Entrepreneurship education has been recognized as one of the vital
determinants that could influence students career decisions. Technical and vocational education
are the only alternative forms of education and training that can guarantee entrepreneurship
development and job creation for youths.
Entrepreneurship and self-employment can be a source of new jobs and economic dynamism in
developed countries, and can improve youth livelihoods and economic independence in
developing countries. For young people in the informal economy, micro-entrepreneurism is a
bottom-up method for generating an income, self-reliance and a new innovative path to earning a
living and caring for oneself.
3. Emergent entrepreneurs (in the age of 26-29 years). This is the prime stage. With valuable
experiences in business, emergent entrepreneurs have a higher level of maturity than youth in the
lower age groups. Hence they are more likely to run more viable enterprises than younger
people.
Objectives
To identify barriers and specific constraints that impedes young people from starting and
running a business.
To identify the reasons for the importance of promoting youth entrepreneurship.
To identify factors that influence youth entrepreneurship.
To identify the factors for improving business support and assistance for young people.
Following are number of reasons for the importance of promoting youth entrepreneurship:
The study of youth entrepreneurship is still relatively recent. Though the crucial role played by
entrepreneurship in driving economic development and job creation is increasingly understood,
there has been little effort to look at it from a youth perspective. Unfortunately there is still a
general lack of in-depth research and concrete data on youth entrepreneurship, especially as it
Relates to different framework conditions and to the creation of new firms.
Factors that influence youth entrepreneurship
However, the success of an incubator depends upon providing the right package of services for
the entrepreneur. Further benchmarking and best practice comparisons are needed to ensure
business incubator solutions address the specific needs of young people.
4) Promotion of enterprise integration and business linkages
Youth Chambers of Commerce, trade associations, entrepreneur clubs and networks in many
countries, Youth Chambers of Commerce, trade associations and young entrepreneur clubs are
dedicated to connect students or young entrepreneurs with other local entrepreneurs and support
organizations. They try to help them to find the right business partners and to enter supply
chains. In order to bring business people together, they organize speaker series meetings,
business roundtables, business lunch/dinner discussions, mentor matching programmes and on-
site field trips to entrepreneurial companies. Moreover, they represent their interests by lobbying
governments and commercial banks.
Internet: Online business networks and virtual meeting Places .Once again, modern
communication technology and the Web present huge opportunities to create and develop
business relations. Through online business networks and virtual meeting places, young
entrepreneurs can create information and relationship platforms or interfaces that are easy and
cheap to access, always available and up to date. Trade fairs and exhibition Facilitating the
access to trade fairs and exhibitions (e.g. through reduced charges) enables young people to
present their product and services and to find clients, business partners and networks. Media
support (regional and local) Regional and local media support in form of commercials,
announcements and business mediation can be highly valuable for young entrepreneurs to
develop a client base as well as to find the right partners in the start-up phase of their business.
CONCLUSION
As said earlier in the paper, promoting youth entrepreneurship will not only help in reducing
unemployment but more importantly make young people understand that they have alternatives
to create their own destiny. This paper identifies barriers and specific constraints that impedes
young people from starting and running a business, so that the young generation approaching
entrepreneurship can have a clear perception on their entrepreneurship journey plan.
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