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Major Barriers for Young Entrepreneurs

business team with young entrepreneur

We have been doing a lot of research to identify the key factors that stop young people from taking the leap into the entrepreneurial pool and starting their own business. Barriers in the business environment can have a negative impact on entrepreneurs, who generally lack experience and access to professional networks. Some of the socio-cultural aspects that limit young entrepreneurs from living their dream are listed below.

Social and Cultural attitudes

It has been analyzed that there is a lack of positive attitude to entrepreneurship in various economies, where entrepreneurship can be viewed as a viable career choice. The educational system can help cultivate positive attitudes towards youth entrepreneurship and recognition of entrepreneurial expertise. Positive societal attitudes and culture of entrepreneurship are important for stimulating productive youth entrepreneurship and fostering entrepreneurial skills development.

Registration, Licensing and Administrative Procedures

Young entrepreneurs consider cumbersome and lengthy administrative procedures, paperwork etc. as an obstacle to be overcome. Young entrepreneurs often face challenges related to tax & regulations while opening a business and difficulties to obtain business information, particularly for non-traditional sectors. Reliable statistical information is limited, and often data on sector specific performance or projections are rarely available.

Securing loans and access to finance

During the start-up phase, access to finance is identified as a key obstacle for entrepreneurs. Young entrepreneurs who apply for credit from a formal financial institution, during either the start-up or operational phases of their businesses are denied funding, as they do not possess assets to hypothecate or have poorly drafted business plan. Formal lending institutions usually consider younger entrepreneurs risky and exclude them from mainstream loans.

Operational Challenges

When it comes to day-to-day challenges of company operations, young entrepreneurs remain preoccupied with various issues related to task and time management. Specifically, they are more concerned about finding the right talent, access to customers, increasing sales, and dealing with competition. Lack of confidence, fear, poor planning, inefficient decision making crop in while dealing with operational challenges, thereby limiting the true potential of a venture.

Identify whether you are an Entrepreneur or Wantrepreneur

August 13th, 2013 | No Comments | Posted in Business Planning, Entrepreneurship

QuestionMotivational quotes, one-liners, videos and stories about entrepreneurship or lunching of a new venture are all across the globe, possibly to ignite fire in the belly of people with aspiration, new thoughts and ideas. In reality, aspiration and determination are not enough to be a successful entrepreneur, it takes a lot more than that.

Coming up with a unique or new idea is a great starting point, the execution of that idea is far more important. This has led to a growing number of “Wantrepreneurs” – people who initially show enthusiasm in identifying and discussing ideas, but at the end of the day fizzle off because they get overwhelmed with the required sustained commitment of executing their ideas.      ►► Read More »

Organic Growth Strategies for Start-ups

organic_growth_graph_md_wmEvery business should have a specific growth strategy in order to survive, progress and earn revenues. Businesses without growth strategies can be hit by unexpected adversity. A growth strategy can be organic or inorganic in nature. While usually acquisition strategies are undertaken by more mature businesses, investors typically look for organic growth numbers to review and evaluate the overall development of a new company.

Organic growth for a business is a balanced and step-by-step technique created through the utilization of its own resources, leading to a sustainable increase in sales and revenues.  It is also very important for an organization to maintain symmetry between the values created for customers and what employees add to an organization.

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Business Plan: A structured approach

January 28th, 2013 | No Comments | Posted in Business Planning, Entrepreneurship, Planning

Business PlanA majority of entrepreneurs accept the need for creating a business plan however, a few often fail to realize that an effective and comprehensive business plan can lay down a road map to success for their businesses.

While a professionally crafted business plans does not guarantee success, for entrepreneurs with great business ideas, it certainly increases the probability of them crossing the finishing line sensationally.

Often a business plan is used as a sales document with an aim to impress an investor, rather than provide an extensive strategic and operational road map of the venture. This often fails to achieve the desired results, leading to entrepreneurs blaming the vehicle i.e. the usefulness of a business plan rather than the quality of goods being transported, i.e. the content included in the document. A business plan needs to capture the essence of a business and its delivery mechanism to attract investments.

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