Type: Research Essays
Sample donated: Zachary Reed
Last updated: June 13, 2019
SUGGESTEDSOLUTIONSWithin the framework of potential efforts and strategies toboost employment and job creation for young people, entrepreneurship is increasinglyaccepted as an important means and a useful alternative forincome generation especially to young people. As traditional job-for-lifecareer paths become rarer, youth entrepreneurship is regarded as an additional wayof integrating people into the labour market and overcoming poverty. Supportingthis shift in policy is the fact that in the last decade, most new formalemployment has been created in small enterprises or as self-employment. Givenglobal demographic trends, it is important that the social and economiccontributions of young entrepreneurs are recognized. Entrepreneurship is seenas a way to unleash the economic potential of young people. In order to improvetheir activities the following need to be doneGovernments shouldprovide Loan guarantee schemes to the new entrepreneurs as an efficientmeans to facilitate their access to conventional banking finance.
The objectiveof these schemes should be to secure financing for small businesses of youngentrepreneurs who might not otherwise be able to obtain it, but who still havea good chance of succeeding. These loans should often have less stringentrequirements for owner’s equity and collateral than commercial loans, makingthem a good source of financing for start-ups and young businesses. However,there should be often basic eligibility requirements such as the ability torepay the loan from cash flow, same business or management experiences andowner’s equity contributions. Unsupportive taxregimes should be eliminated. Business registration procedures and costs shouldbe set to standard, Bankruptcy laws need to be monitored closely. Time andcosts involved in insolvency proceedings should be addressed. Ineffectivecompetition laws should be replaced with better ones which favors competition.
Regulatory frameworks need changes and lackof transparency as a result of corruption attracts the attention.Property rights, copyright, patent and trademark regulations need to be addressedby governments by providing education to entrepreneurs about theirconsequences.Businesscommunity’s assistance and support for new and young entrepreneurs should alsobe encouraged through Promotional efforts e.g. Research on business assistanceand support measures.
The provision of business skills, training, guidance andcounseling services, provision of working infrastructure, promotion ofenterprise integration and business linkages are needed to play a crucial roleby demonstrating as role models.Internationalorganizations, such as the OECD, the OSCE, the European Union, the InternationalLabour Organization (ILO) and other United Nations (UN) agencies such as the (UNECE,UNESCO, and UNDP) should continue and expand efforts and initiatives on youthemployment and young entrepreneurships. Their particular contribution shouldfocus on; establishing and expanding international partnerships, communication networksand linkages between key stakeholders. Primary research and internationalcomparisons to identify best practices, innovative pilot projects programmesand schemes, Place young entrepreneurships and youth employment moreprominently in their international development agenda and advocate for moreattention on youth entrepreneurship and youth employment. Once past these challenges, however, one would think therewould be smooth sailing. Given the business has a good plan; everything shouldproceed with minor glitches.
However, the implementation stage seems to be thereal make-or-break point of an entrepreneurial venture. There are hypothesesthat part of the problem is that idea people and implementation people are verydifferent breeds of people, but there are enough exceptions to that rule thatis a difficult position to defend. More realistic, perhaps, is that there aresuch a wide variety of skills needed at the implementation stage, that no oneperson can have the skills to manage all the functions well. The real talent isfor entrepreneurs to recognize what they do well and then find employees orsubcontractors who can fill the gaps.One way to look at this implementation stage is to look athow many different skills are involved in operating a business. Operating abusiness involves employees, marketing, advertising, sales, communications,public relations, legal needs, government regulations, equipping the office,risk management, disaster planning, crisis management, insurance, technology,hardware, software, the internet, and the financial aspects of the company -bookkeeping, managing debt, taxes, and barter. Without a strong technicalbasis, there is no business. Above and beyond this, however, is the conceptualaspect of management: ethics, leadership, growth philosophy, and even the exitstrategy of the project.
These are much less tangible, yet set the overalltheme and direction that the business will take. The entrepreneurial developments schemes need to beintroduced at this point more especially in developing nations who aspire to benewly industrialized in order to motivate and assist prospective and potentialentrepreneurs to set up small scale units of their own and thereby become selfemployed and continue to contribute to production and employment in the country.Potential new entrepreneurs and existing ones need more than access to credit.They also need to know how to develop a business plan, business management,management of business finances (budgeting), time management, stressmanagement, improving sales, managing and reducing costs, debt recoverytechniques, stock control techniques, marketing and recruitment.This suggests that there is a need for an integrated training package forthe promotion of new blood form of entrepreneurship which calls in for; Skills training, Businesscounseling, Mentor support, Access to working space Business expansion support,and, Creating support networks. The training should also be extended to serviceproviders in order to improve their professional and technical competence,especially in the areas of programme conception, design, implementation andevaluation.