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1
Surma Tower, Sylhet
An Assignment on
“Understanding barriers to youth entrepreneurship as“Understanding barriers to yout...
2
Contents
Subjects pages
1. Introduction 5
2. Why youth entrepreneurship matters 5
3. Factors inhibiting youth entreprene...
3
Executive Summary
People say this is the age of business as it is backed by sophisticated technologies,
blessed by loads...
4
AcknowledgementAcknowledgementAcknowledgementAcknowledgement
At first, we are grateful to Almighty Allah for creating us...
5
Introduction
Promoting entrepreneurship and enterprise creation is high on the policy agenda of
almost all countries in ...
6
So, according to many the entrepreneurship can take the form of job to save many
young talents from being joblessness. I...
7
the stigma of failure, market demand and competition. Barriers to youth employment
identified in high-income or middle-i...
8
Literature on entrepreneurship education and support is much extended. With a
conceptual or theoretical focus on entrepr...
9
that collects evidence from academics and practitioners along three main dimensions:
opportunity creation, entrepreneurs...
10
Enabling Youth Entrepreneurship:
In identifying some of the most common barriers facing young entrepreneurs, the
Report...
11
entrepreneurs confirmed that they had chosen to start a business because of a
family member’s suggestion or because the...
12
5. Access to finance: Almost all over the world personal funding is the main
resource to young inexperienced entreprene...
13
institutions can also be considerate as a barrier to enterprise creation.
Information, communication and resources are ...
14
It is important to remember that globally economies are constrained by levels of
unemployment not seen since the great ...
15
References
1) Baron, R., 1998. “Cognitive mechanisms in entrepreneurship: Why and when
entrepreneurs think differently ...
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Understanding barriers to youth entrepreneurship as a career choice for youth

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People say this is the age of business as it is backed by sophisticated technologies, blessed by loads of relevant information. & in this business age the young people are leading from the front as entrepreneurs. Wherever you go from Silicon Valley to Middle East young talents are making significant marks in creating new businesses even sometime more efficiently than the older experienced people. Think of Mark Zukerbourgh, or Michael Yung, they are shaking the world with their innovational business ventures, & people like them are at speed in growing. Different studies provide proof that the young people are the greatest contributors in the arena of business.
Sylhet is a division & a major city of North Eastern area of Bangladesh. This city is rapidly growing than the other cities of this country because of her peoples increasing purchasing power as the area is booming with business projects, a lots of liquid money is in the hands of the peoples as a result of remittance provided by the people living abroad. As we know many people of this area lives in different wealthy country of the world mainly in the United Kingdom (as we know in London there is a town named ‘ Bangla Town’ mainly inhabited by the Sylheties) & middle east many families have enough money in hand almost all the time. Problem with the Sylheti’s is that though they have money they are not interested in investing them in the country for business purpose as most of them are risk averse , & do not know the ABC of business.

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Understanding barriers to youth entrepreneurship as a career choice for youth

  1. 1. 1 Surma Tower, Sylhet An Assignment on “Understanding barriers to youth entrepreneurship as“Understanding barriers to youth entrepreneurship as“Understanding barriers to youth entrepreneurship as“Understanding barriers to youth entrepreneurship as a career choice for youth in the Sylhet region”a career choice for youth in the Sylhet region”a career choice for youth in the Sylhet region”a career choice for youth in the Sylhet region” Course title: Leadership DevelopmentLeadership DevelopmentLeadership DevelopmentLeadership Development Course code: HRM-410 Submitted to: Md.Md.Md.Md. Shamimul IslamShamimul IslamShamimul IslamShamimul Islam Senior Lecturer Department of Business Administration Leading University, Sylhet Prepared by: Torch Bearer’sTorch Bearer’sTorch Bearer’sTorch Bearer’s ID Name 1201010007 Zakiatunnesa Uma 1201010091 Rabeya Rahman 1201010181 Mahmudul Hasan 1201010249 Md. Alimuzzaman 1201010205 Mahmudul Karim Newaz 1201010202 Masum Hussain Semester: 10th Batch: 30th Major: Human Resource Management Department of Business Administration Leading University, Sylhet Date of Submission: 21 May, 2015
  2. 2. 2 Contents Subjects pages 1. Introduction 5 2. Why youth entrepreneurship matters 5 3. Factors inhibiting youth entrepreneurship 6 4. Literature review 7 5. Review on youth entrepreneurship policies & programs 8 6. Careers in Entrepreneurship 9 7. Enabling Youth Entrepreneurship 10 8. Key findings 11 a. Entrepreneurial Pipeline 11 b. Societal perception of entrepreneurship 11 c. Growth expectations 11 d. Innovation-orientation 12 e. Access to finance 12 9. Youth Entrepreneurship and Innovation 12 a. Understanding the market 12 b. Innovation across cultures 12 c. Entrepreneurial processes 12 d. Networks 12 10. Entrepreneurship barriers 12 a. Cultural and social barriers 12 b. Economic and financial barriers 13 11. Some barriers of Entrepreneurship are 13 12. Conclusion 14 13. References 15
  3. 3. 3 Executive Summary People say this is the age of business as it is backed by sophisticated technologies, blessed by loads of relevant information. & in this business age the young people are leading from the front as entrepreneurs. Wherever you go from Silicon Valley to Middle East young talents are making significant marks in creating new businesses even sometime more efficiently than the older experienced people. Think of Mark Zukerbourgh, or Michael Yung, they are shaking the world with their innovational business ventures, & people like them are at speed in growing. Different studies provide proof that the young people are the greatest contributors in the arena of business. Sylhet is a division & a major city of North Eastern area of Bangladesh. This city is rapidly growing than the other cities of this country because of her peoples increasing purchasing power as the area is booming with business projects, a lots of liquid money is in the hands of the peoples as a result of remittance provided by the people living abroad. As we know many people of this area lives in different wealthy country of the world mainly in the United Kingdom (as we know in London there is a town named ‘ Bangla Town’ mainly inhabited by the Sylheties) & middle east many families have enough money in hand almost all the time. Problem with the Sylheti’s is that though they have money they are not interested in investing them in the country for business purpose as most of them are risk averse , & do not know the ABC of business. The main reason for this laggardness is the learning they get from their culture, as we know Sylheti’s are culturally home sick they don’t want to move from their place, are not very comfortable around the peoples of other region. & educationally backward comparing the other parts of this country. These Things argued above are some of the major reasons for the business pessimism in the area. If someone comes close to the Sylhetis they obviously will experience that most of the family have a great income source living abroad, & it is a odd scenario that the other guys of the same family are completely depended on the people living out. Many family comprise of a man living abroad & many children may be the siblings of the man living outside who are grown up are not doing anything! Some young people from Sylhet are becoming very prominent as entrepreneurs by relating themselves with innovative business ideas are becoming quick successful figure. The so familiar culture of capitalizing money, not investing them, keep them in the volt are now in change. Many young minds are coming back to their home after capitalizing money from abroad & getting related with the business world. Current profile of the Sylheti youth will change rapidly if they get proper support from the government. The business environment must be safe as many people of this region thinks that their money that comes from hard struggle in the abroad is not safe to invest because the environment of the business of this country is very poor because of poor political & infrastructure system. So to encourage the young forces of this region whom are already in race the government must take step to develop better infrastructure, stable political ground, & overall better environment all the way.
  4. 4. 4 AcknowledgementAcknowledgementAcknowledgementAcknowledgement At first, we are grateful to Almighty Allah for creating us in such a beautiful country like Bangladesh and also for controlling our life. For the mercy of Him, we have got such courage to start this assignment on ““““UnderstandingUnderstandingUnderstandingUnderstanding barrbarrbarrbarriers to youth entrepreneurship as a career choiceiers to youth entrepreneurship as a career choiceiers to youth entrepreneurship as a career choiceiers to youth entrepreneurship as a career choice forforforfor youth in the Sylhet regionyouth in the Sylhet regionyouth in the Sylhet regionyouth in the Sylhet region”””” After that we would like to give thanks to our honorable Head of the Department Prof.Prof.Prof.Prof. Dr. TofayelDr. TofayelDr. TofayelDr. Tofayel AhmedAhmedAhmedAhmed for giving us the opportunity to study in this subject. We would like to express our thanks to the librarian of Leading University for all his help that we have received. Our respected parents who gave us mental support and inspiration for our assignment, there is a special thanks for them. We also would like to give a lot of thanks to our honorable course teacher, Md.Md.Md.Md. Shamimul IslamShamimul IslamShamimul IslamShamimul Islam for giving us a wonderful opportunity to make such an interesting and valuable assignment and giving us a clear concept about the assignment. At last but not the least, without the help of our friends and classmates it was quite impossible to prepare such kind of assignment. They gave us some necessary information about this topic which was unknown to us. So, we would like to give thanks to all of them.
  5. 5. 5 Introduction Promoting entrepreneurship and enterprise creation is high on the policy agenda of almost all countries in the world, as successful enterprises generate additional employment. Even though youth (under 24 years) unemployment contributes up to almost 50% of the total worldwide unemployment3, young people (aged between 25 and 34 years) are recorded for having higher values of entrepreneurial activity and higher levels of ambition. Youth entrepreneurship is increasingly accepted as an important career pathway and a useful alternative for income generation in young people. Indeed, today’ s youth are capable of triggering regional innovation processes and technological advances, they tend to be more socially active and they are internationally oriented and generally endowed with creativity and capabilities that allow them to exploit entrepreneurial opportunities. Why is there such a drastic drop from intention rate to entrepreneurial action? “At is, young entrepreneurs face many obstacles during the entrepreneurial process. Such barriers are lack of performance, unawareness of the availability of government programs specifically designed to support them and help them in launching their new venture and lack of education and training reducing the managerial and entrepreneurial ability. Shortages of education and training may be a result of low early exposure to entrepreneurial education. Indeed, it has been empirically assessed that youth entrepreneurship programs enhance both entrepreneurial intention and engagement. Many programs have been developed and successful executed in different countries with the aim of enforcing entrepreneurial education and activities. Such strong engagement in youth entrepreneurship policies has also been witnessed recently in Hofer and Delaney research. Nevertheless, few countries have created clear and comprehensive policy frameworks to promote youth entrepreneurship and self-employment. Besides some punctual efforts there exists a lack of an integrated approach to policy in this field of study which also leads to the absence of regular and robust tools for strategic orientation and assessment as well as a lack of reliability. Such lack of integrated framework should be explained by the lack of a coherent theoretical approach to the phenomenon of youth entrepreneurship. Indeed, there exists a gap in entrepreneurship literature concerning the development of theories that apply to specific groups, in this case to youth. Regardless the acknowledgments that young entrepreneurs are different from older entrepreneurs, young entrepreneurs are still treated alike generic entrepreneurs. The main objective of this paper is to highlight those peculiar aspects that have to be considered when fostering. Entrepreneurship specifically in young people, taking into account the need of a longitudinal approach for programs’ output and outcomes. In order to do so, this paper retrieves those determinants of entrepreneurship in youth from a systematic literature review of empirical studies and projected such dimensions onto the progress in the entrepreneurial process, building thus a theoretical framework. Why youth entrepreneurship matters: Wherever we see from national to international boundary the traditional job category is becoming smaller as more people are coming out but the jobs are not increasing.
  6. 6. 6 So, according to many the entrepreneurship can take the form of job to save many young talents from being joblessness. Institutions like the World Bank, ILO; WTO recognizes the need of entrepreneurship stimulation. According to them: a. Youth entrepreneurship is an option to create employment for the youth; b. Young entrepreneurs are more likely to hire fellow youths; c. Young entrepreneurs are particularly responsive to new economic opportunities and trends; d. Young people are active in high growth sectors; e. Young people with entrepreneurial skills are better employees; f. Young people are more innovative and often create new forms of independent work; g. Young people who are self-employed have higher “life satisfaction”. Entrepreneurship offers unemployed or discouraged youth an opportunity to build sustainable livelihoods and a chance to integrate themselves into society. Entrepreneurial experience and/or education help youth develop new skills that can be applied to other challenges in life. Non-cognitive skills, such as opportunity recognition, innovation, critical thinking, resilience, decision making, teamwork, and leadership will benefit all youth whether or not they intend to become or continue youth entrepreneurs. Factors inhibiting youth entrepreneurship: The challenges facing young people when deciding whether to start a business could be due to regional or cultural issues specific to the area in which the young person operates. These issues could be gender- or culture-related, educationally-based or due to the particular political or economic issues facing an area. In the Sylhet region men are more likely to start a business than women. This could be a reflection of differences in culture and customs regarding women’s participation in the economy: for example, societal views about women’s role in the workplace and in business more specifically. Education is a particular barrier facing the youth in Sylhet region. It is still plagued by significantly lower levels of literacy, poor numeracy skills, high drop-out rates, particularly in secondary schooling and low level of tertiary enrolments. Young people in Sylhet region are therefore less prepared to compete in the global environment. Continued political uncertainty and continued violent conflict experienced in various parts of the world create additional barriers that will prevent young people from starting a business. For example, the continued unrest in politics impacts on areas such as tourism, and as such, impacts on viability of entrepreneurial activity as a career choice. Research has indicated that a number of barriers are identified by young people across the globe. These include access to finance, lack of appropriate skills, lack of infrastructure, a lack of adequate support structures and a lack of mentorship as barriers to entrepreneurship for young people. Most of young people in the Sylhet indicated that not having enough money is a key barrier that would prevent them from starting a business. Fear of failure and the current economic climate were additional barriers mentioned by these young people. Other barriers included financial risk, corruption, lack of skills and administrative hurdles. Less prevalent barriers included
  7. 7. 7 the stigma of failure, market demand and competition. Barriers to youth employment identified in high-income or middle-income countries include are lack of an enterprise culture in many countries; unfavorable legal, policy and regulatory frameworks for youth entrepreneurship; the lack of entrepreneurship education across formal and informal educational systems; the lack of access to affordable financing in the form of start-up, investment or working capital, and; little knowledge about and access to relevant business development services and support schemes for youth already in business or for those or interested in pursuing an entrepreneurial career. Literature review Different personal characteristics of an entrepreneur have been investigated in past research. Holland’s (1997) theory proposes that people are attracted to work environments that conform to their personality orientation. Rauch and Frese have distinguished two sets of personality traits: General personality traits (extraversion, emotional stability, openness to experience, agreeableness, conscientiousness) and specific personality traits (need for achievement, risk-taking, innovativeness, autonomy, locus of control, self-efficacy); both can be related to venture success. He argued that personality traits have an impact on vocational choice and proposed a model containing six personality and work environment types, known as Holland types or RIASEC. Entrepreneurship is based on personality of the entrepreneur. Newer reviews and evaluations of entrepreneurship personality research suggest that personality traits of entrepreneurs may be important for entrepreneurship. Several scholars have thoroughly studied the barriers in developed countries. The research on entrepreneurship in developing countries has not very well been investigated. There is a lack of research in the field of graduate entrepreneurship in the developing world, and further research in developing countries may help to understand the entrepreneurial venturing issues. According to Bates (1995), financing is a major barrier. Morrison, (2000) has emphasized that cultural factors such as social norms can influence the way entrepreneurs perceive opportunities and this could represent significant barriers. Kunene (2008) has identified elements in the macro environment such a economic factors, political-institutional factors, socio-cultural factors, market environment, internal environment such as company demographics and human capital as the primary barriers or at least perceived barriers for Small Micro and Medium Enterprise entrepreneurs. Some tenors of Labor law and current state regulations may create a couple of constraints on the development of entrepreneurship. Budding entrepreneurs face psychological issues in entrepreneurial venturing; expert suggest that variables like fear of failure, lack of social circle, avoidance of risk and lack of resources affect entrepreneurship. Others explain that political instability, corruption, lack of infrastructure facilities, proper education and training and lack of financial help are barriers to entrepreneurship in developing nations. Review on youth entrepreneurship policies & programs:
  8. 8. 8 Literature on entrepreneurship education and support is much extended. With a conceptual or theoretical focus on entrepreneurship education, enterprise education or education for small business management, published during the 10-year period. Authors grouped such studies by target market (students enrolled in the formal education system, out-of-school potential entrepreneurs, existing business owners, and others), and by content (entrepreneurial propensity, pre-startup, post-startup, and articles about educational process and structure). Authors concludes that the “components of the ideal structure include the following: a focus on attributes and skills as well as tasks, an element of concrete experience derived from active participation through projects and the like, and content directed to stage of venture development and emphasizing functional integration”. Dynamism in entrepreneurship programs was acknowledged by realizing that education and training programs should vary according to the nature of the target audience and to the particular stage of development of the individual or his/her business within the start-up process. An example is given by Garavan and O’ Cinneide who divide small-business owner training programs into three categories, i.e. small business awareness education, education and training for small business ownership, and continuing small business education, each one relating specifically to different stages of entrepreneurial development in people. A reference point in Sylhet for the settings of entrepreneurship policy is the Small Business Act. It suggests main institutional and economic pillars to promote effective entrepreneurship policies, and in particular, it highlights the importance of young people as a relevant target of such programs and policies by stating that “they need to care for future entrepreneurs better, in particular by fostering entrepreneurial interest and talent, particularly among young people and women, and by simplifying the conditions for business transfers and they should aim at stimulating “innovative and entrepreneurial mindsets among young people by introducing entrepreneurship as a key competence in school curricula, particularly in general secondary education, and ensure that it is correctly reacted in teaching material”. Henderson and Robertson proposed a typology of education and training programs for young entrepreneurs classified as: programs for small business start-ups, continuing (adult) small business education, and small business education. While the rest typology of programs should aim at covering functional areas such as raising finance, basic accounts, employment issues, and marketing in those persons wishing to enter self-employment, the second typology consists on short courses providing training in specific skills development or updating. Finally, small business education is addressed to secondary or tertiary-level students and it relates to general educational courses whose objective is to raise awareness, e.g. considering entrepreneurship as a career option, and providing information in new business establishment. In the second period called ‘enterprise culture there was a direct intervention of both public and private sector to support youth entrepreneurship. As a consequence of this growing emphasis, Hofer and Delaney stress the importance of dedicated policy program tailored for young’ s engagement in entrepreneurship, and detail how entrepreneurial education and start-up support are essential for good practice in youth entrepreneurship support. They present a set of evaluation criteria
  9. 9. 9 that collects evidence from academics and practitioners along three main dimensions: opportunity creation, entrepreneurship education and start-up support. Careers in Entrepreneurship: Entrepreneurs start new businesses and take on the risk and rewards of being an owner. This is the ultimate career in capitalism - putting your idea to work in a competitive economy. Some new ventures generate enormous wealth for the entrepreneur. However, the job of entrepreneur is not for everyone. You need to be hard-working, smart, creative, willing to take risks and good with people. You need to have heart, have motivation and have drive. One of the best things about pursuing a career as an entrepreneur is the wide-open possibilities. There is room in many economies throughout the globe for entrepreneurship - such as India, Brazil, Dubai, the U.S. or Kenya. There are many industries where wealth creation is possible be it the Internet and IT, personal services, media, engineering or small local business (e.g., dry cleaning, electronics repair, restaurants). But there is a downside of entrepreneurship too. Your life may lack stability and structure. Your ability to take time off may be highly limited. And you may become stressed as you manage cash flow on the one hand and expansion on the other. It's important to be savvy and understand what is and is not realistic. The web is chock-full of come-ons promising to make you rich. Avoid promotions that require you to pay up front to learn some secret to wealth. Understand that the market is more or less efficient - which means that if a bunch of people know a sure way to be a millionaire then the opportunity has probably already been competed away. On the other hand, look for inefficiencies in markets. Places where a better idea, a little ingenuity or some aggressive marketing could really make a difference. Think about problems that people would pay to have a solution to. It helps to know finance. It's a must to really know your product area well. What do consumers want? What differentiates you from the competition? How do you market this product? A formal business plan is not essential, but is normally a great help in thinking through the case for a new business. You'll be investing more in it than anyone else, so treat yourself like a smart, skeptical investor who needs to be convinced that the math adds up for the business you propose starting. Entrepreneurs have many personalities. A number never finished college. Some are fiery revolutionaries. Some are gentle souls with a good idea. Some are driven but difficult. Some have grown up in the most difficult circumstances imaginable - emerging with enormous determination to strive for greatness. Others are pleasant, personable and compassionate renegades. Generally, there will be a life event, key motivator or a source of inspiration that causes a person to strike out on their own rather than work inside a larger company. Sometimes it is cubicle fatigue or, worse, getting fired. Other times it is an "aha moment" where an insight or innovation into how an industry or business could be done differently arises. Sometimes it's a bad boss. The possibilities in entrepreneurship are endless. The rewards can be high. And the risks are undoubtedly high too. But, if you have drive, creativity and the desire to be your own boss, this may very well are the career for you.
  10. 10. 10 Enabling Youth Entrepreneurship: In identifying some of the most common barriers facing young entrepreneurs, the Report uncovered ways to help ensure their success. Many young entrepreneurs face challenges that prevent them from succeeding in their endeavors. In fact, being young is sometimes a disadvantage all its own: preconceived notions that young entrepreneurs are inexperienced and ineffective can often overshadow the passion that is so critical to their success. At the same time, however, they face other significant barriers, including limited access to financing and capital, underdeveloped or insufficient skills and lack of mentoring support. 1. Increase access to capital: The capital sourcing is one of the basic factors of entrepreneurship venture, According to many young it is the most common barrier toward business forming. Generally the funding starts from family & friends contribution. Support from external environment is tough at first as investors have lack of faith on starters. 2. Encourage mentorship: Close consultation is an important issue. Many young find it difficult to start business though some of them have money but there is no guide available to them. Mentorship is an important issue not only for starting a venture but also for surviving & prospering. 3. Foster critical business skills: Developing critical business skills is important to make a successful entrepreneurial stance. Developing core business knowledge & insights are as important as technical capability. 4. Influencing Youth Entrepreneurship: While young entrepreneurs cited a number of reasons for starting a business, the common motivator among almost all of them was a great business idea and the right opportunity in the market. Young entrepreneurs start businesses for a wide range of reasons. Many strive for the independence that comes from working for them, while, for others, the current economic climate and a shortage of job opportunities motivate them to establish their own businesses, rather than face unemployment. According to the interviews, however, the most common driver among young entrepreneurs is having a great business idea that addresses a perceived gap in the market. 5. The desire for independence: Because young business leaders are natural self-starters, many guard their independence passionately. In fact, when asked about key measures of success for their businesses, several individuals said the opportunity to choose what to do – and how to do it – was extremely important. Some YBI Member CEOs agree: the desire for independence is just as important as motivators such as earning an income where unemployment levels are high. But as a result, some entrepreneurs refrain from utilizing outside sources of funding, for fear those sources will also bring a measure of outside interference. 6. Family influences: While the desire to “go it alone” drives many people to establish start-ups, there is no question that most of these individuals are also heavily influenced by their families. More than half of the young people surveyed for the Report said parents, siblings and other family members had some influence on their decision to start a business. In some interviews, young
  11. 11. 11 entrepreneurs confirmed that they had chosen to start a business because of a family member’s suggestion or because they already had family in that line of business. However, while family is an undeniably important influence, perceived gaps in the market are an even stronger driver – and when these two influences come together, the results can be quite powerful. 7. Believing in yourself and your business: Young entrepreneurs also reported having a strong belief in themselves and their products. In fact, many said their skills and vision were essential when deciding what type of businesses to establish. Like people in any profession, young entrepreneurs want recognition for their skills and achievements, but many face cultural challenges and have to persuade their support networks that entrepreneurship is just as valuable as traditional careers like medicine or law. 8. Societal perceptions of entrepreneurship: Societal perceptions of entrepreneurship include societal impressions about entrepreneurship as a career choice, whether entrepreneurs are afforded high status and whether they receive positive media attention. This assesses the visibility and attractiveness of entrepreneurship. Positive views on these measures assist in making entrepreneurship more attractive within the community and therefore influence the willingness of individuals to become entrepreneurs. The visibility and attractiveness of entrepreneurship also increases the likelihood that, as society has shown support for these efforts, this will make it easier for businesses to find investors, suppliers, customers and other stakeholders. Key findings: 1. Entrepreneurial Pipeline: We have discovered that there are significant differences of entrepreneur’s distribution all over the world. The Sub-Saharan region has the most potential numbers of young want to start new venture but lack resources & their passion confines to achieve their income. The Asia Pacific & South Eastern Asian nations also have huge potential youth pool. Though less in numbers than Eastern the South western young people are doing well in entrepreneurship venture than East because of their economic & environmental solvency. 2. Societal perception of entrepreneurship: Social perception play significant role in making youth’s mind focused toward entrepreneurship venture. Because of the social perception difference the youth of the Caribbean, Latin America, Sub- Saharan region thinks new ventures essential when the Asian thinks it unsafe & risky. 3. Growth expectations: Except few regions like the Sub-Saharan young people involvement in business is expected to increase all over the world, Especially the USA will experience significant rise of young people toward business in the coming decades. 4. Innovation-orientation: Different study links the youth orientation in businesses with the orientation of innovation. Young people are perceived as more innovative than the older.
  12. 12. 12 5. Access to finance: Almost all over the world personal funding is the main resource to young inexperienced entrepreneurs. To accelerate the youth’s motivation & involvement sources of external funding should be increased. Youth Entrepreneurship and Innovation: As they bring new products and services to market, young entrepreneurs are inextricably linked with innovation – and are having a significant impact on economic development. The Report showed young business owners make a significant contribution to innovation, introducing new products & services. 1. Understanding the market: The entrepreneurs are fast to understand market condition; they can match with the dynamism of the market, & early predict the possible customer demand. 2. Innovation across cultures: Cultures define the growth level of entrepreneurs. For example because of the close economic view the Russian region lacks potential entrepreneurs, contrary situation is in the west. 3. Entrepreneurial processes: Growing their businesses can be challenging for young entrepreneurs, and an innovative approach can yield significant benefits. For example, a new approach to managing expansion can help ensure a business’ success before it is even fully established. Innovation is just as important to processes as it is to products, and running parallel operations that use the infrastructure of one to support the other can help sustain both businesses while positioning them for growth. 4. Networks: Networking benefits young entrepreneurs, providing inspiration for those working on their own and helping to facilitate growth for their businesses. When young entrepreneurs find themselves without a network, they often create one. Entrepreneurship barriers: There may be a variety of barriers to enterprise, depending on the industry sector, region and type of enterprise. The Green Paper of Entrepreneurship identifies a number of common barriers which act to limit enterprise across the EU including: Regulatory barriers, such us administrative barriers to entry, Cultural and social barriers, such us the ‘fear of failure’ and a lack of entrepreneurial knowledge and skills and Financial end economic barriers, such us, insufficient access to risk capital, both seed /early stage and longer term financing: a) Cultural and social barriers: Creating an enterprise is a very difficult task because it demands knowledge of the legislation, environment, market, institutions, etc. To install an enterprise in a country, the entrepreneurs need to know well the language to have a better implementation and adaptation in the place. The difficulties of language don’t help the complete integration of the entrepreneurs and enterprises, specially the micro and small enterprises. The lack of information on the available institutions is also a barrier for the creation of enterprises because entrepreneurs don’t have enough information about the role, services and mission of the institutions that give support to enterprise creation. The limited access to social and business networks and
  13. 13. 13 institutions can also be considerate as a barrier to enterprise creation. Information, communication and resources are very important tools that can be provided by networks. The lack of access to the networks can be a significant entry barrier. b) Economic and financial barriers: The fundamental barrier to the entrepreneurship venture especially for the new one is economic support. There are very few capital investment sources in business that are enthusiastic to back up new ventures. Risks associated with the new ventures are the main reason behind such action, though some investment sites are available for the start up entrepreneurs, the loan interest is very high. Some barriers of Entrepreneurship are: a) Corrupt and unsupportive business environment: Business environment of many countries like the communist linked Russia is not favorable to the entrepreneurship mostly because of their governmental business policy. Most of the countries especially of the third world lacks free & fair field for business. b) Employee related difficulties: Success of new ventures not only depends on the ability & willingness of the owner or starter. To be successful one must find out a huge pool of skilled, dedicated employee for business prosperity & survival. Fit & able employee must stay inside the same organization for success. c) Severe market entry regulations: Barriers set forth by government & other regulatory bodies to keep new business to come in market is another great obstacle. Many governments do so to save the available business firms in a business system. d) Shortage of funds and resources: Finding the money to start up an enterprise is a leading barrier to entrepreneurship. Without funds, any person cannot begin to organize, train, develop and sell product. e) Lack of Entrepreneurship Opportunities: Venture creation requires existing marketplace opportunities with possibilities known to the entrepreneur and favorable odds for success for entrepreneurial “spirit” to succeed. f) Lack of Market Experience: Success in new venture depends on the knowledge & experience of the leader about a particular venture. Without knowing about a venture clearly rush decision to enter a business may do significant harm. g) Fear of Failure: Entrepreneurs have to decide whether to take action so they don’t miss the boat, while knowing that hasty action may cause them to sink the boat. h) Aversion to Risk: To be successful in business depends on the positive risk taking ability of the entrepreneurs. According to some experts risks in new business is synonymous to successes. Conclusion
  14. 14. 14 It is important to remember that globally economies are constrained by levels of unemployment not seen since the great depression. The high levels of unemployment and debt as well as and low levels of growth is affecting not only the developing world but, the impact is currently as noticeable, and in many cases, more noticeable in the developed world. Sluggish growth, high unemployment and persistently high debt levels have created a global perception of negativity. Within this environment, it is even more difficult for governments to work towards limiting the negative and possibly long term effects of youth unemployment. The financial crisis has had an enormous impact on the global employment and business environment. The ability of young people to perceive good business opportunities in this climate is challenging, however governments, the media and educational institutions need to manage young people’s expectations, without which, young people are less likely to see themselves as potential entrepreneurs. These Things argued above are some of the major reasons for the business pessimism in the area. If someone comes close to the Sylhetis they obviously will experience that most of the family have a great income source living abroad, & it is a odd scenario that the other guys of the same family are completely depended on the people living out. Many family comprise of a man living abroad & many children may be the siblings of the man living outside who are grown up are not doing anything! They are just growing without the touch & enthusiasm of proper education, they are eating, going here & there without the tension of the future, almost majority of them having parental guidelines with the theory that there is no need hurry about future, no pressure to start a life as there own. All the reason of the above are the primary reasons for the backwardness of the local weakness of business. With many personal & cultural reasons the historical myopic view of the government toward business development in Sylhet is also important. The infrastructure of the City & suburb are not so strong to carry great business atmosphere. The Electricity supply from the national grid is still not at satisfactory level. The scarcity of good practical higher institutions that can boost people to be enthusiastic toward new business venture is also another reason. Though bombard with many problems the regions business atmosphere is changing now. Many local people mostly young are now realizing that the business is a great & profitable sector to work if they can work with energy & keenness. Many new organizations are growing especially in the Sylhet Habigonj link road area among them garments, ceramics, electronics & some verities of small & medium class products. Many people are coming with the business of daily necessaries from food processing to clothing & other shopping business, Entrepreneurship is fascinating in nature but measuring its scope & measuring the potential entrepreneurs in business is complicated. As the world is getting more & more competitive the necessity of utilizing the young talent pools of s country is increasing. To boost a countries economic strength, innovation level, & the dynamism it is very important to concentrate more vision on them. For third world countries like Bangladesh the huge population which is almost the one third of the total must be motivated & prioritized to be entrepreneur from large to small businesses. Future of any economy depends on the edges of young’s sword.
  15. 15. 15 References 1) Baron, R., 1998. “Cognitive mechanisms in entrepreneurship: Why and when entrepreneurs think differently than other people,” Journal of Business Venturing, Vol.13(4), pp.275-94 2) Bates, T., 1995. “Self-employment entry across industry groups,” Journal of Business Venturing, Vol.10(2), pp.143-56 3) Baum, J., Frese, M., Baron, R. and Katz, J., 2007. “Entrepreneurship as an area of psychology study: An introduction,” in: Baum, J., Frese, M. and Baron, R. (Eds.), The psychology of entrepreneurship, Mahwah, NJ: Lawrence Erlbaum Associates Inc., pp.1-18 4) Douglas, E.J. and Shepherd, D.A. (2002), Self-employment as a career choice: attitudes, entrepreneurial intentions, and utility maximization, Entrepreneurship 5) "Theory and Practice, vol. 26, n. 3, pp. 81-90. 6) Dyer, W.G. (1994), Toward a theory of entrepreneurial careers, Entrepreneurship 7) "Theory and Practice, vol. 19, n. 2, pp. 7-21. 8) Chlosta, S., Patzelt, H., Klein, S. and Dormann, C. (2012), Parental role models and the decision to become self-employed: ! e moderating e$ ect of personality, Small Business Economics, vol. 38, n. 1, pp. 121-138. 9) Coleman, S. (2007), ! e Role of Human and Financial Capital in the Pro" tability and Growth of Women-Owned Small Firms, Journal of Small Business Management, vol. 45, n. 3, pp. 303-319. 10) Entrepreneurship in the EU and beyond report. (2012). Flash Eurobarometer 354. European Comission. Retrived from http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf 11) Global Entrepreneurship Monitor 2012 Global Report. (2013). Retrieved from http://www.gemconsortium.org/docs/download/2645 12) Global Entrepreneurship Monitor informed ejective Galicia 2011 (2012). Retrieved from http://www.gemconsortium.org/docs/download/2628 13) Global Youth Entrepreneurship Survey 2011. (2011).Youth Business International. Retrieved from http://www.youthbusiness.org/wpcontent/uploads/2012/08/YouthEntrepreneur shipSurvey2011.pdf

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