Challenges and Opportunities facing Young Entrepreneurs

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Challenges and Opportunities facing Young Entrepreneurs

By Andrei Blajin

Dominic Burke

Institution of Technology Carlow

Thursday, March 21, 2013


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Acknowledgements

I would like to express my deepest appreciation to my supervisor, Dominic Burke who

continually helped me with the creation of this dissertation by being flexible and providing the

support needed. Without his guidance the dissertation would not have been possible.

I would like to thank all the entrepreneurs that participated in this research, without their

help the thesis would have not see the printing phase. I am indebted to many of my colleagues

who supported me throughout the months.

A special word of thanks to the members of the dissertation committee, for taking the

time to read the work and for their helpful information in regards to the dissertation.

I also would like to thank my friends for being such helpful friends during this academic

year. Among those people I know, I would like to thank Denis Godoroja, Irina Avyazova,

Cristian Dorneanu, Gheorghe Florea and Mohamed Al Akab.

And last, but surely not least, I address this special thanks to my family, they offered the

support throughout the years and provided the encouragement needed for the completion of the

project.

Abstract

The following thesis enabled the researcher to create an entrepreneurial model that starts with

the experience entrepreneurs are facing, such as opportunity identification, risk-taking, main

challenges and last but not least, the whole persona of an entrepreneur. To create a better

understanding of the whole entrepreneurial background, the researcher has analyzed different

aspects of the entrepreneurs life, such as the main motivators, risks and the fear of failure, all of

these having a direct impact on the venture creation and development process.In this paper, it is argued that many novice entrepreneurs will find it rather difficult to

succeed unless there will be adequate support provided by the Government or other third parties.

It is with this view in mind that the researcher found the information empirical and proposed a

few ways to develop a more positive behavior towards creating and succeeding in the field of


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entrepreneurship. The following thesis, developed qualitative data with a focus on the main

challenges and opportunities that might arise in the process of venture creation.

Table of Contents

Challenges and Opportunities facing Young Entrepreneurs .................................1

Table of Contents..................................................................................................3

Chapter 1: Introduction ........................................................................................ 5

1.0 Research Topic in a glance ..........................................................................5

1.1 Background Study .......................................................................................5

1.2 Problem Statement .....................................................................................7

1.3 Underlying Principles of the Study .............................................................81.4 Research Questions .....................................................................................9

1.5 Research Aims and Objectives ..................................................................10

1.6 Outline of Research Work...........................................................................10

1.7 Summary.................................................................................................... 11

Chapter 2: Literature Review...............................................................................11

2.1 Introduction..................................................................................................11

2.2 Importance of Entrepreneurship...................................................................14

2.3 Entrepreneurs and Opportunities.................................................................14

2.4Role of Universities as a source of creating opportunities...........................18

2.5 Challenges from an entrepreneurs perspective........................................18

2.6Conclusion...................................................................................................21

Chapter 3: Methodology......................................................................................22

3.1Introduction ................................................................................................ 22

3.2Overview of Research Methods................................................................... 22

3.3Conceptual Framework ..............................................................................23

3.4Research Approach.....................................................................................23

(a)Qualitative Approach................................................................................24(b)Advocacy or Participatory (Emancipatory) Approach................................24

3.5Research Strategy ......................................................................................24

(a)Survey...................................................................................................... 25

(b)Ethnography.............................................................................................25

(c)Action Research........................................................................................25


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3.6Data Collection Method ..............................................................................25

(a)Primary Data Collection ........................................................................... 26

(b)Secondary Data Collection .......................................................................26

3.7Sampling Method........................................................................................ 27

3.8Data Analysis Method .................................................................................28(a)Qualitative Data Analysis..........................................................................28

(b)Quantitative Data Analysis .....................................................................28

3.9Research Ethics .......................................................................................... 28

(a)Plagiarism.................................................................................................29

(b) Conflicts of Interest.................................................................................29

3.10Limitations.................................................................................................29

3.11Chapter Summary .................................................................................. 29

Chapter 4 Findings ........................................................................................... 30

4.1Introduction.................................................................................................30

4.2Results & Findings.......................................................................................30

4.3Chapter Summary....................................................................................... 48

Chapter 5 Conclusions & Recommendations....................................................48

Bibliography ....................................................................................................... 50

Appendices.......................................................................................................... 54

Questionnaire................................................................................................... 54

......................................................................................................................... 56


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Chapter 1: Introduction

1.0 Research Topic in a glance

A situational analysis of challenges and opportunities being faced by the young entrepreneurs

in Western and Eastern Europe trade world.

1.1 Background Study

Experts found the persona of young entrepreneurs in some distinctive ways. According to

most of the researchers, the role which these young entrepreneurs play is actually the formation

of innovative policies in the development of new trade markets that make them the true and key

drivers of economic intensification and evolution (Hisrich & Peter, 1995). To put it in plain

words, a number of business experts deemed Young Entrepreneurs as the birthright of business

circle; in fact many researchers have evidently proved them as escorting factor for rising

economy round the globe. Moreover, young entrepreneurs are the means of turning the economic

crisis upside down to a large extend. This reveals that they could simply be those individuals

who have no superior substitutes for employment, who pine for more sovereignty within their

work lives or even those who just take pleasure in playing with risks (Mohanty, 2005, p.p. 11). In

this sense, entrepreneurship can range from being a traditional strategy of earning income to a

non-traditional strategy for changing the world. It is said that entrepreneurs may not only create

new businesses, but they may also create new products, services, methods of doing business, or

cultures and structures of organizations; adhering to these reasons, entrepreneurs are the trend

setters who have the vision of not only shaping the economy, but also the society we subsist in.

In general, there are ten common traits being followed by the most renowned and

acknowledged entrepreneurs all over the world. However, description of these traits is given

below (Kuratko, 1994):


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Self-governance. For entrepreneurs, their independence is their most important emblem.

Controlling the future, is most desirable aspect for the entrepreneurs of recent era; therefore, they

opt for being their own bosses rather than working for others. Their sense of independence is

quite high and intense which let them moving ahead of typically squared employment arena and

help them accomplishing their innovative yet meaningful goals and targets.

Different researchers identified the characteristics of young entrepreneurs differently,

however, here is the summarized list of traits that are usually being followed by most of the

renowned and popular young entrepreneurs from all over the world, including Bill Gates of

Microsoft, Larry Ellison of Oracle, Sam Walton of Wal-Mart Stores, Steve Jobs of Apple

Computer and Pixar or Mark Zuckerberg of Facebook.

Visionary. A true entrepreneur is one who has a distinctive ambition and a far-fetched

vision to perceive the future. Entrepreneurs have both the short term and the long term

vision that help them mapping their great ideas into greater accomplishments awaiting for

them in future. Their visions are innovative yet achievable.

Steadfastness. It is the important quality of a successful entrepreneur. To be triumphant,

entrepreneurs need to be persistence in their continuous efforts for achieving their goals

rather than constrained by some setbacks and obstacles which they may experience in

their way. Their actions are the true reflection of their consistent nature. . . . . . . . . . . . . . .

. . . . . . . .

Perseverance. Steadfastness is nothing without perseverance or determination.

Perseverance is that inner feeling which actually compels or motivates entrepreneurs to

keep on moving ahead of all obstacles to reach the pinnacles of success and prominence. .

. . . . . . . . . . . . . . . . . . . . .

Creativity. Inventiveness or curiosity are the major elements that actually stand for a true

entrepreneur. They do not believe in following others ideas instead they create ideas that

are being followed by others. Creativity is not in-born merely; it can be learned and

developed with time. However, not everyone is capable of thinking outside the box, but

entrepreneurs have an edge in this respect. . . . . . . . . . . . . . . . . . .

Candidness. One can only win the trust and satisfaction of its customers if he or she is

known for his/her honesty and integrity. Honesty is the most flavored ingredient of

success. It would not be erroneous to establish that, a great entrepreneur is an honest


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entrepreneur. For that reason, honesty is one of the most important traits being followed

by the entrepreneurs. . . . . . . . . . . . .

Aplomb. Believing in personal capabilities is the most common, or to put it clearer the

foremost practice of successful entrepreneurs. Aplomb is actually the fuel that energized

with small achievements and takes the entire momentum of success towards the bigger

wins. A sense of self worth and confidence supports successful entrepreneur in their

efforts and determination.

Venturesome. An entrepreneur is one who foresees the risks but not afraid of

uncertainties. Entrepreneurs are courageous enough to face loss and failure as a part of

their business endeavors. Successful entrepreneur calculates risks and makes appropriate

efforts to effectively face the consequences allied with those risks. They believe that

winning or losing is a part of a game and to win big, they must not get threatened by

small losses. . . . . . . . . . . . . . . . . . . . . . .

Commitment. This trait is an obligatory one for consistency in success rates. If

commitments are not fulfilled, success cannot be achieved by the entrepreneurs. It is said

that commitments fulfilled by the entrepreneurs actually reflect their willingness of doing

something for common good of all the stakeholders associated with them.

Organized. Being organized is of tremendous value for a successful entrepreneur.

Organization of resources, time and actions with proper planning and management are

the key elements to be looked after by a successful entrepreneur. For making significant

progress, entrepreneurs make sure that they are both mentally and physically organized

by all means.

1.2 Problem Statement

Following entrepreneurial strategies, developing, as well as developed countries all over

the world are gradually devising those policies which can be influential enough so as to make it

easier for individuals to start their businesses. These changes are meant to benefit the

entrepreneurs significantly at national and international levels. But, unfortunately, these

measures are largely taken for the interests of promoting experience-based dominance, in both

the traditional as well as nontraditional fields in international business and trade world.


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In spite of advanced explorations on the entrepreneurial phenomena, very narrow levels

of research work has been carried out in the context of young entrepreneurs so far; and this

encompasses a straight hurdle on the institution and execution of policies and other support

programs that are supposed to be the prime reason and main cause of the currently deprived

performance in connection with young entrepreneurship activity on the horizon.

The past few decades have witnessed that a few scientific-based research work on young

entrepreneurs and their impacts on international industries has been done in diverse geographic

areas. These researches reveal that although various developed countries, like South Africa,

USA, etc., have enacted Employment Equality Act and the certain procurement procedures

which involve that young ought to be employed and perk up in each and every sector of the

worlds economy, young entrepreneurs in the several business sectors still discover it to be

challenging to optimize the ultimate gains. In view of experience-based discrimination against

young, such exhaustive measures are compulsory that could enable, protect and encourage young

in the construction business. Furthermore, OECD (The Organization for Economic Co-operation

and Development) reported that in most countries entrepreneurship and innovation policies are

interconnected with each other and through them they can share characteristics and challenges.

While many countries are putting much effort into supporting entrepreneurship, there are plenty

of other countries that are not convinced that entrepreneurs are capable to create new or grow

existing markets.

In this researched exposition, it is consequently of essence to investigate why there is still

a gap in financial and moral support between senior and young entrepreneurs in the different

business sectors, why there are pretty small numbers of young entrepreneurs as compared to their

senior equivalents, and to establish whether developed countries are associated with inclusive

initiatives to encourage young entrepreneurship in current settings.

1.3 Underlying Principles of the Study

As the world has globalized by all means, thus, the industrial needs and wants of this

epoch have also evolved drastically. Markets, which were local once, are now turned out into the

global or international ones where the competition is now at international level and profit or loss

is wholly dependent of economies of scale and economies of scope. Apparently, with this

globalization various conventional business trends have moved ahead towards the contemporary


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ones. The trade world of the present age has extreme regards and high significance for the new

fad of economic development, called entrepreneurship.

By keeping the above-stated information in mind which entails that young entrepreneurs

are the gesture of generosity in the elevating economy and thus, importance of young business

owners are also augmenting (Ndubisi, 2007), for carrying out this research, those underlying

principles, which lead to the notion that young entrepreneurs are enhancing the economic growth

all through the word, are based upon subsequent facts:

Ireland is a highly entrepreneurial society and established entrepreneurs make up 8.6% of

its adult population. Ireland has a higher proportion of established entrepreneurs than the

majority of its Eurozone counterparts as well as the UK (6.4%), the US (7.7%), Australia

(8.5%) and Israel (3.1%). (OECD, 2011)

65% of early stage businesses set up in Ireland have an international orientation (i.e. are

exporting); this is above the rate in Germany, the UK and the majority of other advanced

economies. (OECD, 2011)

young gather more social support as compared to men thus, are competent in business

world (Kari, 2008).

young entrepreneurs are playing a determinant job in enhancing the financial systems'

usefulness, its ease of use, and its adoption (Ndubisi, 2007).

1.4 Research Questions

Basing upon the aforementioned statement of an addressed problem, the following research

questions are formulated to be addressed in this dissertation:

What type of experience-based discrimination is obstructing entrepreneurial performance

of young individuals?

What are the facets that act as motivators for young entrepreneurs across different

traditional and nontraditional industrial sectors?

How these motivational factors are influencing the performance of young entrepreneurs

in businesses?

What financial and moral challenges are being faced by the young entrepreneurs in their

businesses?


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1.5 Research Aims and Objectives

The anticipated goals for this dissertation are to see the sights of entrepreneurship and its

ultimate impacts on the whole economy of the world and specifically to investigate young

individuals standings as rising entrepreneurs that are also assumed as the leading ladies in the

development and betterment of economic conditions all over the globe. While conducting this

research to uncover various aspects of young entrepreneurs, all the evidential proves will

especially and collectively point towards the reflections of young entrepreneurs as a new vibe of

hope in the business sectors. And last but not the least, the businesses owned by experienced and

senior individuals and businesses owned by young individuals along with their elementarydifferences will also be included in this research to make the subject matter clear enough to grasp

its real essence as to how young individuals are facilitating development in the industrial traits.

To sum up this section, a few explicit objectives are outlined below:

Research Objective 1:To examine the opportunities available to young entrepreneurs in

in different business sectors

Research Objective 2: To examine if entrepreneurial success is attributed to their

education in Entrepreneurship or because of family business

Research Objective 3: Examine if the Government or Socio-Political factors have been

working for or against them during their venture

1.6 Outline of Research Work

This dissertation is being segmented into following five chapters:

Chapter 1 Introduction: In this chapter the basics of the proposed research theme, including

the brief introduction of proposed topic, research background, research questions, research aimsand objectives and employed research methods have been discussed in their entirety.

Chapter 2 Literature Review: All relevant contemplations, theories, models and perceptions

allied with the subject matter i.e. challenges and opportunities for the young entrepreneurs have

been critically elaborated and reviewed from an entirely new perspective in this chapter.


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Chapter 3 Research Methodology: In this chapter, adopted research methods along with the

logical reasoning of opting for those particular research methods have been explored

exhaustively.

Chapter 4 Findings and Analysis: All the collected facts and information on the subject

matter have been represented and analyzed in this chapter by making the most of graphical,

pictorial, statistical and analytical tools and techniques being frequently implemented these days

in exhaustively designed research works by various researchers.

Chapter 5 Conclusions: This chapter interprets the analyzed facts and information in the

research work and gives the real essence of the entire dissertation in a nutshell and an all-

inclusive way.

1.7 Summary

In this chapter, we have carried out the contextual study of the projected research domain

to give the insights of the research scope in a glance. This chapter sets research hypothesis along

with some distinctive aims and objectives to be achieved in this research work and also describes

what research questions are to be emphasized and answered throughout the study. The overview

of employed research methodology is being given to provide an initial framework for the rest of

the dissertation.

Chapter 2: Literature Review

2.1 Introduction

Opportunity is missed by most people because it is dressed in overalls and looks like work.

Thomas Edison

Entrepreneurs there are thousands of definitions that can describe the same thing, every

single definition is a piece of information that aids to the construction of the word

entrepreneurship. Therefore, generalising these definitions into one humongous expose will


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confuse the reader even more, which leaves the researcher with the option of finding a few

trustworthy explanations that will help shed a light onto this term. Gartner (1988) for instance,

suggested that entrepreneurs are those that construct a new independent company, which as a

result has drove many researchers to limit their studies to founder only samples. Although, the

information which Gartner (1988) provided is relatively outdated, this research will apply the

same technique of examining solely only the founders of any given organization. (Kuratko,

2004)

The word entrepreneur is derived from the French word entreprendre, which translates

to undertake. Furthermore, entrepreneurs are the individuals that are able to undertake,

organize and manage the risks of a business. Nowadays, an entrepreneur is the key person within

the organization, who is responsible for recognizing and seizing the opportunities. Subsequently,

the innovator, the developer or the entrepreneur has to convert that opportunity into a fully

functioning marketable idea capable of generating money. There are other factors that should be

considered in this process, such as the time spent converting the opportunity, money and the

risks that were assumed, all of these elements will lately add value to the final produce.

Hall (1995) considers novice entrepreneurs as part of a stage rather than a category, which

allows us to draw an important conclusion about this matter a stage, is a level which can be

conquered by the person entering the stage. Hence, this research shall focus on the factors that

will allow the novice entrepreneur to overpass this stage.

There were studies carried on for a long period of time on entrepreneurship which had an

emphasis on the firm (Scott and Rosa, 1996); a wide range of successful firms were involved, as

both scholars and practitioners tried to comprehend what exactly makes firms profitable.

Although, in a study carried by (Sarasvathy, 2004), it was noted that company failure does not

necessarily mean the individual failure. Sarasvathy (2004) claims that entrepreneurship as a

study has to be reevaluated in terms of conceptualization and what role failure has in this field.

Sarasvathy (2001) has identified a few conceptions that were reported by highly successful

entrepreneurs:

a) Failure is not an option.

b) Avoiding failure will not lead to success.

c) And failing is not defined as not succeeding.


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In other words, Sarasvathy (2001) suggests that the whole entrepreneurial experience is

comprised of different threads - successes and failures that vary in terms of degrees, as a result, it

is believed that entrepreneurship is the art of overcoming failures and gain success over time.

Sarsvathy (2004) describes opportunity as a possibility that has to be developed into an

opportunity. Two most common approaches to recognize opportunities are identification and

development. (Ardichvili et al, 2003) These approaches will be researched further in this study.

The education of an entrepreneurial firm is immensely affected by the characteristics

and values of the principal entrepreneur, and forced by their irrefutable predisposition in

relation to factors such as risk and innovation, consequently it allows the entrepreneur to be more

flexible and make use of the opportunities that arise. The culture of entrepreneurial firms is

largely influenced by the attributes and values of the central entrepreneur and driven by their

positive attitude towards risk and innovation that allows for more flexibility as they explore and

exploit opportunities.(Stokes, 2000) There will be an assessment carried out and in an effort to

highlight the risks that entrepreneurs are exposed to; entrepreneurial activity is risky and poorly

diversified (Galina Vereshchagina and Hugo A. Hopenhayn, 2009). Risk plays a big role in an

entrepreneurs project and it is a phase he individual has to overcome.

In a study that was published in the Entrepreneurship Research Journal, the entrepreneurs

were divided in two other categories necessity and opportunity entrepreneurs. The researchers

argue that the amount of necessity entrepreneurs rose by sixteen twenty percent, stating that the

recession has a positive effect on entrepreneurship. In Ireland, most entrepreneurs are driven by

opportunity (69 percent) (GEM, 2011), the following data shall be researched further through the

use of surveys / questionnaires.

There are a huge number of studies about entrepreneurship in the general population;

however this research will focus on a random number of entrepreneurs for the purpose of

gathering the information about their experience in general. Furthermore, the data shall be

converted in a guide that will enable future entrepreneurs to be more aware of the threats and the

opportunities altogether.


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2.2 Importance of Entrepreneurship

The role of an entrepreneur in a given industry is to ultimately create jobs and through that

inject finance in the economy. Hence, they are major contributors to economic growth,

development and prosperity. (Schramm, 2006) The firms that are created by them are responsible

for almost all economic activity outside of government. Along with that, entrepreneurship and

innovation are depicted as being the cornerstones of having a competitive national economy. The

European Union recognizes the benefits of entrepreneurship as follows:

Job generators and development pushers

Competitiveness

Discovering personal skills and potential

2.3 Entrepreneurs and Opportunities

The definition of opportunity (recognition) is a term that is still difficult to explain; based on

the definition that was created by Christensen and Peterson (1990), Singh and Hills (2000) havestated the following: we define opportunity recognition as perceiving a possibility for new

profit potential, an opportunity is a favourable set of circumstances that creates a need for a new

product, service, or business. (Kaizer, 2008)

Kaizer (2008) also identified four elements of an opportunity:

1) Attractive

2) Timely

3) Durable

4) An opportunity has to be attached to a product, service or business, which adds value

for the end user.

Kaizer (2008) reflected that an idea is different from an opportunity, recognizing a few

differences:


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a) An idea is a thought

b) Many entrepreneurs fail not because they did not work hard, but because initially,

there was no real opportunity.

An opportunity can be identified and recognized if the entrepreneur is capable to observe the

trends, solve a problem and find a niche in the market.

1. Economic forces

An economic force is perceived as something that can affect the consumers level of

disposable income. A situation that can serve as an example is a drop in the interest rates,

which in turn, which will increase the furniture and home construction sales. An

entrepreneur should be capable of tackling these forces by studying and observing the

changes or purchase the market forecasts.

2. Social force

Kaizer (2008) identified a few social trends that can allow the creation of a new

opportunity:

a) Family and work patterns


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b) The aging of the population

c) The increasing diversity of the workforce

d) Globalization of a given industry

e) The increasing focus of the population on things like health care and fitness

f) The development of the Internet and computing industry

g) New types of music and different types of entertainment

h) The constant increase of people buying smart phones over cell phones

3. Technological factors

a) Given the fact that technology advances at a quick pace, it is vital for the

entrepreneurs to be at the top of their game, in terms of how new technologies affect

the current and future opportunities.

b) Once a technology emerges, along with other products appear.

c) Developing technologies are often linked with economic and social changes to create

opportunities.

4. Political factors

a) New laws may create new opportunities for the entrepreneurs

b) Unstable political conditions discourage the creation of new ventures

c) High taxes usually discourage entrepreneurs

Kaizer (2008) states that an opportunity is just another problem which requires a solution,

some businesses were just created to solve a problem that occurred in an industry, Norton Anti-

virus was designed to get rid of any problem that may occur with the end users PC. Essentially, a

problem should be seen as a business opportunity by the entrepreneur.

Furthermore, Singh (2000) stated that there are two ways that the opportunity can be

converted in profit:

a) Creation of a new venture

b) A vital improvement to an already existing firm

Cooper (1981) suggested that entrepreneurs perceive opportunities on the basis of an intuitive

and informal feel for the market. GEM (2012) (Global Entrepreneurship Monitor) in their Global


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Report noted that seven out of ten individuals see good opportunities to start a business while at

the same time nearly the same amount of individuals say that the fear of failure would prevent

them to set up a business. Why do I bring fear into this equation? The current economic

uncertainty in the world play a really huge role in the opportunity recognition process, as most of

the individuals dont even try to look for opportunities, because they know already, its like a

message imprinted in our minds, that says: If you start a business, you will certainly fail. GEM

Ireland posted quite useful information in 2012, stating the following: Few people see

entrepreneurial opportunities; The very low prevalence rate at which people in Ireland are seeing

opportunities for new businesses (26 percent) showed no signs of any real increase in 2011 over

2010 and continued at historically low levels.

Kirzner (1973), insists that Proactiveness is a characteristic of an entrepreneur that will help

him take the lead against the competitors and it will support them gain insights into market

opportunities through this very skill. Kirzner (1973) assumes that the knowledge of individuals

that are trying to enter the market is insufficient and he believes that there are always

opportunities to gain unknown profits and the entrepreneurs role is to identify and use these

business opportunities before others do. Attitudes and stances in some instances towards

business opportunities, and the motives that make an entrepreneur to start a new venture is also

one of the factors that have to be examined.

For instance, take as an example the Apple company, which is probably the most

innovative company in the world, they have entered an already established market (PC Market)

but the company created something totally different, it was an opportunity that Steve Jobs

created. The product offered years ago was hard to imitate, to some extent, this is what Kirzner

(1973) meant, the only difference is that the companies that were already in the market had

insufficient knowledge about the entrants product. Scott (2000) supports Kirzner (1973) by

saying that it all depends on prior knowledge and context how they recognise and understand

business opportunities.

Opportunities can be found not only by searching for new ideas in the market but also by

socializing or networking. A strong network can help the entrepreneur identify new opportunities

by opening for him new ideas and by improving the level of creativity. There could be many

opportunities available for the entrepreneur in the market, if only they could find that useful

piece of information. (Nieuwenhuizen, 2008)


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Cooper et al. (1995) in their survey of actual conditions analyzed the information seeking

process and concluded that the actual conditions of these activities differ and it depends whether

the entrepreneurs had prior knowledge about the business area they were creating the venture and

whether they were confident in their success.

2.4 Role of Universities as a source of creating opportunities

The term entrepreneurial university was coined by Etzkowitz (1998) to describe

instances in which universities have proven themselves critical to regional economic

development.

Universities play a really important role in the entrepreneurial development and can be

considered as an opportunity that the entrepreneurs should mainly look after. These institutions

do provide knowledge and offer a path as to how things should be done, but many entrepreneurs

and practitioners say that this is not primarily something that an entrepreneur should strive to

achieve. However, there have been few theoretical studies with regard to universities.

2.5 Challenges from an entrepreneurs perspective

One of the biggest challenges that face the entrepreneurs is risk, but this is the cost that the

venture creators take upon themselves in order to convert an opportunity or idea into a profitable

business. In order to minimize risk, considerable resources have to be spent; networking is one of

the most vital, along with the procurement of the funds.

Birley (1985) has identified two types of networks for entrepreneurs:

a) Formal (investors, accountants, lawyers)

b) Informal (family, friends and business contacts)

Birley (1985) suggests that informal contacts are the most the most helpful overall in the

business creation process. However, it is not simple for the entrepreneurs to gather miscellaneous


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information from their social networks in order to create long term, captivating themes of

enterprise and particularly to try and apply them. The entire methodology is not a plain linear

series of good inputs producing good outputs. There are several of possible difficulties that could

arise from describing the entrepreneurial processes in theory and they are not really identified

and infrequently answered.

One of the major complications that the entrepreneurs encounter during the start-up

process is the funding. It was concluded that the majority of the respondents came from skill-

based or managerial backgrounds, without having any experience in the finance sphere. Hence,

the help that they sought probably was outside their experience or their business contacts. Of

course, in 1985 the world (England, in particular) was in a different situation but yet, GEM in

other of their reports concerning Ireland pointed out that access and availability of finance was

still perceived as a constraint by the majority of the respondents. Solutions that were proposed to

fix the financial problem were:

a) Push the Government to pressure the banking sector, as a result, the banks could provide

finance on more reasonable terms for start ups and companies that require finance to

continue development.

b) Reduction of VAT/other taxes for new ventures

Recession and the associated rise in unemployment is to be considered as a factor

influencing the vast majority of people that try and create to create new ventures; this is

happening because people were left without jobs and the recession challenges them to create new

job for themselves.

The current recession had a very huge impact on the amount of people in Ireland perceiving

new venture ideas. The rate in 2011 at 26 percent is similar to the rates in 2010 (23 percent) and

2008 (27 percent). The current rate, however, is significantly below the rates that prevailed in the

years during the Celtic Tiger - 2007 (46 percent), 2006 (44 percent) and 2005 (52 percent).

(Global entrepreneurship monitor, 2012)

Additionally, there are three problems that the entrepreneurs are likely to face at their start up

stage: adequate sales development plans, ideas that might be profitable and of course

acquirement of funds which is the most important, furthermore, all these three problems can be


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incorporated into one which is the business plan.This is one of the biggest challenges that the

entrepreneur is going to have, as a good and effective business plan can ensure that the business

moves ahead. Although, research proves that 50 percent of the entrepreneurs start their business

without a business plan put in place. The following might be wrong for the current economic

climate and the weight that a business holds has probably doubled.

Why then an entrepreneur should consider writing a business plan? Flren (2008) identified a

few key points:

The business plan acts as an agent where the entrepreneurs thoughts are capable of

materializing

Project the vision of the enterprise

Establish the identity of a company

Allows the company to avail for financial backing

Manage the business

Bruyland (2001) suggested that the business plan should answer the following three

questions:

1. What does the entrepreneur want?

2. What is the entrepreneur capable of?

3. What does the entrepreneur intend to do?

The business plan is comprised of three main elements: management, planning and

communication (SBA, 2004) There are several of issues that a novice might face, way before

engaging in the creation of a new business plan, such as the question what makes a business

plan good?

Berry (2000) provided a list of questions that should be answered essentially by the

entrepreneur, but the key points are:

A business plan should have a simple structure

Comprehendible (does it communicate the contents easily?)

Realistic (sales targets, expense budgets)

A business plan should be complete and include all the necessary elements


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Nevertheless, a business plan does not give a guarantee, but it definitely helps reduce the

percentage of failure for a business. Speaking of failure, many entrepreneurs admit that in their

careers they were followed by failures, but the difference between the entrepreneur and an

ordinary person is that the entrepreneurs are equipped more efficiently to handle failure.

Fear of failure is a really big issue currently, not only in Ireland but across the World. It can

cause the entrepreneurs to stop before starting a new venture or just cease the operation of their

business in a given industry.

J. Robert Mitchell and Dean A. Shepherd (2011) have identified 3 types of fear that can

occur:

c) Fear of devaluing ones self-estimate

d) Fear of upsetting important others

e) Fear of having an uncertain future

Hence, people tend to care what other people think about them, same things apply to

entrepreneurs, as they are humans, too. Entrepreneurs fear to give it a shot because of the

feedback they might get back and to some extent, failing at something may affect

psychologically the person as he/she could think that they do not possess the skills required to be

successful. Fear of upsetting important others shouldnt be apply as much to the Irish young

entrepreneurs as there was no data found that suggesting that. Yet, fear of having an uncertain

future is probably one of the most common out of these three, as it closely relates to what the

possible entrepreneurs-to-be do nowadays; in order to avoid uncertain future the youngsters

choose to immigrate to countries like Australia, Canada or USA where this uncertainty is lower,

due to the fact that those countries are economically more stable than Ireland or Europe for that

matter.

2.6 Conclusion

As mentioned at the beginning of this paper, to become an entrepreneur is probably one of

the toughest tasks and it requires a lot of determination and the same amount of work to be put

into it. Whether you are or willing to become a necessity or opportunity entrepreneur, a risk taker

or a safe player, always bear in mind that, times like these are crucial for many people across the


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continent, these are times that scream for action - not only from governments, rich and influential

groups, banks and so on, but from the people as well. People should be more opportunistic,

manage fear and against all odds, try and convert failures into success. Relying on the help of

other individuals (ie IMF) will not solve the problem, it will only postpone it.

Finance is sought to be one of the major constraints in the current economic climate but lets

not forget, that the World has seen worse times than this and people still managed to overcome

those obstacles and turn a problem into a solution.

"When you reach an obstacle, turn it into an opportunity. You have the choice. You can

overcome and be a winner, or you can allow it to overcome you and be a loser. The choice is

yours and yours alone. Refuse to throw in the towel. Go that extra mile that failures refuse to

travel. It is far better to be exhausted from success than to be rested from failure."

- Mary Kay Ash, founder of Mary Kay Cosmetic

Chapter 3:Methodology

3.1 Introduction

This chapter presents the selection process of the appropriate methodology for this research

study along with specific justification for the selection. The chapter restates the research problemto design the conceptual framework for the study. In addition, the chapter contains (1) research

approach, (2) research strategy, (3) data collection methods, (4) sampling methods, (5) data

analysis method, (6) research ethics and ends with appropriate conclusion. The following

research methodology will gather relevant data from specific individuals entrepreneurs. A

database will be created that will compile all the material gathered from the subjects which in

turn will allow the research to have a more complete understanding as to what are the main

issues that face the young innovators.

3.2 Overview of Research Methods

For having the most credible as well as all-inclusive researched facts, in this research work it

is intended to employ a research methodology which is a well-thought reflection of the


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qualitative research approach. By employing this research approach, reliability of the concluded

outcomes could be achieved in their entirety. The main research tool will be qualitative

epistemology rooting at the importance of locating the research within different cultural contexts.

Strauss and Corbin (1990) said that qualitative methods are used to better comprehend any event

about which little is yet know but they can also be used to gain new perspective on the matter

about much is already known.

3.3 Conceptual Framework

The problem has been identified in the career development for young entrepreneur at initial

level, however, different studies have found that practitioners are using strategies to create and

design effective policies for young entrepreneurs, but there is lack of research in identifying the

key challenges and appropriateness of available opportunities to this particular group of business

owners. This research study has been designed to identify and analyze the challenges and

opportunities for young entrepreneurs. In this view, the conceptual framework of the study is as

follows:

3.4 Research Approach


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The research approach can be defined as method, which is adopted in conducting a

research. Two types of research approaches used in the academic research including qualitative

and advocacy or participatory (emancipatory) research. The selection of research approach for

the study depends largely on the research purpose and the research questions. In order to

determine the most appropriate research approach for this study, all the research approaches will

be reviewed for their appropriateness and effectiveness.

(a) Qualitative Approach

The qualitative approach is the one, which is related to social constructivist

paradigm and can be single out that socially constructed nature of the reality. In

addition, qualitative approach entails various research activities such as recording,

analyzing, and attempting to explore in-depth purpose and significance of nature,

contradictory beliefs and behaviours (VanderStoep and Johnston 225). The main

advantage of using the qualitative approach is that it provides in-depth and rich

information related to the problem or population under study. In this approach, just

one technique was be utilized to produce a result on focus group such as a

questionnaire. .

(b) Advocacy or Participatory (Emancipatory) Approach

Advocacy or pragmatic research approach is the one, in which research needs to

answer to the need of the vulnerable population (VanderStoep and Johnston 221).This study is appropriate for conducting research on the political agenda and aims to

launch positive change in the society.

Using quantitative approach for the study is not appropriate because there is no positivist or

post-positivist paradigm involved in this study. Moreover, this study does not aim to gather

statistical information such as financial data and so on. Similarly, using pragmatic or mixed

approach is also not suitable for this type of study, as study contains no statistical data to be

converted into numeric data. For this study, qualitative approach is appropriate because the

population of the study is composed of entrepreneurs. Therefore, the response of the

entrepreneurs is of great importance in the study and for better understanding of the result,

conducting interview will be appropriate.

3.5 Research Strategy


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The research strategy is denoted as a research plan of how to respond to the research

questions (Saunders 236). There are distinctions in the research strategy including survey, case

study, grounded theory, ethnography, and action research. According to Saunders, the research

strategy can be outlined as follows:

(a) Survey

Survey, a deductive approach, is the most common strategy used for business

research, and allows gathering large amount of data from a sampled population but in

economical way. Survey is conducted through questionnaire and allows comparison

and standardized data (Saunders 85).

(b) Ethnography

Ethnography involves data collection by the means of examination of the

participants, interviews, questionnaires, and others. Thus, ethnography is aimed at

interpreting and reading the nature of problem of study (Flick 312).

(c) Action Research

Action research is the process in which the researcher is part of the study and the

most common method used for such strategy includes survey method because the

study entails collection of a large amount of data from a sampled population. For

conducting survey, questionnaires and structured interviews are designed and

developed. The advantage of using action research strategy is that it provides easy

comparison of the data.

For this study, action research is appropriate because survey method under the study will

allow gathering valid and realizable data.

3.6 Data Collection Method

In the research, data collection method is the process, which encompasses the collection of

data for the research (Harrell and Bradley 125). Different sources of data collection include

documents, observations, interview and questionnaires. Distinction and diversity in the sources

of data collection is considered important for enhancing the effectiveness of the study. According

to Yin, the major strength of data collection is that there is diversification in the sources of

evidence. There are two types of data collection methods including primary data and secondary

data collection methods.


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(a) Primary Data Collection

Primary data is the data, which is collected specifically for the research, and it is

gathered using different techniques such as interviews and questionnaire survey (Yin

225).

(b) Secondary Data Collection

Secondary data is the data, which is collected for providing the support to the

study problem and research methods. There are different ways of collecting

secondary data including books, journals, documents, periodicals and archives (Yin

225).

In this study, both primary and secondary data will be gathered to reach to accurate result

of the study. Therefore, secondary data will be collected using different books, journals, articles,

archives, academic documents and periodicals. Moreover, different online articles and eBook

databases will be used. Primary data will be collected through structured questionnaire, which

will be used to hold interview with 25 young entrepreneurs. Since the selected population is

relatively large enough to gather valid data, therefore, the questionnaire will help in observing

the response of participants, including their behavior, attitude, thoughts and action (Carter 120-

125).

In addition, it is found that using distinct data collection techniques can help in acquiring

the data that is not possible to gather using simple data techniques (Carter 125-130). Studies haveconcluded that using diversified data type can help in gaining better results while combination of

the data type is found effective in terms of overcoming weaknesses of one data type

(VanderStoep and Johnston 125). The next part of the chapter defines the interviews and

questionnaire design for primary data collection of the study.

Questionnaires Designed

The interview and questionnaire design used in this research paper is as

follows:

Questionnaire

Questionnaire is defined as a structured method for collecting data in a

research study and there are two types of questionniare including closed-ended

and open-ended questionnaire (Wilkinson and Birmingham 10-20). However,


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there could be combination of both questionnaire types. The types of questions

are defined as follows:

Closed-ended Questions

Closed-ended questionnaire is used with simple answer choices while further

used for clarifying the facts relate to study. Closed-ended questionniare is

appropriate when in a consumer survey there is need to ask about shopping habits

of the consumers. Moreover, the advantage of using closed-ended questioniare is

that it is used to cover large population and can be easily analyzed (Wilkinson and

Birmingham 10-20).

Open-ended Questions

Open-ended questionnaire is used to allow the participants to expresses

themselves in a better way during the answering process of questionnaire because

it provides respondent with the opportunity to write an answer rather than merely

ticking boxes. In addition, the disadvantage of using open-ended questionniare is

that it is difficult to administer and analyze (Wilkinson and Birmingham 10-20).

For this research study, both closed-ended and open-ended questionnaire are used.

Likert Scaling Questions

Likert scaling was used to gather qualitative data that is relatively difficult to

measure.

The questionnaire was comprised of twelve closed-ended questions,five open-

ended and one scaling question. Because this study covers a relatively large number

of population, using more closed-ended questions will enable to analyze the data

more easily.

3.7 Sampling Method

Sampling method is defined as selection of population for the study, according to

Vanderstoep and Johnston, there are two different ways select the population of the study

including random and non-random sampling (236-265).


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Random Sampling: According to Vanderstoep and Johnston, random sampling is the

sample in which each member of the sampling is given equal opportunity to be selected for the

study.

Non -Random Sampl ing:According to Vanderstoep and Johnston, non-random sampling

can be defined as the one in which each member of the sampling has not equal opportunity to be

selected for the study.

The sampling method selected for this study is random sampling in which 25 young

entrepreneurs had equal chance to be selected for the study.

3.8 Data Analysis Method

Data analysis is defined as the process to inspect and transform the data into useful and

effective information to be interpreted (Wolberg 52-63). There are two approaches for analyzing

gathered data namely qualitative and quantitative approach (VanderStoep and Johnston 87-89).

(a) Qualitative Data Analysis

In qualitative data analysis, text, content and other descriptive data is analyzed

using various techniques such as content analysis, quasi-statistics, and analytic

induction (Dey 89). Moreover, qualitative data analysis is appropriate when

observation has to be made for the impression and for this reason; data is observed

and analyzed to interpret in a structured and quantitative form.

(b) Quantitative Data Analysis

In quantitative data analysis, hypothesis and variables of the study are measured

using numeric data gathered from primary data collection. Moreover, different

techniques of quantitative data analysis include descriptive analysis and statistical

analysis. According to VanderStoep and Johnston, quantitative data analysis is

apporpiate when there are clear hypothesis, and variables in the study to be measured.

For this study, the most appropriate data analysis technique is qualitative data analysis.

3.9 Research Ethics

There are some ethical concerns of the study, which may be stated as code of ethics

including plagiarism issues and conflict of interest (Wilkinson and Birmingham 450). The

standards for the ethical consideration for the study are composed using law, philosophy and

sociology. Therefore, the code of ethics for the study is outlined as follows:


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(a) Plagiarism

Plagiarism can be defined as the act in which the ideas, concepts, and theories of

other researchers are used without giving credit to them. Using the work of others

without acknowledging is illegal act, which is subjected to punishment because it is

considered same as that of theft of original author and writer. Therefore, in order to

avoid such type of issue in this paper, this paper provides complete and appropriate

bibliography with in-text citation.

(b) Conflicts of Interest

The conflict of interests happens when the obligations of any individual and

organization related to the study conflicts with the personal interests. In addition, the

conflict of interest can be confirmed using the considerable issues and challenges

related to the study. However, the research conducted is subject to particular conflicts

of interests. Therefore, certain attempts are made for identifying the conflicts of

interests for overcoming the issues.

3.10 Limitations

Even though the research has accomplished all its aims, there were several of limitations.

First, the population used to conduct this research was relatively small and many of the

respondents were skipping the questions, which had a negative effect on the data collected and

many questions remained unanswered. Secondly, all the research was done only by the author,

which means that a certain degree of subjectivity may be found in this research. Also, in relation

to the Likert Scaling questions, an important defect persists within the scale as a result of its

usage of terms such as 'Very Important' and Quite Important, considering the fact that the

phrases are unclear and the respondent might not see any difference between one and another.

3.11 Chapter Summary

This chapter identified and discussed research methodology in terms of selecting the most

appropriate research method for the study. In this regard, the chapter presented conceptual

framework while determined qualitative approach as approach for the study. In addition, chapter

also identified research strategy, data collection method, sampling method, data analysis method


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and ethical consideration. The next chapter is the results and findings, which presents the

findings of the study based on the questionnaire and interview held with young entrepreneurs.

Chapter 4 Findings

4.1 Introduction

After the illustration of methodology and the basis of the selected methodology, the

results can be provided for the study conducted in this paper. Therefore, the fourth chapter is

illustrating the results and findings of the interview conducted using the questionnaire.

4.2 Results & Findings

Response rate

Initially, there were fifty questionnaires sent to entrepreneurs and other business owners.

However, twenty six of them did not complete the questionnaires; therefore, twenty four

questionnaires were considered valid. The questionnaire was compiled on surveymonkey.com

and was distributed through the use of Survey Monkey.

Demographic profile

The profile of the respondents is analyzed in terms of age and nationality.

Responses of Question 1


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Age of respondents

Please select your age group:

Answer OptionsRespon

se PercentRespon

se Count

19 and under 8.7% 2

20 29 87.0% 20

30 39 4.3% 1

40 49 0.0% 0

50 59 0.0% 0

60+ 0.0% 0

answered question 23

skipped question 1

Analysis of Question 1


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Results from this question clearly depicts that the majority of the respondents interviewed in

this research were between 20 and 29 years of age and thus, support this thematic study where

young entrepreneurs were of main concern.


Gender of the respondents

What is your gender?


se PercentRespon

se Count

Female 18.2% 4

Male 81.8% 18


skipped question 2


The above illustration shows the gender of the respondents. The number of the female

respondents eighteen percent is low in comparison to the male eighty two percent, with the

total of four for female and eighteen for male. Results depict that the majority of respondents


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were young males. This reflects that young males are usually more inclined towards starting up

their own businesses than their women counterparts.


Nationality of the respondents

What is your nationality?


se Count

24


skipped question 0

Nationality Number

of

respondents

Irish 7

Russian 3

Moldovan 11

Romanian 3


Majority of respondents in this research work were belonged to Moldova. However, people

from other national identities like Irish, Russian and Romanian also contribute the research work

to a significant extent.


Level of exposure to Entrepreneurship

Were you exposed to entrepreneurship as a child?

Answer OptionsRespons

e Percent

Respons

e Count

Yes 38.5% 5No 61.5% 8

If answered Yes (please specify) 4


skipped question 11


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People, who replied with Yes, further replied with following information:

Number If answered Yes (please specify)

1 family business

2 Selling yeast on the market

3 dealing second hand mobile phones

4 Family business


Quite a few respondents reported to be familiar with entrepreneurship from their childhood

as only 4 respondents out of the total had know-how of what entrepreneurs are when they were

in their childhood period. However, family business has appeared to be a common source of

familiarity for most of the young entrepreneurs in different societal settings.


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Respondent 1 and 4 indicated that they were exposed to entrepreneurship because of the

family business.

Respondent 2 was selling yeast on the market, this way the respondent developed his selling

skills.

Respondent 3 was selling second hand mobile phones, which as well, developed his selling

skills in an early stage of the life.


Opportunity drivers

What motivated you to start your own venture?


e Count

12


skipped question 12

What motivated you to start your own venture?


e Count

12


skipped question 12


50% of the respondents did not respond to this question. However the responses we got in

this regard were quite obvious and common. Majority of respondents, who attempted this

question were of the similar idea that money was the primary motivational factor that brought

them towards entrepreneurship. However, respondents will of working for their own self also

play a major role in their motivation of being an entrepreneur.


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Responses of Question 6Financing the business


Figure 6 shows the channels of finance that the entrepreneurs preferred to use to create the

venture. Seven respondents (fifty four percent) have chosen to save their money and finance the


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business with their own capital. Five entrepreneurs (thirty eight percent) appealed to the help of

private or personal investors and the rest of the respondents (twenty three percent) used the

support provided from the banks. Therefore, it is important to note that fewer entrepreneurs

preferred to fund the new venture with the aid of banks and more respondents rely on their

personal capital. This reflects that young entrepreneurs often find it difficult to get their bank

loans approved or search for some personal investors for financing their businesses due to lack of

experience and contacts.

Responses of Question 7Most effective source of finance

What has been your most effective sources of financing over the years?

Answer Options Response Cou

9


Number

Response Text

Categories

1 Bank Loan

2 Bank Loan

3 Burrowed money from friends

4 Bank Loan

5First of all it was bank loan, and then I found a business partner who invested his money to expaour business.

6 Personal money

7 Retained earnings

8 Personal savings

9Owncapital


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The following table eliminates partially, the question that a novice entrepreneur faces

before creating a new venture. Which will be the most effective source of finance? Nine people

answered the question and fourteen decided to keep the answer to themselves, out of nine

respondents four found bank loans to be the most effective source of finance, other four financed

the creation of the venture through personal money and only one respondent has borrowed

money from friends. Statistically speaking, one in five Americans have financed their business

through someone they know well, fifty percent lend money from a family member. Family and

friends invest one hundred billion dollars each year in new businesses.

A small comparison that will help create a general picture of how much a billion dollar

is; Ireland has been given sixty seven billion euro bailout from the IMF and it will take years

before the Government will be able to pay back the debt.

It is clear from the data gathered that entrepreneurs underestimate the usefulness of their

peers or just avoid asking for money because of that uncomfortable feeling when people go

around and to some extent, beg for money.


Importance of a business plan

Fromyour pointof view,howimportantis abusiness

plan for anentrepreneur?

AnswerOptions

Notat all

important

Slightly

important

Fairly

important

Quite

important

Very

important

Rating

Average

ResponseCount

0 2 1 5 5

4.00

13


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In a five point scale question, Not at all important weighting 0 and very important a

maximum amount of points 5, the respondents had to pick one point between the ranges of

answers. Thirteen respondents answered the question, out of thirteen five rated the importance of

a business plan very important, another five consider it quite important, only one stated that

it is fairly important, two rated it as slightly important and none of the entrepreneurs

considered the use of a business plan not important. Not every respondent answered this

question; however, the responses we have gathered via interviews depicted that overall

respondents are satisfied with the idea that a proper business plan is essential before setting up

any new business as it can help people analyzing the do and donts of business with respect to

the twists and turns of the associated market.

The average rating of the scale is four (4.00) which without a doubt communicates to the

researcher, that the business plan is quite important. Thus, in order to ensure success of the

venture, the novice entrepreneur should spend a lot of time crafting this work of art.


Challenges seen as a difficulty


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Majority of young entrepreneurs consider that raising adequate capitals through business

operationsis the most important and the most difficult aspect for the success of any newly

established business. According to our respondents, some other key challenges that young

entrepreneurs usually face include finding a right location for the business, coping with market

competition, efficient management of cash and other financial aspects of the business, alignment

business with the market trends and operating business environment. All these challenges play a

critical role in success or failure of any business.


Major Risks

In terms of risks, which is the biggest risk that your business has

encountered?


e Percent

Respons

e Count

Financial risk 61.5% 8Competitive risk 38.5% 5

Political and economic risk 7.7% 1


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Technology risk 15.4% 2

Other (please specify) 0


skipped question 11


Majority of the respondents reported financial risk as the most encountered business risk they

had to face in their business ventures. According to them, the probability of failure of business is

directly proportional to financial loss and thus, they are always at risk of loss. Apart from that,

ever increasing market competition is another risk factor that these entrepreneurs were extremely

concerned about as competition has direct impacts on the profit-making capabilities of these

businessmen.


Managing the risks

How did you manage those risks?

Answer Options Response Percent Response Count

Through focus 23.1% 3

Belief in yourself 61.5% 8Got committed 15.4% 2

Use of teamwork 30.8% 4




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skipped question 11


Self-confidence is the key of managing various business risks an entrepreneur can come up

with. The majority of respondents voted for self-confidence as an ultimate solution to overcome

business risks. Apart from that, 30% respondents emphasized upon team work as an adequate

option to manage various business risks.


Fear of failure

How much were you afraid of failure when you first started your own venture?

Answer

Options

Not at

all

concerned

Somew

hat

concerned

Fairly

concerned

Very

concerned

Rating

Average

Respons

e Count

1 5 6 1 2.54 13


skipped question 11


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Most of the respondents were concerned about their new ventures however, in totality they

were not afraid as being an entrepreneur, they had firmly believed in their capabilities and their

business idea.


Managing fear of failure

How did you manage to conquer that fear of failure?


e Percent

Respons

e Count

Acknowledgment of fear 30.8% 4

Getting busy 7.7% 1

Setting goals 69.2% 9

Follow your passion 30.8% 4Other (please specify) 0


skipped question 11


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The respondents reported goal-setting as the most effective way of reducing fear of failures

for an entrepreneur. When one sets goals, he/she acts and plans accordingly to achieve those

goals and thus, reduces the chances of failures.


Whats the single most important reason for your success?


e Percent

Respons

e Count

Good product/service 23.1% 3Optimism 7.7% 1

Help from a mentor 0.0% 0Experience 38.5% 5

Good cash management 23.1% 3

Risk control 7.7% 1




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skipped question 11


Experience gained with the passage of time is the most important reason behind business

success as majority of respondents recorded experience as their single most significant reason of

success. Apart from that, effective financial management and quality goods and services alsomake business successful.


Avoiding bad advices

Whats the worst business advice you have ever

received?


e Count

8answered question 8

skipped question 16



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This question was attempted by 40% of the total respondents depicting people are not very

sure about the worst business advice they have ever received. However, those who replied to this

question clearly mentioned that the advice of work less and put less efforts was the most

annoying and worst advice for the respondents being entrepreneurs.


What three pieces of advice would you offer entrepreneurs starting

out today?


e Percent

Respons

e Count

1 100.0% 7

2 100.0% 7

3 100.0% 7answered question 7skipped question 17


Quite a few people responded to this question. However, those who attempted this question

firmly advice the upcoming entrepreneurs that they should be confident on their capabilities, they

should set their goals and plan accordingly, they should work hard to offer best quality goods


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and services, they should value their customers and most importantly they should take the stand

and be the first. According to the respondents, there are the essential traits of being a successful

entrepreneur.


In your own opinion, what are the main sources for new venture

opportunities?


e Percent

Respons

e Count

Inefficiency in the market 38.5% 5

Franchises 30.8% 4

Talk to customers 46.2% 6

Employees input 23.1% 3

Other (please specify) 0answered question 13

skipped question 11


Majority of the respondents i.e. 45% of the total population perceived that customer

interactions and communications as the main source of opportunities for any new business


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venture. Moreover, inefficiencies in current markets and input from employees can also be the

sources of a successful business venture in different business domains.


If you were to start another business, what might it be?


e Count

9

answered question 9

skipped question 15


The rate of response in this case was relatively low and almost 60% of the respondents

skipped this question. However, from the responses gathered in this regard, it can be established

that majority of entrepreneurs are looking up to IT industry for starting up their new businesses

due to the recently evolved IT world and its significance.

4.3 Chapter Summary

It can be concluded from the above chapter that the responses of the questionnaire

provided essential information for key challenges and opportunities experience by young

entrepreneurs in different domains. Moreover, the pie charts of each question provided the strong

evidences for the challenges and opportunities faced by them.

Chapter 5 Conclusions & Recommendations

Throughout this research a number of critical aspects of the underground entrepreneurial

experience in the afore-mentioned fields have been exhaustively identified and also endeavored


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to explore and explain various factors that may draw a clear distinction between majorities of

young entrepreneurs. The core findings from this projected research work reflect the results that

either have been already produced in previous research projects or have been extracted out from

the undertaken research work. Owing to the incorporation of plenty of resources, this targeted

research has presented a certain level of confidence in terms of its creditable outcomes. The

results made it clear like a crystal that the young entrepreneurs dealing with financial,

environmental and cultural lines, do stand at variance on various characteristics from the

traditionalists.

These result that are at show have insinuation for young business owners, educators as

well as those who are making the policies. This study Journal of Applied Business and

Economics gives us an idea about the individual context and encouragement for young

entrepreneurs is like a roller coaster ride which varies. The whole scenario that we have to

comprehend here is that young owners cannot be viewed as an equal in their respective subject

they are always given less or more challenges to tough it out at their own. Prospects for young

entrepreneurial education should be diverse and versatile, catering to young in different

industries and in every race of the society.

This paper has proposed a framework for addressing possible future research. Clearly, the

results of such research suggestions is a long-term goal for the young entrepreneurship sector,

but for once it must address if is serious about developing a fair and unfastened research arena

where every individual can prove their metal and all participants benefiting from membership in

such an arena. Acknowledging that there are differences in entrepreneurs across racial and

gender lines are important steps in demystifying the differences that exist. In an extensive study

the researchers Colleen E. Mills and Kylie Pawson (2009) created a model that shows how the

risks are addressed and avoided. It was determined that risks are part of an elimination process

and if eliminating the risks is impossible, the entrepreneur has to focus solely on the business and

ignore them until the risks turn into an operational matter.

Basing upon whatever have discussed and concluded, following recommendations could be

established from this research work:

There must be proper training and educational programs for especially young

entrepreneurs who are dealing with nontraditional industry.


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The government should arrange motivational and encouraging programs where along

with apt training, guidance of those who want to enter the industry should be possibly

provided.

Opportunities should be given to young entrepreneurs at national and international levels

to share their experience, acquaintance and novelty with the rest of the so that new types

of business could be learned and implemented within countrys economy so as to give

new horizons of economic boost.

Financial aid should be frequent and easily accessible to them. Moreover, government

should formulate a committee, which has to be unbiased, to monitor the loan facilities

and other financial assistance that could be aided to the young.

There should be several non-governmental organizations to help and support young in

this context.

It is highly recommended that in order to traditionalize nontraditional industries in the

investment and trade policies and more assistance should be given to them for their

prosperity as, their development is associated with countrys economic development.

And last but not the least, more research works should be frequented in this domain so as

to regularly highlight the severe problems faced by young in this industry so that

constructive measures could be anticipated.

Bibliography

1. Benton, 2004. Meso-Organizations and the Creation of Knowledge: Yoshiya Teramoto

and His Work on Organization and Industry Collaborations. Edition. Praeger. Pp. 7

2. Birley, S, 1985. The Role of Networks in the Entrepreneurial Process.Journal of

Business Venturing, 1, pp.8.


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3. Borch, O. J. (2011).Entrepreneurship research in Europe evolving concepts and

processes. Cheltenham, UK, Edward Elgar.

4. Brindley, C. (2005). Barriers to women achieving their entrepreneurial: women and risk.

5. Bruni, A.G., Gherardi, S., & Poggio, B. (2004a). Entrepreneur-mentality, gender and the

study of entrepreneurs.Journal of Organisational Change Management,17(3), 256-268.

6. Bruni, A.G., Gherardi, S., & Poggio, B. (2004b).

Documents

Challenges and Opportunities facing Young Entrepreneurs