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 .............................................................8 1.4 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 entrepreneur’s 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

4 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 world’s 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 elementary differences 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 aims and 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 allinclusive way.

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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) have stated 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 Antivirus 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 don’t even try to look for opportunities, because they know already, it’s 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. 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) Attitudes and stances in some instances towards business opportunities, and the motives that make an entrepreneur to start a new venture is also

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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 entrepreneur’s 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 skillbased 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? Flören (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 one’s 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 shouldn’t 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 let’s 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 problem to 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 120125). 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 have concluded 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 openended 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 Sampling: 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 Options 19 and under 20 – 29 30 – 39 40 – 49 50 – 59 60+ Respon se Percent 8.7% 87.0% 4.3% 0.0% 0.0% 0.0% answered question skipped question Respon se Count 2 20 1 0 0 0 23 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. Responses of Question 2 Gender of the respondents
What is your gender? Answer Options Female Male Respon se Percent 18.2% 81.8% answered question skipped question Respon se Count 4 18 22 2

Analysis of 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.

Responses of Question 3 Nationality of the respondents
What is your nationality? Answer Options answered question skipped question Respon se Count 24 24 0

Nationality of Irish Russian Moldovan Romanian

Number respondents 7 3 11 3

Analysis of Question 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. Responses of Question 4 Level of exposure to Entrepreneurship Were you exposed to entrepreneurship as a child? Answer Options Yes No If answered Yes (please specify) Respons e Percent 38.5% 61.5% answered question skipped question Respons e Count 5 8 4 13 11

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People, who replied with Yes, further replied with following information: Num ber 1 2 3 4

If answered Yes (please specify) family business Selling yeast on the market dealing second hand mobile phones Family business

Analysis of Question 4 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.

Responses of Question 5 Opportunity drivers What motivated you to start your own venture? Answer Options answered question skipped question Respons e Count 12 12 12

What motivated you to start your own venture? Answer Options answered question skipped question Analysis of Question 5 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. Respons e Count 12 12 12

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Responses of Question 6 Financing the business

Analysis of Question 6 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 7 Most effective source of finance
What has been your most effective sources of financing over the years? Answer Options Response Count 9

Numbe r 1 2 3 4 5 6 7 8 9

Respo Cate nse Text gories Bank Loan Bank Loan Burrowed money from friends Bank Loan First of all it was bank loan, and then I found a business partner who invested his money to expand our business. Personal money Retained earnings Personal savings Own capital

Analysis of Question 7

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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.

Responses of Question 8 Importance of a business plan
From your point of view, how important is a business plan for an entrepren eur? Answer Options Not at all import ant 0 Slig htly import ant 2 Fair ly import ant 1 Qui te import ant 5 Ver y import ant 5 Rat ing Avera ge 4.0 0 Res ponse Count 13

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Analysis of Question 8 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 don’ts 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”. Responses of Question 9 Challenges seen as a difficulty

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Analysis of Question 9 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. Responses of Question 10 Major Risks In terms of risks, which is the biggest risk that your business has encountered? Respons Respons Answer Options e Percent e Count Financial risk 61.5% 8 Competitive risk 38.5% 5 Political and economic risk 7.7% 1

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Technology risk Other (please specify)

15.4% answered question skipped question

2 0 13 11

Analysis of Question 10 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. Responses of Question 11 Managing the risks How did you manage those risks? Answer Options Through focus Belief in yourself Got committed Use of teamwork Other (please specify) Respons e Percent 23.1% 61.5% 15.4% 30.8% answered question Respons e Count 3 8 2 4 0 13

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skipped question

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Analysis of 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. Responses of Question 12 Fear of failure How much were you afraid of failure when you first started your own venture? Answer Options Not at all concerned 1 Somew hat concerned 5 Fairly concerned 6 Very concerned Rating Average Respons e Count 13 13 11

1 2.54 answered question skipped question

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Analysis of Question 12 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.

Responses of Question 13 Managing fear of failure How did you manage to conquer that fear of failure? Answer Options Acknowledgment of fear Getting busy Setting goals Follow your passion Other (please specify) Respons e Percent 30.8% 7.7% 69.2% 30.8% answered question skipped question Respons e Count 4 1 9 4 0 13 11

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Analysis of Question 13 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.

Responses of Question 14 What’s the single most important reason for your success? Answer Options Good product/service Optimism Help from a mentor Experience Good cash management Risk control Other (please specify) Respons e Percent 23.1% 7.7% 0.0% 38.5% 23.1% 7.7% answered question Respons e Count 3 1 0 5 3 1 0 13

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skipped question

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Analysis of Question 14 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 also make business successful. Responses of Question 15 Avoiding bad advices What’s the worst business advice you have ever received? Answer Options answered question skipped question Analysis of Question 15 Respons e Count 8 8 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. Responses of Question 16 What three pieces of advice would you offer entrepreneurs starting out today? Respons Respons Answer Options e Percent e Count 1 100.0% 7 2 100.0% 7 3 100.0% 7 answered question 7 skipped question 17

Analysis of Question 16 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. Responses of Question 17 In your own opinion, what are the main sources for new venture opportunities? Respons Respons Answer Options e Percent 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) 0 answered question 13 skipped question 11

Analysis of Question 17 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. Responses of Question 18 If you were to start another business, what might it be? Answer Options answered question skipped question Analysis of Question 18 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. Respons e Count 9 9 15

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 country’s 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 country’s 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.

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