Importance of Relationship Building
The first and the foremost importance of a healthy relationship is that it leads to mental peace and also a positive ambience at the workplace. One tends to enjoy his/her work if he/she has people around whom he can trust. Trust me; work would become a mere source of burden if you are asked to […]
Enhancing Employee Engagement and Driving Organizational Change Through Agile
The Twin Imperatives of Employee Engagement and Organizational Change It is no secret that engaged employees are the biggest asset that any firm can have. Indeed, when employees feel energized, motivated, and inspired to give their best, the organizational outcomes are positive. On the other hand, demoralized and demotivated employees often lower individual productivity and […]
Role of HR in Performance Appraisals
Human resource department plays an important role in designing and implementing performance appraisals. Infact, the HR team acts as mediator between the functional heads or reviewing authorities and the employee. It is the human resource team’s responsibility to ensure a smooth implementation of the appraisal process. Let us go through the role of HR in […]
Attrition and Compensation Management
Many studies have found that there is a direct causal linkage between the levels of compensation that a firm pays and the rate of attrition that it has. Attrition can be voluntary and involuntary, where the former is the employee quitting the company out of his or her own volition and the latter is the […]
Informational Training Methods
Informational training methods are basically used to teach facts and figures and for developing a change in attitude. There is a one way communication between the trainer and the trainee that involves the transfer of information without many deliberations. New policies, programs, code of conduct are transferred using informational training methods. Lectures, audio visuals, self […]
When the countries are focussed on creating and nurturing an environment conducive to Youth Entrepreneurship, it becomes imperative to study the current situation, identify the pitfalls and shortcomings and design new strategies to overcome and remove the obstacles and make the path easier and clear for the youth to pursue. The other area of importance happens to be to educate and empower the youth with the required knowledge, skills and training to enable them to become successful entrepreneurs.
When an interest in pursuing a new enterprise or becoming self employed has been generated in a young individual, he or she is likely to attend various courses and equip themselves with the required skill sets and knowledge to start the business. Identifying a good and viable business opportunity and proposition too can happen with a bit of market research and mentoring by the experienced entrepreneurs. When it comes to start the action towards setting up the business enterprise, the next set of barriers or obstacles will need to be surmounted. These barriers are mainly to do with financing options and documentation requirements. As the youth are inexperienced, they are unable to cope up with the requirements and find it difficult to get going smoothly.
Personal Savings & Borrowings from Family and Friends
In most cases the youth do not have any avenues for saving money and accumulating the margin money needed for business. They are often required to raise the initial capital through the support of family and friends. In such cases the amount of funds that can be put together would be meagre and not sufficient to get going. Very often the youth would have to repay the education loan taken for funding their studies and hence will already be in debt servicing mode leaving no possibilities for saving any money. Such youth are not considered to be safe and are perceived to be potential risk by the bankers.
Even if the youth has a very good business opportunity, the required technical knowledge and other capabilities to make it a success, financing the business becomes a major hurdle.
Borrowing From FI & Banks
The next option for the youth to finance their business venture is to approach banks and financial institutions to raise the required capital in the form of loan.
Overall, the youth find it very difficult to access finances for their start up ventures. Sometimes such difficulties can kill the entrepreneurial spirit or one could end up losing the business opportunity due to inordinate delays in arranging funding to kick start the business. This is the area where the Governments can get involved and help make it easier by providing solutions through special seed funding agencies, micro financing organisations and similar such networks that can back up the first time ventures of Young Entrepreneurs.
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