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The Importance of Due Diligence in Human Resource Management Processes
What is Due Diligence and Why is it Important for HRM processes? We come across the term Due Diligence in many contexts as part of our everyday lives. Indeed, Due Diligence is used in a wide variety of contexts and fields including finance, legal, and commercial transactions. Often, we are also advised to do our […]
Who is a Social Entrepreneur ? – Famous Social Entrepreneurs
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Challenges in Employee Retention
In the current scenario, a major challenge for an organization is to retain its valuable and talented employees. The management can control the problem of employees quitting the organization within no time to a great extent but can’t put a complete full stop to it. There are several challenges to it. Let us understand the […]
Phases in a Group Discussion: Introduction, Central Group Discussion and Summarization
To work in any organization, it is essential to work in a team because no organization can run with a single man. They mostly require workforce and people who can work well in a group and produce results. To evaluate these things, many organizations do conduct group discussion before a personal interview. Though there is […]
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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