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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.
Responses of Question 2
Gender of the respondents
What is your gender?
Answer OptionsRespon
se PercentRespon
se Count
Female 18.2% 4
Male 81.8% 18
answered question 22
skipped question 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 OptionsRespon
se Count
24
answered question 24
skipped question 0
Nationality Number
of
respondents
Irish 7
Russian 3
Moldovan 11
Romanian 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 OptionsRespons
e Percent
Respons
e Count
Yes 38.5% 5No 61.5% 8
If answered Yes (please specify) 4
answered question 13
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
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 OptionsRespons
e Count
12
answered question 12
skipped question 12
What motivated you to start your own venture?
Answer OptionsRespons
e Count
12
answered question 12
skipped question 12
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.
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Responses of Question 6Financing 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 7Most effective source of finance
What has been your most effective sources of financing over the years?
Answer Options Response Cou
9
Analysis of Question 7
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.
Responses of Question 8
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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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 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.
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?
Answer OptionsRespons
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
answered question 13
skipped question 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 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
Other (please specify) 0
answered question 13
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skipped question 11
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
Somew
hat
concerned
Fairly
concerned
Very
concerned
Rating
Average
Respons
e Count
1 5 6 1 2.54 13
answered question 13
skipped question 11
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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 OptionsRespons
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
answered question 13
skipped question 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
Whats the single most important reason for your success?
Answer OptionsRespons
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
Other (please specify) 0
answered question 13
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skipped question 11
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 alsomake business successful.
Responses of Question 15
Avoiding bad advices
Whats the worst business advice you have ever
received?
Answer OptionsRespons
e Count
8answered question 8
skipped question 16
Analysis of Question 15
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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?
Answer OptionsRespons
e Percent
Respons
e Count
1 100.0% 7
2 100.0% 7
3 100.0% 7answered question 7skipped 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?
Answer OptionsRespons
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
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 OptionsRespons
e Count
9
answered question 9
skipped question 15
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.
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.
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