Entrepreneurial aspirations? No thanks!Date posted: 11.06.2014 | Author: Harry Bovensmann
The recently released Global Entrepreneurship Monitor (GEM) 2013 South African report, which revealed that only a quarter of South Africa’s youth is interested in becoming a potential entrepreneur, believe that they possess the skills and knowledge to start a business, and believe there are opportunities to exploit, while only 13% possess an intention to start a business in the next three years.
The report also revealed that 65% of youth-started businesses offered employment to more than one employee, and 7% offered jobs to 6 – 19 employees. This illustrates the substance of young individuals starting their businesses.
It is crucial that South Africa bridges the gap between the youth’s entrepreneurial aspirations and reality of establishing a business. Intentional entrepreneurs are an important stage in the entrepreneurial pipeline as a strong association exists between entrepreneurial intentions and actual entrepreneurial behaviour, and highlights why it is necessary to equip the youth with the right tools and knowledge to embark on an entrepreneurial venture.
There are a few key areas for young intentional entrepreneurs to contemplate in the next three years before starting a business:
- Deciding on the type of business is key,
- Determining the capital required to start the business and
- The experience needed to build the business.
It is also important that the youth have a realistic understanding of the amount of work required to start a business. This will not only prepare young entrepreneurs for their future business, but also lessen the chance of failure.