ROLE OF YOUNG ENTREPRENEURS

ANILAMBICA KATA
Asst prof, AKNU
anila.ambica@gmail.com

ABSTRACT
Entrepreneurship gives young people an opportunity to work on their own skills and interests and
in the process, creating their own employment. Encouraging entrepreneurship in young people is
an important way of harnessing their enthusiasm, energy and ambition to contribute to economic
development. It is generally accepted that entrepreneurs “create jobs, increase innovation, raise
competition and are responsive to changing economic opportunities and trends. Young
entrepreneurs can also act as role models for their peers and, encourage others to follow their
example.
Young Entrepreneurs are no doubt catalysts of change and innovation. Entrepreneurship stems
from the need of fulfilling a gap that exists in the market and this sets the entire process of
development in motion. The entrepreneurial growth in our country has triggered a host of
economic benefits, together with new businesses, new jobs and new products and services. The
Government now also needs to play their part in encouraging this development and provide
opportunities for not just education directed towards building entrepreneurial skills but also
passing favorable plans/policies to strengthen the entrepreneurial ecosystem in the country.

Keywords: Entrepreneurship, triggered, entrepreneurial skills, enthusiasm, innovation, catalyst.

INTRODUCTION
Entrepreneurs are frequently thought of as national assets to be cultivated, motivated and
remunerated to the greatest possible extent.
Entrepreneurs can change the way we live and work. If successful, their innovations may
improve our standard of living. In short, in addition to creating wealth from their entrepreneurial
ventures, they also create jobs and the conditions for a prosperous society.
Many young fearless entrepreneurs have set the path for a wave of entrepreneurship in the
country and this entrepreneurial spirit has resulted in not just innovation but also in
entrepreneurship being recognized as the driving force of the market. Innovation is crucial for a
thriving economy and especially in today’s increasingly competitive world. In India,
entrepreneurship is accelerating innovative areas like Education, IT, Health Care etc and
generating solutions to many such problem areas. India has witnessed several innovative ideas
and businesses driven by start-ups thus leading to entrepreneurship emerging as a valuable input
to the economic growth of the country.
Economic slowdown is one of the reasons that has led to a downturn in employment
opportunities in the country. Unemployment amongst the youth is on the rise and in this regard
entrepreneurship is playing a key role in creating jobs. An entrepreneur is not just creating self
employment but also building a structure for small to large scale employment. As these
enterprises grow, the employment opportunities increase. In India, many start-ups that started out
as home based ventures are today employers to hundreds of individuals. A
company/entrepreneur with an innovative-idea has the power to build employment and in turn
stimulate the economy.
In the coming years, developing countries must rebalance their economies towards greater
domestic consumption, import demand and higher value business activity and hence,
entrepreneurship is vital to the future of developing countries.

HOW TO ENCOURAGE THEM

● In order to engage young people to choose entrepreneurship as a safe career choice, the
perception of entrepreneurs in the media is very important especially in the digital media.
Media should display high-profile programs showcasing entrepreneurs success stories
more frequently to motivate these youngsters as they are the driving force for any nation
to grow. We need flexible policy environments and funding to stimulate and build the
framework of an entrepreneurial ecosystem and more importantly, a ‘culture’ of
interaction and collaboration.
● Government can play a major role in bringing together stakeholders to create an
ecosystem which gives boost to entrepreneurship at the national, regional and local
levels.
As per reports shared by Accenture, Young entrepreneurs are the driving force behind job
creation in the G20 countries like India, Australia, China, Indonesia, Japan, Saudi Arabia,
United Kingdom, United States amongst others. Indeed, new Accenture research
concludes that 10 million more youth jobs could be created in G20 countries if existing
barriers to entrepreneurship were lifted.
● innovation ecosystem plays a key role as it supports and helps entrepreneurs to translate
their ideas into marketable products and services fostered by business-friendly
government policies which brings these innovators profit and success.
‘Open Innovation’, the term coined by Henry Chesbrough in 2003 which means as technology
elaborates and develops, companies began involving more parties as part of their innovation
efforts and hence, because of technology the whole world is connected. Bridgemakers play a key
role in today’s open innovation ecosystem. They help entrepreneurs to convert their idea from
concept to reality which brings them profitability. Large companies and Business incubators are
the two types of bridgemakers which help entrepreneurs in the above process.
In a broader sense, innovation is important to the advancement of society around the world. New
and innovative products can increase the standard of living and provide people with
opportunities to improve their lives If you can't compete on price, you'll need innovative
products and ideas to make your business stand out from the crowd.

HOW THEY CAN DRIVE ECONOMIC DEVELOPMENT

 1. Investing in products and services people need.
Entrepreneurs create new businesses in response to unmet needs and demands in the
market. That is, there is an opportunity to provide a product or service that is not
currently in existence, or otherwise available.
2. Providing employment opportunities.
New businesses need to hire employees. They create jobs and these economic
opportunities uplift and support communities through increasing the quality of life and
overall standard of living.
3. Commerce and regional economic integration
Technology has made it possible for small, young entrepreneur-led businesses to expand
into regional and global markets. When new businesses export goods and services to
nearby regions, these enterprises contribute directly to a region’s productivity and
earnings.
4. New technologies promote efficiency.
The ability to turn ideas into new products and services that people need is the fount of
prosperity for any developed country. Economic growth, generally speaking, is driven by
new technologies and their creative applications.
5. Addressing environmental challenges.
Innovation is crucial when it comes to addressing the enormous environmental challenges
we face today: combating climate change, lowering global greenhouse gas emissions, and
preserving biodiversity in the environment.
6. Innovation happens where there is competition.
In essence, there is a positive feedback loop among innovation, entrepreneurship, and
economic development. New and growing businesses represent the principal sources of
job creation and innovative activity in an economy, two factors that generally result in the
rising standards of living for all.

FOLLOWING ARE SOME OF THE MEASURES UNDERTAKEN BY THE PRESENT

GOVERNMENT TOWARDS BOOSTING THE ENTREPRENEURSHIP IN INDIA AND
ESPECIALLY THE START-UPS
● MUDRA BANK
Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public
sector financial institution in India. It provides loans at low rates to micro-finance institutions
and non-banking financial institutions which then provide credit to MSMEs. It was launched
by Prime Minister Narendra Modi on 8 April 2015.

● Ministry of Skill Development and Entrepreneurship

It is first time that MoS (Minister of State) has been given the responsibility of developing
entrepreneurship in the country, though this task has been undertaken previously by multiple
departments and agencies. UPA government witnessed entrepreneurship skill development with
the departments of MSME (Ministry of Micro, Small & Medium Enterprises), NDA is doing
under the scope of National Skill Development Agency.
 ● District level Incubation and Accelerator Programme
“District level Incubation and Accelerator Programme” across the nation will be a good start to
generate new ideas and promote entrepreneurship with all the necessary support. Though, it is a
positive program, but incubators are not a uniform beast. Several ventures are provided services
through different kind of incubators. Hence, a broad and nationally-accepted classification is
needed to comprehend the unique demands of resources from each set of incubators, to tackle
difficulties they encounter, and their paths for success

 SETU
The government is building up an approach to be known as SETU (Self-Employment and Talent
Utilization) which will strengthen all prospects of startups, and other self-employment initiatives,
especially in technology-driven areas.
By the time a great idea gets approval and the funds arrive, the people behind the ideas move on
to accept high-package jobs in multinational companies, now this big boost from the government
will help the budding entrepreneurs in making big.
● AIM Platform: ATAL Innovation Mission (AIM)
government has also established the AIM Platform or ATAL Innovation Mission . AIM is
established within National Institution for Transforming India (NITI) “to provide innovation
promotion platform involving academicians, and drawing upon national and international
experiences to foster a culture of innovation, research and development”.

 eBiz Portal for Starting a Business Easy

Government has put forward the creation of “an expert committee to examine the possibility and
prepare draft legislation where the need for multiple prior permissions can be replaced by a pre-
existing regulatory mechanism. This will facilitate India becoming an investment destination” by
facilitating the regulatory mechanisms. Further, the 2015 Budget also talks about strengthening
the EBiz Portal to make starting a business easy in India.

● Formation of eBiz portal

The first Government to Business (G2B) portal launched by the current NDA government is
owned by DIPP under Ministry of Commerce and Industry integrates 14 regulatory permissions
at a single place and has announced various labour reforms to boost job creation and
entrepreneurship. The step by government is a part of facilitating the ease of doing business in
India.

PROBLEMS FACED BY THEM

Although the potential rewards are great, starting a new business at any age is fraught with risk.
For younger people, however, the challenges are multiplied. Lack of experience, inadequate
financial resources, and a lack of self-confidence all contribute in one way or another to make it
tougher for a young entrepreneur than an older counterpart.
As a result, many young entrepreneurs fail to make the grade. But those that do succeed are those
who face the obstacles they encounter with determination and resolve. They know that their
greatest allies are the confidence to know that they will succeed against all odds, and the
willingness to learn from their mistakes. Here’s a look at some of the challenges young
entrepreneurs face and how they can work to overcome them.
1. Hiring staff
Rules need to be set up involving such aspects as working hours, vacation time, overtime pay
and work output. Salaries need to be negotiated, complaints against workers lodged, and people
might even need to be fired or laid off. That’s not even to speak of staff fitting the company
culture or of employees working together as a team.
Young entrepreneurs should make this process a little less onerous by being careful to hire
people who will not only have the right skills for the job, but will also fit in well with the
company culture. Take your time and consider each employee carefully; check all references and
do not allow yourself to be blindsided by glib talk. Get the smart dashboard that connects all
your business apps to deliver new insights. It’s Free.
2. Lack of capital
Almost all new ventures require seed capital i.e money that is available to see them through
those first rocky months or even years before they turn a profit. Some types of businesses need
more money than others. Almost all need money for marketing.
Older people who start their own ventures usually need less financing to do so than younger
entrepreneurs. The reason is that their experience in the field, knowledge of how the business
world works, and connections within the business world, some built up over many years, provide
a great boost to their start-up businesses. As a result, they generally are able to turn a profit
sooner and need to rely on financing for a shorter time.
The lack of capital means that they have to struggle to survive while waiting for the checks to
come in. This can be extremely stressful.
3. Decisions, decisions, decisions
Whereas as an employee you generally did what you were told, now you are the one calling the
shots. Doing so involves making a lot of decisions. Even without employees, you are going to be
called upon to make decisions all day, from smaller ones to major judgments that could change
the direction and future of your company.
Among the most important decisions are those that involve creativity and ideas. If an aspect of
your company is not working as it should, you will need to make a decision to discontinue it or
amend it. You will need to decide whether the company should embark on a whole new path in
search of greater profits — or, if it does not work, potentially great losses.
4. Criticism and self-doubt
As a young entrepreneur, you will find that not everyone will take you seriously. They will tell
you that you are too young to build a successful business. They will be quick to tell you just what
they think you are doing wrong. At times, the criticism and the self-doubt it fosters might get to
you. As your business struggles to get off the ground, you could start to doubt yourself. You
might wonder whether you should have started your business after all.

5. Lack of brand image

As a young entrepreneur builds a business, creating the right image is vital. Customers must
come to trust your brand. They must recognize that you know what you are doing and you know
how to do it well.

7 IMPORTANT ROLES AN ENTREPRENEUR PLAYS IN THE ECONOMIC

DEVELOPMENT OF A COUNTRY
1. Wealth Creation and Sharing:
By establishing the business entity, entrepreneurs invest their own resources and attract
capital (in the form of debt, equity, etc.) from investors, lenders and the public. This
mobilizes public wealth and allows people to benefit from the success of entrepreneurs
and growing businesses. This kind of pooled capital that results in wealth creation and
distribution is one of the basic imperatives and goals of economic development.
2. Create Jobs:
Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The
simple translation is that when you become an entrepreneur, there is one less job seeker
in the economy, and then you provide employment for multiple other job seekers. This
kind of job creation by new and existing businesses is again is one of the basic goals of
economic development. This is why the Govt. of India has launched initiatives such as
Startup India to promote and support new startups, and also others like the Make in India
initiative to attract foreign companies and their FDI into the Indian economy. All this in
turn creates a lot of job opportunities, and is helping in augmenting our standards to a
global level.
3. Balanced Regional Development:
Entrepreneurs setting up new businesses and industrial units help with regional
development by locating in less developed and backward areas. Every new business that
locates in a less developed area will create both direct and indirect jobs, helping lift
regional economies in many different ways. Both central and state governments promote
this kind of regional development by providing registered MSME businesses various
benefits and concessions.
4. GDP and Per Capita Income:
India’s MSME sector, comprised of 36 million units that provide employment for more
than 80 million people, now accounts for over 37% of the country’s GDP. Each new
addition to these 36 million units makes use of even more resources like land, labor and
capital to develop products and services that add to the national income, national product
and per capita income of the country. This growth in GDP and per capita income is again
one of the essential goals of economic development.
5. Standard of Living:
Increase in the standard of living of people in a community is yet another key goal of
economic development. Entrepreneurs again play a key role in increasing the standard of
living in a community. They do this not just by creating jobs, but also by developing and
 adopting innovations that lead to improvements in the quality of life of their employees,
customers, and other stakeholders in the community.
6. Exports:
Any growing business will eventually want to get started with exports to expand their
business to foreign markets. This is an important ingredient of economic development
since it provides access to bigger markets, and leads to currency inflows and access to the
latest cutting-edge technologies and processes being used in more developed foreign
markets. Another key benefit is that this expansion that leads to more stable business
revenue during economic downturns in the local economy.
7. Community Development:
Economic development doesn’t always translate into community development.
Community development requires infrastructure for education and training, healthcare,
and other public services. For example, you need highly educated and skilled workers in
a community to attract new businesses. If there are educational institutions, technical
training schools and internship opportunities, that will help build the pool of educated and
skilled workers.
A good example of how this kind of community development can be promoted is Azim
Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for
promoting education through the Azim Premji Foundation. This foundation works with
more than 350,000 schools in eight states across India.
So, there is a very important role for entrepreneurs to spark economic development by starting
new businesses, creating jobs, and contributing to improvement in various key goals such as
GDP, exports, standard of living, skills development and community development.
“I’m convinced that about half of what separates the successful entrepreneurs from the
nonsuccessful ones is pure perseverance.”
– Steve Jobs

CONCLUSION
The venture capital should be provided by the government to rise the young entrepreneurs and
made them a part in the new programs like make in India and made available investment to them
to rise themselves.

Bibliography:
www.investopedia.com
www.entrepreneur.com
www.economictimes.com
www.skilldevelopment.gov.in