College of Business, Hospitality and Tourism Studies
Department of Management, IR & OHS
MGT 604 Public Sector Management
Individual Assignment 1
Trimester 3 2018
NAME:Ashlin Ashika Devi
This project work deals with the young entrepreneurship scheme that aims to empower Fijian youths.
The study is focused on the following:
1. To elaborate on the main aim of the young entrepreneurship program
2. Discuss two key factors for success
3. Main purpose of the training
4. The importance of business planning before starting up business
5. Elements that allows entrepreneurship to thrive in a country
Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs. The volume and willingness to develop, organize and manage a business scheme along with any of its risks in order to make a profit. The most clear example of entrepreneurship is the starting of new businesses.
In economics, entrepreneurship mutual with land, labor, natural resources and capital can produce profit. Entrepreneurial life is characterized by innovation and risk-taking, and is an essential part of a nation’s ability to succeed in an ever changing and increasingly competitive global marketplace. Entrepreneurship can be frightening because there is no guarantee that the business will work, and the entrepreneur may end up losing money for the first few years.
The literature illustrates that it is possible to identify a range of skills that can be categorized under the extensive heading of ‘entrepreneurship skills’ that can, to some extent, be distinguished from leadership and management skills that appear to be most relevant to larger organizations.
This is not to say that there is no relationship between these broad categories of skill – nor that leadership and/or management skills are irrelevant to small enterprises.
In general high levels of entrepreneurship skills are associated with capability in the process of opportunity identification (and/or creation), the ability to capitalize on identified opportunities and a range of skills associated with developing and applying business plans to enable such opportunities to be realized. There are indications in the literature that entrepreneurship skills and associated development needs may vary by gender, ethnicity and location; however the evidence is not final and further research would help to clarify this.
It is clear that interventions consistent with the typical entrepreneur’s preference for experiential learning are most likely to be successful in developing entrepreneurship skills.
ANALYSIS OF DISCUSSION
Case Study 1
The aims of the young entrepreneurship program are as follows:
Improving children’s and adolescents’ life management (skills)
Providing adolescents with resources for the future
Providing children and adolescents with miscellaneous opportunities for participation
Improving children’s and adolescents’ social and economic skills
To achieve these goals, the following must be emphasised:
The key factors for success are as follows:
Be passionate. You must be passionate about what you’re trying to achieve. That means you’re willing to sacrifice a large part of your awakening hours to the idea you’ve come up with. Your passion will explode the same strength in the others who join you as you build a team. And with passion, both your team and your customers are more likely to truly believe in what you are trying to do.
Maintain focus. Great entrepreneurs focus intensely on an opportunity where others see nothing. This focus and intensity helps to remove wasted effort and distractions. Most companies die from dyspepsia rather than starvation. Companies suffer from doing too many things at the same time rather than doing too few things very well. Stay focused on the mission.
Work hard. Success only comes from hard work. There is no such thing as overnight success; behind every “overnight success” lies years of hard work and sweat. People with luck will tell you there’s no easy way to achieve success-and that luck comes to those who work hard. Focus on things you can control; stay focused on your efforts and let the results be what they will be.
Main purpose of the training:
Youth Entrepreneurship creates employment opportunities for youth as well as the other young people they employ. These helps to bring disliked youth back into the economic normal and address some of the socio-psychological problems and misbehavior that arises from unemployment.
Youth Entrepreneurship also helps youths to develop new skills and experiences and promote innovation and flexibility in youth. As young entrepreneurs are particularly responsive to new economic opportunities and trends, they would be able to better adapt to the changing market.
Youth Entrepreneurship is an important tool in inspiring the region’s economy. This is because each entrepreneur brings about benefits not only for himself but for the town, region or country as a whole. As they are Self-employed, they often have better work satisfaction. These businesses also create jobs for others as well. Youth Entrepreneurship can lead to development of more industries, especially in rural areas or regions poor by economic changes by encouraging the processing of local materials into finished goods for domestic consumption and export.
Importance of business planning:
Planning is one of the most important parts of running a business, no matter whether it is a large international corporation trying to plan an expansion or a small business launching an exciting new product.
It is easy to start a project, but without careful planning it is like setting off on a journey to an unknown destination without a roadmap. You might manage to make it to your destination eventually, but don’t be surprised if you get really lost on the way.
As a small business owner it is very attractive to negligence planning altogether, especially if you are the only person in the company. After all, planning can be a time-consuming process and for small business owners time spent planning is likely to be time when they are not earning any money. But the benefits of good planning will far outweigh any temporary loss of earnings. The great thing about a business plan is that it can provide a reference point for you to return to at any point during the project. Just looking at a plan and seeing how far you have come is a great motivational tool. It can help you determine whether you have floated too far away from your original vision and allow you to get back on track once again.
Writing a business plan will also help you to think more logically than ever before about your industry and the role of your business within it. It will help you to see correlations between the different parts of your business e.g. how decreasing the cost of a particular process will affect your overall profit margin. The value of a business plan simply cannot be overstated.
Elements that allows entrepreneurship to thrive in a country:
Entrepreneurs act upon these insights and the economy becomes more productive because it is able to produce more consumer satisfaction at a lower cost. The connection between entrepreneurship and economic growth is that these previously ignored profit opportunities must come from somewhere, and the most common source of profit opportunities is the insights of other entrepreneurs. Entrepreneurial ideas arise when an entrepreneur sees that the ideas developed by earlier entrepreneurs can be combined to produce a new process or output. Entrepreneurial opportunities tend to appear within the setting of a specific time and place. Decentralized economy that allows individuals to act on their entrepreneurial insights, and rewards them for doing so, produces an environment where additional entrepreneurial insights are likely to be produced. Looked at in this way, entrepreneurship is the foundation for economic growth. Before discussing the details of economic growth, it is worth drawing a distinction between the process of economic growth and the environment within which growth takes place.
Case Study 2
Main Issue in the case study:
One of the biggest challenges ad-tech startups face is competition. “The competition is violent, because the barriers to entry are relatively low, and there is plenty of access to venture capital. But if startups can find a place market and differentiate themselves from their competitors, the reward is great. “So much opportunity exists for entrepreneurs because switching costs for most customers are low and many are willing to try new, relatively untested technologies. Despite the success of a startup, there will always be new companies who will “try to do what you do better and cheaper, always face tough competition, no matter how big they become.
Expanding at this fast rate is a challenge for small and sometimes unexpecting startups.
“Predicting when we would move out of startup mode into scale-up mode and what talent and organizational changes that this shift would require was our biggest challenge. “Any successful startup will go through this transformation as it becomes a fast growing. Knowing when it will happen and preparing for what’s required are both vital to success.”
Another side effect of rapid expansion is the need to find and hire new talent to help tackle the startup’s growing needs.
“We have had to focus a lot on becoming a constant recruiter of top talent, and this doesn’t happen overnight. “This is especially critical in a market where everyone is looking for the same type of technology skills. Employing for us quickly went from a luxury to a key priority for people throughout the organization.”
Adding such a large volume of employees in a short period of time can place a serious strain on a startup, and organizations need to adapt to avoid harmful growing pains.
Technology moves at an incredible speed, and keeping up with the changes can be a challenge for startups.
Although companies should strive for revolution, they can easily become distracted by new projects, markets and technology, losing sight of their place market that makes them valuable.
Benefits of starting up a business:
Not everyone defines reward the same way. For some it might be seeing a new scheme grow and succeed. For others it may be successful the unknown and striking out on their own. However you define reward, starting a new company might hold that promise for you.
Being your own boss
When you start a business and are self-employed, you are your own boss and eventually control your own destiny.
Whether you view starting a business as an economic necessity or a way to make some additional income, you might find it makes a new source of income.
Owning your own business is hard work and often requires long, odd hours. In some cases, having your own business may allow you to have more flexible hours. Many stay-at-home parents, for example, choose to become entrepreneurs.
Purchasing an existing business
While it may not be viewed as “starting” a business, purchasing an existing business has proven beneficial for many business owners—but it certainly requires both financial and time investments. For businesses that are already profitable, these new business owners jump past the true startup phase into running a mature business.
Three entrepreneurial characteristics:
In most cases, what you start out to do will not be exactly what you’re doing when you are eventually successful. As you roll out your enterprise, you’ll discover that things you expected to work well don’t work at all. You’ll accident into things that you didn’t expect to work that will. You’ll see others in your industry doing things that will work well for your organization and you’ll copy them. You’ll have to be able to adapt.
Most small-business owners don’t want to know that they are out of agreement. After several months, shifted to a focus on organizational effectiveness and workforce development.
Being adaptable is critical. If you are going to be an entrepreneur, the only thing that will be constant is change. You will have to adapt or see your enterprise swallowed up by a rising tide of change.
Good employees will leave your company, and some may become competitors. The government will change regulations, usually making things more complex. To succeed, you will have to be willing to continue through difficult times. Nothing can take the place of determination and you can’t succeed without it.
In addition to the willingness to persevere, you will need the financial. You’ll need a cash reserve that will see you through the lean times.
The third necessary skill is the ability and the willingness to work very, very hard. Running a small business is difficult. Your days will be much longer than eight hours. If your week starts on Monday, you’ll pass 40 hours on Thursday, but you won’t slow down. You’ll be on call 24/7. Success as an entrepreneur requires hard work.
Running a small business is filled with challenges, but if you are flexible, have the willingness and the means to continue, and are willing to work very hard, you will greatly improve your odds of success. Adaptability, persistence and hard work, these are the keys to success in small business, but they are three important attributes no matter what your attempt.
Two constraints faced by youths:
Cash Flow Management
The challenge: Cash flow is essential to small business survival, yet many entrepreneurs struggle to pay the bills. Part of the problem stems from delayed invoicing, which is common in the entrepreneurial world. You perform a job, send an invoice, then get paid (hopefully) 30 days later. In the meantime, you have to pay everything from your employees or contractors to your mortgage to your grocery bill. Waiting to get paid can make it difficult to get by – and when a customer doesn’t pay, you can risk everything.
The solution: Proper budgeting and planning are dangerous to maintaining cash flow, but even these won’t always save you from stressing over bills. One way to improve cash flow is to require a down payment for your products and services. Your down payment should cover all expenses associated with a given project or sale as well as some profit for you. By requiring a down payment, you can at least rest assured you won’t be left paying others’ bills; by padding the down payment with some profit, you can pay your own.
Another strategy for improving cash flow is to require faster invoice payments. Invoice clients within 15 days, which is half the typical invoice period. You can also address cash flow management from the other side of the equation by asking your own vendors to invoice you at 45, 60, or even 90 days to allow ample time for your payments to arrive and cheques to clear. If you can establish a good relationship with vendors and are a good customer, they’ll be willing to work with you once you explain your strategy.
2. Time management
The challenge: Time management might be the biggest problem faced by entrepreneurs, who wear many (and all) hats. If you only had more time, you could accomplish so much more!
The solution: Make time. Like money, it doesn’t grow on trees, of course, so you have to be smart about how you’re spending it. Here’s how:
Create goal lists: You should have a list of lifetime goals, broken down into annual goals, broken down into monthly goals, then broken down into weekly goals. Your weekly goals, then will be broken down into specific tasks by day. In this manner, what is on your task list in any given day is all you need to do to stay on track with your lifetime goals
If any tasks do not network with your goals, eliminate it or delegate them
If any tasks do not absolutely have to be completed by you, delegate themConsistently ask yourself: “Is what I’m doing right now the absolute best use of my time?”
Elements that allows creativity and innovation in country:
Scholars have shown how organizational structure, strategy, technology, culture, and other management tools help bring success and competitive advantage to organizations. They also show that in the 21st-century organizational environment, creativity and innovation are the primary sources of competitive advantage. However, these authors say little about the role of leadership in the innovative process. Creative and effective organizations do not emerge by accident. They require leaders to initiative and control careful changes in structure, culture, and process in order to transform them into creative, effective, and productive ones. Even though many organizations look for competitive advantage in their structure, strategy, technology, and culture, leadership is the most important source of competitive advantage. Organizational leaders usually decide what happens in the organization and give the direction, vision, and momentum that bring success.
The leadership structure of organizations help produce results that can encourage creativity and innovation. However, not every kind of leadership model is effective in creating this opportunity. Investments in certain kinds of leadership styles and models can produce results that generate creativity. Successful organizations have discovered that shared and cooperative leadership, rather than brave and strict management, is what unlocks the potential of organizations.
For creativity and the spirit of innovation to develop in any organization, it must recognize the role of the leaders in encouraging creativity. Leaders can successfully encourage organizational creativity and innovation by designing the organization to foster an environment that is favourable for creativity to curl. Leaders can do this by building friendly and inclusive working conditions for the members of the organization.
This review has established that it is possible to identify a range of ‘entrepreneurship skills’ associated with the identification and exploitation of opportunities for performance gains and growth. The research literature and reviewed policy initiatives suggest that targeting of key groups (such as young entrepreneurs) may help programs reach those most likely to have underdeveloped entrepreneurship skills.
Our review of the literature has confirmed clearly that it is possible to identify a set of skills that can be characterized as ‘entrepreneurship skills’ and are distinct from – although closely related to – accepted definitions of management and leadership skills. A key difference appears to be the action-orientated manner in which these skills are applied – in pursuit of market opportunities or business performance objectives. Some studies have suggested a wide and complex range of skills or competences; however in general there is agreement that high levels of entrepreneurship skills are associated with competence in the process of opportunity identification (and/or creation), the ability to capitalize on identified opportunities and a range of skills associated with developing and implementing business plans to enable such opportunities to be realized.
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