The business world is growing and the era of start-ups slowly dawns upon us. Youngsters full of passion and never-ending zeal are taking the command into their own hands to bring a change into the old business and societal norms. New Silicon Valleys are being set-up in India and Egypt in the light of what is being considered as an Entrepreneurship Boom. The statistics may seem to showcase that start-ups are easy to set up and relaxing to work in. But that’s not at all the truth.
When a graduate opens up to his family and friends about his idea of setting up a company of his own, the most certain reaction he gets is- “What? Have you gone crazy?”And yes, why would not they react in such a way. Any sane person in his right senses would suggest you to prefer a secured job over getting pushed around in the hustles of market. Confident, the person still believes in his idea and goes forward with it.
The first thing you need to set up your company is Funds. And that my friend, is not an easy thing to get. Getting an investor for your idea is equivalent to trying to move a mountain with your bare physical strength.So you got the investment for your company? Well, don’t be too happy, the job is not finished yet. According to a survey which took place in 2013, the average cost of registering and establishing a business is approximately $1500.
The number of new start-ups is huge, but the number of start-ups that failed to capitalize is also significant. The major reasons for this are:
1) Lack of access to funding: With the ever increasing number of start-ups, investors have become more choosey.
2) Government bureaucracy: Some government policies are such that they do not promote start-ups. Most of the subsidization is provided to bigger firms. For example, the Social Fund for Development(1991) created to promote self-employment through micro-credits does not allow the recipient to take government jobs while he/she is running a business.
3) Complexity of micro-credit schemes: The loan is small, complex and involves lots of risks. It is well known, but poorly understood.
4) Lack of entrepreneurial education: There is no specific course that provides business knowledge for tackling the ups-and-downs of setting up a company. The new entrepreneurs lack essential skills like Marketing, Advertising and Business Development for promoting their firm.
The challenges are tough and chances are bleak for these passionate young people, but their fearless and non-impulsive attitude is taking the business industry to new level.
by Piyush Barskar
sources: Global Entrepreneurship Monitor( Hala Hattab), UNDP