Rethinking of young entrepreneurs challenges and the way forward
It is a common saying that, youths are leaders of tomorrow. However, the questions remain when will be tomorrow. More and more young people are graduating in their field of studies each year. Many young people with exemplary grades and talents do not get credit in their own work places in expense of the old people. Graduates who have different ideas and expertise do not receive enough utilization thus contributing to brain drain and high rates of unemployment (Welter, 166). This paper focuses on challenges of emerging entrepreneurs in the economy.
The policies that are in place favor the older workers but do not provide a chance to young entrepreneurs, to improve their skills and talent. Young entrepreneurs possess solid energies to assist in boosting the productivity and economic growth as compared to the old generation. In addition, organizations provide young workers temporary jobs with little or no income as compared to older people thus limiting chances of developing competence. Moreover, policies governing labor compel the payment of enormous sums of money for pension while the salaries are low (Welter, 167). In return, emerging entrepreneurs are discouraged from working under those conditions. This has serious implications such as low growth of the economy and expensive pension obligations to the government. Government does not provide a chance to the young Turks to improve their skills in management of businesses and entrepreneur.
Government have missed priorities because they encourage more experienced people to occupy labor market. Youths in the workforce represent power in innovating new products, companies, and technology that every robust economy must tap in it. The authorities have failed to nurture young and energetic entrepreneurs. It is a fact that young entrepreneurs created most successful corporates such as Facebook and Google at their 20s. Therefore failing to utilize this force, the country will be planning for future economic failure and stagnation. The number of young entrepreneurs in the workforce is decreasing by day as compared to the percentage of old entrepreneur- who has no innovative way continuously increases each year (Welter, 169). The popular saying “you cannot teach an old dog new trick,” while older generations continue to hold strategic positions in businesses, they limit transformative growth in the economy. They also deny the young people a chance to learn and gain skills. Moreover, as the aging populations continue to increase in the world, older people spend most of their income in hospitals because their bodies’ strengths reduce. This leads to deflation as most old older people spend less of their retirement savings that lead to low domestic consumption. Furthermore, generational inequalities are high because the young people are hired at low-income levels. In addition, this forces them to look for casual jobs because the pension system is so high that they are unable to pay due to low income. The rigid job market limits the chances of youths from securing high-paying jobs in corporate (Welter, 170). Most of the new jobs eliminate young entrepreneurs because they require long job experience workers instead of giving that chance to fresh graduates.
However, the challenge of developing new entrepreneurs lies with the youth. Many young people do not have ambitions to succeed in the corporate world. Many prefer to work for nonprofit organizations that do not need innovating new marketing strategies. In addition, young people do not want to meet new challenges in the workplace. Therefore, they do not want to venture in innovative careers that will promote entrepreneurship. Most emerging entrepreneurs want the easy way of acquiring success. They indulge in corrupt deals and disrespect of regulations in business (Welter, 179). Therefore, their opportunities of success are limited by the fact that established entrepreneurs will not be willing to do business with them in fear of corrupt young people.
In conclusion, governments should come up with strategies of nurturing entrepreneurs that will help countries to have rapid economic growth. There should be reforms on the labor that allow for earlier retirement of workers in order to give the young entrepreneurs a chance to lead. Emerging entrepreneurs must be innovative in encountering new challenges in business and must shun all vices in the corporate world to ensure success.
Welter, Friederike. "Contextualizing entrepreneurship—conceptual challenges and ways forward." Entrepreneurship Theory and Practice 35.1 (2011): 165-184.