EDS 121 Youth Entrepreneurship - Copy

7/23/2019 EDS 121 Youth Entrepreneurship - Copy

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EDS 121

YOUTH ENTREPRENEURSHIP AND

INVESTMENT


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OBJECTIVES

The objectives of this lecture is to help the students to

Define Youth entrepreneurship

Differentiate youth entrepreneurship from other types ofentrepreneurship

Explain the characteristics of young entrepreneurs

Explain the reactions of youths to certain issues in

business

Explain the requirements for being a successful youngentrepreneur

Explain investment

Examine different kinds of investment

Explain investment terms

Explain the importance of investment to young

entrepreneurs


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Youth Entrepreneurship

Youth entrepreneurship is the

entrepreneurship that is being carried outby young people. Entrepreneurship has

no respect for colour, height, race, tribe,

sex and age.

In other words, anybody can be an

entrepreneur.


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CONT

What matters most in life is the impact and

contributions people make in theireconomy, not their age or their colour or

their sex.

Generally, anybody can go into businessor launch a business venture at any age.

In other words, there is no ideal age for

becoming an entrepreneur.


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CONT

Although there is no current empirical statistical

data to support the issue of youth

entrepreneurship in Nigeria, the empirical studies

carried out in countries like in U.S.A, U.K and

other western countries have provided us with

some information that can enable us concludethat majority of the entrepreneurs started their

businesses very early in their young age.

This we saw last week in our entrepreneurialwindow.


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Information From Entrepreneurial

Window

From the lesson from entrepreneurial

window, we can see that majority ofentrepreneurs launched their ventures at

early age.

For instance, the entrepreneurial windowindicated that the age of twenty (20) is very

prominent in all of them.

88% of entrepreneurs launched their

business between the age of 20 50.


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CONT


business between the age of 20 30


business at the age of


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Cont

However we are saying that the best age

to start business is 20 rather it is goodand advisable to start whatever you want

to early enough in l ife.

It helps you to gain experience in that areaof business and experience is what you

required to make a mark in life.


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Youth Entrepreneurship And

Other Entrepreneurship

The difference between youth

entrepreneurship and other types ofentrepreneurship is in the age,

characteristics and behaviour of the

entrepreneurs involved in carrying out thebusiness.

The age bracket of youth entrepreneurship

is usually between the age of 10 and 25


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Characteristics of young

entrepreneurship

Among other characteristics of entrepreneurs youths

that are in business usually exhibit the following

peculiar characteristics.

Immaturity

Lack of experience

Difficult to be taught

Lack of confidence

Ready to do it all alone

Dependence on self and intuition

Impatience


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The reactions of youths to certain

issues in business

Risk Bearing: Risk bearing is usually low but

this increases with the age.

Sourcing of Funds: Personal savings, funds

from friends, parents and relations are the

major sources of funds.

Type of business: Entertainment, fashion,

textile, commercial or trading.


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CONT

Motivation:Ability to start up and grow

business a venture among youths is afunction of the performance of peers and

friends, financial and other support from

parents, relations and government.

Seeking for support groups: Friends, family

members such as uncle, aunty etc.

Educational Background: Primary,

Secondary and few in tertiary institution.


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CONT

Continuity: The level of continuity is very

low. They can easily be discouraged by littleand slightest challenge.

Business Sources: Family, institutions,

friends etc.

Experience: Very little, mostly experimental

Intentions: Their major intention for startinga business is to try out something. Their

inquisitiveness is very highly.


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Cont

Profit making: Except in some exceptionalcases, youths do not usually project profitmaximization as the major objective of their

businesses as they are not sure if they willsucceed or not.

Mentorship: Their level of seeking for advice

and counseling is very low as they do not seethe need for going for some where else foradvice. This is the reason why the failure rate

of business among youths is very high.


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CONT

Networking: The networking system amongyouths is very poor. They will prefer to sitdown in one place and browse and talk withfriends than to attend business meetings andseminars.

Knowledge of the business: The level ofknowledge for the business depends on theinformation seeking capacity of theentrepreneur. This is limited among theyouths because of their level of exposure inthe business world.

i f S f


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Requirements for a Successful

Young Entrepreneur

To be a successful young entrepreneur

required that youth should learn to;

Get over their past: It does not matterwhat you past was, believe that you can

make it.

Discover your purpose and area ofInterest.

Discover your potentials

Build your self worth: Take time todevelop your skills and potentials


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CONT

Set your goals and objectives: A wise man once

said, The poorest man is not a man without

money but a man without goal .

Start small

Set high standard for yourself

Take advantage of your environment: Study your

environment for adaptation. All types of

environment is conducive for a business to

spring up. The more an environment is not

conducive and unfavourable the better it

becomes for businesses to spring up.


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CONT

Perseverance and Seek for professional advice.

Have a right attitude to work, money, family andfriends.

Choose your companion to be people of l ikemanner.

Have a mentor.

Appreciate Networking system.

Learn to live a sacrificial life.

Keep working on your self.

Learn to relax and appreciate self.

Trust God and believe in yourself.


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Definition of investment

Investment is someones equity or financial

interest in a business opportunity. It is aprocess of taking decision to increase ones

earnings by participating in portfolio or

business management.


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Characteristics of Potential

Investors

Investment decision makers are naturally:

Single-minded

Returns driven

Tireless individuals

Risk takers

Opportunistic

Proactive in decision making

Impatient

Hard workers

Highly inquisitive

Information seekers etc.


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Different Kinds of Investment

There are different kinds of investment.

These include investment in the;

Capital Market: Stocks, Bonds and

Treasury bill other securities.

Money Market: Savings, Fixed deposit andother form of deposit that attract interest.

Other Institutions: Insurance companies,other schemes.


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CONT

Property and Development: Land,

Building, Estate, Equipment etc

Human Capital: Education of self, peers,

siblings, parents etc.

Mutual Fund

Others


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INVESTMENT TREMS

Shares: There are different types of shares vizordinary shares, preference shares, cumulative

preference shares, non-cumulative, redeemable andnon redeemable preference shares.

Debentures: These include fixed and floating

Debenture or bond.

Security: This is any type of investment such asshares, bond, capital asset etc.

Returns: This is the gain or the profit for investing inshares, stock, bond or other securities.

Risk: This is the standard deviation of ones return insecurities.


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CONT

Standard deviation is tool for measuring risk.

Dividend: This is a gain or profit attributed to aninvestor in shares.

Bonus: This is share allotted to an investor without a

cost. It has a motivational effect on share holders.

Right Issue: This is the opportunity giving to existing

share holders to exercise their right on purchase of

additional issued shares before new investors.


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CONT

Equity holders: These are also known as

Shareholders

Coupon rate: This is the interest payable to

debenture holders as a compensation for

their money borrowed by an organization.


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CONT

Commission

Stock Exchange

Stock Broker

Stock agent

Bull and Bear

Speculations

Capital Appreciation and depreciation


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CONT

Earnings per share

Share prices

Capital sum

Annuities

Insurer

Insured

Premium


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Importance of Investment to Young

Entrepreneurs

There are a lot of benefits a young entrepreneurstand to gain from participating in investment.

These include;

Capital gain

Interest

Dividend

Equity holding

Bonus

Pride of ownership

Right Issue

Please find others out.


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THANK YOU

Documents

EDS 121 Youth Entrepreneurship - Copy