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IBM Corporate Service Corps (IBM CSC)
Turkey Team 6 (Sub-Team 1)
Mridul KothariYoshimasa Masuda Meeta SrivastavaEsha Seth Wei WeiRichee Wong
Strategy Development for Strategy Development for Supporting Youth Supporting Youth Entrepreneurship In KayseriEntrepreneurship In Kayseri
April 27, 2011 © 2011 IBM
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
IBM Centennial: A Century of Progress
On June 16, 2011, IBM will celebrate its 100th anniversary as a corporation.
IBM Centennial Movie
Share learning from our history to sharpen understanding and appreciation of the modern IBM
Deepen our engagement with society, strengthening existing relationships and developing new ones
Shape a shared view of the future together with the clients and communities we serve
IBM’s Centennial strategy
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
What is the IBM Corporate Service Corps?
The Corporate Service Corps (CSC) exposes
high performance IBM employees to the
21st century context for doing business ---
emerging markets, global teaming, diverse cultures,
working outside the traditional office, and increased
societal expectations for more responsible and
sustainable business practices.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
CSC Application Process
IBM POPULATION380,000+ employees
170+ countries
ELIGIBLE APPLICANT POOLTop 15% of performers
Pre executive
>2 years IBM tenure
~50,000 employees
APPLICANTSPhase1: 5,500 IBMers
54 countries
Phase3: 9,625 IBMers63 countries
Geography Review Boards
SELECTIONSPhase1: 100 IBMers
31 countries
Phase3: 450 IBMers44 countries
• Most current application cycle from 5 – 24 April 2011
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
CSC Program Structure
IBM declared growth markets Emerging or pre emerging Address societal, educational, environmental challenges
COUNTRY
Logistics Project planning In-country support
NGO PARTNER
PRE WORK (3 Months) Preparation work completed virtually Team building and skills development Established curriculum
IN-COUNTRY (1 Month) Work at the intersection of business, technology and society Immersion in local culture Outside the office
POST SERVICE (2 Months) Linkage back to the business Measurement and evaluation Reflect, learn and apply Internal and external presentations
EXPERIENCE
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Mridul Kothari
EIW Operations Team Lead /
Application developer
India
Yoshimasa Masuda
IT Architect, Project Leader
Japan
Esha Seth
Software Engineer
India
Ying Keat Wong
Project Manager
Malaysia
Meeta Srivastava
Business & Technical Leadership
Partner
USA
Wei Wei
Senior Consultant
China
Team Introduction – Turkey Team 6, Subteam 1
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship ?
C Who Are Youth Entrepreneurs ?
E What Is Youth Entrepreneurship Eco-System?
D How To Enable Youth Entrepreneurship?
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation8
Project Summary
Strategy Development for Supporting Youth Entrepreneurship in Kayseri
Sponsor
Middle Anatolia Development
Agency (ORAN)
Lead
Turkey Team 6
Start
3 April, 2011
End
29 April, 2011
Objective/ Scope
1. Strategy Development for Supporting Youth Entrepreneurship in Kayseri– To develop and enhance stronger business acumen
among present/future entrepreneurs to start up and grow their business in Kayseri in innovative areas, and with a global perspective.
• Best Practices/International Practices; Building Capability & Curriculum Development ;Professional Development; Financial / Funding; Social Entrepreneurship / CSR; Raising awareness, Information Resources, etc.
• Conduct workshop for university students to enhance business skills and develop global perspective
A INTRODUCTION
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Approach: Strategy Development for Supporting Youth Entrepreneurship in Kayseri (1/2)
A INTRODUCTION
1. Understand
2. Gather Data
3. Strategize
4. Implement
5. Review
Internal AnalysisIdentify Opportunities
Baseline (as-is) Situation Definition
Short and Long TermRecommendationsSCOPE
EvaluateSuccess
Our 4-Week Approach
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Example of Questions & Issue Capture
Recommendation Rendering– Brainstorming Sessions– Critical Success Factors
GapAnalysis
To-BeA
s-Is
What is good about the current situation?
What are the major deficiencies?
What behaviors are being motivated?
What services do the stakeholders offer to SMEs?
Are there any grants for students interested in starting business?
What are the success stories?
What activities are being undertaken for entrepreneurship development?
Key Institutions:• Erciyes Teknopark• Erciyes University• Meliksah University• Youth Entrepreneur Council• Youth Entrepreneur
Association
What is working well?
What needs to change?
The approach includes conducting interviews to identify major issues and brainstorm for potential fixes.
A INTRODUCTIONApproach: Strategy Development for Supporting Youth Entrepreneurship
in Kayseri (2/2)
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation11
Deliverable 1: Stakeholder Overview, Analysis & Strategy
A INTRODUCTION
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity EntrepreneursEstablished Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&DCapability
DevelopmentCommercial, Legal &
Physical InfrastructureGovernment Policy
Entry Regulation
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Date of Workshop Conducted: 28th April 2011 Objective: Enhance Business Skills and Develop Global Perspective Total Number of Participants: 100 participants (estimated)
A INTRODUCTION
Deliverable 2: Workshop for Erciyes University Students
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Overview of Stakeholder
Clients
Client & Host OrganizationMiddle Anatolia Development Agency (ORAN)
Mr. Mustafa Palancioglu Secretary General Mr. N. Semih Demirtoka Planning and Project Units Coordinator
Youth Entrepreneurship Council Mr. Orhan Kizilkaya Secretary General
Local Turkey Advisors
• Jane Jamieson, VP, DOT
• Ozlem Caliskan, Project Manager, UNDP Turkey
• Burcak Semerci, IBM Turkey
Key Inputs Provided By
• Mr Bilgin Yazlik, Committee Member of
Kayseri Technopark• Mr Orhan Kizilkaya, Secretary General of
Kayseri Youth Entrepreneur Council• Mr. Tahsin Onus, Secretary General of
Kayseri Organized Industrial Zone• Mr. Namik Subas, Secretary General of
Kayseri Young Entrepreneur Association
A INTRODUCTION
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Stakeholder Meetings Held (1/2)
Name Organization / Company Role / Title
Mustafa Palancioglu ORAN Agency Development General-Secretary
Mehmet Tercan Kayseri Chamber of Commerce General-Secretary
Orhan Kizilkaya Youth Entrepreneur Committee General-Secretary
Oguz Memis Netcom (IBM Distributor) General Manager
Bilgin Yazlik, Serhat Dalkilic, Beyza Nart Kayseri Teknopark Committee Member
Metin Ozsoy Sensotruck at Teknopark Business Owner
Suleyman Demircan Biletall at Teknopark Business Owner
Namik Subag Young Entrepreneur Association General-Secretary
Suleyman Demircan Biletall at Teknopark Business Owner
Gulsah Young Entrepreneur Club, Erciyes University
President
Tahsin Onus Kayseri Organized Industry Zone General-Secretary
Prof. Dr. Resit OZKANCA, Kadir Askin Peker
Meliksah University President, Assistant Prof. Dr.
A INTRODUCTION
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
Stakeholder Meetings Held (2/2)
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Are Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Delivery Structure
B WHY YOUTH ENTREPRENEURSHIP
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity EntrepreneursEstablished Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&DCommercial, Legal &
Physical InfrastructureGovernment Policy
Entry Regulation
Capability Development
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation18
What is happening in the global business environment?
The world is
SMALLER.The world is
FLATTER.The world is
SMARTER.
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Installation Deployment
We are seeing a period of intense change as technological advances create unprecedented opportunities
Irruption
The Industrial Revolution
Age of Steam and Railways
Age of Steel, Electricityand Heavy Engineering
Age of Oil, Automobilesand Mass Production
Age of Information and Communication technology
Frenzy Synergy Maturity
Panic1797
Depression1893
Crash1929
Applications\IT driven business
innovation\2010s
Opportunity just blooming now
1
2
3
4
5
Panic1847
1771
1829
1875
1908
1971
1873
1920
1974
1829
Source: Perez, C., “Technological Revolutions and Financial Capital”, 2002
Crash
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
But it is still not easy for youth to get employee opportunities and the youth unemployment rate is extremely higher than average
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2011; IMF:International Monetary Fund , 2010 World Economic Outlook http://www.umut.org.tr/en/sayilarla.aspx?id=213762
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Unemployment rate_Turkey Youth unemployment rate_Turkey Youth unemployment rate_World Average
Unemployment rate_Turkey 10.80% 10.50% 9.30% 10.20% 10.20% 9.90% 10.70% 14.10%
Youth unemployment rate_Turkey 20.50% 19.70% 19.30% 16.00% 16.80% 18.10% 21.72% 24.80%
Youth unemployment rate_WorldAverage
10.50% 10.25% 10.20% 9.86% 10.24% 10.95% 14.03% 12.20%
2003 2004 2005 2006 2007 2008 2009 2010
There are 81 million young unemployed people in the world
Youth Unemployment in Turkey Twice as High as World Average, 24.8% Unemployment rate means one out of four youths is unemployed
Turkish Youth Unemployment Ranked from 123 in 2008 down to 145 in 2010 of 180 participators
Youth are more weak to economic shocks and will feel the economic recovery later than the adults
Youth Unemployment Rate Analysis
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
But it is still not easy for youth to get employee opportunities and the youth unemployment rate is extremely higher than average (2/2)
Source:http://bianet.org/english/youth/124124-youth-unemployment-in-turkey-twice-as-high-as-world-average
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Now, New and Small companies are Dominating the World
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
In the World, More than 95% of businesses in most countries are small (<49 employees)
Most of these business created in 3 years More than 76% GDP created by small business
In Turkey, the average company size smaller In Kayseri, More than 96% company are tiny In Kayseri, Only less than 1% company are
medium and big company and most of them are in traditional industry like furniture and food industries
Small Company(Employee 1-9)
Small Company(Employee 10-49)
medium Company(Employee 50-150)
Big Company(Employee 151-250)
Huge Company(Employee 250+)
Overall Turkey 1788835 58521 7407 1577 1851Gaziantep 33509 774 91 21 37Kayseri 21902 684 94 16 34
96.36%
0.07%
0.41%3.01% 0.15%
Small Company(Employee 1-9)
Small Company(Employee 10-49)
medium Company(Employee 50-150)
Big Company(Employee 151-250)
Huge Company(Employee 250+)
Turkey / Kayseri Company Size Analysis
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
More Job Opportunities are being created by New and Small companies, Especially in Turkey and Kayseri
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
0
10
20
30
40
50
60
Overall Euro 13.31 14.04 7.35 25.5 39.8
Overall Turkey 50.87 17.42 9.41 4.69 17.61
Gaziantep 53.16 13.04 6.49 3.64 23.67
Kayseri 45.87 15.67 8.81 3.44 26.21
Small Company(Employee 1-9)
Small Company(Employee 10-
mediumCompany
Big Company(Employee 151-
Huge Company(Employee
TotalEmployment
Small Company(Employee 1-9)
Small Company(Employee 10-49)
medium Company(Employee 50-150)
Big Company(Employee 151-250)
Huge Company(Employee 250+)
Overall Turkey 6497040 3305259 1132077 611066 304225 1144413Gaziantep 113920 60558 14858 7403 4151 26950
Kayseri 88374 40536 13847 7788 3046 23157
In most developed countries, most of employee work for medium and bigger companies Small companies (<49 employee) have more importance to Turkey, More than 68% employee
work for small companies in Turkey
In Kayseri, small business created less Job Opportunities compare with other cities in Turkey due to traditional industry structure or lack of enough supporting to young and small business
Turkey / Kayseri Employee Structure Analysis
B WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Are Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Delivery Structure
C WHO ARE YOUTH ENTREPRENEURS
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity EntrepreneursEstablished Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&DCommercial, Legal &
Physical InfrastructureGovernment Policy
Entry Regulation
Capability Development
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
(II) Established Business Owners
(EBO)
(III) Opportunity Entrepreneurs
(OE)
(IV) Necessity Entrepreneurs
(NE)
• Businesses currently in operation.
• Owners of existing businesses have overcome many hurdles in the pre-planning and start up stage.
• Existing business owners continue working to lay the foundation for future growth and adapt to changes in marketplace
• One possible reason is that Turkish government attention and support have been always more favorable to large firms than small firms.
• People who are taking advantage of a business opportunity
• People who have graduate experience levels of education tend to be opportunity-driven
• At the lower income level,
4.9% of early stage entrepreneurs tend to be in this group
• At the higher income level, 32.8% of early stage entrepreneurs tend
to be in this group
• People who have no better options for work.
• Turkey is at 12th position among developing countries
• At the lower income level,
30.6% of early stage entrepreneurs tend to be in this group
• At the higher income level, 13.9% of early stage entrepreneurs tend
to be in this group• Owners of the firms that have paid salaries between three months and 3.5 years
• Established business entrepreneurs are owners
of 3.5 years old or older firms
(I) Early-Stage Entrepreneurial Acitivity (TEA)
Overview of Entrepreneur Groups in Turkey
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
(A) Nascent Entrepreneurial Activity (NEA)
(B) New Business
Owners (NBO)
•Owners of business that have taken some action towards creating a new business in the past year and have not paid wages for more than 3 months
C WHO ARE YOUTH ENTREPRENEURS
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Comparing Entrepreneurial Activity in Turkey & Developing Countries
Total Entrepreneurial Activity by Indices Turkey Developing Countries
(I) Early-Stage Entrepreneurial Activity (TEA) 6.07 14.64
(A) Nascent Entrepreneurial Activity (NEA) 2.2 7.70
(B) New Business Owners (NBO) 4.01 7.68
(II) Established Business Owners (EBO) 11.5 9.93
(III) Opportunity Entrepreneurs (OE) 3.68 9.97
(IV) Necessity Entrepreneurs (NE) 1.79 4.39
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
C WHO ARE YOUTH ENTREPRENEURS
Early-Stage entrepreneurial activities’ in Turkey is much lower than those that take place in other developing countries.
The number of ‘Established business entrepreneurs’ are relatively higher
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Youth Entrepreneurship in Turkey - Media Findings
Source: http://www.hurriyetdailynews.com/n.php?n=young-entrepreneur-represents-turkey-at-summit-2010-05-30
C WHO ARE YOUTH ENTREPRENEURS
Source: Ministry of Foreign Affairs of the Republic of Turkey, May 2010
“Supply of young, trained, well educated, motivated and cost effective labor force (61% of the population is under the age of 34 (about 45 million people). Median age is around 28.5 with its over 24 million young workers; the 4th biggest labor force comparing to EU-27, about 500 thousand graduates from 143 different universities per year.”
DELETE
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
SWOT Analysis Result for Youth Entrepreneurship in Kayseri
Strengths Weaknesses
Opportunities
Huge potential for growth in consideration with increasing young population relative to Western countries.
Income Tax exemption for companies engaged in R&D activities in Technology Development Zones (TeknoPark,etc)
Good infrastructure at universities and TeknoPark
KOSGEB provides interest subsidy to entrepreneurs in Kayseri.
Entrepreneurs have a good network of customers with business trust and good traditional business culture
Government institutions conduct yearly economic review for sharing knowledge of innovation, etc.
Entrepreneurs join other social group in foreign countries to establish relationships with venture capitalist worldwide.
European Union grant student exchange program to learn new language.
Most universities offer seminars including success stories and case studies of entrepreneurs.
Young Entrepreneurs Association provides the connection between people trying to start up new business and successful entrepreneurs locally, as well as globally.
Higher contribution to grow local GDP
High taxation for start-up companies.
Venture capitalism is not a common practice.
Lack of clear structure of youth entrepreneurs supporting system.
Few people can speak English in spite of much needs of English communication as entrepreneurs.
Under-developed collaboration culture of R&D and innovation
Global business recession and competition
Excessive and time consuming red tape and bureaucracy
Poor enforcement of copyright and patent regulations
C WHO ARE YOUTH ENTREPRENEURS
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurship
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation31
Delivery Structure
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity EntrepreneursEstablished Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&DCommercial, Legal &
Physical InfrastructureGovernment Policy
Entry Regulation
Capability Development
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Entrepreneurship Enablement Framework
Entrepreneurship Enablement
Stimulate entrepreneurial motivations & competencies
Establish appropriate institutional
structure
Eliminate barriers to entrepreneurship
Reduce inception period for new
enterprises
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Financial Institutions
Government Policies
& Programs
Research & Development
Transfer
Capability Development
Commercial, Legal and Physical
Infrastructure
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
1. Entrepreneurial Finance :
Enhance access to financial resources for entrepreneurs and small and medium enterprises (SMEs)
Findings: • A few increasingly integrated financial groups dominating the market including banks, agencies and other
formal sector financial institutions focusing on the lower to higher end of the market. E.g. KOSGEB, ORAN• A strong informal system of credit, majorly traditional way to raise money by asking friends and family and
rotating savings and credit associations, existing in parallel to the formal banking system and serving the lower end of the market.
• Enhance access to information
• A venture capital fund with a strong emphasis on strategic and operational involvement in the business.
• Greater scope of micro-finance via bank or NGO :
• Full-range of microfinance services
• Savings-based Approaches
• Microleasing
Recommendations: Gap:
Early-stage entrepreneurial activity in Kayseri region is much lower than in developing countries
Particularly nascent entrepreneurs, are the most vulnerable and most in need of favorable conditions.
Lacks microfinance framework – regulator indirectly encouraging investors/initiatives to partner with banks
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Recommendations
Business Advisory Events & Services: Fundraising , Financial management, Corporate Governance, Leadership, Team building, Sales Process, Networking and Resources.
Audit: Improved Controls and reporting procedures.
Tax: Compliance and cost saving strategies.
Human Resources : Compliance, HR best practices and Recruiter network.
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Venture Capital
Micro Finance
Provide Full-range of microfinance services: Credit, Insurance and Savings products for different needs in the life and business cyclesSavings-based Approaches: Individual Development Accounts (IDAs): Special savings accounts designed to assist low income people on path toward asset ownership via matched savings and financial education.Microleasing: Allows one party to use an asset owned by the other in exchange for specific periodic payments.
Generate awareness about:• Type of financial products are available to entrepreneurs and small business owners• Type of financial help/ product most suitable for specific entrepreneur/ business owner• Updates on new financial products and schemes
Enhance Access To Information
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
2. Government Entrepreneurship Programs/Policy:
Establish policies and regulations that either size-neutral or encourage entrepreneurs and SMEs.
Findings: • Autonomous Bodies regulate and monitor different types of markets in accordance with the requirements of a
functioning market economy (Competition Authority, Energy Market Regulatory Authority, Banking Regulation and Supervision Agency, Capital Markets Board of Turkey)
• Organized industry zone ( KOSB) – One-stop-shop concept. • Exemption from taxes and duties ( VAT, Customs etc)• Liberal and secure investment environment.
Implement policy changes to facilitate
entry into business
Establish a lobbying group to help influence policy making geared towards
youth entrepreneurship
Invest in entrepreneurial education
Encourage interntaional trade
Recommendations: Gap:
Government can enhance it’s position as
a catalyst for promoting entrepreneurship
Inadequate tax incentives, specific to youth entrepreneurship
Low in local market dynamics openness (relatively slow change, year to year, resistance to adopt new technology, existing business owners)
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Recommendations
Influence Policy
• Establish a lobbying group ( or add to mandate for KOSGEB eg), to help influence policy making geared towards youth entrepreneurship
• Facilitate entry: Reduce entry and exit barriers, • Reduce regulatory & labour burden• Ensure small businesses have a say on policy issues
Implement Policy Changes
• Reduce red tape and compliance cost involved in start-up.• Help entrepreneurs overcome the initial problems of business startup.• Modify existing incentives of SME’s to meet the specific needs of new business
( eg extended tax breaks)• Help reduce risk ( through insurance programs)
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Encourage International Trade
• Help entrepreneurs develop a global perspective.• Recognize scope and markets outside Kayseri and Turkey
Invest in Education• Invest in general education to create an intelligent, creative and professional
workforce• Invest in entrepreneurial education to better prepare entrepreneurs for business• Create avenues for technical and vocational education to help non-technical
strata.
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
3. R&D Transfer : Provide access to research and development leading to new commercial opportunities
Findings: • 100 percent deduction of R&D expenditure from tax base.• Income withholding tax exemption for employees• 50 percent of social security premium exemption for employers for a period of 5 years• Techno-initiative capital for new scientists up to TRY 100,000• Deduction from the tax base of certain funds granted by public bodies and international organizations• Support from Technology Development Zones (Technopark).• Support from TUBITAK (Scientific and Technological Research Council of Turkey) and TTGV (Turkish
Technology Development )
Continue to build on existing work, and branch into knowledge –based, and service oriented work
Off-the-Shelf Solutions
Enhance Corporate Linkages
Regular Benchmarking and Evaluation
Recommendations: Gap:
Transition from Efficiency-Driven to Innovation-Driven
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Recommendations
Continue to build on Technology
Communities
• Web based solution helps firms identify critical service providers, potential partners, investors and customers.• Designed to serve SME and technology communities.
• Leverage university-based and other research organizations to spin off technology start-ups
• Develop innovation centers, improve incubators and research parks• Form entrepreneurship programs and networks.
Off-the-Shelf Solutions
Enhance Corporate Linkages
• Corporate linkages to university and government laboratories to identify early-stage research, and effectively tap and transfer the research for business ideas.
• Facilitate awareness of international trends and innovations
Regular Benchmarking and
Evaluation
• Formal evaluation methodology that involves:- validating economic and market positioning- assessing "return-on-investment" for all stakeholders
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
4. Commercial, Legal and Physical Infrastructure : Access to property rights and commercial, accounting, and other legal services and
communication, utilities, transportation, land or space
Findings: • Autonomous Bodies to regulate and monitor different types of markets in accordance with the requirements of a functioning market
economy [Competition Authority, Energy Market Regulatory Authority, Banking Regulation and Supervision Agency, Capital Markets Board of Turkey.
• Organized industry zone ( KOSB) – One-stop-shop concept.
Implement Regulatory Reform
Streamline business license, trademark and registration requirements process.
Establish safety net to re-start business
• cultural change• legal support• mentorship & guidance
Recommendations: Gap:
• Oriented towards medium to higher industrial sector versus smaller.
• Limited social safety net for potential entrepreneurs.
• Insufficient intellectual property rights.
• Excessive bureaucracy tax laws, red tape and regulations are costly obstacles to start ups.
• Lack of legal infrastructure for new micro credit initiatives.
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
Implement Regulatory
Reform
• Political leaders and government heads should make public commitments to regulatory reforms.
• Establish a body responsible for overseeing implementation of reforms, and remove legal restrictions on equity ownership by the state, public universities, and other government entities.
• Improve public sector efficiency, responsiveness and effectiveness through public management reforms.
Streamline process and access to information
• Provide access to information regarding regulatory and licensing processes on-line
• Use one-stop business and licensing models.• Create institutional mechanisms to allow business and citizen participation
in guidance, management and evaluation of information. Facilitate ongoing accountability by allowing public access to information.
Establish Safety Net for
any initial lack of success
• Provide policy/legal support to reduce excessive discretion of regulators, and policy enforcers• Socialize cultural change to help entrepreneurs overcome de-motivation on account of early failures, and re-enter the business• Provide mentorship & guidance on dealing with business adversity
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
5. Capability Development: Enhance entrepreneurship and business management capabilities.
Findings: • Multiple Councils and Agencies exist to promote entrepreneurship• Multiple sources of Information on how to start a company• Culture of Entrepreneurship is not adequately established, despite a history of “trading genes”• Entrepreneurship clubs at universities linked with business to conduct seminars, panel sessions, lectures• Lack of dedicated entrepreneurship education at High School or University level• Instructors not adequately prepared to impart education in the field of entrepreneurship
Recommendations: Gap:
Lack of institutional framework and strategy
Lack of single source of information to establish new businesses
Inconsistent quality of infrastructure and
facilities at learning institutions
Inadequate understanding of career options
Prejudices against entrepreneurship and
failure in initial ventures
Enhance Access to Information
Enhance, encourage and develop entrepreneurship education in universities
- Instructor training
- Professional development
- Curriculum Development
• Mentoring- Coaching Programs
Incubator Programs
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Enhance Access to Information
• Establish a Web Portal• Newsletter/Journals• Networking and Informational Events• Entrepreneurship Fair
Policy and Other Legal Updates
Success StoriesStakeholder Interaction
News, Announcements,
Events
Community Forum
Financial IncentivesBusiness Registration
Process
Strategy, Mission, Vision
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Key Entrepreneurship Success Factors
• Need for achievement
• Ability to convince
• Determination
• Taking initiative
• Leadership
• Calculated risk taking
• Confidence
• Good decision making
• Creativity and Innovativeness
• Commitment
• Need for achievement
• Ability to convince
• Determination
• Taking initiative
• Leadership
• Calculated risk taking
• Confidence
• Good decision making
• Creativity and Innovativeness
• Commitment
CharacteristicsCharacteristics
• Client Interfacing skills
• Interpersonal /Relationship building skills
• Team work
• Time management
• Networking skills
• Assertiveness
• Problem Solving
• Conflict management skills
• Communication skills
• Client Interfacing skills
• Interpersonal /Relationship building skills
• Team work
• Time management
• Networking skills
• Assertiveness
• Problem Solving
• Conflict management skills
• Communication skills
Life/Business SkillsLife/Business Skills Professional/Technical SkillsProfessional/Technical Skills
• Market Development & Management
• Financial Management
• Operations
• Research & Development
• Human Resource Management
• Industry Knowledge
Enhance, encourage and develop entrepreneurship education in universities
Integrate Entrepreneurship Education in University Curriculums
Develop and Enhance Instructor Capability
Offer Professional, Technical and Vocational Development
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Enhance, encourage and develop entrepreneurship education in universities
Develop and Enhance Instructor Capability
Offer Professional, Technical and Vocational Development
Life Skills Business Skills Professional Skills Technical Skills Language Training
Encourage interaction with Industry Incentive for Industry Stints Workshops/ Training on International Trends
Apprenticeship/ Mentoring programs Technical and Vocational Workshops Language Training
Integrate Entrepreneurship Education in University Curriculums
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Establish Mentoring / Coaching Programs
Group Mentoring
Reverse Mentoring:
Targeted relationship between a single mentor and mentee
• “Many-on-one” approach• Several mentees meet in a group with one mentor• Numbers in the group should be relatively small in order to achieve group synergy and effectiveness.
Short –term relationship between two persons who are at the same level within the organization. Helps to transfer a critical skill or to socialize a new into the organization.
Individual Mentoring (one-on-one):
Involves a more senior person learning from a junior person. Helps to bridge generational gaps and differences.
Peer Mentoring:
• Subject Matter Expertise
• Career Guidance
• Socialization
• Community Building
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
© 2011 IBM CorporationIBM Corporate Service Corps : Turkey Team 6
Incubator Programs (Like TeknoPark)
• Industrial Specialty
• Local Resource
• Local Tradition
• Entrepreneurs with innovative ideas
• Community
Can Be Organized By:
• Feasibility Studies
• Community Revolving Fund
• Capacity Building
• Market Development
• Private Sector Participation
Can Take the Form Of:
Foster start up, evolution, growth and sustainability of new or early start- up businesses
To expand, co-ordinate and monitor the provision of training, advice, counseling, and any other non-financial services
Can Take The Form Of:
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
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Delivery Structure
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Capability Development
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity EntrepreneursEstablished Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&DCommercial, Legal &
Physical InfrastructureGovernment Policy
Entry Regulation
Capability Development
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Each positioning in Eco-system
#1: ORAN/ Chamber of Commerce / KOSGEB
#4: Youth Entrepreneur
Communities
#3: Erciyes University, Meliksah University
#2: TeknoPark
Eco-system should be here.
ORAN, Chamber of Commerce should be working in collaboration with all institutions including TeknoPark and Universities which seek to promote entrepreneurship and innovation.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
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International Standard for Start Up Companies To create a positive climate for innovation and change. Invite in outsiders. (Lead User Innovation / Method) Innovative idea often comes from the change of environment.
Finance Fosters Credibility, Customer/partner introductions, faster growth, Cash, etc. Deploy network of venture capitalist. Single large investor advantage. Commitment of CFO.
New Idea
Get close to the customer. Initial focus on a small but significant market segment. Be market focused as well as sales focused. Speed to market.
Experience
Marketing
Training and real world experience, both are critical for talented people. Early contact with successful entrepreneurs. Continued education and upgrading of skills, gain practical and real world experience.
Quoted from the materials of MIT Sloan school
Business Plan Know your customer
Plan how to build your company without any outside investment firstly.
Business plan judges focus on Customer needs, Value proposition, etc.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
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Eco-System #1: Current Issues Analysis (1/2)
Category As-Is Issue
New Idea They understand how to make innovative ideas basically.They do yearly review. In every review, have session for sharing knowledge, then there be climate for change and innovation.In ORAN Development Agency, they hold some seminars to raise awareness. Because entrepreneurs are always busy, ORAN can sponsor the seminars or partner with industrial leaders.
Companies in Kayseri don’t involve lead users when planning and designing new product.Need to be conscious that outside pressure such as De-regulation,Corporate governnance helps innovative idea.
Finance To gain first customer entrepreneurs in Kayseri have a good network with customers.Support of start up company is usually from state and KOSGEB, TOBB.They normally get commitment with CFO.
Entrepreneurs in Kayseri don’t deploy network of venture capitalist.There is only a few venture capitalist in Turkey.Tax in Turkey is very high when starting up company.
Business Plan A good entrepreneur make money with other people’s money. This is common in Turkey.Bank don’t go through business plans but planning to initiate next year.ORAN have not started the grant, but planning to initiate next year. In judging business plan, ORAN plans to investigate all areas for evaluation including investment customer needs, environment, competitor’s area, production plan, etc.
KOSGEB may not set target in starting up company clearly.There are problems if they don’t know competitors environment.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: ORAN Development Agency
Government Institution
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Eco-System #1: Current Issues Analysis (2/2)
Category As-Is Issue
Marketing Entrepreneurs in Kayseri sometimes go to shopping center to grasp characteristics and requirements of the customers.They think that entrepreneurs should know strength, financial situation, competitors and find out new opportunity, market and need to innovate and sell it to neighboring countries of Turkey.More Turkish entrepreneurs now go to Africa to expand like in the biscuit industries.They think that entrepreneurs should focus on both marketing and sales.
The policy of market segment in starting up company which they should encourage may not be sufficient.
Experience European Union grant student exchange program in the summer to learn new language.KOSGEB give people subsidy when attending exhibition abroad to entrepreneurs.Most universities offer the seminars including successful stories and case studies of entrepreneurs.People can choose to go abroad for internship program to gain practical experiences.
It is big problem that few people can speak English in Kayseri in Turkey in terms of gaining training or real world experience in foreign countries.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: ORAN Development Agency
Government Institution
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Eco System #1: Government Institutions
Skills and Experience
New Idea-- Encourage entrepreneurs in technology based company in Kayseri to invite lead users when planning and designing new products. Lead users support innovation at the leading edge of markets where demand is both small and uncertain. (Lead user innovation / method)
Finance and Funding- Support that entrepreneurs can deploy & join in network of venture capitalists in foreign countries.- Should promote tax reduction policy for starting a company as the tax in Turkey is very high in starting up a company.
-- Encourage people in Kayseri to study English and try to gain training or real world experience in foreign countries.
Marketing
Business Plan
Recommendations
- They should advise that KOSGEB set ten customers as target in starting up company clearly when estimating and judging business plans.- As planned, ORAN should start the grant for entrepreneurs with business plans next year.
- Encourage entrepreneurs in Kayseri to initially focus on a small but significant market segment. This provides entry into the market and success stories to impress potential customers who prefer to follow rather than to lead.
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
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Eco-System #2: Current Issues Analysis (1/2)
Category As-Is Issue
New Idea They create a positive climate for innovation and change in universities.They understand that it should be a free environment with no barriers to exploit on ideas.They collect marketing information when planning new product.They consider using past experience to develop in other industry.
Can’t create a positive climate for innovation and change in companies in general.Don’t consider creating the culture of openness about past mistakes and focusing on advance. Companies in Kayseri don’t involve lead users when planning and designing new product.Lack of consciousness that innovative idea often comes from some change of environment.
Finance They sell products with cheaper price to gain first customers for promotion.Support of start up company is usually from state and KOSGEB, TOBB.Regarding bigger project, they divide large risk into smaller ones to bring in other investors. They normally get commitment with CFO.
Don’t deploy network of venture capitalist.Don’t get money from venture capitalist.Entrepreneurs in Kayseri have relationship with many investors in foreign countries.
Bussiness Plan Entrepreneurs dream a lot and don’t set realistic targets.Usually entrepreneurs tend to follow a proven business model like the furniture industry.KOSGEB judges business plans with focusing on the main business idea the number of worker, timeline, innovative idea to the market section.
Don’t set target in starting up company clearly.There are problems in hi-tech industry and IT industry because they don’t know competitors environment.KOSGEB’s business plan judges don’t focus on Customer needs, Value proposition,etc.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: TeknoPark
Private Organizations
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Eco-System #2: Current Issues Analysis (2/2)
Category As-Is Issue
Marketing They sometimes go to shopping center to grasp characteristics and requirements of the customers.There are 2 types of entrepreneurs: Marketing and Technical. They think that it is ideal to have these 2 types of people in the team.Entrepreneurs in Kayseri aim at niche market and develop a cheaper product to compete.Market activities always are performed before sales in Kayseri.
The technical people tend not to understand the marketing need.The marketing people tend not to have technical skill.
Experience Family support and try to encourage real world experiences to know markets and entrepreneurship in Kayseri.At start up, most companies think and focus on how to sell the produsts first. Young entrepreneurs Association provides the connection between people trying to start up new business and successful entrepreneurs, and the seminars including stories of entrepreneurs.Young Entrepreneurs Association offers trips to Africa and US,etc to share case studies of successful entrepreneurs.
In company, talented people tend not to have training before selling the products.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: TeknoPark
Private Organizations
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Eco System #2: Private Organizations
Skills and Experience
New Idea
-- Encourage entrepreneurs in technology based company in Kayseri to invite lead users when planning and designing new products. Lead users support innovation at the leading edge of markets where demand is both small and uncertain. (Lead user innovation / method) -- Recognize that innovative idea often comes from the change of environment – bankrupcies,end of lifelong employment and that outside pressure helps innovative idea (For instance,De-regulation,Corporate governnance)-- They should advise that entrepreneurs can create a positive climate for innovation and change in technology based companies. To do this requires sustained top level commitment.
Finance and Funding- Support that entrepreneurs can deploy & join in network of venture capitalists in foreign countries.- They should advise that entrepreneurs in Kayseri should have relationship with single large investor, who has Patient, Money, Deep Pockets, Market knowledge, Market presence, Distribution.
-- Encourage that talented people can have training to know markets and people in those markets while selling products.
Marketing
Business Plan
Recommendations
- They should advise that KOSGEB set ten customers as target in starting up company clearly when estimating and judging business plans. Encourage entrepreneurs to know competitor’s environment.- They should advise that KOSGEB’s business plan judges should focus on Customer needs & Value Proposition, Sustainability, Team.
- Encourage that technical people learn marketing and business management and that marketing people get technical skill too.
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
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Eco-System #3: Universities and Institutions
Business skills & support
Business Management Training Market development Access to counseling Technical Assistance Access to finance
Enabling Environment
Faculty Training Enhance faculty support Industry-Academia Partnerships Access to Market Information Provisioning
Motivation & Entrepreneurship skills
Media Campaign Role Model Entrepreneurship Education Networks
Stakeholder Success Enablers
Meliksah University,Erciyes University Youth ClubUniversities
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
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Eco-System #3: Universities and Institutions
Category As-Is Issue
Motivation and Entrepreneurship skills
Risk Averse Mindset of students Indirect involvement of University, Teknopark and KOSGEB in E-Club E-Club Activities include Industry Seminars, lectures by Entrepreneurs and creating activity report or newsletters More emphasis on theory than practical training
Student awareness and exposure is low Limited life and work experiences Limited financial resources Limited networks and contacts Limited exposure to relevant role models A lack of credibility often due to age discrimination (Age: 26 –30)
Business skills and support
No formal Entrepreneurship course offered by Erciyes University. A single Entrepreneurship credit course offered by Meliksah,University.
Lack of management qualifications Lack of formal work experience Lack of managerial experience
Enabling Environment
Erciyes Youth Entrepreneurship club started in 2004 in business administration faculty. Currently extended to all departments and has 400 members E-Club collaborates with 18 universities Students have social awareness and do activities like blood donation, fund raising for earthquake E-Club organized e-commerce training by York Trade consultant
Existing enterprises at early development stage Most entrepreneurship Clubs are low on experience (< 5 yrs old)
Less financial, social, human capital programmes Multiple disparate University youth clubs working in silos E-Clubs lack long term strategy/vision
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Current Issues Analysis
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Eco-System #3: Universities and Institutions
Professional Development for Business Advisors
Collaboration among University, youth council, TUSIAD, GESIAD, MUSIAD, YEC, TOBB and TubiTak Collaborate with KOSGEB to provide funding awareness and opportunities to students Interlink to other local and global universities and youth councils
Entrepreneurship Education
Develop a dedicated University curriculum for Entrepreneurship education Increase University faculty engagement in student entrepreneurship skills development program Incorporate entrepreneurship education at all levels of education
Promotion of Entrepreneurship
Create One Stop Shop – Online Entrepreneurship Web portal Raise awareness by use of Social networking sites, Media campaigns, internet Stimulate Entrepreneurial motivations and competencies and change the youth mindset
Encourage Joint Ventures and Business expansion programmes Encourage Private sector involvement and business linkages State universities and Private Universities should focus on improving infrastructure for entrepreneurship
Conduct Business Incubators, Basic Microenterprise Trainings and Workshops Boost private sector business development services Orientation for all Professional Actors by increasing awareness about industry and technology trends
Establish Direct link to KOSGEB and entrepreneurship cells Create Union of all Kayseri/ Turkey University youth entrepreneurship clubs Develop cross university networks and entrepreneurial teams
Small Business Support Association
Mentoring and Coaching
Networks and Associations
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Recommendations
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
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South Africa
Youth-specific Business Development Services programme in South Africa
The Business Establishment and Sustainability Programme (BESP)
Started in 1993 by the Centre for Opportunity Development (COD). The primary goal is to provide unemployed youth and assist them to establish and run sustainable enterprises. This is achieved through theoretical and practical business training, business plan development assistance, facilitating access to credit, business start-up assistance, business mentoring and counseling and business after-care and support.
The Business Now Programme
Run by the Education with Enterprise Trust based in the Free State province. Its objective is to support young people to seek opportunities in self-employment.
The School Leavers Opportunity Training (SLOT) Programme
Founded in 1980 and seeks to empower out-of-school and out-of-work youth between the ages of 18 and 29. The rationale underlying the SLOT programme is the assumption that school leavers from disadvantaged communities, requires a series of integrated and holistic interventions in the transition from school to work.
Netherlands
Five-phase entrepreneurship education model supported by Dutch Government :
Phase 1 – Primary Schools: First experience with entrepreneurship Students are introduced to the notion of entrepreneurship as an option. At this stage, students learn in a playful way to develop their talents and general skills like working in groups and orientation to production.
Phase 2 – Secondary Schools: Consciousness of Skills Autonomous forms of learning are used to enhance consciousness and insight about what they know and what they do not know.
Phase 3 – Creative Applications and Enrichment of Experiences: Students are introduced to product orientation, learning by experience, and elements of competition. This may include mini-enterprises.
Phase 4 – Preparation and Real Start-Up: Interest in entrepreneurship should be raised in this phase through real start-up with the support of education institutions.
Phase 5 – Growth and Innovation: Expanded support in the form of finance, personnel, knowledge, and networks is important in this phase.
Eco-System #3: Universities and Institutions
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Global Examples
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Training Technology Upgrading Intellectual Property Rights Training Faculty Enablement Boot camps
Informative advice & counseling Mentoring Networking Campaigns, Awards and Events
Collaboration & Partnerships Industry Academia Partnerships Incubators Clusters and Networks
Stakeholder Success Enablers
Yeouth entrepreneurship Council (YEC), GESIADCommunities and Councils
Eco-System #4: Communities and Councils
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEME
Market Access Raising Awareness Outreach to market constituencies Reduce entry and exit barriers
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Eco-System #4: Communities and Councils
Category As-Is Issue
Collaboration and Partnerships
Youth Entrepreneurship Council started in March 2010 in collaboration with TOBB Council has 7 working groups :
- Development of Entrepreneurship
- Training
- Legislation Follow up
- Internship
- Social
- Foreign Relations and Trade
- Information Technology
Numerous youth entrepreneurship councils working in silos Lack of long term strategy for youth councils Some of the councils are very young (YEC) Lack of business management experience and skills Lack of strategic alliance between microenterprise, trade associations, marketing bodies and universities Lack of ability to source relevant and appropriate business related
information Lack of general management, financial management and accounting skills, market research and marketing skills.
Informative advice and counseling
Council provides Business plan consulting Council provides Practical training by apprenticeship
Traditional values influence the relationship between older and younger people. No strong links to University councils to provide business support Lack of support , networking and mentoring Lack of Exposure to entrepreneurship
Training Council Conducts Seminar on Entrepreneurship Conducts Coaching program on basic entrepreneurship skills
Lack of Financial Literacy Programs and start up capital knowledge Lack of basic Microenterprise training Lack of vocational training
Market Access Raises Awareness about Government resources available
No professional system in place to inform about venture capitalists and funding options Lack of awareness about business opportunities
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Current Issues Analysis
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Eco-System #4: Communities and Councils
Social & Professional development
Collaboration & Partnership
Collaborate with TeknoPark,TUSIAD,GESIAD, MUSIAD and TOBB Collaborate with KOSGEB, Tubitak to provide funding to students Build relationship with other local and global universities and councils
Coaching Deliver Lectures/Training/Counseling and business plan development Support Internship/Apprenticeship to provide real world,practical training Should work with Universities for curriculum development and consulting
Mentoring Provide Early Exposure to role models and case studies Build strong links to youth clubs in Erciyes, Meliksah and other Turkey Universities Develop networks and entrepreneurial teams
Establishing an appropriate institutional structure
Need long term strategy/vision/mission in place Should encourage networking with alumni / successful entrepreneurs Need strategic alignment with University E-Cells, Government Agencies and Corporate
Market Access
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Recommendations
Help in identifying business opportunities and potential new marketsReducing the inception period for new enterprisesEliminating barriers to entrepreneurship by creating awareness
Should work with TechnoPark and promote research ideas Support IT enablement and create Technology awareness Support Education system and provide optimistic inputs
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
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Eco-System #4: Communities and Councils
Finland
Entrepreneurship education in Finland
It is defined in two ways:
Internal entrepreneurship – related to improving creativity, flexibility, courage, cooperation skills, achievement, motivation and generally thinking and acting as an enterprising person.
External entrepreneurship – related to the production of goods and services, that is, setting up and running one’s business.
Australia
Promoting Young Entrepreneurs Programme
Aims to encourage a new generation of entrepreneurs
and to publicly recognize those individuals and
organizations that have contributed to Australia’s
entrepreneurial foundation.
It has four elements :
A Winners Dinner to celebrate individual achievement Case Studies of successful young entrepreneurs Business Plan Competition in schools A working alliance with the Young Entrepreneurs’
Organization (YEO).
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Communities & CouncilsGlobal Examples
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NEN Trust
Vision / Mission / Core Values / Strategy
Foundation
Faculty Members
Mentors SMEs
Corporates VCs Angels
National Entrepreneurship Network Organization Structure
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Government Institutions
Vision / Mission / Core Values / Strategy
University E - Cells
Vision / Mission / Core Values / Strategy
Communities & CouncilsGlobal Example for Institutionalization
Strong alignment
NEN represents India’s largest and most dynamic community of new and future high-growth entrepreneurs, with over 70,000 members in 30 cities
All the stakeholders look at young entrepreneurs through NEN’s overall capability and brand. Vision/Mission/Core Values/Strategy of E-Clells, Governement Institutions strongly aligns with that of NEN
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Taiwan
78% of labor force employed in SME sector and the self-employment rate is equally high (21.5%). The entrepreneurship culture is more firmly rooted from families and small business than from the education system. SMEs are
regarded as incubators for employees to gain support, knowledge and skills to start their own business usually with the support of their bosses. Eventually, the former employee-turned entrepreneur becomes a customer or a supplier. Taiwan has nationally established commissions on youth entrepreneurship development to complement private initiatives.
The National Youth Commission
This organization was established in 1966 and has complemented many programmes involving youth guidance. In 1972 it established the Youth Industrial Parks to provide the youth the environment to open factories. It still runs the Youth Enterprise Loan Scheme startups for recipients between 20 and 45 years, as well as the Young Entrepreneurs Award Programme.
Chinese Youth Career Development Association (CYCDA)
Established in 1964, the goal of this body is to exchange career development experiences, and promote youth cooperation, networking and social activities. Current membership is 7000 and over 10 000 entrepreneurs have participated in its programmes including:
(i) Start up loan of up to NT 12 million to young people (23-45) to start a business. There is a grace period of up to one year during which the young client pays only interest, and repayment can extend up to 10 years.
(ii) Two industrial parks for young entrepreneurs
(iii) Courses and instructions for young people, offering over 1000 training programmes a year
(iv) Commercial information, management publications and opportunity information (SMBCGF) start-up Loan Guarantees for Young Entrepreneurs
The Small and Medium Business Credit Guarantee Fund (SMBCGF) offers guarantees for start up loans to young entrepreneurs applying up to NT$ 4 million for a manufacturing business, NT$1.4 million being secured as collateral. It is given as a personal loan with a two-year grace period. Evaluation results suggest that this programme is cost effective.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Overall Eco-System: Global Example
Communities & CouncilsGlobal Example
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Eco-system Overview
ORAN, Chamber of Commerce should be working in collaboration with all institutions including TeknoPark, YEC and Universities which seek to promote entrepreneurship and innovation.
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
#1: ORAN / Chamber of Commerce / KOSGEB
#2: TeknoPark
#4: Youth Entrepreneurship Council (YEC)
#3: Erciyes University, Meliksah University
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Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
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F OVERALL HIGH-LEVEL RECOMMENDATION
Execution Plan According to Priority
Short Term (1-2 Years) Mid Term (2-5 Years) Long Term (> 5 Years)
Enhance Access To Information- Establish a Web Portal- Raise awareness using Social Networking sites- Create Newsletter / Journals
- Promote TeknoPark through information / advertisement campaigns, personal visits, seminars & conferences
Support Institutionalization of Youth
Entrepreneur Councils / Associations
- Follow examples from other developing
nations (example: National
Entrepreneurship Network from India, The
Indus Entrepreneurs by Indians around
the world)
Change Mindset
- Stimulate entrepreneurial motivations
and competencies among youth
- Increase exposure to more success
stories and role models from real life
youth entrepreneurs
Build Entrepreneurship skills and Training
- Provide Business Plan Development Support- Incorporate entrepreneurship education at all levels of education - Encourage English lessons for Business to reach International market
Provide Regulatory Reforms and Streamlining- Put regulatory and licensing processes on-line
- Use one stop shop for business and licensing models
Go Global
- Interlink with other local / global
universities and youth councils
- Follow International Best Practices
for Eco-System
Encourage Industry Academia Partnerships
- Mentorship and Business Incubators
- Incorporate industrial internship
programs into university curriculum
- Develop networks and entrepreneur teams
Build Vision / Mission / Values / Strategy / Action Plans for all Stakeholders
- Strategic Alignment with
University Entrepreneur Clubs with
government agencies and corporate
Provide Awareness of Industry
Trends and Innovation
- Help in identifying business
opportunities and new markets
- Increase awareness about
technology trends and research from
established international companies
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F OVERALL HIGH-LEVEL RECOMMENDATION
Next Step
The recommendations laid out in the preceding slides are just the first steps in helping ORAN in achieving its goals for youth entrepreneurship in Kayseri.
To be successful in its endeavours, the management has to draw up an action plan to execute the recommendations. It is essential that an action group of key stakeholders decide on how the recommendations will be carried out and the order in which the problems will be approached.
This group also needs to determine the criteria of success for each option on the achievement of which the objective will be said to have been met. Continuous engagement will be required from this core group to set goals and then see that efforts are being made to meet them.
In case a strategy falters or is not showing good results, continuous follow up is required to reformat it. Specifically, the following needs to be done as way forward:
Implement strategic choices – Review strategic options and identify how success will be measured – Determine priority of execution– Establish a clear time frame for completion of each activity– Assign responsibility for execution to key stakeholders– Establish meeting cadence for status reviews and follow up
Evaluate success– Evaluating effectiveness of strategy on an ongoing basis
To determine if new direction needs to be provided To review measures of success
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Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
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Appendix A - Free Web Resources
SME tools powered by IBM (for U.S. and India) http://www.smetoolkit.org/ http://india.smetoolkit.org/
Generic knowledge about business plans http://www.businessplans.org/ http://www.nenonline.org/gurukul/writing-business-plan-part-1 http://www.nenonline.org/recommended-videos/list
Sales Finding prospects: http://www.powerhomebiz.com/vol52/prospects.htm Make the sale: http://www.ehow.com/how_2060235_make-sale.html Negotiating: http://en.wikipedia.org/wiki/Negotiation Presentations: http://india.smetoolkit.org/india/en/content/en/427/Hone-Your-Sales-Presentation-Skills Sales Techniques: http://www.siliconindia.com/videos/Sales_techniques_for_success-vid-1657.html Closing the sale: http://www.link-mail.com/31560.html
G APPENDIX
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Appendix B - Literature
The Portable MBA in Entrepreneurship, Fourth Edition by William D. Bygrave and Andrew Zacharakis (eds) John Wiley & Sons © 2010
Marketing IT Products and Services by Jessica Keyes Auerbach Publications © 2010Has CD Content
The Business Plan Workbook: The Definitive Guide to Researching, Writing Up and Presenting a Winning Plan, 6th Edition by Colin Barrow, Paul Barrow and Robert Brown Kogan Page © 2008
Enterprise Planning and Development: Small Business Start-up, Survival and Development by David Butler Butterworth-Heinemann © 2006
Business for Beginners: From Research and Business Plans to Money, Marketing and the Law by Frances McGuckin Sourcebooks © 2005
The Upstart Guide to Owning and Managing a Bar or Tavern, Second Edition by Roy S. Alonzo Kaplan Professional © 2006
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