There can be several reasons why youths find it difficult to own a business. Here are some common factors:
1. Lack of Experience: Starting and running a business requires a certain level of knowledge and experience. Many young entrepreneurs may not have had the opportunity to gain practical experience or acquire the necessary skills to run a business effectively. This lack of experience can make it challenging for them to navigate the complexities of entrepreneurship.
2. Limited Financial Resources: Starting a business often requires a significant amount of capital. Young people may struggle to access funding or have limited personal savings to invest in their business ventures. Banks and investors may be hesitant to provide funding to young entrepreneurs due to their limited financial track record or lack of collateral.
3. Risk Aversion: Starting a business involves taking risks and stepping into the unknown. Young people, especially those who have just entered the job market or are still studying, may be risk-averse due to their limited financial stability and fear of failure. The fear of financial instability or the potential negative consequences of failure can discourage them from pursuing entrepreneurial endeavors.
4. Limited Network and Connections: Building a strong professional network is crucial for business success. Young entrepreneurs may not have had enough time to establish a robust network of contacts in the industry they wish to enter. Without access to mentors, advisors, or a supportive community, they may face challenges in finding guidance, support, and opportunities.
5. Balancing Education and Entrepreneurship: Many young entrepreneurs are simultaneously pursuing their education while trying to start a business. This dual commitment can be demanding and time-consuming, making it difficult to dedicate sufficient attention and resources to their entrepreneurial pursuits.
6. Regulatory and Legal Hurdles: Starting and operating a business involves compliance with various regulations and legal requirements. Young entrepreneurs may be unfamiliar with these processes and find it challenging to navigate the bureaucratic procedures, licensing, and other legal aspects of setting up a business.
Despite these challenges, it’s important to note that many young entrepreneurs have successfully overcome these obstacles and built thriving businesses. With the right support, mentorship, resources, and perseverance, young people can overcome these difficulties and achieve their entrepreneurial goals.