Teach young entrepreneurs to run

   

The recent 2005 Global Entrepreneurship Monitor UK (GEM UK), the annual survey of entrepreneurial activity in the UK conducted by London Business School, has shown that 18 - 24 year olds are more positive about business enterprise than any other age group.

Resultant media interest is understandable, argues London businessman (operator of arguably the largest privately owned Hairdressing Academy in the UK and a chain of commercial salons) Alan Hemmings, for these motivated young people are the future of our business economy.

18 - 24 year olds have enormous potential to lead the way in business ownership and while the GEM UK figures are undoubtedly encouraging, young people could influence business in far greater numbers. Indications of a rising trend among school leavers, who are sure about the business ventures they want to pursue (after further education or vocational training) is not yet matched by their measure of involvement in actual business. This begs the question as to whether our academic, vocational, business and banking communities support them adequately.

It is apparent that the opinions, trends, and opportunities within business sectors directly influence the choices that young people make. Part of my own enterprise includes a London Academy for students training within the hairdressing industry. Here, many of the young people have serious intentions to venture into business. One student, 24 year old Ruhel Ahmed, for instance, was a London bus driver but left to re-train and is now ready to open a barbershop. He did this because he feels business ownership will provide more opportunities for personal development and financial gain than working for someone else.

Individuals like Ahmed are driven by the freedom that entrepreneurship can bring. When starting out they must see no limits to the business opportunities that training opens up to them. Indeed, industry could do more to encourage and fund people by helping them realise that business success is possible and that support is available for those seeking to achieve their goals.

When anyone goes into business, the thought of going solo is daunting. Banks and investors make no secret of the reservations that they have towards business start-ups. Where the entrepreneur is young, the banks become increasingly sceptical. Trade bodies and other institutions do nothing to instill confidence in younger people to help them overcome such resistance.

Flexible markets such as services or retailing allow greater room for new businesses to survive, nurture and grow. Areas such as manufacturing however demand greater levels of ‘muscle’ from entrepreneurs, because commercial giants often restrict the progression of smaller business owners.

It is common for young people in my industry to follow a path that will lead to either management or business ownership. As a training provider I find that with encouragement, their drive to succeed in business often becomes the main focus for individuals during training.

The success of young entrepreneurs is not only influenced by the confidence their chosen industry instills in them, but also through the transferable skills they get through education. The teaching of specific skills for certain industries can often ease the transition between formal studying and becoming involved with business. In hairdressing the skills that we teach allow business starters to support their ventures literally anywhere in the world.

The Internet has had an incredible part to play by increasing accessibility to business for hundreds of entrepreneurs, including those that achieve start-ups before even finishing courses of further education.

One area of weakness that educational establishments fail to acknowledge is the scope for students to enter business as entrepreneurs. The education system could do more to promote business enterprise and build business awareness amongst young people. Unfortunately, the educational approach is to blame for many shortcomings in the business world; particularly where negative attitudes to business and the perceptions of personal ability are concerned.

I agree with recent comments from former Shadow Minister for Trade and International Development, MP Julian Brazier. He stated that the Government’s strategy of getting 50% of young people into university is fundamentally flawed and that more students should be put through vocational training.

Universities are not doing enough to encourage young entrepreneurs. Academic knowledge is valuable, but reveals nothing about the working environment. Industry wants graduates, but industry wants graduates with experience. How can we expect youngsters to aspire to business enterprise when industry and education is deterring them with the reoccurring message ‘don’t run before you can walk’? Within my own industry we actively encourage promotion from within, placing important emphasis on management opportunities and business start - ups.

Results from the GEM UK survey give evidence that young people are moving. They are walking, taking steps in business more than any others. With the right support, these people can learn to run with confidence; as long as they get the right training in the first place.

• Free Accounts Software for small businesses - Download TAS Basics Now!
• Starting Up? Get 18 months free banking, and much more from Lloyds TSB!
• Home Business Insurance - Save money with Direct Line for Business. We guarantee to beat any quote for the same cover. Immediate quote available.