We have been doing a lot of research to find out the key factors that prevent young minds from taking the leap into the entrepreneurial pool and starting their own business. Barriers or obstacles in the business conditions can have a negative impact on young entrepreneurs, who generally lack experience and access to professional networks. Some of the socio-cultural aspects that limit young entrepreneurs from living their dream in restaurant business are listed below.
Social and Cultural attitudes
It has been analyzed that there is an absence of positive attitude to entrepreneurship in various economies, where entrepreneurship can be seen as a practical career option. The educational system can help develop positive attitudes towards youth entrepreneurship and acknowledgment of entrepreneurial expertise. Positive societal attitudes and culture of entrepreneurship are important for stimulating productive youth entrepreneurship and fostering entrepreneurial skills development.
Registration, Licensing and Administrative Methods
Young entrepreneurs consider cumbersome and lengthy administrative procedures, paperwork etc. as an obstacle to be overcome. Young entrepreneurs often face challenges related to tax & regulations while opening their restaurant business and face difficulties to obtain business information, particularly for non-traditional sectors such as bars, lounge etc. Reliable statistical information is limited, and often data on sector specific performance or projections are rarely available.
Securing loans and access to funds
During the start-up phase, access to finance is identified as a key hindrance for entrepreneurs. Young entrepreneurs who apply for credit from a formal financial institution, during either the start-up or operational phases of their restaurant businesses are denied funding, as they do not possess assets or advantages to hypothecate or have poorly drafted marketable strategy. Formal lending institutions usually consider younger entrepreneurs risky and exclude them from mainstream loans.
With regards to everyday difficulties of restaurant business operations, young entrepreneurs remain preoccupied with different issues related to task and time management. In particular, they are more worried about finding the right talent, access to customers, increasing sales, and dealing with competition. Lack of confidence, fear, poor business planning, inefficient decision-making crop in while dealing with operational challenges for a restaurant startup, thereby limiting the true potential of the venture.