YOUNG ENTREPRENEURS

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YOUNG ENTREPRENEURS

• A UK / NORTHERN IRELAND PERSPRCTIVE

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• The UK and Northern Ireland need to rely more on
  the entrepreneurial talent and wealth creation
  abilities of its young.
• new, fast growing innovative firms are critical
  to economic growth

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Total Entrepreneurial Activity

• TEA in NI is 5.0 - 1 in 20 adults in NI are
  engaged in early entrepreneurial activity
• 52000 adults currently active as entrepreneurs
• NI ranks 9th out of 12 UK regions
• NI in Europe ranks middle alongside the
  Netherlands, Spain and Denmark
• TEA in NI is less that half that of the US

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Entrepreneurial Activity (TEA) Rates by Age

• The Entrepreneurship on the island of Ireland
  report found that it was individuals in the
  35-44 age group who were most likely to be
  involved in new venture creation in Northern
  Ireland and the 18-24 age group were
  significantly less likely than this age group to
  be involved in venture creation.

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Entrepreneurial Activity (TEA) Males / Females
EARLY STAGE ENTREPRENEURIAL ACTIVITY BY (TEA)
MALE AND FEMALE
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Factors which influence decision to establish
own enterprise

• Cultural context
• 57 NI adults - Good Career choice
• 77 NI adults High degree of Status with
  successful entrepreneurial endeavour
• 59 NI Adults good media coverage of
  entrepreneurship
• (source GEM Research in Northern Ireland,2004)

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• The UK/ Northern Ireland has a noted increase in
  use of entrepreneurship in TV entertainment
• Dragons den The apprentice kitchen nightmares

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• Young people are increasingly attracted to the
  idea of running their own enterprise. The number
  of young people who would like to run their own
  business has risen from 35 in 2000 to 45 in
  2004.
• Source THE YOUNG ENTREPRENEURS REVISITED(RSA
  Business Dynamics) 2004

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Factors that discourage Enterprise

• Negativity about personal entrepreneurial
  capacity
• 35 cant see good opportunities
• 44 feel they lack the necessary Skills
• Lack of good role models
• Only 25 if NI adults know recent
  entrepreneurship
• Restrictive size of local economy
• Fear of Failure
• Inhibits entrepreneurial activity, preventing 43
  of NI adults compared to 21 in USA
• Risk Averse
• Dominant role of public sector in economy
• Good social security system and employment
  regulations (source Gem Research in Northern
  Ireland, 2004)

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• Access to finance seen as greatest obstacle to
  starting a business
• Average start-up costs in NI are 14,000/
  20,800
• 55 of start-ups costs are met by entrepreneurs
  themselves
• then remaining funds are sought from the
  following sources
• Banks/ financial institutions (71 of
  Entrepreneurs)
• Government sources(21) NI higher than UK
  average
• Family (19)
• very low levels of informal investment in NI
• (GEM, 2004)
• Increased levels of debt, and other societal
  pressures, including a desire to get into the
  housing market, are seen by some as a deterrent
  for young people to opt for self-employment.
• Young entrepreneurs are often not taken
  seriously, this could be a legacy of the dotcom
  crash.

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• Young peoples choices for careers and enterprise
  are strongly influenced by the media and popular
  culture. Consequently, business sectors such as
  fashion, music, computer games, design and
  e-commerce are ones that they are often attracted
  to. However, these sectors
• ? have significant barriers to entry
• ? are not taken seriously enough by the
  Government or the investment community
• ? are perceived as high risk and have a poor
  image with investors
• ? need better links with higher education so
  that graduates are fully aware of the
  commercial realities of setting up an
  enterprise in them.
• The young entrepreneurs desire to challenge
  convention and break out of the mould of
  established business practice in order to
  innovate, makes their enterprises difficult to
  assess when using conventional investment
  criteria. Many are turned down for funding
  because investors have equated an unconventional
  approach to being unsuccessful.
• SOURCETHE YOUNG ENTREPRENEURS REVISITED(RSA
  Business Dynamics) 2004

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Barriers to entrepreneurship highlighted by
students when asked What discourages students
from starting their own business?

• (Source Student Attitudes to Business 2005,
  Business Dynamics)

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Government Initiatives

• There has been a number of government
  initiatives aimed at encouraging
  entrepreneurship, following the 2002 publication
  of the Davies Review into enterprise education
• Primary school programme pupils aged 4-11 six
  modules in curriculum presented by business
  volunteers help children understand the world
  of work and enterprise
• since 2005/06 all students experience the
  equivalent of 5 days enterprise experience by the
  end of key stage 4
• The Learning and Skills Council in 2004 made 16
  million available over two years to fund
  Enterprise Advisers. These advisers work
  alongside head teachers in around 1,000 secondary
  schools in the most disadvantaged areas, to help
  deliver enterprise education and encourage
  enterprise practice among teachers and pupils.
• The organisation Enterprise Insight, with backing
  from the DTI, has instigated an Enterprise Week
  to highlight the work being done by many agencies
  in the UK to foster enterprise amongst young
  people.
• These are encouraging initiatives, however young
  entrepreneurs feel that some aspects of existing
  Government support and policy could be improved.
  In particular, the amount and complexity of
  employment legislation needs to be reduced and
  the accessibility and quality of business advice
  needs to be enhanced.
• Source THE YOUNG ENTREPRENEURS REVISITED(RSA
  Business Dynamics) 2004

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Colleges in Northern Ireland

• The Association of Northern Ireland Colleges
  (ANIC) have been developing relationships with
  the business community and have committed to
  serving the needs of people.
• Colleges building relationships with business
  community, economic agencies including Invest NI
  and its enterprise partners
• ANIC just completed two year peace fund II
  project targeting SMEs
• ANIC just completed an enterprise project funded
  by peace fund II E-FEAR (Entrepreneurship
  further Education Awareness Raising)

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NEWRY INSTITUTE ENTERPRISE INITIATIVES

• Greenshoots - Business Incubation Initiative
  designed to support economic development in the
  Newry Mourne area and is a joint venture
  between Newry Institute and the University of
  Ulster.
• EDGE - Entrepreneurial/management programme for
  women. 'edge' is a joint initiative between Newry
  Institute, Upper Bann Institute and Armagh
  College and is funded through the Northern
  Ireland Programme for Building Sustainable
  Prosperity.
• Greenacres - A Horticultural Education and
  Training Unit.
• Tourism4Me - The project funded by the
  Department of Employment and Learning, offers a
  free advisory and signposting service for
  existing and potential tourism enterprises within
  the South East Region of Northern Ireland.
• BIG Border Innovation Gateway For
  entrepreneurs who are based in or originate in
  the East Border Region
• DICE Developing, Innovation, Creativity and
  Enterprise aimed at all students in the
  institute in the 16-19 age group
• Business Support Unit - The aim of the BDU is to
  encourage economic development by providing
  support to new and established businesses in the
  form of mentoring, collaboration, consultancy and
  for relevant training.
• INTERACT Programme - Newry Institutes INTERACT
  Programme is an initiative set up to provide
  local industry the opportunity to tap into a wide
  range of knowledge and expertise in the Institute
  as well as give our students the ability to gain
  real life work based experiences.

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• The primary aim of NICENT is to drive, promote
  and support entrepreneurship in Higher Education
  in Northern Ireland
• The Partners are committed to embedding a culture
  of entrepreneurship through
• Integrating entrepreneurship training in
  programmes of study
• Supporting potential entrepreneurs within higher
  education
• Establishing national and international networks
  with leading best practice exemplars
• Engaging with stakeholders in all sectors
• Recognising and rewarding achievement
• NICENT launches the 25K competition in 2008
• Designed to get students and staff to think
  creatively and to take the opportunity to further
  research their ideas
• Provided with mentors (seasoned professionals)
• Invaluable resources for successful
  entrepreneurship, Networks , Investors
• Education in specific planning skills

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Government Initiatives
Invest NI and other bodies provide funding for
a number of initiative to promote
entrepreneurship among youth The Future is
Yours (Key stage 3 / 11-14 year olds) The Big
Idea (Key stage 4 / 15-16 year olds) Student
Enterprise Awards (3rd level students) Kauffman
Foundation Entrepreneurship Fellowship (Graduates)
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• Shell Live WireProgrammes and initiatives
  designed to encourage young people aged 16-30 to
  start a business.
• Prince's TrustHelps unemployed and disadvantaged
  young people aged 18-30 to start a business. The
  Trust provides initial funding and support to
  start up, a personal mentor for up to three years
  and tailored ICT training and marketing support.
• Enterprise Northern IrelandAnyone aged 16 can
  take part in the Start a Business programme,
  which provides invaluable information on sales
  and marketing, financial management, business,
  ICT, legal issues and more.
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• Young Enterprise Northern Ireland (YENI) was
  established in 1986 to inspire young people to
  develop attitudes and skills for personal
  success, life-long learning and employability
  through participation in practical business
  programmes. Young Enterprise Northern Ireland
  firmly and successfully fills this niche - with
  numbers greater than anywhere in Europe. In terms
  of participation as a proportion of population,
  Northern Ireland had a total of 32,000
  participants in a population of 1.6 million.

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Northern Ireland / SME dominant

• The SME sector in northern Ireland is growing and
  accounts for a large proportion of employment
• 90 of NI SMEs employee less that 10 people
  Majority expect to only employ the entrepreneur
  for the first 5 years (GEM, 2004)
• NI has under 10 public quoted companies
• Majority of NI SMEs are family owned Ltd
  companies

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Local Enterprise Agencies

• Northern Ireland also a 32 local enterprise
  agencies
• Newry Mourne Enterprise Agencys missions is
• To contribute to the growth and prosperity of
  the Newry and Mourne Region by undertaking
  Enterprise. Business and Economic Development
  initiatives independently and in partnerships
  with others.

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Newry Economy

• Political instability resulted in limited to no
  outside commercial investment the result of which
  created a environment within which SMEs thrived
• Peace and stability has resulted in a huge turn
  around with recent high levels of investment

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Recent Developments
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NEWRY LOCATION