IBM Corporate Service Corps (IBM CSC)
Strategy Development for
Supporting Youth
Entrepreneurship In Kayseri
Turkey Team 6 (Sub-Team 1)
Mridul Kothari
Yoshimasa Masuda
Meeta Srivastava
Esha Seth
Wei Wei
Richee Wong
April 27, 2011
© 2011 IBM
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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
Geography
Review
Boards
•
IBM POPULATION
ELIGIBLE APPLICANT POOL
APPLICANTS
SELECTIONS
380,000+ employees
170+ countries
Top 15% of performers
Pre executive
>2 years IBM tenure
~50,000 employees
Phase1: 5,500 IBMers
54 countries
Phase3: 9,625 IBMers
63 countries
Phase1: 100 IBMers
31 countries
Phase3: 450 IBMers
44 countries
Most current application cycle from 5 – 24 April 2011
IBM Corporate Service Corps : Turkey Team 6
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CSC Program Structure
COUNTRY
 IBM declared growth markets
 Emerging or pre emerging
 Address societal, educational, environmental challenges
NGO PARTNER
 Logistics
 Project planning
 In-country support
PRE WORK (3 Months)
 Preparation work completed virtually
 Team building and skills development
 Established curriculum
EXPERIENCE
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Team Introduction – Turkey Team 6, Subteam 1
Mridul Kothari
EIW Operations Team Lead /
Application developer
Yoshimasa Masuda
IT Architect, Project Leader
Japan
India
Esha Seth
Software Engineer
Ying Keat Wong
Project Manager
India
Malaysia
Meeta Srivastava
Business & Technical Leadership
Partner
Wei Wei
Senior Consultant
China
USA
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship ?
C
Who Are Youth Entrepreneurs ?
D
How To Enable Youth Entrepreneurship?
E
What Is Youth Entrepreneurship Eco-System?
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
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.
•
•
8
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
Approach: Strategy Development for Supporting Youth Entrepreneurship
in Kayseri (1/2)
Our 4-Week Approach
5. Review
Evaluate
Success
4. Implement
Short and Long Term
Recommendations
3. Strategize
SCOPE
2. Gather Data
Internal Analysis
Identify Opportunities
1. Understand
Baseline (as-is) Situation Definition
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
Approach: Strategy Development for Supporting Youth Entrepreneurship
in Kayseri (2/2)
Key Institutions:
• Erciyes Teknopark
• Erciyes University
• Meliksah University
• Youth Entrepreneur
Council
• Youth Entrepreneur
Association
The approach includes conducting interviews to
identify major issues and brainstorm for potential
fixes.
Example of Questions & Issue Capture
 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?
Gap
Analysis
Recommendation Rendering
– Brainstorming Sessions
– Critical Success Factors
What is
working well?
What needs
to change?
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
Deliverable 1: Stakeholder Overview, Analysis & Strategy
Overview
Youth Entrepreneurship Landscape
Youth
Entrepreneurship
Categories
Early-Stage Entrepreneurs
Established Business Owners
Youth
Entrepreneurship
Enablers
Finance
Government Policy
Youth
Entrepreneurship
Eco-System
Government Institutions
11
R&D
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
Opportunity & Necessity Entrepreneurs
Commercial, Legal &
Physical Infrastructure
Universities & Institutions
Entry
Regulation
Capability
Development
Communities & Councils
© 2011 IBM Corporation
A INTRODUCTION
Deliverable 2: Workshop for Erciyes University Students



Date of Workshop Conducted: 28th April 2011
Objective: Enhance Business Skills and Develop Global Perspective
Total Number of Participants: 100 participants (estimated)
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
Overview of Stakeholder
Clients
Client & Host Organization
Middle 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
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
Local Turkey Advisors
• Jane Jamieson, VP, DOT
• Ozlem Caliskan, Project Manager, UNDP Turkey
• Burcak Semerci, IBM Turkey
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
A INTRODUCTION
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.
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
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
Delivery Structure
Overview
Youth Entrepreneurship Landscape
Youth
Entrepreneurship
Categories
Early-Stage Entrepreneurs
Established Business Owners
Youth
Entrepreneurship
Enablers
Finance
Government Policy
Youth
Entrepreneurship
Eco-System
Government Institutions
R&D
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
Opportunity & Necessity Entrepreneurs
Commercial, Legal &
Physical Infrastructure
Universities & Institutions
Entry
Regulation
Capability
Development
Communities & Councils
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
What is happening in the global business environment?
The world is
SMALLER.
The world is
FLATTER.
The world is
SMARTER.
18
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
We are seeing a period of intense change as technological advances create
unprecedented opportunities
Installation
Irruption
Crash
Frenzy
Deployment
Synergy
Maturity
1
The Industrial
Revolution
1771
Panic
1797
1829
2
Age of Steam
and Railways
1829
Panic
1847
1873
3
Age of Steel, Electricity
and Heavy Engineering
1875
Depression
1893
1920
4
Age of Oil, Automobiles
and Mass Production
1908
Crash
1929
1974
5
Age of Information and
1971
Communication technology
Applications\
IT driven business innovation\
2010s
Opportunity just blooming now
Source: Perez, C., “Technological Revolutions and Financial Capital”, 2002
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
But it is still not easy for youth to get employee opportunities and the
youth unemployment rate is extremely higher than average

There are 81 million young
unemployed people in the world
Youth Unemployment Rate Analysis



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
25.00%
20.00%
15.00%
10.00%
Youth are more weak to economic
shocks and will feel the economic
recovery later than the adults
5.00%
0.00%
2003
2004
2005
2006
2007
2008
2009
2010
10.80% 10.50% 9.30% 10.20% 10.20% 9.90% 10.70% 14.10%
Unemployment rate_Turkey
Youth unemployment rate_Turkey 20.50% 19.70% 19.30% 16.00% 16.80% 18.10% 21.72% 24.80%
Youth unemployment rate_World
Average
Unemployment rate_Turkey
10.50% 10.25% 10.20% 9.86% 10.24% 10.95% 14.03% 12.20%
Youth unemployment rate_Turkey
Youth unemployment rate_World 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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
Now, New and Small companies are Dominating the World
Turkey / Kayseri Company Size Analysis
Overall Turkey
Gaziantep
Kayseri
Small Company
(Employee 1-9)
1788835
33509
21902
Small Company
medium Company
(Employee 10-49) (Employee 50-150)
58521
7407
774
91
684
94
3.01%
0.41%
0.15%
0.07%
96.36%
Small Company
(Employee 1-9)
Small Company
(Employee 10-49)
medium Company
(Employee 50-150)
Big Company
(Employee 151-250)
Huge Company
(Employee 250+)






Big Company
Huge Company
(Employee 151-250) (Employee 250+)
1577
1851
21
37
16
34
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
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
B WHY YOUTH ENTREPRENEURSHIP
More Job Opportunities are being created by New and Small companies,
Especially in Turkey and Kayseri


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
Turkey / Kayseri Employee Structure Analysis
60

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
Overall Turkey
Gaziantep
Kayseri
50
40
30
20
10
0
Small Company Small Company
(Employee 1-9) (Employee 10-
medium
Company
Big Company Huge Company
(Employee 151(Employee
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 Small Company
Total
Employment
(Employee 1-9) (Employee 10-49)
6497040
3305259
1132077
113920
60558
14858
88374
40536
13847
medium Company
Big Company
Huge Company
(Employee 50-150) (Employee 151-250) (Employee 250+)
611066
304225
1144413
7403
4151
26950
7788
3046
23157
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship
C
Who Are Youth Entrepreneurs
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
C WHO ARE YOUTH ENTREPRENEURS
Delivery Structure
Overview
Youth Entrepreneurship Landscape
Youth
Entrepreneurship
Categories
Early-Stage Entrepreneurs
Established Business Owners
Youth
Entrepreneurship
Enablers
Finance
Government Policy
Youth
Entrepreneurship
Eco-System
Government Institutions
R&D
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
Opportunity & Necessity Entrepreneurs
Commercial, Legal &
Physical Infrastructure
Universities & Institutions
Entry
Regulation
Capability
Development
Communities & Councils
© 2011 IBM Corporation
C WHO ARE YOUTH ENTREPRENEURS
Overview of Entrepreneur Groups in Turkey
(I) Early-Stage
Entrepreneurial
Acitivity (TEA)
(A) Nascent
Entrepreneurial
Activity (NEA)
• 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
(B) New Business
Owners (NBO)
• Owners of the firms that
have paid salaries
between three months
and 3.5 years
(III) Opportunity
Entrepreneurs
(OE)
(II) Established
Business Owners
(EBO)
• 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
(IV) Necessity
Entrepreneurs
(NE)
• 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
• Established business
entrepreneurs are owners
of 3.5 years old or older
firms
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
C WHO ARE YOUTH ENTREPRENEURS
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
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
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
C WHO ARE YOUTH ENTREPRENEURS
Youth Entrepreneurship in Turkey - Media Findings
DELETE
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.”
Source: http://www.hurriyetdailynews.com/n.php?n=young-entrepreneur-represents-turkey-at-summit-2010-05-30
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
C WHO ARE YOUTH ENTREPRENEURS
SWOT Analysis Result for Youth Entrepreneurship in Kayseri
Strengths
 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.
Weaknesses
 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.
 Entrepreneurs have a good network of customers with business
trust and good traditional business culture
Opportunities
 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.
 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
 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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship
C
Who Is Youth Entrepreneurship
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Delivery Structure
Overview
Youth Entrepreneurship Landscape
Youth
Entrepreneurship
Categories
Early-Stage Entrepreneurs
Established Business Owners
Youth
Entrepreneurship
Enablers
Finance
Government Policy
Youth
Entrepreneurship
Eco-System
Government Institutions
31
R&D
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
Opportunity & Necessity Entrepreneurs
Commercial, Legal &
Physical Infrastructure
Universities & Institutions
Entry
Regulation
Capability
Development
Communities & Councils
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Entrepreneurship Enablement Framework
Eliminate barriers to
entrepreneurship
Reduce inception
period for new
enterprises
Stimulate
entrepreneurial
motivations &
competencies
Establish
appropriate
institutional
structure
Entrepreneurship Enablement
Financial
Institutions
Government
Policies
& Programs
Commercial,
Legal and
Physical
Infrastructure
IBM Corporate Service Corps : Turkey Team 6
Research &
Development
Transfer
Capability
Development
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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.
Gap:
Recommendations:
• 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
• 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 :
IBM Corporate Service Corps : Turkey Team 6
•
Full-range of microfinance services
•
Savings-based Approaches
•
Microleasing
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
Enhance Access To
Information
Venture Capital
Micro Finance
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
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.
Provide Full-range of microfinance services: Credit, Insurance and Savings products for
different needs in the life and business cycles
Savings-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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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.
Gap:
Recommendations:
• Government can enhance it’s position as
a catalyst for promoting entrepreneurship
• Implement policy changes to facilitate
entry into business
• Inadequate tax incentives, specific to
youth entrepreneurship
• Establish a lobbying group to help
influence policy making geared towards
youth entrepreneurship
• Low in local market dynamics
openness (relatively slow change, year to
year, resistance to adopt new technology,
existing business owners)
• Invest in entrepreneurial education
• Encourage interntaional trade
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
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)
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
Invest in Education
Encourage
International Trade
• 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.
• Help entrepreneurs develop a global perspective.
• Recognize scope and markets outside Kayseri and Turkey
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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 )
Gap:
Recommendations:
• Transition from Efficiency-Driven to
Innovation-Driven
• 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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
Continue to build on
Technology
Communities
Off-the-Shelf Solutions
Enhance Corporate
Linkages
Regular
Benchmarking and
Evaluation
• 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.
• Web based solution helps firms identify critical service providers,
potential partners, investors and customers.
• Designed to serve SME and technology communities.
• Corporate linkages to university and government laboratories to identify earlystage research, and effectively tap and transfer the research for business ideas.
• Facilitate awareness of international trends and innovations
• Formal evaluation methodology that involves:
- validating economic and market positioning
- assessing "return-on-investment" for all stakeholders
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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.
Gap:
Recommendations:
• 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.
• Implement Regulatory Reform
• Streamline business license, trademark
and registration requirements process.
• Establish safety net to re-start business
• cultural change
• legal support
• mentorship & guidance
• Lack of legal infrastructure for new micro
credit initiatives.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
Implement Regulatory
Reform
Streamline process and
access to information
Establish Safety Net for
any initial lack of success
• 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.
• 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.
• 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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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
• Enhance Access to Information
• Enhance, encourage and develop
entrepreneurship education in
universities
• Inconsistent quality of infrastructure and
facilities at learning institutions
- Instructor training
• Inadequate understanding of career
options
- Curriculum Development
• Prejudices against entrepreneurship and
failure in initial ventures
- Professional development
• Mentoring- Coaching Programs
• Incubator Programs
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Enhance Access to Information
Strategy, Mission,
Vision
Business Registration
Process
Financial Incentives
Stakeholder
Interaction
News,
Announcements,
Events
• Establish a Web Portal
• Newsletter/Journals
• Networking and
Informational Events
• Entrepreneurship Fair
Success Stories
Community Forum
Policy and Other
Legal Updates
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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
Key Entrepreneurship Success Factors
Characteristics
Life/Business Skills
• Need for achievement
• Client Interfacing skills
• Ability to convince
• Interpersonal /Relationship
building skills
• Determination
• Taking initiative
• Team work
Professional/Technical Skills
• Market Development &
Management
• Financial Management
• Operations
• Leadership
• Time management
• Calculated risk taking
• Networking skills
• Confidence
• Assertiveness
• Human Resource
Management
• Good decision making
• Problem Solving
• Industry Knowledge
• Creativity and Innovativeness
• Conflict management skills
• Commitment
• Communication skills
IBM Corporate Service Corps : Turkey Team 6
• Research & Development
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
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






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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Establish Mentoring / Coaching Programs
• Subject Matter Expertise
• Career Guidance
Individual Mentoring
(one-on-one):
Group Mentoring
• Socialization
• Community Building

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.

Peer Mentoring:
Reverse Mentoring:
Involves a more senior person learning from a junior person.
 Helps to bridge generational gaps and differences.

IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
D WHAT ENABLE YOUTH ENTREPRENEURSHIP
Incubator Programs (Like TeknoPark)
• Foster start up, evolution, growth and sustainability of new or early startup businesses
• To expand, co-ordinate and monitor the provision of training, advice,
counseling, and any other non-financial services
Can Be Organized By:
Can
CanTake
TakeThe
the Form
Form Of:
Of:
• Industrial Specialty
• Feasibility Studies
• Local Resource
• Community Revolving Fund
• Local Tradition
• Capacity Building
• Entrepreneurs with innovative ideas
• Market Development
• Community
• Private Sector Participation
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship
C
Who Is Youth Entrepreneurs
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Delivery Structure
Overview
Youth Entrepreneurship Landscape
Youth
Entrepreneurship
Categories
Early-Stage Entrepreneurs
Established Business Owners
Youth
Entrepreneurship
Enablers
Finance
Government Policy
Youth
Entrepreneurship
Eco-System
Government Institutions
48
R&D
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
Opportunity & Necessity Entrepreneurs
Commercial, Legal &
Physical Infrastructure
Universities & Institutions
Entry
Regulation
Capability
Development
Communities & Councils
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Each positioning in Eco-system
#1: ORAN/ Chamber of Commerce / KOSGEB
Eco-system should be here.
#4: Youth Entrepreneur
Communities
#2: TeknoPark
#3: Erciyes University,
Meliksah University
ORAN, Chamber of Commerce should be working in collaboration with all institutions
including TeknoPark and Universities which seek to promote entrepreneurship and
innovation.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
International Standard for Start Up Companies
New Idea
Finance
 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.
 Fosters Credibility, Customer/partner introductions, faster growth, Cash, etc.
 Deploy network of venture capitalist.
 Single large investor advantage. Commitment of CFO.
 Know your customer
Business Plan
 Plan how to build your company without any outside investment firstly.
 Business plan judges focus on Customer needs, Value proposition, etc.
Marketing
Experience
 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.
 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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #1: Current Issues Analysis (1/2)
Government Institution
Target: ORAN Development Agency
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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #1: Current Issues Analysis (2/2)
Government Institution
Target: ORAN Development Agency
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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Eco System #1: Government Institutions
Recommendations
-- 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)
New Idea
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.
Business Plan
- 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.
Marketing
Skills and
Experience
-- Encourage people in Kayseri to study English and try to gain training or real world experience in
foreign countries.
Short Term (1-2 yrs)
IBM Corporate Service Corps : Turkey Team 6
Mid Term (2-5 yrs)
Long Term (>5 yrs)
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #2: Current Issues Analysis (1/2)
Private Organizations
Target: TeknoPark
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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #2: Current Issues Analysis (2/2)
Private Organizations
Target: TeknoPark
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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Eco System #2: Private Organizations
Recommendations
-- 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.
New Idea
Finance and Funding
Business Plan
- 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.
- 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.
Marketing
Skills and
Experience
-- Encourage that talented people can have training to know markets and people in those markets
while selling products.
Short Term (1-2 yrs)
IBM Corporate Service Corps : Turkey Team 6
Mid Term (2-5 yrs)
Long Term (>5 yrs)
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #3: Universities and Institutions
Universities
Meliksah University,Erciyes University Youth Club
Stakeholder Success Enablers
Media Campaign
Role Model
 Entrepreneurship Education
 Networks

Motivation & Entrepreneurship skills

Business Management Training
Market development
 Access to counseling
 Technical Assistance
 Access to finance

Business skills & support

Faculty Training
Enhance faculty support
 Industry-Academia Partnerships
 Access to Market
 Information Provisioning

Enabling Environment
IBM Corporate Service Corps : Turkey Team 6

© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #3: Universities and Institutions
Current Issues Analysis
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #3: Universities and Institutions
Recommendations
Promotion of
Entrepreneurship
Entrepreneurship
Education
 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
 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
Small Business
Support Association
 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
Mentoring and
Coaching
 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
Professional
Development for
Business Advisors
 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
Networks and
Associations
 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
Short Term (1-2 yrs)
Mid Term (2-5 yrs)
IBM Corporate Service Corps : Turkey Team 6
Long Term (>5 yrs)
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #3: Universities and Institutions
Global Examples
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.
60
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 startup 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-ofwork 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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Communities and Councils
Yeouth entrepreneurship Council (YEC), GESIAD
Stakeholder Success Enablers
Industry Academia Partnerships
Incubators
 Clusters and Networks

Collaboration & Partnerships
Training
Informative advice & counseling
Market Access
IBM Corporate Service Corps : Turkey Team 6

Technology Upgrading
Intellectual Property Rights Training
 Faculty Enablement Boot camps


Mentoring
Networking
 Campaigns, Awards and Events


Raising Awareness
Outreach to market constituencies
 Reduce entry and exit barriers


© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Current Issues Analysis
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Recommendations
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
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
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
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
Social & Professional
development
 Should work with TechnoPark and promote research ideas
Support IT enablement and create Technology awareness
 Support Education system and provide optimistic inputs
Market Access
Help in identifying business opportunities and potential new markets
Reducing the inception period for new enterprises
Eliminating barriers to entrepreneurship by creating awareness
Short Term (1-2 yrs)
IBM Corporate Service Corps : Turkey Team 6
Mid Term (2-5 yrs)
Long Term (>5 yrs)
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Communities &
Councils
Global Examples
Australia
Promoting Young Entrepreneurs Programme
Entrepreneurship education in Finland
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 is defined in two ways:
It has four elements :




64
Finland
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).
 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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Communities &
Councils
Global Example for Institutionalization
National Entrepreneurship Network Organization Structure
Foundation
Corporates
VCs Angels
NEN Trust
Vision / Mission /
Core Values / Strategy
Faculty
Members
Mentors
SMEs
Strong alignment
University E - Cells
Vision / Mission /
Core Values / Strategy
Government Institutions
Vision / Mission /
Core Values / Strategy
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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E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Overall Eco-System: Global Example
Global Example
Communities &
Councils
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.
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
E WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
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.
#1: ORAN / Chamber of
Commerce / KOSGEB
#2: TeknoPark
IBM Corporate Service Corps : Turkey Team 6
#4: Youth Entrepreneurship
Council (YEC)
#3: Erciyes University,
Meliksah University
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship
C
Who Is Youth Entrepreneurs
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
Agenda
A
Introduction
B
Why Youth Entrepreneurship
C
Who Is Youth Entrepreneurs
D
What Enable Youth Entrepreneurship
E
What Is Youth Entrepreneurship Eco-System
F
Overall High-Level Recommendation
G
Appendix
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
G APPENDIX
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
G APPENDIX
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
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
© 2011 IBM Corporation