There are several inherent risks and threats attached, when youths decide to be on their own, work wise. First up is obviously lack of capital resources, virtually zero marketing & promotion budget, high cost of inventory in the absence of bulk buying in case of adequately resourced ventures, hardly any use of automated process flows and technology based fast communication platform to get connected with suppliers, buyers etc., very weak logistics arrangements, both for inventory management & distribution
Most of the NGOs, charities, youth related institutions lack potency when it comes to packaging the right product. As much as we want to eye the need for the above, there are other gaps being seen for many years, banks say they want to focus on SME business segments, but in all honesty, they fall short of even understanding the basic profile of the target audience, hence the fall out by way of impractical products
Similarly, another key area to look at is the risk management, not many insurers like to be on board due to high risk nature of SME portfolio
When we look at venture capital firms, their mindset is not tuned to look at low capital projects, they would rather feel comfortable putting in money across 10 different portfolios, offering high growth and profitability, with a preset mind of losing out in few portfolios, but when they make money from the surviving projects, they recover the lost capital completely and end up being in blue
What we are looking at is a different breed of institutions, who agrees to make money with a conscious mind, so they come out positively, develop the platform whereby we assemble banks, insurers, technology firms, cellular networks, education institutes, charities, logistics firms and we package the venture in a way that we secure decent volumes by pooling in youths in big numbers, we get high volume business, and at the same time we let each individual work within his/her means in respect of trade finance
Its high time that we realize the shortcomings and we take the first step in the right direction, it is challenging, a steep climb but its worth the effort as results will prove this humble start ends up being the largest contributor in terms of business, not just for strategic partners but also towards the national economies
Lets take action!