1.1 Introduction to Entrepreneurship and Entrepreneurial mindset
In most developing countries, including Eastern and Southern Africa countries, unemployment, under-employment and poverty levels have continued to increase and have remained extremely high levels despite considerable efforts to promote sustainable development by national governments and international development agencies (Economic Commission for Africa, 2002). Although youth unemployment seen as a universal problem, it is much obvious and “a ticking time bomb” in the developing countries. In the developing countries, the problem of youth unemployment draws attention due to several reasons. Foremost, the youth constitute a significant proportion of the population as suggested by Christiana and Okojie (2003), for instance, in Tanzania 68 per cent of the population is made up of young people aged between 15 to 35 years (National Bureau of Statistics, 2011).
Despite the youth being in large proportion in these countries, little resources devoted to ensure youth educational and employment availability. Hence, majority of the youth in Eastern and Southern Africa had to live in a pool of unemployment and confront with challenges associated with. No wonder, most of these countries that are unable to effectively utilize their youth are found towards the end of the tail of world’s poor countries and expose its youth to terror and drug gangs.
Also the current research reports about labour market show that there is ever increasing number of unemployed people in Tanzania and Zanzibar in particular. Moreover the researches expose that, in the past this was mainly the problem of uneducated people enough to satisfy the demands or requirements of the employers, but now this is a problem facing even educated people in tertiary as well as university graduates. The problem is becoming too serious such that endanger socio-economic, political as well as environmental aspects from local to international levels.
More than 80% of secondary school leavers are not getting an opportunity to be employed in governments, and some who are employed in private sectors are not skilful enough to satisfy the employers’ needs and the work competence. Further, it is estimated each year 700,000 graduates entering the labour market but only 40,000 (5.7%) get employment into formal sector. The incidence of unemployment among the youth is relatively high. This is a great problem in most developing countries especially Tanzania and particularly in Zanzibar. This seriousness of shortage of job opportunities has caused stress headache to most developing countries governmental officials and planners, economists, sociologist, environmentalists, geologists, politicians, and all other developers. Their plans mainly prove failure and the need for frequent amendments and reforms unpredictably and without completely success.
Eventually, the youth remained unemployed and turn to be dependent to families and the larger society. The youth being one of the scarce resources that these countries bestowed with, failure in utilizing this resource effectively may closely translate in the vicious cycle of poverty and retard future of country’s economic growth. Also, high level of youth unemployment creates anti-social, criminal activities that undermine the stability of society, unstable society increases the risk of the market, hence this scares investors, as argued by Arbache of the African Region of the World Bank that unemployed youth are more exposed to conflicts and illegal activities, many of them fall victim to armed and rise up conflicts. These consequences of youth unemployment requires shared responsibilities from various actors “POWER OF WE” to solve it, businesses will thrive in a safe and secure society, government can implement development only in an atmosphere of peace and security.
According to this truth there is the need for addressing to this great problem of our youths so as to minimize the direct and indirect effects of the problem, so far looking on helping our societies in this time and in the future.
Entrepreneurship Development Skills is the major focus of our governments and nongovernmental organizations and donors as well as individuals on the hope that it will minimize largely the seriousness of this problem in the near future if effectively the joint efforts will be taken to all stakeholders; including citizens, educated people, technicians and experts, leaders, donors as well as NGOs.
Schumpeter (1934) suggested that entrepreneurs are innovators who help accelerate economic development through five different types of innovations by operating:
· A new type of product in the market
· A new type of technology
· A new market
· A new source of supply of inputs
· A new organization
1.2 Concepts of Entrepreneurship
What is an entrepreneur?
An entrepreneur is someone who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as opportunities for a different business or services.
What is entrepreneurship?
¨ Entrepreneurship is an act of starting a business and managing it. OR
¨ Entrepreneurship is act of being an entrepreneur. OR
¨ Entrepreneurship is the process or action of setting up of a new venture.
What is an enterprise?
It is the process of setting up of a new venture and the venture so set up is called the enterprise.
1.3 Entrepreneurship myths or misconceptions
· Entrepreneurs can become rich very quickly
· Entrepreneurs family life is not good
· Entrepreneurs lose money very quickly
· Entrepreneurs are taking lots of risk
· Entrepreneurs are not logical
· Entrepreneurs fear competition
· Entrepreneurs fear that somebody can copy their idea
· Entrepreneurs needs lots of money
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