Decrease poverty through entrepreneurship promotion and commencement of family business

Temelkov, Zoran and Radosavljevik-Bojceva, Marina (2011) Decrease poverty through entrepreneurship promotion and commencement of family business. In: First REDETE Conference “Economic Development and Entrepreneurship in Transition Economies: A Review of Current Policy Approaches, 27-29 Oct 2011, Banja Luka.

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Small or family managed businesses are the driving force behind poverty reduction and stimulation of economic growth in transitional economies. Enforcing the entrepreneurship spirit could significantly support the objective for the decline of unemployment rate and augmentation of the living standard of the population. For these reasons, constraints limiting the development of entrepreneurs should be decreased with the tendency for the same to be eliminated. Some of the major constrains are the inappropriate educational background, lack of experience, as well as restricted access to available funds. In Macedonia, many of the family owned business are started with the objective of earning a monthly income for covering business cost and covering the cost of living for the entrepreneur and his/her family. Considering the high unemployment rate in Macedonia, from the former it could be concluded that although entrepreneurs are striving for high profits, the primary objective is to earn a salary and escape the potential poverty problems eminent in the Macedonian economy. In order for the entrepreneurs businesses to be supported, step by step strategy should be put in place, a strategy that will capture and eliminate the primary restrictions obstructing the entrepreneur’s development. This strategy should be consisted of program that will improve the entrepreneur’s education and skills, change the way of thinking i.e. remodel the mentality “I know everything, I can do everything by myself” - of many entrepreneurs, and improve the availability of funds, more precisely, availability of low cost funds needed for business startup, and later on for business expansion. Concluding remarks will present that initially foreign aid, and aid in general directed toward entrepreneurship development should be primarily focused on improvement of their skills and educating the same regarding the accurate analysis of financing options. With other words, giving financial aid to entrepreneur who doesn’t have the needed skill to manage the funds adequately is the same as burning the money. - “Give a men a fish and feed him for a day, teach a men to fish and feed him for a life” - would be adequate description of what should be done. A program, which will provide in depth clarificationof the potential financial and non-financial problems that might arise and adequate solutions of the same, should be established. In addition, maybe the most important point is that, entrepreneurs should fully understand the role and the potential of family owned business in the objective of poverty reduction and improved standard of living.

Item Type: Conference or Workshop Item (Paper)
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Zoran Temelkov
Date Deposited: 20 Jun 2014 11:20
Last Modified: 20 Jun 2014 11:20

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