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IBM Corporate Service Corps (IBM CSC)

Turkey Team 6 (Sub-Team 1)



Mridul Kothari
Yoshimasa Masuda
Meeta Srivastava
Esha Seth
Wei Wei
Richee Wong
Strategy Development for
Supporting Youth
Entrepreneurship In Kayseri
April 27, 2011
2011 IBM
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
IBM Centennial: A Century of Progress
On June 16, 2011, IBM will celebrate its 100
th
anniversary as a corporation.
IBM Centennial
Movie
Share learning from our history
to sharpen understanding and
appreciation of the modern IBM
Deepen our engagement with
society, strengthening existing
relationships and developing
new ones
Shape a shared view of the
future together with the clients
and communities we serve

IBMs Centennial strategy
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
IBM POPULATION
380,000+ employees
170+ countries
ELIGIBLE APPLICANT POOL
Top 15% of performers
Pre executive
>2 years IBM tenure
~50,000 employees
APPLICANTS
Phase1: 5,500 IBMers
54 countries
Phase3: 9,625 IBMers
63 countries
Geography
Review
Boards
SELECTIONS
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
2011 IBM Corporation
CSC Program Structure
IBM declared growth markets
Emerging or pre emerging
Address societal, educational, environmental challenges
COUNTRY
Logistics
Project planning
In-country support
NGO PARTNER
PRE WORK (3 Months)
Preparation work completed virtually
Team building and skills development
Established curriculum
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
EXPERIENCE
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Mridul Kothari
EIW Operations Team Lead /
Application developer

India

Yoshimasa Masuda
IT Architect, Project Leader

Japan

Esha Seth
Software Engineer

India

Ying Keat Wong
Project Manager

Malaysia

Meeta Srivastava
Business & Technical Leadership
Partner

USA
Wei Wei
Senior Consultant

China

Team Introduction Turkey Team 6, Subteam 1
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship ?
C Who Are Youth Entrepreneurs ?
E What Is Youth Entrepreneurship Eco-System?
D How To Enable Youth Entrepreneurship?
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation 8
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.

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

A
INTRODUCTION
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Approach: Strategy Development for Supporting Youth Entrepreneurship
in Kayseri (1/2)
A
INTRODUCTION
1. Understand
2. Gather Data
3. Strategize
4. Implement
5. Review
Internal Analysis
Identify Opportunities
Baseline (as-is) Situation Definition
Short and Long Term
Recommendations
SCOPE
Evaluate
Success
Our 4-Week Approach
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Example of Questions & Issue Capture





Recommendation Rendering
Brainstorming Sessions
Critical Success Factors
Gap
Analysis
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?
Key Institutions:
Erciyes Teknopark
Erciyes University
Meliksah University
Youth Entrepreneur
Council
Youth Entrepreneur
Association
What is
working well?
What needs
to change?
The approach includes conducting interviews to
identify major issues and brainstorm for potential
fixes.
A
INTRODUCTION
Approach: Strategy Development for Supporting Youth Entrepreneurship
in Kayseri (2/2)
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
11
Deliverable 1: Stakeholder Overview, Analysis & Strategy
A
INTRODUCTION
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity Entrepreneurs Established Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&D
Capability
Development
Commercial, Legal &
Physical Infrastructure
Government Policy
Entry
Regulation
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Date of Workshop Conducted: 28
th
April 2011
Objective: Enhance Business Skills and Develop Global Perspective
Total Number of Participants: 100 participants (estimated)
A
INTRODUCTION
Deliverable 2: Workshop for Erciyes University Students
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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



Local Turkey Advisors
Jane Jamieson, VP, DOT
Ozlem Caliskan, Project Manager, UNDP Turkey
Burcak Semerci, IBM Turkey
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

A
INTRODUCTION
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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.
A
INTRODUCTION
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
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Delivery Structure
B
WHY YOUTH ENTREPRENEURSHIP
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity Entrepreneurs Established Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&D
Commercial, Legal &
Physical Infrastructure
Government Policy
Entry
Regulation
Capability
Development
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation 18
What is happening in the global business environment?
The world is
SMALLER.

The world is
FLATTER.

The world is
SMARTER.
B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Installation Deployment
We are seeing a period of intense change as technological advances create
unprecedented opportunities
Irruption
The Industrial
Revolution
Age of Steam
and Railways
Age of Steel, Electricity
and Heavy Engineering
Age of Oil, Automobiles
and Mass Production
Age of Information and
Communication technology
Frenzy Synergy Maturity
Panic
1797
Depression
1893
Crash
1929
Applications\
IT driven business innovation\
2010s
Opportunity just blooming now
1
2
3
4
5
Panic
1847
1771
1829
1875
1908
1971
1873
1920
1974
1829
Source: Perez, C., Technological Revolutions and Financial Capital, 2002
Crash
B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
But it is still not easy for youth to get employee opportunities and the
youth unemployment rate is extremely higher than 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

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Unemployment rate_Turkey Youth unemployment rate_Turkey Youth unemployment rate_World Average
Unemployment rate_Turkey 10.80% 10.50% 9.30% 10.20% 10.20% 9.90% 10.70% 14.10%
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
10.50% 10.25% 10.20% 9.86% 10.24% 10.95% 14.03% 12.20%
2003 2004 2005 2006 2007 2008 2009 2010
There are 81 million young
unemployed people in the world

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

Youth are more weak to economic
shocks and will feel the economic
recovery later than the adults







Youth Unemployment Rate Analysis



B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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
B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Now, New and Small companies are Dominating the World
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
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


Small Company
(Employee 1-9)
Small Company
(Employee 10-49)
medium Company
(Employee 50-150)
Big Company
(Employee 151-250)
Huge Company
(Employee 250+)
Overall Turkey 1788835 58521 7407 1577 1851
Gaziantep 33509 774 91 21 37
Kayseri 21902 684 94 16 34
96.36%
0.07%
0.41%
3.01%
0.15%
Small Company
(Employee 1-9)
Small Company
(Employee 10-49)
medium Company
(Employee 50-150)
Big Company
(Employee 151-250)
Huge Company
(Employee 250+)
Turkey / Kayseri Company Size Analysis



B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
More Job Opportunities are being created by New and Small companies,
Especially in Turkey and Kayseri
Source: Turkish Statistics Institution http://www.turkstat.gov.tr/ 2002
0
10
20
30
40
50
60
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
(Employee 1-9)
Small Company
(Employee 10-
medium
Company
Big Company
(Employee 151-
Huge Company
(Employee
Total
Employment
Small Company
(Employee 1-9)
Small Company
(Employee 10-49)
medium Company
(Employee 50-150)
Big Company
(Employee 151-250)
Huge Company
(Employee 250+)
Overall Turkey 6497040 3305259 1132077 611066 304225 1144413
Gaziantep 113920 60558 14858 7403 4151 26950
Kayseri 88374 40536 13847 7788 3046 23157
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

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

Turkey / Kayseri Employee Structure Analysis



B
WHY YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Are Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Delivery Structure
C
WHO ARE YOUTH ENTREPRENEURS
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity Entrepreneurs Established Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&D
Commercial, Legal &
Physical Infrastructure
Government Policy
Entry
Regulation
Capability
Development
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
(II) Established
Business Owners
(EBO)
(III) Opportunity
Entrepreneurs
(OE)
(IV) Necessity
Entrepreneurs
(NE)
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

People who have no
better options for work.
Turkey is at 12
th
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
Owners of the firms that
have paid salaries
between three months
and 3.5 years
Established business
entrepreneurs are owners
of 3.5 years old or older
firms
(I) Early-Stage
Entrepreneurial
Acitivity (TEA)
Overview of Entrepreneur Groups in Turkey
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
(A) Nascent
Entrepreneurial
Activity (NEA)
(B) New Business
Owners (NBO)
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
C
WHO ARE YOUTH ENTREPRENEURS
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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
Source: Global Entrepreneurship Monitor (GEM) Research in Turkey, 2009
C
WHO ARE YOUTH ENTREPRENEURS
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
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Youth Entrepreneurship in Turkey - Media Findings
Source: http://www.hurriyetdailynews.com/n.php?n=young-entrepreneur-represents-turkey-at-summit-2010-05-30
C
WHO ARE YOUTH ENTREPRENEURS
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.
DELETE
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
SWOT Analysis Result for Youth Entrepreneurship in Kayseri
Strengths









Weaknesses









Opportunities









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.
Entrepreneurs have a good network of customers with business
trust and good traditional business culture

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.
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
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.
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


C
WHO ARE YOUTH ENTREPRENEURS
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurship
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
31
Delivery Structure
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity Entrepreneurs Established Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&D
Commercial, Legal &
Physical Infrastructure
Government Policy
Entry
Regulation
Capability
Development
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Entrepreneurship Enablement Framework
Entrepreneurship Enablement
Stimulate
entrepreneurial
motivations &
competencies
Establish
appropriate
institutional
structure
Eliminate barriers to
entrepreneurship

Reduce inception
period for new
enterprises
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
Financial
Institutions

Government
Policies
& Programs

Research &
Development
Transfer

Capability
Development

Commercial,
Legal and
Physical
Infrastructure
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
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.

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 :
Full-range of microfinance services
Savings-based Approaches
Microleasing
Recommendations:

Gap:
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
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Recommendations
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.
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
Venture Capital
Micro Finance
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.
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
Enhance Access To
Information
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
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.


Implement policy changes to facilitate
entry into business
Establish a lobbying group to help
influence policy making geared towards
youth entrepreneurship
Invest in entrepreneurial education
Encourage interntaional trade
Recommendations:

Gap:
Government can enhance its position as
a catalyst for promoting entrepreneurship
Inadequate tax incentives, specific to
youth entrepreneurship
Low in local market dynamics
openness (relatively slow change, year to
year, resistance to adopt new technology,
existing business owners)


D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Recommendations
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
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 SMEs to meet the specific needs of new business (
eg extended tax breaks)
Help reduce risk ( through insurance programs)
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
Encourage
International Trade
Help entrepreneurs develop a global perspective.
Recognize scope and markets outside Kayseri and Turkey

Invest in Education
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.
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
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 )
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
Recommendations:

Gap:
Transition from Efficiency-Driven to
Innovation-Driven
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Recommendations
Continue to build on
Technology
Communities


Web based solution helps firms identify critical service providers,
potential partners, investors and customers.
Designed to serve SME and technology communities.
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.
Off-the-Shelf Solutions
Enhance Corporate
Linkages
Corporate linkages to university and government laboratories to identify early-
stage research, and effectively tap and transfer the research for business ideas.
Facilitate awareness of international trends and innovations
Regular
Benchmarking and
Evaluation
Formal evaluation methodology that involves:
- validating economic and market positioning
- assessing "return-on-investment" for all stakeholders
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
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.





Implement Regulatory Reform
Streamline business license, trademark
and registration requirements process.
Establish safety net to re-start business
cultural change
legal support
mentorship & guidance
Recommendations:

Gap:
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.
Lack of legal infrastructure for new micro
credit initiatives.
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
Recommendations
Implement Regulatory
Reform
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.
Streamline process and
access to information
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.

Establish Safety Net for
any initial lack of success
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
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
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
Inconsistent quality of infrastructure and
facilities at learning institutions
Inadequate understanding of career
options
Prejudices against entrepreneurship and
failure in initial ventures
Enhance Access to Information
Enhance, encourage and develop
entrepreneurship education in
universities
- Instructor training
- Professional development
- Curriculum Development
Mentoring- Coaching Programs
Incubator Programs
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WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Enhance Access to Information
Establish a Web Portal
Newsletter/Journals
Networking and
Informational Events
Entrepreneurship Fair

Policy and Other
Legal Updates
Success Stories
Stakeholder
Interaction
News,
Announcements,
Events
Community Forum
Financial Incentives
Business Registration
Process
Strategy, Mission,
Vision
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Key Entrepreneurship Success Factors
Need for achievement
Ability to convince
Determination
Taking initiative
Leadership
Calculated risk taking
Confidence
Good decision making
Creativity and Innovativeness
Commitment

Characteristics

Client Interfacing skills
Interpersonal /Relationship
building skills
Team work
Time management
Networking skills
Assertiveness
Problem Solving
Conflict management skills
Communication skills
Life/Business Skills Professional/Technical Skills
Market Development &
Management
Financial Management
Operations
Research & Development
Human Resource
Management
Industry Knowledge
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
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Enhance, encourage and develop entrepreneurship education in universities
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
Integrate Entrepreneurship
Education in University
Curriculums
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Establish Mentoring / Coaching Programs
Group Mentoring
Reverse Mentoring:


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.
Individual Mentoring
(one-on-one):
Involves a more senior person learning from a junior person.
Helps to bridge generational gaps and differences.
Peer Mentoring:
Subject Matter Expertise
Career Guidance
Socialization
Community Building
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
2011 IBM Corporation
IBM Corporate Service Corps : Turkey Team 6
Incubator Programs (Like TeknoPark)
Industrial Specialty
Local Resource
Local Tradition
Entrepreneurs with innovative ideas
Community
Can Be Organized By:
Feasibility Studies
Community Revolving Fund
Capacity Building
Market Development
Private Sector Participation
Can Take the Form Of:
Foster start up, evolution, growth and sustainability of new or early start-
up businesses
To expand, co-ordinate and monitor the provision of training, advice,
counseling, and any other non-financial services
Can Take The Form Of:
D
WHAT ENABLE YOUTH ENTREPRENEURSHIP
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
48
Delivery Structure
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Capability
Development
Youth
Entrepreneurship
Eco-System
Youth
Entrepreneurship
Categories
Overview
Youth Entrepreneurship Landscape
Early-Stage Entrepreneurs Opportunity & Necessity Entrepreneurs Established Business Owners
Youth
Entrepreneurship
Enablers
Government Institutions Private Organizations Universities & Institutions Communities & Councils
Finance R&D
Commercial, Legal &
Physical Infrastructure
Government Policy
Entry
Regulation
Capability
Development
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Each positioning in Eco-system
#1: ORAN/ Chamber of Commerce / KOSGEB
#4: Youth Entrepreneur
Communities
#3: Erciyes University,
Meliksah University
#2: TeknoPark
Eco-system should be here.

ORAN, Chamber of Commerce should be working in collaboration with all institutions
including TeknoPark and Universities which seek to promote entrepreneurship and
innovation.
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WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
International Standard for Start Up Companies
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.
Finance
Fosters Credibility, Customer/partner introductions, faster growth, Cash, etc.
Deploy network of venture capitalist.
Single large investor advantage. Commitment of CFO.
New Idea
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.
Experience
Marketing
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
Business Plan
Know your customer
Plan how to build your company without any outside investment firstly.
Business plan judges focus on Customer needs, Value proposition, etc.

E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #1: Current Issues Analysis (1/2)
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 dont 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 dont 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
peoples money. This is common in Turkey.
Bank dont 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,
competitors area, production plan, etc.
KOSGEB may not set target in starting up
company clearly.
There are problems if they dont know
competitors environment.
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: ORAN Development Agency
Government Institution
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #1: Current Issues Analysis (2/2)
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.
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: ORAN Development Agency
Government Institution
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco System #1: Government Institutions
Skills and
Experience
New Idea
-- 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)
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.
-- Encourage people in Kayseri to study English and try to gain training or real world experience in
foreign countries.
Marketing
Business Plan
Recommendations
- 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.
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #2: Current Issues Analysis (1/2)
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.
Cant create a positive climate for innovation
and change in companies in general.
Dont consider creating the culture of openness
about past mistakes and focusing on advance.
Companies in Kayseri dont 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.
Dont deploy network of venture capitalist.
Dont get money from venture capitalist.
Entrepreneurs in Kayseri have relationship with
many investors in foreign countries.
Bussiness Plan Entrepreneurs dream a lot and dont 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.
Dont set target in starting up company clearly.
There are problems in hi-tech industry and IT
industry because they dont know competitors
environment.
KOSGEBs business plan judges dont focus
on Customer needs, Value proposition,etc.
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: TeknoPark
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #2: Current Issues Analysis (2/2)
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.
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Target: TeknoPark
Private Organizations
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco System #2: Private Organizations
Skills and
Experience
New Idea
-- 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.
Finance and Funding
- 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.
-- Encourage that talented people can have training to know markets and people in those markets
while selling products.
Marketing
Business Plan
Recommendations
- 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 competitors environment.
- They should advise that KOSGEBs 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.
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #3: Universities and Institutions
Business skills & support
Business Management Training
Market development
Access to counseling
Technical Assistance
Access to finance
Enabling Environment
Faculty Training
Enhance faculty support
Industry-Academia Partnerships
Access to Market
Information Provisioning
Motivation & Entrepreneurship skills
Media Campaign
Role Model
Entrepreneurship Education
Networks
Stakeholder Success Enablers
Meliksah University,Erciyes University Youth Club
Universities
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #3: Universities and Institutions
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
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Current Issues Analysis
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #3: Universities and Institutions
Professional
Development for
Business Advisors
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
Entrepreneurship
Education
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
Promotion of
Entrepreneurship
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
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
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
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
Small Business
Support Association
Mentoring and
Coaching
Networks and
Associations
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Recommendations
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation 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 start-
up 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-of-
work 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.
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.
Eco-System #3: Universities and Institutions
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WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Global Examples
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Training

Technology Upgrading
Intellectual Property Rights Training
Faculty Enablement Boot camps

Informative advice & counseling
Mentoring
Networking
Campaigns, Awards and Events
Collaboration & Partnerships

Industry Academia Partnerships
Incubators
Clusters and Networks

Stakeholder Success Enablers
Yeouth entrepreneurship Council (YEC), GESIAD
Communities and Councils
Eco-System #4: Communities and Councils
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
E
Market Access
Raising Awareness
Outreach to market constituencies
Reduce entry and exit barriers
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #4: Communities and Councils
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
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Current Issues Analysis
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Eco-System #4: Communities and Councils
Social & Professional
development
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
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
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
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
Market Access
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Recommendations

Help in identifying business opportunities and potential new markets
Reducing the inception period for new enterprises
Eliminating barriers to entrepreneurship by creating awareness
Should work with TechnoPark and promote research ideas
Support IT enablement and create Technology awareness
Support Education system and provide optimistic inputs
Short Term (1-2 yrs) Mid Term (2-5 yrs) Long Term (>5 yrs)
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation 64
Eco-System #4: Communities and Councils
Finland
Entrepreneurship education in Finland

It is defined in two ways:

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
ones business.

Australia
Promoting Young Entrepreneurs Programme

Aims to encourage a new generation of entrepreneurs
and to publicly recognize those individuals and
organizations that have contributed to Australias
entrepreneurial foundation.

It has four elements :

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).
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WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Communities &
Councils Global Examples
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
NEN Trust
Vision / Mission /
Core Values / Strategy
Foundation
Faculty
Members
Mentors
SMEs
Corporates VCs Angels
National Entrepreneurship Network Organization Structure
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Eco-System #4: Communities and Councils
Government Institutions
Vision / Mission /
Core Values / Strategy
University E - Cells
Vision / Mission /
Core Values / Strategy
Communities &
Councils Global Example for Institutionalization
Strong alignment
NEN represents Indias 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 NENs overall capability and brand.

Vision/Mission/Core Values/Strategy of E-Clells, Governement Institutions strongly aligns with that of NEN
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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.
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WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
Overall Eco-System: Global Example
Communities &
Councils Global Example
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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.
E
WHAT IS YOUTH ENTREPRENEURSHIP ECO-SYSTEM
#1: ORAN / Chamber of
Commerce / KOSGEB
#2: TeknoPark
#4: Youth Entrepreneurship
Council (YEC)
#3: Erciyes University,
Meliksah University
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
Agenda
A Introduction
B Why Youth Entrepreneurship
C Who Is Youth Entrepreneurs
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
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
E What Is Youth Entrepreneurship Eco-System
D What Enable Youth Entrepreneurship
F Overall High-Level Recommendation
G Appendix
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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

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APPENDIX
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation
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




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APPENDIX
IBM Corporate Service Corps : Turkey Team 6
2011 IBM Corporation