The Government of the Macao Special Administrative Region (SAR) has been actively promoting youth entrepreneurship in recent years. On the second day of the 2015 Macao Franchise Expo (2015MFE), a number of experts and successful entrepreneurs said that young people starting a new business must have good products and business ideas, and they also need to pay attention to changes in the market and make flexible arrangements accordingly. As young entrepreneurs usually lack prior experience in running a business, becoming franchisees of chain brands can be a good way for them to launch their business. Apart from establishing their own business, young business starters can also acquire experience from the daily operation, laying the foundation for starting their own brands in the future.
Youth entrepreneurship is one of the key topics at this year’s MFE. The event organisers arranged several activities focused on this topic, including the “Franchise Business Start-up Workshop” and a seminar entitled “Dream for the Future: Youth Entrepreneurship Sharing”. Consultation service on “Youth Entrepreneurship Strategies” was also provided, attracting many young people interested in starting or have just started a business.
Chain and Franchise Business Suitable for Young Entrepreneurs
At 2015MFE, Fabrice Herlax, Marketing Director, Retail Franchise International of Délifrance, said that young entrepreneurs have to understand the positioning in the market as well as the target customers of their chosen brand when they start the business. They should protect the image of the brand and pay more attention in choosing the right partner. Mr Herlax believes that chain and franchise business is a good way for young people to start an enterprise, as the brands usually provide operational training to the franchisees, ensuring that they are able to run their stores smoothly.
Kwan Lam Hon, Director of Double Star International Holding Limited, said that young people starting a business by becoming a franchisee of a chain store brands should be prepared that they have become a member of a large enterprise, possess the financial resources for opening more than one shop, as well as self-management skills, so that they are capable of managing a team. He believed that young people interested in starting a business, must choose the right timing and economic environment before start up, and retain the characteristics of their chosen brand, thereby achieving sustainable development.
Consultation Service Helps Young Entrepreneurs to be Well Prepared
Lo Tak Chong, President of the Chinese Youth Federation of Industry and Commerce of Macao, said creativity and hard work are essential elements of youth entrepreneurship. Based on his experience, finding a niche in the market is the most difficult task for a young entrepreneur. He suggested that they should consult more professional opinions and seek advice before starting a business. He quoted the example of the services provided by the Business Incubation Centre for Youth in Macao as well as other non-government organisations. Mr Lo added that he believes that the chain and franchise business is a desirable option for young people to start a business, because most of these brands have already established their reputation and therefore the operational costs are relatively lower. The young entrepreneurs can acquire knowledge and experience in business operation which are particularly valuable and useful when they run their own brand in the future.
Young Entrepreneurs Need to Set Profit Goals
Mann Lao, Creative Director of Chiii Design Ltd, and Patrick Lei Cheng Cheong, Associate Professor at the Macao Polytechnic Institute, said that young entrepreneurs often overlook some important issues. They might have a general idea on how to run a business but fail to set clear profit targets. Additionally, the positioning of their business might not always be clear. The two experts suggested young people should first work in well established companies before starting their own business in order to acquire knowledge, accumulate experience and build up a personal network. Even if they have achieved success at the early stage of a new business, young entrepreneurs should constantly adjust their business model based on market development, or they may be phased out if they fail to cope with the changes of the market. Mann Lao and Patrick Lei added that they hope that the Government can co-operate with non-government organisations and set up channels offering professional advice on how to start and run a business, thus enhancing the chance of success of youth business starters.
