Научная статья на тему 'Unemployment of the youth and their perspectives'

Unemployment of the youth and their perspectives Текст научной статьи по специальности «Экономика и бизнес»

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БЕЗРАБОТИЦА / МОЛОДЕЖЬ / ЗАРОЖДАЮЩИЕСЯ ПРЕДПРИЯТИЯ / МОТИВАЦИИ / UNEMPLOYMENT / YOUTH GENERATION / NASCENT ENTERPRISES / MOTIVATION

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Marinič Peter, Záthurecký Viliam

This article focuses on youth unemployment and how entrepreneurialism may represent a viable alternative to traditional job seeking. It is our belief that the youth of today are capable of starting new enterprises which, over the long-term, can lead to viable and profitable businesses. The article looks at the situation of the youth population with regard to employment and unemployment, addresses the possible motivations behind entrepreneurialism, and discusses the expected problems connected with start-ups. The analyses are conducted at two levels. The first is at the European and national levels where data from European Union respondents is compared to that of the respondents from the Czech Republic. The second is at the national and regional levels where data from the Czech Republic is compared to that of the respondents from Masaryk University. The aim is to isolate the potential motivations and barriers surrounding the establishment of new enterprises at each level and to determine if entrepreneurialism could be an attractive alternative to traditional job seeking within youth populations at the European, national and regional levels.

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Текст научной работы на тему «Unemployment of the youth and their perspectives»

Вестник Новосибирского государственного педагогического университета

3(31)2016

www.vestnik.nspu.ru

ISSN 2226-3365

© П. Маринич, В. Затурецкий

DOI: 10.15293/2226-3365.1603.11

УДК 331.56 + 338

ПРОБЛЕМА БЕЗРАБОТИЦЫ СРЕДИ МОЛОДЕЖИ И ВОЗМОЖНОСТИ ЕЕ РЕШЕНИЯ

В данной статье основное внимание уделяется безработице среди молодежи и тому, может ли предпринимательство быть реальной альтернативой традиционному поиску работы. Мы убеждены в том, что современная молодежь способна создать свое дело, которое в долгосрочной перспективе может стать жизнеспособным и прибыльным бизнесом. В статье рассматривается положение молодежи в отношении занятости населения и безработицы, рассматривается возможная мотивация к предпринимательской деятельности и обсуждаются ожидаемые проблемы, связанные с зарождающимися компаниями. Исследование проводилось на двух уровнях. Во-первых, на европейском и национальном уровнях, где данные респондентов Европейского Союза сравниваются с данными респондентов из Чехии. Во-вторых, на национальном и региональном уровнях, где данные из Чехии представлены по сравнению с данными респондентов из Университета Масарика. Цель исследования состоит в том, чтобы выделить потенциальные мотивы и барьеры, окружающие создание новых предприятий на каждом уровне, и определить, может ли для молодежи предпринимательство стать привлекательной альтернативой традиционному поиску работы на европейском, национальном и региональном уровнях.

Ключевые слова

Безработица, молодежь, зарождающиеся предприятия, мотивации

Петер Маринич - инструктор кафедры корпоративной экономики, Университет имени Масарика, Брно, Чешская Республика E-mail: [email protected] Web profile http://www.muni.cz/people/137627 ORCID ID: http://orcid.org/0000-0001-9232-8713

Вильям Затурецкий - доктор философии (Ph.D.), магистр управления бизнесом (MBA), ассистент профессора, кафедра корпоративной экономики, Университет имени Масарика, Брно, Чешская Республика E-mail: [email protected] Web profile http://www.muni.cz/people/81441?lang=en

П. Маринич, В. Затурецкий (Брно, Чешская республика)

ORCID ID: http://orcid.org/0000-0001-6485-1195

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3(31)2016 www.vestnik.nspu.ru ISSN 2226-3365

ISSN 2226-3365

СПИСОК ЛИТЕРАТУРЫ

1. Amoros J., Bosma N. Global Entrepreneurship Monitor: Global Report 2013. - P. 32. - URL: http://www.gemconsortium.org/docs/download/3106 (дата обращения 10.02.16)

2. Buchtova B. Psychologie pro ekonomy. - 1st ed. - Brno: Masarykova univerzita v Brne, Ekonomicko-spravni fakulta, 2004. - 202 p. - P. 82.

3. European Commission. Youth unemployement. 2013. - URL: http://ec.europa.eu/europe2020/ pdf/themes/21_youth_unemployment.pdf (дата обращения 10.02.16)

4. European Commision. Entrepreneurship 2020 Action Plan: Reigniting the entrepreneurial spirit in Europe, Communication from the Commission to the European parliament / The Council / The European Economic and Social Committee and the Committee of the Regions, C0M(2012)final. -Brussels, 2013. - P. 3-4. - URL: http://ec.europa.eu/growth/smes/promoting-entrepreneurship/ action-plan/index_en.htm (дата обращения 10.02.16)

5. European Commission. Survey of Entrepreneurship in Higher Education in Europe: Main report. 2008. - P. 17. - URL: http://ec.europa.eu/enterprise/policies/sme/files/support_measures/training_ education/highedsurvey_en.pdf (дата обращения 10.02.16)

6. Eurostat. Factors of Business Success, (statistics code: fobs_age, fobs_bra, fobs_ent)

7. Eurostat. Labour Source Survey (statistics code: yth_empl; yth_demo). 2016. - URL: http://ec.europa.eu/eurostat/data/database (дата обращения 10.02.16)

8. Giacomin O., Janssen F., Guyot J., Lohest O. Opportunity and/or necessity entrepreneurship? The impact of the socio-economic characteristics of entrepreneurs. 2011. - P. 4. - URL: http://mpra.ub.uni-muenchen.de/29506/2/MPRA_paper_29506.pdf (дата обращения 10.02.16)

9. House of Lords. The Commission's Green Paper: Entrepreneurship in Europe. 2003. - URL: http://www.publications.parliament.uk/pa/ld200203/ldselect/ldeucom/142/142.pdf (дата обращения 10.02.16)

10. Lukes M., Jakl M., Zouhar J. Ministerstvo Prnmyslu a Obchodu. Global Entrepreneurship Monitor 2013: Podnikatelska aktivita v Ceske republice. 2014. - P. 13. - URL: http://www.mpo.cz/dokument149362.html (дата обращения 10.02.16)

11. Marinic P., Zathurecky V., Spicak O. Motivation of University Students as Future Entrepreneurs // Central European Journal of Management. - 2014. - Vol. 1, № 2. - P. 51-69. DOI: http://dx.doi.org/ 10.5817/CEJM2014-2-4

12. Mayerova M., Riizicka J., Bures Z. Psychologie v ekonomicke praxi. - 1st ed. - Plzen: Zapadoceska univerzita, 1996. - 187 p. - P. 64.

13. Pauknerova D. Psychologie pro ekonomy a manazery. - 2nd, revised and updated ed. - Prague: Grada, 2006. - 254 p. - P. 173.

14. Schrör H. The Profile of the Successful Enterpreneurs. 2013. - URL: http://epp.eurostat.ec.europa.eu/cache/ITY_0FFPUB/KS-NP-06-029/EN/KS-NP-06-029-EN.PDF (дата обращения 10.02.16)

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2016, Vol. 6, No. 3 http://en.vestnik.nspu.ru ISSN 2226-3365

DOI: 10.15293/2226-3365.1603.11

Peter Marinic, Ing. Instructor, Department of Corporate Economy, Masaryk University, Brno, Czech Republic E-mail: [email protected] Web profile http://www.muni.cz/people/137627 ORCID ID: http://orcid.org/0000-0001-9232-8713 Viliam Zathurecky, Ing., MBA, Ph.D., Master of Business Administration, Assistant Professor, Department of Corporate Economy, Masaryk University, Brno, Czech Republic E-mail: [email protected] Web profile http://www.muni.cz/people/81441?lang=en ORCID ID: http://orcid.org/0000-0001-6485-1195

UNEMPLOYMENT OF THE YOUTH AND THEIR PERSPECTIVES

Abstract

This article focuses on youth unemployment and how entrepreneurialism may represent a viable alternative to traditional job seeking. It is our belief that the youth of today are capable of starting new enterprises which, over the long-term, can lead to viable and profitable businesses. The article looks at the situation of the youth population with regard to employment and unemployment, addresses the possible motivations behind entrepreneurialism, and discusses the expected problems connected with start-ups. The analyses are conducted at two levels. The first is at the European and national levels where data from European Union respondents is compared to that of the respondents from the Czech Republic. The second is at the national and regional levels where data from the Czech Republic is compared to that of the respondents from Masaryk University. The aim is to isolate the potential motivations and barriers surrounding the establishment of new enterprises at each level and to determine if entre-preneurialism could be an attractive alternative to traditional job seeking within youth populations at the European, national and regional levels.

Keywords

Unemployment, Youth generation, nascent enterprises, Motivation

Introduction

The situation of the youth population in the area of possibilities to get the job, not mentioned the job the youth dream of, is at least not good and has been deteriorating for the past two decades, especially in the EU states. Unemployment itself is a critical problem of the EU states, and we can observe the impact of the relevance of the topic in every day politicians' speeches. Youth unemployment is the even bigger problem. It is so because of the tendencies it makes in the population. When the youth generation is not connected to the

working process, is not getting the working habits, have no contact with the working conditions in real life, there are basics for serious problems in the future. Moreover the youth generation has their own point of view to the real life, to important things in life in general, to the image of their future. And of course they have possibilities to get support from their parents, who are willing to provide support, although it is not in the best interest of the youth. Thus, there is the environment, where there are fewer and fewer job vacan-

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cies, especially for young people obtaining degrees awarded by universities and other types of higher education institutions. There is less and less motivation of the youth to take the responsibility for their lives, there are more and more youth dependent on their parents support. But is this view correct on the matter of statistics and the relations which could be made according to this statistics? This is the main question which we are going to get the answer on.

It is important to look at small and medium-sized enterprises as the possible realization of the youth generation, especially the ones who are not able to get the job by the labor market. Small and medium-sized enterprises are the cornerstone of the economy, at least in the developed and developing countries. They are able to react to different kind of fluctuations of the economy and to find out the niches at the market. The SMEs are more flexible and represent new thoughts and innovation possibilities.

Entrepreneurship is a powerful driver of economic growth and job creation. Commercializing new ideas improves productivity and creates wealth. Without the jobs from new firms, average net employment growth would be negative. New companies, especially SMEs, represent the most important source of new employment: they create more than 4 million new jobs every year in Europe. While three years ago for 45 % of Europeans self-employment was their first choice, now this percentage has fallen to 37 %. By contrast, in the USA and China this proportion is much higher: 51 % and 56 % respectively. Moreover, when new enterprises are founded, they grow slower in the EU than in the USA or emerging countries, and fewer of them join the ranks of the world's largest firms [3].

The bearer of future economic growth and innovation will be the youngest labor force. For this reason, it is essential to focus the attention on promoting especially this group of the population.

Not only the youth people studying at secondary schools or universities, but also in vocational fields. It is necessary to move away from the idea that this support should be directed mainly to unemployed young people.

We believe that support for young people, when they join the ranks of the unemployed, is not entirely a correct step. It is about dealing with the consequences and not the causes of undesirable situation, and therefore, ill-conceived and unsystematic solutions. It is the duty of the state, schools and educational institutions to acquaint future graduates from all types of schools with the problems of the labor market, to equip them with relevant competencies in their field of expertise as well as with soft skills, information and other types of skills aimed at improving their employa-bility in the labor market. They include real appreciation of their own skills, presentation options and development of realistic ideas about the work environment and the nature of work in the fields or professions future graduates are prepared for.

Currently, there are wide opportunities for starting their own business through start up. Any available means and methods of practical application of skills during their studies contribute to more successful future transition of higher educational institutions graduates to the labor market and reduce the risk of long-term unemployment at the beginning of their careers. Extension studies or re-return to studies are alternatives which demonstrate passivity of graduates and are the ways of escaping from the situation and their own responsibilities, including loss of time, waste of resources both of their own and of the state.

A crucial step must be the effort to change the paradigm of the young generation and employment ideas in the sense that self-employment through business method start-up is normal and usual alternative employment.

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Theoretical background

Entrepreneurship can be regarded as the process of establishing and managing a business, on the other hand, the definition can also include any activities which serve to develop an entrepreneurial spirit, approaches and skills, and can thus cover a wide variety of areas from start-ups to product development to business development and innovation [5; 9].

For the starting new enterprise is motivation on the individual base. It is about the internal and personal motivation of the future potential entrepreneur. Motivation can be defined as a set of internal driving forces which point people in a certain direction, stimulate them to act and maintain the resulting activity [10]. The motivation is "a dynamic system of internal motives action (or inaction) of an individual, which determines its behavior and experience" [2]. Expresses the dynamics of personality and depend on changing conditions [12]. Motivation can be defined as a set of internal driving forces of man, which he focused on in a particular direction, energize and pushed activity to maintain [13].

Motivation in human behavior has a triple function: regulates conduct, organizes behavior and conduct, stimulates and activates the conduct of the individual [12]. In research, the motivation to start their own business a number of researchers, especially abroad. A classic and widely accepted division of theories describing in general terms the reasons or factors that lead to real potential entrepreneurs started, the business is divided into theory push motivators and pull motivators.

These theories divide the motives for entre-preneurship into two groups. Individuals start to do business either because they have no other option, for example due to long-term unemployment, or because they sense an opportunity to make a profit [1]. These two situations gave rise to the concepts of push theory and pull theory, or

necessity entrepreneurship and opportunity entre-preneurship [8].

Methodology

As it was mentioned above the aim of the article is to analyze the situation among the youth population, especially the situation at the labor market - employment and unemployment - and suggest the possibility to solve the problem of relatively high unemployment of the youth generation. Because the solution is based on the individual activity of the members of the population of youth, and is based on their willingness to became an entrepreneurs - to start new enterprise - it is also very important to look at the factors of motivation to start new enterprise, as well as the analyze the barriers for such step.

The analysis of the situation of youth population is based on the data of Eurostat. There is the comparison between the situation in the Czech Republic and the European Union (28 member states) to provide more information and the basis for comparison. The Eurostat database was used also as the source of the secondary data for analysis of the factors influencing the entrepreneur-ship environment in the Czech Republic and the European Union. The aim of the analysis is to find out the key characteristics of the entrepreneur, or the motivation and demotivation to become an entrepreneur.

As the final part of the article there is the analysis of the motivation and expected problems in comparison between the whole population of the Czech Republic and the students of the Masa-ryk University. The first phase of polling was held in the framework of the specific research project "Analysis of potential start-ups", aimed at identifying the motives and expected problems in setting up new businesses. This survey was directly inspired by a similar questionnaire survey undertaken by Eurostat back in 2005 [6, 14].

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The questionnaire was therefore sent to 5000 students of Masaryk University, which yielded a total of 726 completed questionnaires. Response (14,5 %), we can evaluate as sufficient for drawing the relevant conclusions, at least relative to the population of students Masaryk University [11].

The questionnaire was focused on the problems with which entrepreneurs founding start-ups face, reasons for entering into the business or way of financing, which in the context of start-ups prefer. An integral part of the survey was also characteristic of people entering the business environment in terms of gender or previous experience with entrepreneurial activity.

Youth population in Czech Republic and European Union

Currently, the European Union deals with the significant problems, which may affect its future. If we ignore the headlines of the newspapers (rising volume of immigrants, rising volume of

debts of member states; crises in the Middle East...) there is still present unsolved problems of the unemployment, especially the unemployment of the youth population. For young people under 25 years of age, from which, according to Eurostat, more than 5 million are unemployed it is really the big issue. There could be the situation, when every fifth young person in the labor market will not be able to find a job. Labor market, and not just in the Czech Republic, is not capable enough to absorb quickly the annual influx of new workers, not only fresh graduates of secondary schools and universities, but also people without education, or vocational education. Very negative phenomenon in Europe is also a preponderance of graduates in humanities, respectively in general education to vocational professions. The overall unemployment rate of young people under twenty-five years increased more than twice in the year 2014 and the situation is not going to be better in the year 2015 or this year [4].

Graph 1: Employment and employment rate in Czech Republic and European Union

Source: Eurostat Database

As we can see there is the period of the conjuncture of the both - Czech economy and the economy of the European Union, with the 28 member states. The economic conjecture was

connected with the rising the amount of employees, so the rising the employment as well [7]. The highest volume of the employees (4.962 mil employees) in the Czech Republic was reached at the

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end of the year 2008. The highest volume of the employees, thus the highest employment in the European Union was also reached in the end of the year 2008 (220 mil employees). It is not surprising, because the year 2008 is the year of the beginning of the financial and economic crisis on the European Union and in the world as well. The

The corresponding point of view can be obtained from the development of unemployment and unemployment rates in the Czech Republic and the European Union. The significant decrease with the next increase in the same volume can be identified in Czech Republic during the period of the 2005 to 2010. This development can be connected with the economic situation and expectations of the entrepreneurs, when at the beginning of mentioned period they hired new employees to support their producing capacities. After the peak in the year 2008 they fired the same amount of employees because the significant decrease in the

more interesting information can be obtain from the development of the employment rates, and we are able to see the relatively stable employment rate for the whole population but the significant decrease in the employment rate of the youth population especially in the Czech republic.

demand and prices. The development was almost the same in the whole European Union, with the difference in the development after the year of 2008, when the situation can be evaluated as worsen according to unemployment and unemployment rates. There is important information about the development of the unemployment and unemployment rates in comparison between the whole labor force and the group of youth population; it is less than 25 years of age, showing the more impact to the group of youth unemployment than the whole population.

Graph 2: Unemployment and unemployment rate in Czech Republic and European Union

Source: Eurostat Database

2016, Vol. 6, No. 3 http://en.vestnik.nspu.ru ISSN 2226-3365 Graph 3: Youth employment in Czech Republic and European Union

Source: Eurostat Database

The better view on the situation of the youth population connected with the labor market can be obtained from the graphs 3 and 4. There are the volumes of the employed and unemployed people in the age differentiated categories. It cannot be surprises that the lowest volume of the employed and unemployed young people is from the group of the 15 to 19 age old ones. At the end of the observed period there is young people in the age of 20 to 24 years at the second position of employed people and the oldest group (age between 25 and

29 years) is at the first position with almost twice big volume. Situation is solidly different in the unemployment point of view. There are almost no differences between those two groups. The reason for such development and distribution can be seen in the fact, that the younger people are more able to find other opportunities than job or finding the proper job at their age. And they are also able to get support from their parents. Also it is reasonable to propose, that they have no own families -partners or children to be responsible for.

Graph 4: Youth unemployment in Czech Republic and European Union

Source: Eurostat Database The very corresponding picture we can obtain from the development of the self-employment

of the youth population. While there is legal age for being an entrepreneur, there is no surprise, the

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group of 15 to 19 age old youth population is not interested in self-employment. In the rest two groups there are tendencies to decreasing of volume of self-employed people at the age of 25 to 29 years old. But it is the biggest group in Czech

Republic and European Union as well. So we can assume that there is the potential for youth population to become entrepreneurs, to start new business, but there are probably some difficulties to be overcome.

Graph 5: Youth self-employment in Czech Republic and European Union

Czech Republic European Urion

■ Age 15-19 BAgE 2C-2¿ lAgE 25-29

Source: Eurostat Database

Graph 6: Youth population and Age of leaving the household in Czech Republic and EU

Source: Eurostat Database

Last graph provide us the evidence of the demographical problems of the Czech Republic and the European Union. It is the decreasing volume of the population which can be observed also in the youth population. The line in graphs presents the age of leaving the households. So we are able to identify the age of leaving the household in Czech Republic in the year 2014 at the age of

26.5 years old. In the European Union it is the age of 26.2 in the same year. But from the development of the line it is obvious that there were the higher age of leaving the household in the Czech Republic in comparison with the European Union. The age of leaving the household can be also significant influence to the employment rates and un-

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employment rates of the youth population. Leaving the household can be the economical reason for higher activity of the group of youth population.

Comparison of the surveys - European

Union and Czech Republic

The analysis of the entrepreneurship environment, in the sense of the motivation and the expected problems, is based on the data from Eurostat one-off survey on the "Factors of Business Success" [6] which was carried out by 13 Member States. The survey was conducted from June 2005 to January 2006 and finished between September 2005 and April 2006, varying from country to country. The results of this survey give insight into the factors that determine the success and growth of newly born enterprises, especially looking into motivations for starting up own business, barriers and risks encountered during the first years of existence, the current situation of the enterprise, and business plans for future development. The next analyzed characteristics of the entrepreneurs are directly from the category of the

motivations and obstacles in accordance with the push and pull theory.

The first most often selected motivation is the desire to be one's own boss (CZ: 16.4 % / EU: 14.9 %), prospect of making more money (CZ: 14.6 %; EU: 14.4 %), the desire for new challenges (CZ: 14.9 % / EU: 13.5 %) and the avoiding unemployment (CZ: 10.4 %; EU: 9.9 %).

It is obvious that there are the non-financial possibilities based on the opportunities to realize oneself and to get the personal development. On the other hand there are typical financial motivation embodied in the possibility of prospect more money. The possibility of avoiding unemployment is phenomenon of the after crisis economic development in the European Union. The employees who lose their jobs are trying to deal with the current situation by the founding new enterprise in a form of the start-up enterprise. There are differences in the chosen countries according to their actual economic situation and according to traditions in the country.

Table 1: Motivation to start a new enterprise (Eurostat survey)

Motivation EU CZ

desire to be one's own boss 14.9% 16.4%

prospect of making more money 14.4% 14.6%

desire for new challenges 13,5% 14.9%

avoiding unemployment 9.9% 10 4%

combining work and private life 8.5% 9.1 %

getting away from unsatisfactory work situation 8.2% 8.2%

realising an idea for an new product or service 6.8% 4,3%

desire to make a living from a hobby activity 6.7% 8.8%

only possibility to carry out profession 5,8% 5.4%

tradition for self-employment in the family 4.5% 2,5%

children are big enough 2,8% 2,6%

reaching an international market 2,8% 1.6%

working as sub-contractor exclusively for former employer 1,2% 1.1%

Source: Eurostat Database

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The next part is aimed to the obstacles connected with the founding a new enterprise. There is the list of commonly occurred problems connected with the founding of new enterprises or with the running of the nascent enterprise.

Three most commonly chosen problem according to realized questionnaire survey of Euro-

stat is the problem of dealing with the legal authorities and administrative matters (CZ: 14.8 % / EU: 15.1 %), to find out and develop the relationship with the customers (CZ: 15.0 % / EU: 14.6 %) and to get finance the start-up business (CZ: 16.1 % / EU: 13.1 %).

Table 2: Expected problems connected with the start of new enterprise (Eurostat survey)

Problems EU CZ

to deal with legal / governmental / administrative matters ■15,1% 14 8%

to establish contacts with customers || 14-,6% 15,0%

to get financing ■l3,1% 16,1%

to be alone a.s an entrepreneur 10 1% 10 4%

to price goods or services 9.1% 9,5%

to obtain payment for outstanding invoices 8,5% 7,9%

to find suitable premises 6,8% 6,7%

to get suitable personnel 6,7% 4.5%

to find suppliers 6,3% 5,3%

to use information technology effectively 5,1% 5,2%

to get backing from spouse or family | 4.4-% 4.6%

Source: Eurostat Database

With the financing of the start-up initiatives there are a lot of possibilities to help future entrepreneurs with. State (governmental and regional authorities with European Union cooperation) prepares a lot of supporting program for the future entrepreneurs, to start new enterprise. But it is not only the question of money connected with the problem of financing, but also the question of the terms according to which it is possible to get financing and the question of getting the right information about financial possibilities. The important role of state authorities is also in the field of bureaucracy and the lower the administrative intensity for the real day-to-day running of the enterprise.

Comparison of the surveys - Czech Republic vs. Masaryk University

From the perspective of incentives for the creation of new businesses prevails in both inves-

tigations desire to become their own boss (Eurostat 30.2 %; MU 35.1 %). This may explain the manifestation of the individuality and the reluctance of the authorities to take in individuals who are interested in entrepreneurship. The second most important factor for respondents' desire for new challenges (27.5 %), whereas among students is the desire to transform his hobby, a hobby, to gainful employment (22.1 %). The least important factor, according to the results of the investigation appears to be a personal space created by grown children (Eurostat 4.9 %, MU 4.6 %), which is a group of students to understand how much of an age issue their own offspring to time shortage for the time being addressed.

Less expected is the result of low importance factor of entrepreneurial tradition as a motivator for business (Eurostat 4.7 %, MU 6.1 %). What may be due to the relatively small footprint for generating entrepreneurial tradition

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in a family environment? Consideration also seems that new businesses rather based individuals who are not business traditions in family background, but the desire exists to change this fact.

In connection with the entry into entrepre-neurship needs to solve many problems. As the key problem was identified funding-created enterprise (Eurostat 16.1 %; MU 21.6 %) and problems in legal or administrative region (Eurostat 14.8 %; MU 19.8 %), and also in creating contacts with customers (Eurostat 15.0 %; MU 20.4 %). These problems can be considered as commonly known and accepted, as evidenced by the ability of some respondents, and also students, rationally assess and evaluate the problems already in the preparatory stage of business creation. It demonstrates a certain amount of their soundness and orientation in the field.

Difficulties in getting suppliers (Eurostat 5.3 %; MU 1.2 %) suitable premises (Eurostat 6.7 %, MU 2.4 %) effective use of information technology (Eurostat 5.22 %, MU 1.8 %) or obtaining support from family or partner (Eurostat 4.6 %; MU 1.8 %) are perceived less intensively.

Dominance of other factors of motivation for business can also be a cause of low importance of entrepreneurial tradition in the family.

The most important distinction between the perceived problems between respondents and students poses a problem hiring employees. While among respondents, this problem is less often mentioned (4.5 %) among students is the problem compared to other "non-intensive" perceived problems perceived more strongly (6.6 %).

On the area of financing, which was among others the most perceived problem of going into business, it was addressed in a separate question. The most commonly reported method and manner simultaneously with the largest difference between respondents and students is their own funding (Eurostat 70.0 %; MU 37.0 %). It can assume that this difference stems from the weaker economic situation of students in comparison with respondents nationwide survey. Furthermore, it can be identified that students in comparison with respondents preferred more bank loans, whether to provide the guarantee or without it (Eurostat

Graph 7: Motivation of surveys participants to start a new enterprise

Source: Eurostat Database and Own Survey

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5.4 %; MU 22.9 %) and financing in the form of support from public institutions (Eurostat 2.0 %; MU 10.3 %). About the possible financing of a newly established enterprise with the assistance of

family members or friends considering respondents and students in almost identical range (Eurostat 21.6 %; MU 20.5 %).

Graph 8: Expected problems by surveys participants connected with the start of new enterprise

Source: Eurostat Database and Own Survey

Conclusion

Entrepreneurship is the important component in the creating the new enterprises for example in the form of start-up. Entrepreneurship is inevitably connected with the personality of an entrepreneur.

Entrepreneurs have their own desires and motivations. Motivation of the entrepreneur can be divided according push and pull theory. Push theory favors the positive motives encouraging potential entrepreneurs to start a new business. Such positive motives which can be also identified through the realized questionnaire survey as important are desires for new challenges, to be

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one's own boss or to prospect more money. As the important push motive to start a new business is the avoiding unemployment. This is the common problem of the European Union, especially after the economical peak in the 2008 and following recession of the economies all around the Europe. One of the problems of the economies of the EU members - but not only the EU members - is the rising level of unemployment which forces the unemployed people to find out another solution to their economic situation.

Other part of the analysis shows the typical problems which are expected to overcome during the starting new businesses and running nascent

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2016, Vol. 6, No. 3 http://en.vestnik.nspu.ru ISSN 2226-3365

enterprises. The typical problems are connected in all analyzed countries with the financing, administrative intensity and activities of obtaining customers and markets for production potential. These problems should be overcome with help from the state authorities to support future entrepreneurs and thus support revival of the economy growth and development.

The issue of self-employment through startup, a paradigm shift in behavior of the young generation for self-employment can be summed up the problems and prospects. The problem is the disproportionately high levels of unemployed young people after completing their education at secondary school or university. The problem is the "golden youth" and their reluctance and lack of attempt to work. The problem is pseudo parents' participation in the further development of the young generation who often absurdly encourage their children to study subjects without prospects, only to have several years of calm. A major problem is the involvement of the state and municipal support for self-employment of young individuals.

At the beginning it is inevitably necessary to overcome the habits, ingrained perceptions and overall paradigm of all of us, society, parents and the young generation, it is not abnormal to work and work for themselves. In the form of start-up, the possibility of self-employment is an extraordinary opportunity for further development,

growth of individual wealth and education and for achievement of other important social values. We are convinced that starting their own businesses through start-up, according to the theory of idea invention, which implementation can bring great value. Inventions lead to creating a project, a business plan and a financial plan. For speaking or presentation of ideas becomes a realization. The result of the project begins to have a greater value than the idea.

Start-up is becoming a normal business. There is nothing more pleasant than the implementation of the submitted bids, monitoring the trend of a growing number of customers, issuing tax documents and collecting business premiums. In the start-up it is not necessary to immediately make a profit. It is essential, however, to grow revenue and maintain a balance between expenditures and revenues.

This financial balance enables further growth of own business. Creating a successful model for starting a business through the start-up opportunities for the application of education of the young generation, it is the possibility of the development of innovative thinking and personal growth. The problems facing young entrepreneurs can be a challenge for them. Those interested in start-up are able to overcome obstacles, to constantly promote a model of potential growth to sustainable development.

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