Skill Gaps and Training Needs of Existing and Potential Entrepreneurs in N. Macedonia

GLOBAL EXCHANGE AND TRAINING FOR YOUTH EMPLOYMENT SERVICES 2 Project number: 618649-EPP-1-2020-1-MK-EPPKA2-CBY-ACPALA

SKILL GAPS AND TRAINING NEEDS in young existing & potential entrepreneurs NATIONAL REPORT FOR REPUBLIC N.MACEDONIA

GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Preface GET YES 2 is a partnership between 6 partners from 6 countries worldwide: Venezuela, Turkey, Philippines, Bulgaria, Uganda and N. Macedonia. It is a 24 months’ capacity building project in the field of youth.

The main motivation behind this project is to foster the cooperation, exchange and upgrade of good practices between project countries with a final vision – new quality jobs through creation of entrepreneurship mindset and culture among economic actors in the societies.

The aim is to build the know-how and technical capacities of the six partners, and by that to create: reports with data for supporting entrepreneurs, training need analysis, 24 new trainers, training programs for gaining entrepreneurial competences, educational platform for retention of skills, IT solutions for standardized working, exchange of experience in creating local jobs, and through created services to encourage 300 young existing or potential entrepreneurs to create new jobs. As added value is the standardization and networking among CEFE centers around the world.

The GET YES 2 partnership appreciates the usefulness of a comprehensive understanding of skill gaps and training needs among young people in business creation, operation and development, especially those associated with their actual or potential creation of enterprises.

Identification of specific knowledge deficiencies and skill gaps of the target groups in the partner countries was the main objective of an on-line survey undertaken in all project partner countries.

Main objectives of these surveys are: (a) to reveal “Skill Gaps” of prospective young business creators (interpreted as “training needs”), (b) to consider how training programs could be organized and delivered most effectively, (c) to investigate the readiness and willingness for cooperation with other organizations that support entrepreneurs in respective countries.

The present Report contains the results of the survey conducted in N. Macedonia.

The associated tasks were coordinated by Aleksandra Blazevska and Blagoj Trajkov, who are the main authors of this Report. Natasha Chavdarovska gave valuable assets for mentoring the process and Jovan Stalevski also provided valuable assistance. The author(s) wish to acknowledge the information and support received from CEFE Macedonia and its collaborators.

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Table of Contents

Contents Executive Summary................................................................................................................................. 4 Извршно резиме.................................................................................................................................... 7 Sampling Methodology and the Report’s structure ............................................................................. 10 1.

Survey participants personal characteristics ................................................................................ 11

2.

The Professional & Business characteristics ................................................................................. 15

3.

Motives for becoming entrepreneur/intrapreneur ...................................................................... 19

4.

Running a business – Expected or Experienced Problems............................................................ 20

5.

Importance of skills requirements associated with running a business ....................................... 22

6.

Knowledge and adequacy of skills requirements associated with running a business ................ 26

7. Upgrading your skills for becoming entrepreneur/intrapreneur – Preferred types of training delivery modes ...................................................................................................................................... 30 8.

Comparative analysis of “Problems”, “Skill Gaps” and “Knowledge Adequacy” among surveyed32

9.

National Survey specific issues ..................................................................................................... 34

Annex A: Survey Results ........................................................................................................................ 35 Annex B: Survey Questionnaire ............................................................................................................. 43

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Executive Summary The field research within the GET YES 2 Project in N. Macedonia was conducted by a team of researchers composed of the Association of Citizens CEFE Macedonia. The research included two target groups: young people aged 15-35 years old and organizations that support entrepreneurs in the country and region. It used the questionnaire set by the project applicant organization, conducted small number of field visits to organizations, and conducted telephone and electronic communications in order to collect the required minimum number of questionnaires in the partner country. Thus, the number of completed electronic questionnaires is 111.

It is a small curiosity that young women are more interested in entrepreneurship and business than young man nowadays. Almost two thirds of the respondents are female, at the age of 15 to 35. More than half of the survey participants are secondary school students aged 15 to 18, while the rest of them are mostly university students. This fact speaks volumes that young people are very enthusiastic about participation in training and workshops, and gaining new knowledge and skills beside the traditional education they get in school.

Most of the survey participants are young people that are still in the education process, while only a few of them are currently operating their own business.

Half of the survey participants stated they have already participated in entrepreneurship training, mainly on lectures and presentation courses as part of the school curriculum. This fact explains the reasons why young people show great interest in training participation and non formal education.

Although not many of them have obtained any entrepreneurial competences, 70 % of the respondents declared that their main motivation to obtain new entrepreneurial skills is the idea to open and run their own business. This is a clear indicator that young people nowadays strive to equip them with new skills and entrepreneurial mindset in order to be financially independent in the near future. Another thing to mention is that most of them didn’t have the opportunity to take part in business skills training and workshops, which is due to the fact that there are not enough business skills training on the market the young people can participate or can allow themselves.

67 % of the respondents are planning to establish their own business, while the rest of them are interested in gaining entrepreneurial skills and competences.

Regarding the strengths they possess in business establishment are: having a good idea, having competences for business management and having business supporters.

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The survey participants are mainly interested and want to invest in traditional entrepreneurship and social entrepreneurship. The least of them are interested or want to invest in Circular economy respectively. The reason that most of the interviewees chose the social entrepreneurship as their main type of economy is due to the fact that there are many social issues in our country that are not resolved and it is very encouraging to see that the conscience among young people about their area of living is getting on a higher level.

The fact that Traditional entrepreneurship, on the other hand, is still dominant on the domestic market, explains the reason that most of the interviewees chose it as a prime type of economy to invest. Green economy which is number one priority in the European Union in the near future is not on our youths agenda so much.

Almost half of the interviewees stated that their main motive for opening a company is that it seems like a good career opportunity. 25 % are motivated in opening or having a company by the opportunity to put innovative ideas into practice. This is a clear indicator that young people nowadays prefer investing and growing a good career instead of just accumulating capital. They are aware of the fact that through career growth not only they will become rich, but they will gain different skills and knowledge, and a lot of experience, too. Quite interesting is the fact that 25 % of the survey participants already have an innovative idea that they want to put into practice, just that maybe they lack some of the decisive strengths in opening a business.

Problems such as lack of skills and knowledge to manage the business and lack of clear business strategy as well were listed as of very high importance from the survey participants.

According to skills requirements associated with running a business, respondents find it that very important is knowing how to make decisions, ability to generate assess and select a business idea that has potential on the market, ability to define the market needs and potential, effective time management, understanding and reading balance sheet and undertaking business plan presentation in front of donors, clients, employees and etc.

Following skills are rated with a high level of possessing by the respondent: ability for accepting responsibility, ability of making SMART goals, understanding and implementing the importance of digital marketing, Effective time management, understanding and reading profit and loss statements and undertaking business plan presentation in front of donors, clients, employees. Skills rated with low level of possessing among survey respondents are: understanding and using the cash flow statement for management purpose, knowing and understanding the profitability ratios.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Respondents stated that the most appropriate way of acquiring these knowledge and skills is through training, as well as by sharing experiences with other entrepreneurs. Gaining practical experiences is considered the best way of retaining skills.

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Извршно резиме Теренското истражување во рамките на ГЕТ ЈЕС 2 проектот во С. Македонија беше спроведен од тим на истажувачи составен од Здружението на граѓани ЦЕФЕ Македонија. Истражувањето опфати две целни групи: млади луѓе на возраст од 15 -35 години и организации кои поддржуваат претприемачи во земјата и регионот. Се користеше прашалник составен од страна на организацијата апликант на проектот, се спроведоа мал број на теренски посети на организациите, и се спроведе телефонска или електронска комуникација со цел да се собере потребниот минимален број на прашалници во земјите партнери. На тој начин вкупната бројка на пополнети електронски прашалници е 111. Мал куриозитет е дека младите девојки се повеќе заинтересирани за претприемништво од младите момчиња денес. Скоро две третини од испитаниците се од женски род, на возраст од 15 до 35. Повеќе од половина од учесниците во истражувањето се дел од средното образование на возраст од 15 до 18 години, додека останатите се претежно студенти. Овој факт зборува многу за заинтересираноста на младите луѓе за учество во обуки и работилници, и стекнување нови знаења и вештини, покрај традиционалното образование кое го добиваат во училиштето. Повеќето од учесниците во истражувањето се млади луѓе кои сеуште се дел од процесот на формално образование, додека само неколку од нив моментално имаат свој сопствен бизнис. Половина од учесниците во истражувањето се изјасниле дека веќе имаат учествувано во обука за претприемништво, главно на предавања и презентации како дел од наставната програма. Овој факт ги објаснува причините зошто е толку голем интересот на младите за учество во обуки и во неформално образование. Иако малку од нив се стекнале со претприемачки компетенции, 70% од испитаниците изјавиле дека нивната главна мотивација за да стекнат нови претприамчки вештини е идеата да отворат и да водат нивен сопствен бизнис. Ова е јасен показател дека младите во денешно време се стремат да стекнат нови вештини и претприемачки мајндсет, со цел да бидат финансиски независни во блиска иднина. Друга работа што вреди да се спомене е дека повеќето од нив немале можност да земат учество во обуки за бизнис вештини и работилници, што се должи на фактот дека нема доволно обуки за бизнис вештини на пазарот на кои младите можат да учествуваат или кои можат самите да си ги дозволат.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

67% од испитаниците планираат да основаат свој сопствен бизнис, додека останатите се заинтересирани за стекнување на претприемачки вештини и компетенции. Во однос на слините страни коишто ги поседуваат за основање на бизнис се имањето на добра идеја, имањето компетенции за бизнис менаџмент и имање на поддржувачи на бизнисот. Учесниците во испитувањето главно се заинтересирани и сакаат да инвестираат во традиционалнио претприемништво и социјално претприемништво. Најмалку од нив се заинтересирани или сакаат да инвестираат во циркуларна економија. Причината поради која повеќето испитаниците го избрале социјалното претприемништво како главен вид на економија се должи на фактот дека во нашата држава има многу социјални проблеми кои не се решени со години и доста охрабрувачки е да се види дека свеста кај младите луѓе за средината на живеење расте на повисоко ниво. Фактот што традиционалното претприемништво, од друга страна, е сеуште доминантно на домашниот пазар, објаснува зошто повеќето од испитаниците ја избрале како примарен вид на економија во која би инвестирале. Зелената економија која е број еден приоритет на Европската Унија не е многу застапена во агендата на нашите млади. Скоро половина од интервјуираните истакнале дека нивниот главен мотив за отворање на компанија е дека тоа претставува добра можност за кариера. 25% се мотивирани за отворање или поседување на компанија заради можноста да воведат иновативни идеи во праксата. Ова е јасен показател дека младите луѓе денес преферираат да инвестираат во добра кариера наместо само во акумулирање на капитал. Тие се свени за фактот дека преку раст во кариерата не само што ќе станат богати, но ќе се стекнат и со различни вештини и знаење, и големо искуство, исто така. Доста интересен е фактот што 25 % од учесниците во истражувањето веќе имаат оновативна идеја која сакаат да ја применат во пракса, само што можеби им недостига некоја од клучните силни страни за отворање на бизнис. Проблемите како недостаток на вештини и знаење за менаџирање на бизнисот и недостаток на јасна бизнис стратегија беа истакнати како проблеми со многу глолема важност од страна на учесниците. Во врска со потребите од вештини за водење на бизнис, испитаниците сметаат дека е многу важно да знаеш како да носиш одлуки, способноста да смислиш, оцениш и избереш бизнис идеа која ќе има потенцијал на пазарот, способноста да ги дефинираш потребите и можностите на пазарот, ефикасното менаџирање на времето, разбирање

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

и читање на биланс на состојба и презентирање на бизнис планови пред донатори, клиенти, вработени итн. Вештините: способноста за прифаќање на одговорноста, способноста за креирање на МУДРО цели, разбирање и имплеметирање на важноста на дигиталниот маркетинг, ефикасното менаџирање на време, разбирање и читање на изјави за профит и загуба и организирање на презентации на бизнис план пред донатори, клиенти, вработени се вештини за кои испитаниците се изјасниле дека ги поседуваат во голема мера односно на високо ниво. Додека пак вештините: разбирање и користење на cash flow изјавите за целите на менаџментот, знаење и разбирање на соодносот на профитабилност се вештини за кои испитаниците се изјасниле дека нивото на нивно поседување е многу ниско. Испитаниците истакнале дека најсоодветниот начин за стекнување на овие знаења и вештини е преку обуки, како и преку размена на искуства со други претприемачи. Стекнувањето на практични искуства се смета за најдобар начин за задржување на вештини.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Sampling Methodology and the Report’s structure

Key findings:  There were 111 responses to the survey in N. Macedonia by youth aged 15 to 35  The team of researchers used an online survey and used email or phone communication in the process. Due to the pandemic recommendation, the team didn’t conduct any personal meetings and inquiries

The team of researchers from N. Macedonia, two researchers from CEFE Macedonia, managed to gather 111 responses mostly by online questionnaire, email, phone conversation with young people and organizations. Most of the questionnaires were answered through the online link and platform, using the google forms survey created by the CEFE Macedonia team members. For better communication with the respondents, the team provided a translated version of the survey.

The sections of this Report follow the section order from the survey. Additionally, with this Report we are providing brief presentation analysis.

During the distribution, while attempting to reach the target foreseen in the project, the biggest doubt was whether the questionnaire is too long and whether it will keep respondents’ attention. However, the number of respondents was double the projected number; hence we were positively surprised by the youth participation and responsiveness.

What should be taken into consideration while assessing issues faced during the process is that at the time of the data collection in N. Macedonia most of the young people and organizations working with young people were working remotely. Although this was a field research, the research team overcame this issue by using personal contacts (emails and telephones) of partner organizations, public schools and universities, social media publications, personal connections with interested individuals and other channels of communication which at the end resulted in completion of the targeted number of questionnaires.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

1.

Survey participants personal characteristics

Key findings: ● Most of the questionnaires were answered by female representative of the target group  More than half of the respondents are age 19-25  More than half of the respondents have secondary education  47% of the respondents stated that they have been part of any entrepreneurship training before  70 % of the respondents said they have participated in entrepreneurial lectures and presentation course kind of training  67 % of the respondents are planning to establish their own business, while the rest of them are interested in gaining entrepreneurial skills and competences

The first section of the survey was developed in order to gather data about the personal characteristics of the respondents such as gender and data about their age and education.

Also, through this section information was collected regarding the type of training the respondents have participated and the skills they have gained and also about their future plans and interests in the business area.

From 111 questionnaires, 67 (60%) were answered by females and 44 (40%) by males

Chart 1

The largest percentage of the respondents, 51, 9% are aged 19-25. After them, 38, 5% are respondents aged 15-18. Respondents aged 31-35 constitute 9 % and the remaining 2 % are respondents between 26-30 years old.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Chart 2

With respect to education, 41 % are at the university level. 7 % of the respondents are at the postgraduate level and the biggest number consist the high-school respondents who consist of 52% of all the survey participants, while there are no participants who have only primary education or less.

Chart 3

51 % of the respondents answered that they have previous experience and engagement in entrepreneurship training, while the other 49 % have never participated in any entrepreneurship training.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Chart 4

48% from those who have participated in entrepreneurship training stated that they have participated mostly on lectures or presentation courses. 30 % of them also participated in business skills training, while just 10 % of them participated in job training. 7% respondents claimed that they have participation in apprenticeship, acceleration programs etc., while 5% claimed that they have participated in some other types of trainings, but they do not specify the type of training.

Chart 5

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

On the question Ι.6 “What is your business aspiration?” 76 respondents or 67 % said that they intend to open a business in the next 1-3 years, while 32 respondents or 28% stated that they aspire to be intrapreneurs - to use entrepreneurial competences in existing companies. Only 6 respondents or about 5 % of the survey participants stated that they already have established their own business.

Chart 6

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

2. The Professional & Business characteristics Key findings:  Only small number of survey participants have their own business  Most of them have small businesses, with 1 -9 employees  One third (2 participants) of the business owners are family successors, one third (2 participants) are second generation successors of family business, while one third (2 participants) established their own business (companies)  Most of the respondents claim that their strong side in business establishment is having a good idea, having competences for business management and having business supporters  The survey participants are mainly interested and want to invest in traditional entrepreneurship and social entrepreneurship. The least of them are interested or want to invest in Circular economy respectively.

In the survey section for business characteristics, respondents had to answer several questions regarding the activity sector, the business’ size of employment, in terms of number of employees, the most important strong side they have to obtain in order to establish a business, as well as their interest in learning about and investing in particular business.

As shown on Chart 7, the survey participants with their own business, come from different area of business sector, such as manufacturing, tourism, ICT services and social services.

Most of them (2 participants) didn’t specify their area of business.

Chart 7

As seen in Chart 8, most of them (4 interviewees) possess small companies with up to 9 employees, 1 interviewee stated that possesses a company with up to 50 employees while 1 of them stated that possesses a company with more than 50 employees.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Chart 8

On the question “Did you succeed in your business from your family, the survey participants gave different answers. 33% of them (2 interviewees) claimed that they will succeed a family business, 33% of them stated that they are the second or further generation of business successors, while 33 % said that they have established their own companies. (as seen from Chart 9)

Chart 9

On the question “II.4 What was/is your decisive strength for starting a business?” a large percentage of 73,1 % or 81 participants answered that the decisive strength for starting a business is having a good idea, while 49% stated that the decisive strength is having competences for business management. A good number of the survey participants or 45% stated that having business supporters is also very important and decisive for starting a business. Only 11, 5 interviewees think that having a good product is vital for starting a business.

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Chart 10

From the responses on question II.5 “Which type of economy do you like to invest the most?”. It is evident that most of the interviewees stated that they will choose among traditional and social entrepreneurship. 51 of the respondents chose social entrepreneurship as a type of economy they would like to invest most, while almost the same number of 50 respondents chose traditional entrepreneurship. Fair number of interviewees (36) said that they are interested in innovations, while 31 of them declared their interest in Network Marketing Business Model. The least of the respondents chose the Circular economy as their prime type of economy they would like to invest.

The fact that the biggest number of interviewees chose the social entrepreneurship as their main type of economy is due to the fact that there are many social issues in our country that are not resolved and it is very encouraging to see that the conscience among young people about their area of living is getting on a higher level. The fact that Traditional entrepreneurship, on the other hand, is still dominant on the domestic market, explains the reason that most of the interviewees chose it as a prime type of economy to invest.

If we analyze the answers of the interviewees regarding the other types of economies, we can conclude that they are not very popular among young people in our country, or they are not so promoted by the governmental institutions. The fact that there are so many problems regarding the pollution and the protection of the environment and the EU politics on the Green economy, we can conclude that sustainable development and environmental protection have not been put in the first place in our country for a long period of time.

The results from this question can be seen on the Table II.5.

II.5 Which type of economy you like to invest most?

Frequency

Traditional entrepreneurship - aims to create a product, service or 50 process for which a consumer will pay Social entrepreneurship - to create a product, service or process from 51

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

which society will benefit Circular economy - system aimed at eliminating waste and the continual use of resources Green economy - aims at making issues of reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment.

Block Chain Economy - is a scenario and potential future environment in which cryptocurrency replaces current monetary systems, potentially on a global basis Network Marketing Business Model - that depends on person-toperson sales by independent representatives, often working from home.

Innovations economy - higher productivity, that the same input generates a greater output Table II.5

14 25

19

31 36

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

3. Motives for becoming entrepreneur/intrapreneur Key findings: 1. Nearly half of the interviewees stated that their main motive for opening a company is that it seems like a good career opportunity. 25 % are motivated in opening or having a company by the opportunity to put innovative ideas into practice.

From 111 respondents on the question about their main motive for opening or having a company, 48 of them or 47% from the total number of survey participants stated that the main reason behind their motivation for opening or having a company is the opportunity for a good career. 26 of them or 25% from the survey participants stated that they are mainly motivated by the opportunity to put innovation into practice, while a fair number of participants (17) or 16 % are mostly driven by the idea to become their own bosses. Small number of the survey participants (only 10%) wants to accumulate capital or become rich.

Chart 11

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

4. Running a business – Expected or Experienced Problems Key findings: ● Main problems with very high importance identified by the survey respondents are:  Lack of skills and knowledge to manage the business  Lack of clear business strategy  Lack of technical knowledge about starting or running some business ● Main problems identified as high important for running businesses are:  The respondent is not yet ready and well prepared to run the business  It is difficult to manage the changes that business process is requiring  It is hard to recruit and grow the human resources well  The respondent is facing business related issues that he/she cannot manage and discuss with others  Starting and running a business is very demanding in terms of bureaucracy

In Section IV of the survey, respondents were asked to indicate the importance of problems they have experienced or anticipate in relation to running or creation of their own business.

In the following table are presented the percentages of the 63 responses on the questionnaire: Indicate the importance of EACH of the listed problems that you have experienced or you expect to experience, with relation to running or creation of business.

I lack the skills and knowledge to manage the business I am not yet ready and well prepared to run the business It is difficult to manage the changes that business process is requiring I do not have the technical knowledge about starting or running some business I am not able to take over all the functions that the entrepreneur needs to The process of establishing, running and expansion of business is not clear to me The process of entrepreneurship is very demanding in terms of family/friends relations

Low / Very Low importance

High importance

Very High importance

22

45

44

22

57

32

13

75

23

30

40

41

31

50

30

37

36

37

47

44

20

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Report: Skill Gaps and Training Needs in Businesses Creation – N. Macedonia

Starting and running a business is very demanding in terms of bureaucracy

24

57

29

24

44

43

17

63

30

28

55

28

33

46

31

47

48

15

77

22

11

Managing costs and calculating the prices is challenge for me

46

44

21

Financial aspects of managing a business is not my thing

42

49

20

I'm not well prepared for the digital transformation of doing (smart) business

43

50

17

44

51

16

41

56

14

57

44

10

I'm lacking a clear business strategy It is hard to recruit and grow the human resources well Managing possible conflicts resulting from the business process The business lacks the organization and division of tasks Family and business matters are complex and intertwined Family does not accept me as entrepreneur

Selling process is exhausting me the most I'm facing business related issues that I cannot manage and discuss with others Other (please specify):

From the responses it is evident that young people detected the following problems as of very high importance in the process of running or creating a business:  Lack of skills and knowledge to manage the business  Lack of clear business strategy  Lack of technical knowledge about starting or running some business Among very important problems for the survey respondents are the ones that are connected with the level of readiness and the good preparation to run the business, as well as the difficulty to manage the changes that business process is requiring and the obstacles in recruiting and growing the human resources well. Another thing that respondents think is of high importance is facing business related issues that he/she cannot manage and discuss with others and the bureaucracy issues in starting and running a business.

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5. Importance of skills requirements associated with running a business Key findings: Skills identified as very high importance, with 62% or more, by the survey respondents are:  To know how to make decisions.  To be able to generate, assess and select a business idea that has a potential on the market  To be able to define the market needs and potential  Effective time management  To understand and read balance sheet  To undertake business plan presentation in front of donors, clients, employees

Section V.1 of the survey referred to the type of skill required in cases of running or creating business. The answers are presented in the following charts, they are group in six specific area of competences.

Entrepreneurial competencies: All the skills in this area of competencies, respondents rated with an extremely high level of importance. 66% of the respondents, rate knowledge for making decisions as one of the most important skills.

Chart 12

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Ideation competences: More than 50% of the respondents find that all of the skills in this competence are of extremely high importance.

Chart 13

Marketing competencies: This set of skills is rated with extremely high importance from over 60% of the respondents. Understanding of implementation of 5Ps and ability for defining market needs and potential are found like most important by the respondents.

Chart 14

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Organization and production competencies: This are another competency area that is found by respondents as high to extremely high importance. Compared with other skills in this area, effective time management is recognized by the most of respondents (65%) as extremely high importance.

Chart 15

Financial competencies: As it is presented on Chart 17, more than 50 % of the respondents rate the skills in this area of financial competencies with extremely high importance, and around 27% rate these skills as high levels of importance.

Chart 16

Businesses planning: An equal number of respondents (75%) rate the undertaking of business plan and presentation in front of donors, clients, and employees as high and

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extremely high important skills. Also, the ability to understand and prepare a business plan is found as extremely high important by 67% of the respondents.

Chart 17

The skills that are very important for about 62 % of the respondents are: knowing how to make decisions, ability to generate, assess and select a business idea that has a potential on the market, ability to define the market needs and potential, effective time management, understanding and reading balance sheet and undertaking business plan presentation in front of donors, clients, employees and etc.

More than 50% of respondents, rate as very important the following skills: ● To be able to accept responsibility ● To know how to match idea with personal competencies. ● To understand how to implement 5Ps (product, price, place, promotion & person) in a marketing mix strategy. ● To organize the work flow ● To be able to understand and prepare a business plan

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6. Knowledge and adequacy of skills requirements associated with running a business Key findings: Skills that are most considered to be at adequate levels among the survey respondents are:  To be able to accept responsibility  To be able to make SMART goals  To understand and implement the importance of digital marketing  Effective time management  To understand and read profit and loss statements  To undertake business plan presentation in front of donors, clients, employees Skills that are considered to be low level among survey respondents are:  To understand and use for management purpose the cash flow statement  To know and understand the profitability ratios.

In field VI of the survey, the respondents were asked to indicate how adequate they considered their present knowledge and skills. The answers are presented in following charts.

Entrepreneurial competencies: As is shown in a Chart 18 more than 60 % of 111 survey respondents rate following entrepreneurial skills high to moderate level of possessing.

Chart 18

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Ideation competencies: According the data presented in the Chart 19 respondents rate their ideation competence as high to moderate level of possessing.

Chart 19

Marketing Competencies: In this set of skills respondents rated themselves mostly with moderate level of possessing. More 60% of respondents rate skill understanding and implementing the importance of digital marketing as high level of possessing. While skill ability to create and to be ability to execute a marketing plan with lowest level of possessing.

Chart 20

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Organization and production competencies: According to the data gain through the survey, respondents declare that the competence Effective time management is one of the competencies that 68 respondents (61%) rate with a high level of possessing. While competence ability for planning and describing the production process flow is rated with a low level of possessing by 15 (13,5%) respondents.

Chart 21

Financial competencies: Over 50% of respondents rate the skill understanding and reading profit and loss statements, with a high-level of possessing. In this set of competencies, 20% of respondents rate the competencies: understanding and using for management purpose the cash flow statement and knowing and understanding the profitability ratios with a low level of possessing.

.

Chart 22

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As it is presented in the chart below, more than 50% of the respondents rate the skills in this set with a moderate to a high level of sufficiency. While the number of respondents that rate these skills with a low level of possessing is almost equal.

Chart 23

Among the skills rated with a high level of possessing by the survey respondents, with more than 50%, are:  To be able to accept responsibility  To be able to make SMART goals  To understand and implement the importance of digital marketing  Effective time management  To understand and read profit and loss statements  To undertake business plan presentation in front of donors, clients, employees Skills rated with low level of possessing among survey respondents are:  To understand and use for management purpose the cash flow statement  To know and understand the profitability ratios

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7. Upgrading your skills for becoming entrepreneur/intrapreneur – Preferred types of training delivery modes Key findings: There are two things that survey respondents consider to be crucial in their efforts for upgrading and retaining their own skills:  

Discuss / exchange views with other entrepreneurs Gain practical experience

Knowledge and skills insufficiencies may be addressed by well-organized and delivered training. Section VI of the survey provided an opportunity to the respondents to choose what type of training and the way of learning they think would work best in their case. The answers are provided in Chart 24 and Chart 25.

Chart 24

According to the results presented on the chart, only 19,8% of the interviewees stated that distant learning is the most preferred method for them, but just below that particular question, there is an increasing percentage (23,4%) that stated that their most preferred method would be studying by themselves.

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Based on these results it appears that the most beneficial learning method for them would be the semi-formal exchange of experience with other entrepreneurs who have been through the process of succession previously. 67,6% stated that this is the most preferred method for them. 63% said that they would prefer face-to-face training sessions and 52,1% said that most beneficial for them would be experiencing from other people.

Very few respondents (7% or 8 people) said that they would not prefer face-to-face training sessions.

Chart 25

According to data presented on the Chart 25 it appears that in N. Macedonia gaining practical experiences is consider the best way of retaining skills. Also, over 50% of survey respondents state that understanding how they learn the best, learning in multiple ways, and asking new questions that will lead to new learning are important ways for retaining skills.

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8. Comparative analysis of “Problems”, “Skill Gaps” and “Knowledge Adequacy” among surveyed Regarding the entrepreneurship program components, nearly all of the youth realize the importance of the entrepreneurial training modules and components. This presents their high level of awareness and usefulness of the entrepreneurship trainings and explains the high interest in taking part of the survey, especially from the youngest group, the high school students. They are all determined in gaining entrepreneurial or intrapreneurial skills and mindset.

However, the analysis shows that most of the problems related to entrepreneurial competencies have to do with the youths incapacity to cope with all the functions of an entrepreneur. A skills gap that was found in the analysis was their lack of understanding and using for management purpose the cash flow statement and lack of knowledge and understanding the profitability ratios.

About two third of the respondents stated the skills to generate, assess, and select business ideas, make smart goals, and to knowhow to match their ideas with their own personal competencies as of extremely high importance. This skill gap has probably much to do with the clear vision of the market, the market needs and the market demand. This skill gap must be implemented in the training program for the youth.

Majority (from 57% to 67%) of the respondents reported skill inadequacy in all skills in the marketing set of competencies, therefore all skills listed must be included. The training should cover: how to make effective market survey and needs analysis, how to define market needs and potential, how to understand and implement 5 Ps in a marketing mix strategy, how to understand and implement the importance of digital marketing, how to create and execute a marketing plan, and enhancement of selling skills.

In the process of organization and production management there were also a lot of skill gaps noticed among the survey participants. They include problems in time management, to organize the work flow and to understand types of cost and to be able to calculate and predict cost. Less than 50% of the survey participants consider planning and describing the production process flow as not of so high importance.

Financial competencies were also found as a great training need. Most of the survey respondents (over 60 % of them) rated themselves “not sufficient” on understanding and reading the balance sheet, understanding and reading the profit and loss statement, to know and understand the profitability ratios, and, as well as undertaking effective financial calculations for business purposes. All must be included in the training program.

Finally, business planning as a skill gap was present in the respondents’ problems in how to be able to understand and prepare a business plan and how to undertake business plan presentation in front of donors, client etc. It is of high importance for the young participants

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to acknowledge the steps in business plan preparation and the skills for presenting that plan in front of interested entities.

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9. National Survey specific issues COVID-19 pandemics Due to the COVID-19 pandemic there were certain obstacles in conducting a field research, as most of the young people were more interested in taking an online survey instead of face-to-face interviews. The research team overcame this issue by using personal contacts (emails and telephones) of partner organizations, public schools and universities, social media publications, personal connections with interested individuals and other channels of communication which at the end resulted in overachieving of the targeted number of questionnaires.

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Annex A: Survey Results

Section I: Personal characteristics Male I.1

Gender

I.2

Age

I.3

I.4

Educational level

Location

Female 44

67

15-18

18-25

26-30

30-35

41

54

6

10

Without formal education

Primary education

High School

University Level

PostGraduate

/

/

58

45

8

North Bulgaria Macedonia

Turkey

Venezuela Uganda

The Philippines

111

I.5

I.5.1

I have participated on training for entrepreneurship in the past

If YES, what types of training?

YES

NO

54

57

Gaining business skills training

Lecture or presentation course

On the job training

Apprenticeship

Other, specify:

26

42

9

4

6

I.6 Aspiration for business I.6.1

I already have established business

6

I.6.2

I Intend to establish a business in the next 1-3 years

76

I.6.3

I aspire to be intrapreneur - to use entrepreneurial competences in existing company

32

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Section II: Тhe Professional & Business’ characteristics II.1

II.2

II.3

II.4

The Business’ Activity Sector

Commerce Manufacturing Tourism /

1

1

Did you success your business from your family?

Good idea

55

Other services

1

2

1-9

10-49

50+

4

1

1

NO, I’m the establisher of the company YES, I’m the second or further generation of successors NO, but i will be the successor

Competen ces for Finances managing business

81

Social services

1

The Business’ present size (employment)

What was/is your decisive strength for starting a business (you can mark more options)

ICT services

15

2 2 2

Business model

It was right timing

Product

Business supporters

17

28

13

47

II.5 Which type of economy you like to invest most?

Traditional entrepreneurship - aims to create a product, service or process for which a consumer will pay Social entrepreneurship - to create a product, service or process from which society will benefit Circular economy - system aimed at eliminating waste and the continual use of resources Green economy - aims at making issues of reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment.

Block Chain Economy - is a scenario and potential fu31ture environment in which cryptocurrency replaces current monetary systems, potentially on a global basis Network Marketing Business Model - that depends on person-to-person sales by independent representatives, often working from home.

Innovations economy - higher productivity, that the same input generates a greater output

50 51 14 25 19 31 36

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Section III: Motives for becoming entrepreneur/intrapreneur What is or was your MAIN motive for opening or having a company?

III.1.1

Accumulating capital (to become rich)

10

III.1.2

It seemed a good career opportunity

48

III.1.3

I thought it would be an opportunity to put innovative ideas to practice

26

III.1.4

My family expected me to go into business

1

III.1.5

I had no alternative

1

III.1.6

To become my own boss

17 To make change, For fun,

III.1.7

Other (explain)

Success of starting and running a business

Section IV: Running a business – Expected or Experienced Problems

IV.1.1 IV.1.2 IV.1.3 IV.1.4 IV.1.5 IV.1.6 IV.1.7

Type of Problem I lack the skills and knowledge to manage the business I am not yet ready and well prepared to run the business It is difficult to manage the changes that business process is requiring I do not have the technical knowledge about starting or running some business I am not able to take over all the functions that the entrepreneur needs to The process of establishing, running and expansion of business is not clear to me The process of entrepreneurship is very demanding in terms of family/friends relations

Low Moderate importance importance

High important

22

45

44

22

57

32

13

75

23

30

40

41

31

50

30

37

36

37

47

44

20

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IV.1.8 IV.1.9 IV.1.10 IV.1.11 IV.1.12 IV.1.13 IV.1.14 IV.1.15 IV.1.16 IV.1.17 IV.1.18 IV.1.19 IV.1.20

Starting and running a business is very demanding in terms of bureaucracy I'm lacking a clear business strategy It is hard to recruit and grow the human resources well Managing possible conflicts resulting from the business process The business lacks the organisation and division of tasks Family and business matters are complex and intertwined Family does not accept me as entrepreneur Managing costs and calculating the prices is challenge for me Financial aspects of managing a business is not my thing I'm not well prepared for the digital transformation of doing (smart) business Selling process is exhausting me the most I'm facing business related issues that I cannot manage and discuss with others Other (please specify):

24

57

29

24

44

43

17

63

30

28

55

28

33

46

31

47

48

15

77

22

11

46

44

21

42

49

20

43

50

17

44

51

16

41

56

14

57

44

10

Section V: Skills requirements associated with running a business – Importance and Adequacy V.1. Skills requirements associated with running a business – Importance.

5- Extremely high in importance, 4- Highly Important, 3-Moderate Important, 2-Low Importance, 1-Not important at all

Indicator of skill’s Importance Type of skill required 5

4

3

2

1

54

41

11

/

3

54

45

9

2

1

Entrepreneurial Competencies V.1.1 V.1.2

To be able to understand and identify my own personal entrepreneurial competences To know how to manage and calculate the risk

V.1.3

To be able to accept responsibility

69

26

15

/

1

V.1.4

To be able to negotiate and communicate in

66

27

12

5

1 38

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professional manner V.1.5

To know how to make decisions

72

27

9

/

3

Ideation Competencies V.1.6

To be able to generate, assess and select a business idea that has a potential on the market

69

28

11

/

3

V.1.7

To be able to make SMART goals

59

43

6

2

1

60

36

11

3

1

61

40

8

/

1

68

33

7

2

1

66

33

10

1

1

57

41

9

2

1

58

39

7

3

3

60

38

8

3

2

47

47

13

2

2

V.1.16 Effective time management

71

27

4

2

3

V.1.17 To organize the work flow

68

32

7

3

1

62

39

36

39

2

V.1.19 To be able to understand and implement pricing techniques and strategies To understand and read profit and loss V.1.20 statements To understand and use for management V.1.21 purpose the cash flow statement

63

33

10

4

3

65

36

7

2

1

57

37

10

6

1

V.1.22 To understand and read balance sheet

71

26

9

3

2

64

33

9

4

1

V.1.8

V.1.9 V.1.10 V.1.11 V.1.12 V.1.13

To know how to match idea with personal competencies Marketing Competencies - Ensuring getting paid by clients How to make effective market survey and needs analysis To be able to define the market needs and potential To understand how to implement 5Ps (product, price, place, promotion & person) in a marketing mix strategy To understand and implement the importance of digital marketing To be able to create and to be able to execute a marketing plan

V.1.14 To enhance selling skills Organization and Production Competencies V.1.15

V.1.18

To be able to plan and describe the production process flow

To understand types of costs, ant to be able to calculate and predict costs Financial Competencies

V.1.23

To know and understand the profitability ratios

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V.1.24

To be able to undertake effective financial calculations for business purposes

61

37

7

3

3

76

27

7

/

1

83

83

3

2

3

Business Planning To be able to understand and prepare a business plan To undertake business plan presentation in V.1.26 front of donors, clients, employees V.1.25

V.2. Knowledge and adequacy of skills requirements associated with running a business

Sufficiency of already available knowledge and skills Type of skill required High

Moderate

Low/very low

44

59

8

39

59

13

83

22

6

60

46

5

63

44

5

58

43

10

67

42

2

59

43

9

48

48

15

45

57

9

47

54

10

60

41

10

Entrepreneurial Competencies V.2.1 V.2.2 V.2.3 V.2.4 V.2.5

V.2.6 V.2.7 V.2.8

V.2.9 V.2.10 V.2.11 V.2.12

To be able to understand and identify my own personal entrepreneurial competences To know how to manage and calculate the risk To be able to accept responsibility To be able to negotiate and communicate in professional manner To know how to make decisions Ideation Competencies To be able to generate, assess and select a business idea that has a potential on the market To be able to make SMART goals To know how to match idea with personal competencies Marketing Competencies - Ensuring getting paid by clients How to make effective market survey and needs analysis To be able to define the market needs and potential To understand how to implement 5Ps (product, price, place, promotion & person) in a marketing mix strategy To understand and implement the importance of digital marketing

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V.2.13 V.2.14

V.2.15 V.2.16 V.2.17 V.2.18

V.2.19 V.2.20 V.2.21 V.2.22 V.2.23 V.2.24

V.2.25 V.2.26

To be able to create and to be able to execute a marketing plan To enhance selling skills

46

48

17

52

49

10

46

48

15

68

38

5

To organize the work flow To understand types of costs, ant to be able to calculate and predict costs Financial Competencies

63

40

8

54

49

8

To be able to understand and implement pricing techniques and strategies To understand and read profit and loss statements To understand and use for management purpose the cash flow statement To understand and read balance sheet

52

48

11

57

45

9

49

39

23

50

48

13

To know and understand the profitability ratios To be able to undertake effective financial calculations for business purposes Business Planning

48

41

20

51

48

12

To be able to understand and prepare a business plan To undertake business plan presentation in front of donors, clients, employees

55

50

6

69

39

7

Organization and Production Competencies To be able to plan and describe the production process flow Effective time management

Section VI: Upgrading your skills for becoming entrepreneur/intrapreneur – Preferred types of training delivery modes VI.1 Which do you consider to be the best way for upgrading your skills?

14

Moderate preference 71

8

33

70

22

73

16

13

49

49

11

31

69

Not preferred VI.1.1 VI.1.2 VI.1.3 VI.1.4 VI.1.5

Study by myself Participate in organized face-to-face training sessions Distant Learning (online learning sessions) Combination of workshops and distant Learning Benefit from the experience of others

Best 26

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VI.1.6 VI.1.7 VI.1.8

Being shown Good Practices and see how others are doing things Discuss / exchange views with other entrepreneurs Other (please explain)

9

54

55

10

26

75

39

44

28

Not preferred

Moderate preference

Best

8

17

86

5

47

59

5

28

78

4

17

90

13

38

60

4 16 28

24 39 43

83 56 40

VI.2 Which do you consider to be the best way for retaining your skills?

VI.2.1 VI.2.2 VI.2.3 VI.2.4 VI.2.5 VI.2.6 VI.2.7 VI.2.8

Learn in multiple ways (not only hearing or only reading) Teach another person what you've learned Ask new questions that will lead to new learning Gain practical experience Look up answers than struggle to remember Understand how you learn the best Use tests to boost learning Other (please explain)

Section VII: Let's cooperate

VII

Would you be interested in the business training courses that will be developed by the GETYES2 project?

YES

NO

88

16

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Annex B: Survey Questionnaire

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www.getyesproject.com

This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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