Young entrepreneurs: The legal hurdle lies in the business aspect.

(Baonghean) - The concept of "entrepreneurship" or "startup" is no longer new; however, with only a creative idea and some funding, many young people are still struggling to figure out how to start a business and where to begin.

Launching the "Youth Entrepreneurship Program 2016-2021". Photo: SGGP

Countless difficulties

As the young owner of a tea processing facility in Thanh Chuong district, Nguyen Ngoc Phuc had to independently research and learn from many sources to gain a certain understanding of concepts related to registered capital, taxes, markets, etc. Returning home after working abroad in Taiwan with a considerable amount of capital, Phuc began to nurture the idea of ​​getting rich using the potential available in his hometown: tea cultivation.

His dream was to establish a tea processing company with a factory spanning thousands of square meters. However, how to raise capital and what steps to take to set up the company were truly difficult questions for him. After a long period of learning and accumulating experience, he has now become the director of Phuc Hung Thinh Tea Co., Ltd., with total revenue reaching tens of billions of VND per year.

Phuc shared: “Initially, I thought that all I needed was capital to start a business. But when I actually started the process of realizing my idea, I encountered countless difficulties due to a lack of understanding of legal issues.”

Like Mr. Phuc, many other young people find themselves "overwhelmed" when, in addition to the inherent challenges of starting a business, they are faced with what is considered a "jungle" of administrative procedures or a "mountain" of permits. This is truly a major obstacle on the path to realizing the dream of becoming wealthy for many young people.

Even the Youth Volunteer Brigades – collective enterprises established and operating by the Youth Union – cannot avoid confusion and passivity regarding legal issues.

Youth Volunteer Brigades 8 and 10, stationed in Ky Son district, are working towards building brands for agricultural products, including Shan Tuyet tea.

Despite having product designs, establishing a strong foothold and a distinct "brand" for their products remains a major challenge for the Youth Volunteer Brigades. Brand building, brand promotion campaigns, intellectual property policies, and numerous related concepts require thorough and detailed understanding from the business entities.

Providing support to youth-led startup models. (Photo by Thanh Duy)

Not yet met the requirements.

Many young people believe that legal support for investment and economic development is insufficient. Much of the information is integrated into workshops, awareness campaigns, and general legal consultations, rather than specific guidance on procedures, regulations, and policies related to entrepreneurship. Therefore, young people are mostly left to figure things out on their own, figuring things out as they go.

Mr. Phan Van Hien, Secretary of the Nghia Dan District Youth Union, said: “In the past, relevant departments and agencies have organized many legal awareness sessions, including content related to the legal framework for youth economic development. However, it has not yet truly delved into and addressed the needs of young people today.”

Every year, the Investment Promotion and Development Consulting Center, in coordination with the Nghe An Youth Development Support Center, organizes business startup training courses for successful young entrepreneurs. However, knowledge about starting a business should be widely disseminated, not limited to a segment of young people who have already achieved a certain level of success. The Nghe An Youth Development Support Center also needs to further enhance its role in answering and resolving the difficulties faced by young people whenever they need assistance.

According to Mr. Pham Tuan Vinh, Secretary of the Provincial Youth Union: In reality, the Youth Union has long focused on supporting young people in starting their own businesses. However, it must be acknowledged objectively that the legal aspects are not yet truly in-depth, and many young people lack basic knowledge of the legal framework; leading to limitations and risks in the investment and business process.

Youth union members visit the red-fleshed dragon fruit farming model of Mr. Nguyen Canh Phuong (Thanh Phong commune, Thanh Chuong district). (Photo: Dinh Ha)

Speaking about the direction of future support activities, the Secretary of the Nghe An Provincial Youth Union emphasized that the youth entrepreneurship movement has never been as strongly stirred and widespread as it is now. This is also the time when the Youth Union in particular and society as a whole should create all favorable conditions to support young people in turning their creativity into reality.

Therefore, the Nghe An Provincial Youth Union has been implementing a series of entrepreneurship activities with various contents such as business startup training, youth forums on economic development, exchange of business startup experiences, and legal procedure support and consultation... Through these activities, detailed guidance is provided and all obstacles related to the startup process are resolved for young people when they need it.

Many young people today are struggling with the desire to get rich and start their own businesses, but they have almost nothing to offer except creative ideas. Even with the most compelling business plans, they will likely struggle to secure loans from banks due to a lack of collateral. Therefore, they need a supportive entrepreneurial environment with transparent and open policies, abundant startup funding, and more consulting offices and support services.

Phuong Thao