The Impact of Entrepreneurship on Unemployment

The Impact of Entrepreneurship on Unemployment

 

Recent recession   resulted to great global economic depression.  It caused many workers local and abroad laid-off and unemployed;   and,  in order to keep their spirit high in the midst of global crisis  great entrepreneurial motivations  are very crucial for the unemployed people to  aim to start their own businesses after the global recession phenomena.  Several economists think that entrepreneurship is best measured by the number of people who owned and operated businesses. Hence, deeper understanding about the stock of employer’s company during the global recession is very crucial in evaluating the impact of the recession or unemployment to the entrepreneurial activities.  On the other hand, the US business stock has two kinds of firms; first is the employer firms and the other one is the non-employer firms.  And, 80 percent of US businesses are all non-employer companies.  The adverse impact of the global recession on employment was slightly worse for self-employed people than for those who worked for others. From December 2007 to June 2009, the number of self-employed people fell 4.4 percent, while the number of wage-employed people dropped 4.3 percent.

(http://www.clevelandfed.org/research/commentary/2011/2011-04.cfm)

Unemployment has been a long year’s issue of some countries in the world.   There are many   people who earned  their degrees in college, but still looking for jobs, and even worst, do not have jobs until these days.  And, this unemployment problem has been a serious and growing problem around the globe.  For instance, in the Middle East and North African countries (MENA), where  unemployment rate grows up to  25 percent of those under the age of 24.  While in Egypt, college-educated population without jobs has increased up to 33 percent.  In fact they   ranked as the second country that has highest unemployment rate in the world nowadays.   In the contrary, entrepreneurship has a great impact on the economic prosperity in developing country like United States.  This country has been one of the brightest hopes for expanding economic opportunity and creating jobs in emerging markets for MENA regions.   Somehow, panacea entrepreneurs have consistently proved to be a source engine of growth and job creation.   In this relation, from 1980-2005, US companies accounted for nearly all net job growth. And, many business analysts believed that this has been the result of the focus on entrepreneurship by the emerging economists in the country.  In addition, because American entrepreneurs create jobs and promote innovation from the bottom up, they are a key force for opening up the economic systems of their countries to groups that have previously been marginalized. In doing this, entrepreneurship serves as an important element for the promotion of “Economic Democracy,” where many people from all over the world can take part productively in the economic growth and prosperity through contributing different skills and energy of individuals across countries. This is the most effective way to help many people in improving their lives as well as in contributing their talent and skills to the economic advancement in their own country.

(http://blogs.state.gov/index.php/site/entry/entrepreneurship_unemployment)

This study found out that US President Barack Obama noted the great impact of entrepreneurship during his speech in the 2010 Summit on Entrepreneurship as vital because he believes that the market is the most powerful force in creating   unlimited opportunities to alleviate people’s life condition and to help them out of the poverty line. In this connection, the Global Entrepreneurship Program (GEP) of the State Department has been committed to draw on America’s entrepreneurial culture in helping the American people as well as other nations to create growth and job opportunity all over the world.   As a result, this program has been beneficial to all partners abroad; and the program has been able to bring closer the private sector partners from USA and the local communities for the creation of an integral entrepreneurial ecosystem economy. The GEP program aims to identify the promising entrepreneurs, and then train them together to become successful entrepreneurs, help them to increase their capital for emerging enterprises, as well as to promote support policy system in order to achieve their common goals and objectives. More than that, entrepreneurs can also plays a key role in connecting the Arab world to a far greater degree in the global economy — opening new opportunities for investment, trade, collaborative research, and growth. This GEP program also aims to give this entrepreneurial opportunities to the growing number of college educated and computer literate young entrepreneurs in MENA regions.  These young entrepreneurs in Middle East and North Africa are mostly young software developers who established their own companies for   mobile phones technology. US government believes that MENA region and other countries all throughout the world deserve the importance and benefits of global entrepreneurship.

(http://blogs.state.gov/index.php/site/entry/entrepreneurship_unemployment)

 

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