Entrepreneurship as a solution to the unemployment problem

Abstract

The relation between entrepreneurship and unemployment has been an interesting topic for researchers for quite some time. In the time of global recession and mass layoffs different countries try to stimulate their residents to work on their ideas and to test themselves on the open market using various forms of subsidizing. It is important to point out that entrepreneurship does not constitute such a social security as employment in large companies. Entrepreneurship is not just a mixture of ideas, desires for success and a trend away from employment, integration with the right business partners and the issues of obtaining the initial capital, but largely also depends on the laws in each country and the infrastructure which this country offers. Countries with better entrepreneurial infrastructure (technology parks, university incubators, etc.) are definitely more open to competition and entrepreneurial activities than others. Globally interesting and internationally comparable study made each year by GEM (Global Entrepreneurship Monitor) (2008) notes that more and more people around the world are dealing with entrepreneurship. Schools for entrepreneurship are an important link between theoretical knowledge and practical involvement in the market. The international economic crisis has further accelerated the flow of restructuring, while unemployment continues to rise. It is therefore necessary to adopt measures that will help people with self-employment and, ultimately, in achieving a dignified life. Our contribution will be built on the hypothesis that where there is a higher rate of unemployment, more people will transit into entrepreneurship and where there is a higher rate of entrepreneurship there will be a lower level of unemployment. To test our hypothesis we will use available data from different countries and measure the correlations between the rate of entrepreneurship and the rate of unemployment and make a regression analysis of both values.

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