Why Entrepreneurship is a Better Solution to Unemployment?

Running Head: ENTREPRENEURSHIP 0
ENTREPRENEURSHIP
Why Entrepreneurship is a Better Solution to Unemployment?
(student name)
10-15-2018

ENTREPRENEURSHIP 1
ABSTRACT
For this review, the question selected to conduct study was “Why Entrepreneurship is a
Better Solution to Unemployment?” The relationship between unemployment and
entrepreneurship justify the reason for this selection. For this research, the opinions of authors
from five different articles have been provided. According to most of the authors,
entrepreneurship reduces unemployment rate in the economy, and are responsible for increase in
economic growth and development. Further, personal opinion is also given, according to which
entrepreneurship provides a new opportunity to fight unemployment and gain economic growth.
It also throws light on relevance of entrepreneurship for people suffering from disability and are
unemployed.

ENTREPRENEURSHIP 2
Why Entrepreneurship is a Better
Solution to Unemployment?
Unemployment is one of the severe issues in the economy of any country, especially
among youth (Millan & Roman, 2014). Finding a better solution to unemployment has become
necessary. This discussion will focus on the study of entrepreneurship and innovation. It will
investigate the role of entrepreneurship in unemployment and economic development. The
literature review will consider, “can entrepreneurship reduce unemployment in the economy.”
This topic will be discussed upon the opinion of various authors and their viewpoints and
personal opinion. An entrepreneur is a person who, in place of running as an employee,
originates and runs a small commercial enterprise, assuming all the involved risks and rewards of
the undertaking. The entrepreneur is normally considered as an innovator, a foundation of new
ideas, services, products, and business/or tactics (Dunkelberg, 2013). Entrepreneurs play a
crucial position in any economic system. Entrepreneurs who wish to be successful are ready to
take all types of risk and be rewarded with fame, profits, and growth opportunities (Huggins &
Thompson, 2015). Entrepreneurship refers to act of renewal, organizational creation, and
innovation that occur independently or within an existing organization. An activity of
entrepreneurship that is conducted by individual independently is also said as independent
entrepreneurship (Dunkelberg, 2013).
The relevance of studying this topic can be understood with a real-world example of
“Lynn Zuckerman Gray” who lost her job when the firm, “Lehman Brothers,” collapsed. She

ENTREPRENEURSHIP 3
was facing trouble in competing with a large number of job seekers for a decreasing pool of jobs.
This led her to the direction that she never thought of doing, which is starting an on-campus
recruiting firm name “Campus Scout” (Meece, 2018), This explains the relevance of
entrepreneurship as a solution to unemployment. The unemployment can be due to many
reasons, and for many people, like youth, women who are less educated, immigrants majorly the
case of Australia, disabled people and many more. For such people, entrepreneurship becomes a
hope for livelihood and overcome the financial crisis. Moreover, one can say that
entrepreneurship has a direct relation with economic development because entrepreneurs create a
business, which consequently increases jobs for others and income generation that will increase
GDP of the nation (Seligson, 2018).
Calderon and Huerta in the article, “Does self-employment reduce unemployment? A
contribution from the franchise system,” provides their opinion that includes research of concept
of the franchise in reducing unemployment (Calderon & Huerta-Zavala, 2011). According to the
author, Novel and minor agencies have emerged as the primary way to make entrepreneurship
progress. Small organization sector and, self-employment has to end up more crucial for modern-
day economies when trying to grow financial boom and employment. Taking in mind, that
franchise is another way for entrepreneurs, unemployed, or hired people to create a commercial
enterprise with a less risk than a conventional one. The author from this research paper, analyze
the effect on of some macroeconomic factors as a country’s growth of the economy, and its rate
of unemployment, also franchising definite variables, at the entrepreneur ́s choice to franchise an
outlet (Calderon & Huerta-Zavala, 2011). Thus, from the article, we can understand that
entrepreneurship, like franchise business, can help in reducing unemployment.