Entrepreneurship and Unemployment: Insights from Existing Literature

Abstract

In an attempt to understand the answers to the questions like – How entrepreneurship is helping the economies deal with unemployment? What is the impact of policies created by the economies to support and equip the unemployed population to become self-employed entrepreneurs? What is the success ratio of entrepreneurial firms created by the unemployed population? and many more, this paper is an attempt to review the existing literature relating to unemployment and entrepreneurship. While reviewing the literature, the authors found that young individuals who are unemployed may not find many opportunities for waged work, they remain highly inclined towards starting their entrepreneurial journeys. That’s why there is a high chance that they will not be able to grow their firms at a large level and fail more often. Although, if supported by various government expenditure schemes related to entrepreneurship, they can sustain their entrepreneurial ventures on a small scale.