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Part 2

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Previous studies have written on this topic about the role of business in reducing unemployment,

presenting different perspectives and results. Include (Abla Abdul Hameed Bokhari in 2012) he
was investigating Entrepreneurship as a Solution to Youth Unemployment in the Kingdom of
Saudi Arabia and The main objective of his study is to investigate the effect of entrepreneurial
activities on the rate of unemployment in Saudi Arabia, with a focus on youth unemployment.
The author explores the potential of entrepreneurship in creating self-employment opportunities
for Saudi youth. The author may have used a combination of literature review, data analysis, and
case studies to support their argument. However, the results generally validate the literature
findings. It displays evidence signifying that the relationship between unemployment and
entrepreneurship is shielded with ambiguity. Finally the weakness of this study is there are
considerable ambiguities, confusion, and disagreement among researchers when it comes to
reviewing literature on entrepreneurship and unemployment
In another study conducted by Abigail Padi and Alhassan Musah in 2022 thy investigate
ENTREPRENEURSHIP AS A POTENTIAL SOLUTION TO HIGH UNEMPLOYMENT: A
SYSTEMATIC REVIEW OF GROWING RESEARCH AND LESSONS FOR GHANA The
study sought to specifically identify whether entrepreneurship alone is sufficient to achieve
unemployment reduction or it must be used in tandem with other approaches, and the necessary
conditions for entrepreneurship as an unemployment reducer. using Systematic Literature
Review (SLR) method was adopted to conduct a systematic review. The results show that
unemployment reduction through entrepreneurship is not instantaneous and thus requires a
minimum of five years to be evident. However, the gap of this study is relies solely on a
literature review of existing research rather than collecting new data. This means that the authors
did not conduct any original research to test their hypotheses or validate their findings.
Compared to another study conducted by Prof. dr hab. Aleksandra Gaweâl in 2010, He was
investigating The Relationship between Entrepreneurship and Unemployment in the Business
Cycle, the Hypothesis of this study is The cyclical changes in activity of self-employment and
proper entrepreneurship react. Two hypotheses are tested in methodology. Firstly, the cyclical
changes in activity of self- employment and proper entrepreneurship. Secondly, the cyclical
changes of unemployment and wages influence on the fluctuations of self-employment as
negative motivation and The results of empirical studies concerning entrepreneurial motivation
have made it possible to formulate two hypotheses, commonly referred to as push and pull
theories of entrepreneurial motivation. And the gap of this study is that it relies solely on a
empirical review of existing research rather than collecting new data. This means that the authors
did not conduct any original research to test their hypotheses or validate their findings.
In another study conducted by Rita Remeikiene, Grazina Startiene in 2019 thy investigate
DOES THE INTERACTION BETWEEN ENTREPRENEURSHIP AND UNEMPLOYMENT
EXIST the aim of the article – to determine interaction between entrepreneurship and
unemployment in Lithuania by using cross correlation method. The analysis encompasses
historical data during 1998-2007 years. Interdependence between three indications of
entrepreneurship level and eight comparison economical indicators is assessed by using a lag of
4 years. the results of which show that this relationship
exists, although the level of entrepreneurship is more affected by factors such as inflation, GDP,
exports and earnings.. However, the gap of this study is Light interdependence between
entrepreneurship and unemployment justify such cultural factors as gender gap, the regional
characteristics of the country and religion.
In another study conducted by Roy Thurik* in August 2013 he was investigate E N T R E P R E
N E U R S H I P A N D U N E M P L O Y M E N T I N T H E U K. The reseach question is to
what extent entrepreneurship, i.e., business ownership can reduce the level of unemployment.
The analysis encompasses historical data during 1998-2007 years. Interdependence
between three indications of entrepreneurship level and eight comparison economical indicators
is assessed by using a lag of 4 years It underestimates the
decrease in unemployment in the UK in the period 1982–1990 and The gap of this study is their
time is limited to specific time (1982-1990).
According to Mohammad Hasan Kheiravar and Mohammad Hasan Qazvini 2012 they
investigate EXPLORING THE RELATIONSHIP BETWEEN ENTREPRENEURSHIP AND
UNEMPLOYMENT RATE IN INDUSTRIAL S ECTOR OF AZARBAYJAN-E –SHARGI The
objective of this study is to resolve and clarify the dubiety surrounding the relationship between
entrepreneurship and unemployment in industry (establishing new industrial firms), in
Azarbayjan-e-Shargi province. Using Descriptive statistics associated with the number of
licenses issued each year to create and launch new manufacturing businesses-entrepreneurship-as
well as the province's unemployment rate over the last ten years are studied and The findings
indicated that, in industrial sector of Azarbayjan-e-Shargi, an inverse relationship existed
between entrepreneurship and unemployment rate. The weakness of this study is limited scope of
data collection.
1.5 Conceptual framework
Independent variable (IV) dependent variable (DV)

Entrepreneur skills

High inflation rate Unemployment Reduction

Interclan conflict

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