The Readiness for Entrepreneurship Training Project

The name of project is the “Readiness for Entrepreneurship (RE)”. The RE program helps the targeted people who are unemployed, and are interested in starting a business at the local level (for cities or counties). Once applicants are selected by objective criterion, the admitted applicants are eligible to get education of specific skills for six months or one year. The period of training will be depending on the area of establishment. In addition, the applicants may have financial supports after the education and interviews. Also, there is a strict condition when they start a new business: they should open a business within their administrative boundary (at least within in the neighboring counties).

Several conditions will be considerable for selection.

 Age

 Schooling/education

 Periods of unemployment

 Experience in the previous workplace

 Startup experience

2. What are benefits and costs of the project?

Obviously, selected applicants will benefit from the RE program. They will have an opportunity to have enough knowledge and skills before they have their own businesses. Moreover, if they are qualified to get financial support from the local government, it should be easier to start a business.

Meanwhile, local inhabitants who should pay tax may be dissatisfied. Since the local budget is limited, budget for supporting the unemployed can bring a budget cut in other public service areas. However, it might be possible to apply federal subsidies for local economic development.

3. Relevant articles and evidences

According to Acs (2006), there are two kinds of entrepreneurship: necessity entrepreneurship and opportunity entrepreneurship. Necessity entrepreneurship has no option, except to be an entrepreneur. Unemployme...

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...increase of efficiency as a whole economy.

In addition, this program is only for unemployed or dismissed people from previous workplace. Among the applicants, a priority of the program candidate is for people who lost their job. Even if there are young people who are unemployed after high school graduate in the U.S., it can be argued that young people need more job experience. Instead of staring a new business just after graduate a school, it might be recommendable having job experience first.

Lastly, the regulation of opening location might have a negative effect. It can be inferred that some industry where clusters are specialized, the administrative boundary can be differ from their living areas. In this case, it can play as regulative costs. Based on tradition wisdom, opening location can be flexible, but it should not be other states or too distant locations.