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Effect of unemployment
Effect of unemployment
Importance of entrepreneurship in the economic development of a country
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Unemployment is one of the main causes of poverty and economic downturns. The decrease of jobs forces citizens to work longer hours for low pay in harsh conditions. Job creation can be motivated through the free market economy, which allows the individuals to have freedom in creating jobs without government intervention, the growth of immense entrepreneurship will benefit unemployed citizens, and the scarcity of jobs in the free market compared to mixed & planned economies. Citizens will be left unsatisfied if the government controls production, distribution and job creations. The government’s role is to protect citizen’s rights, provide basic needs, advance military support and invest in building roads, bridges, housing etc. According to a poll taken …show more content…
Entrepreneurism will be an advantage to economies since competition in supply and demand is a way to meet consumer's needs which allows small businesses to account for 65% of all new jobs. Unemployed citizens will benefit considering that they would still have a chance to be working for an individual's business and earn enough money to support their families. The United States was ranked the first country to have a population with the most entrepreneurs. According to this ranking, United States does have a built out and a thriving economy because it’s a country that is running on the free market economy where government intervention is decreased in individual's businesses. The free market economy will not only benefit individuals but the government will also benefit. After all, entrepreneurs will produce businesses and employ citizens to work in their business, once citizens earn their pay they will be able to pay taxes, these taxes will go to the government that can be used to create more services, provide basic needs, health care, support societies and prevent
Also, he argued that the lack of competition is not the fundamental problem and measures to reduce unemployment by cutting wages are ultimately futile. He points out that there is no self-correction property in the market system to keep capitalism going. A badly depressed economy could remain in stagnation unless some alternative to capital spending is found to revive it. The only source of stimulation is the government. Therefore, the government’s intervention in spending on the depressed economy might be an essential economic remedy for a depressed economy to recover its vitality.... ...
Employment situation and economic fluctuation can affect the stability of the country. Australia is experiencing the highest level of unemployment in more than 10 years now. The reasons that contribute to the situation include less confidence in future economic conditions and the reduction on mining investment. A high unemployment rate can damage social stability and hider economic growth. The demand of labour decrease and the quantity of labour employed decreases. In order to stop unemployment aggravating, the GDP growth rate should be above 3 percent. The government have tried to solve the problem of unemployment with expansionary fiscal policy and monetary policy. However, the results are not satisfactory. The government can stimulate employment by increasing government spending and forward guidance for the public.
Unemployment is a serious and overwhelming problem in the United States that has existed since the economy of this nation began. The clear definition of unemployment is the condition of being out of work or actively looking for a job. Currently, many people around this great nation are out of work from the rise of the unemployment rate. Unemployment can be caused naturally or unintentionally by multiple ways, such as inadequacy of skills needed for the job or getting fired without any reasons. In turn, the causes of unemployment will obviously result in a variety of effects which can be psychological, economical, and social whether they are positive for negative for society and the economy.
Unemployment is one of the major issues in the U.S economy. Unemployment, also referred to as joblessness, is defined by the Bureau of Labor Statistics as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work, people who were temporarily laid off and are waiting to be called back to their job. There will always be some sort of unemployment in the economy, no matter how well its doing When the economy is doing well, it can often lead to low unemployment and also inflation. The natural unemployment rate determines the lowest rate of unemployment an economy will reach. My paper will focus on three main topics; the natural rate of unemployment, why unemployment we always have unemployment
The government has many methods to support unemployed, people who lose the jobs and do not have any many to keep their life. Unemployed can take welfare until they can find a new job. If government does not have welfare for unemployed, it will increase the unemployment cause economic recession, even they will sell their house or assets and increase homeless and the rate of
The current world economy is grappling with many challenges of which unemployment, especially among the youths is such a major concern. However, the effects and implications of unemployment are argued from the perspective of how it dictates the economic health of a particular nation or state (Kleck & Jackson, 2016). A high unemployment rate is associated with distress among citizens owing to the negative implications it has on their spending capacity or disposable income. Not only has the world suffered the adverse effects of the current economic recessions but to a greater degree, a lot is being associated with the increased vices in the society (Andresen, 2015). Experts have tried to explore the relationship or link between unemployment
In the documentary “Call of the Entrepreneur,” three successful entrepreneurs, Brad Morgan, Frank Hanna, and Jimmy Lai, are presented to explain their views on entrepreneurship and in turn leadership. Brad Morgan is the owner of a million dollar dairy and compost company, Frank Hanna is a merchant banker in New York City, and Jimmy Lai is the founder of Giordano department stores and Next Media. A central theme of the documentary is how each of these businessmen displays the characteristics of persistence, patience, and perseverance to overcome frustrating obstacles and become successful. The film defines entrepreneurship and explains how the entrepreneur responds positively to consumer demands and is able to organize and direct others toward a goal only the entrepreneur can see. The film shows that though some entrepreneurs are driven by greed and some are not, the ones that are successful are answering the needs of consumers.
Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
Example, there is a country with beautiful beaches and even the climate is good, entrepreneurs will prefer to invest more as they're sure that it's a tourist attraction and is sure to attract many, automatically generating money. Personal Response: I think that only by giving people the opportunity to work, we are collaborating for the economy of the county and improving the lives of the workers. Bibliography List of countries by unemployment rate. n.d. - n.d. - n.d. Retrieved 2017, from Wikipedia: https://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate Pettinger, T. (2012, December 4). Retrieved 2017, from Portugal Economic Crisis:
To increase the number of the people to become entrepreneurs especially the Bumiputra(native people), the government has launched many schemes and mechanism to increase their numbers. Education institution has been use as one of the mechanism to promote entrepreneurship to the student in middle and tertiary education. The creations of entrepreneurs are important because they have been proven to contribute to economy wealth and job creation (Turker and Selcuk, 2008). In 1999, Audretsh and Thurik conducted research on past data from 1984 to 1994 regarding the relationship between entrepreneur and job creation issue. The result showed that there is a positive relationship between the two where the number of job rate increases when the number of entrepreneurs increased. In Malaysia entrepreneurship course was started to be introduced in some universities in mid 90’s (Cheng et al.d, 2010). Then in 2007, Ministry of Higher Education made a policy that entrepreneurship course became a compulsory subject to all students in the universities irrespective of whatever faculties ,to encouraged more development of entrepreneurs from the university(Ministry of High Education Malaysia, report 2010). With this policy, universities have become the center to foster entrepreneurship. However unlike the situation in the west, here in Malaysia the situation is different where the number of people who actually become entrepreneur is small compared to the number of people who have taken the course. This is totally difference in other countries. In the United States, for instance, many of the graduates form companies after and during their universities. In the west the impact of the entrepreneurship education have been well known as mention by Ayers (2004) where the “graduates from Massachuset Institute of Technology have created more than 4000 companies”. In Harvard more than 50% of the students have involved in venture business (Anjan,2005). Similar effect also had happen in early research in Europe (Harhoff, 1999) .All these situations indicate that entrepreneurship can be taught through education.
Many people dream of becoming entrepreneurs someday. But it made me realize that there other factors that needs to be taken into consideration. We need to ask ourselves are we ready to take the challenge to the outside world. Not everyone have the vision, innovation and creativity to become an entrepreneur. The individual must have a positive attitude and accept the responsibility, have discipline to meet their goals, and take action when the opportunity presents itself. Many prefer a job security and rely on a weekly paycheck, while entrepreneurs will take risks and doesn 't have that luxury to know the amount of their income.
Unemployment issue can lead to a lot of impacts to the economic growth. Higher unemployment rate will lead to increase government borrowing. When people are without their job, they would paid less in the income tax. So, it will cause a drop in tax revenue because there are lesser people paying income tax and spending less. Due to the loss of earnings to the unemployed, the government need to spend more subsidy for them in housing benefits and income support.
The word entrepreneur was originally employed in the Middle Ages and signified “a person who is active, who gets things done” (Swedberg, 2000, p.11) “Entrepreneurship is a complex concept, which many scholars in the field of economy, sociology, psychology and sciences have tried to define. Despite all efforts, no consensus has been reached regarding the boundaries of the definition of entrepreneurship. However, many scholars agree that the field of entrepreneurship positively influences on a country’s economy” Bendixen and Migliorini (2006). According to Kjeldsen and Nielsen (2000) creating new enterprises constitute the base for “maintaining a country’s international competitive power, economic development, employment, and standard of living”. A contemporary definition from the Cambridge on-line 5 dictionary defines the term of entrepreneur as “a person who attempts to make a profit by starting their own company or by operating alone in the business world, especially when it involves taking risks”. From Baumol’s (1990) point of view entrepreneurs are “persons who are ingenious and creative in finding ways that add to their own wealth, power and
The role of entrepreneurship and an entrepreneurial culture has often been underestimated in economic and social development. Over the years, however, it has become increasingly reflected that entrepreneurship contributes to economic development of the country. Although, the majority of the enterprises were owned by men.
I chose to read a book about entrepreneurship rather than interview an entrepreneur. The book I read is entitled The Story of Google. The book starts with a college student, Larry Page, touring Stanford University. While there, his guide was Sergey Brin. The two of them very quickly became great friends although it did not always seem as such. They would constantly have intellectual battles about anything and everything. The two of them began a project for a doctoral thesis. The plan was to download the entirety of what is on the internet and find a way to search it using links. Page decided to use a ranking system to determine the relevance of links and called it “PageRank”. In 1997, the two first launched their search engine and called it BackRub. While the initial startup for the site was only available to Stanford students and staff, it was not long before they made it to the World Wide Web. Later the same year, ideas were pitched for a name change. Sean Anderson suggested using “googol” because it represents a large number and they are indexing a large number of websites. Page and Brin at the time did not know how to spell googol and had the misspelling of “Google”. They ran quickly to see if the URL was available and it was. They registered their site as google.com. The next day Anderson sees “Google” written on the white board and writes, “It’s supposed to be g-o-o-g-o-l.” After making it on the internet, they dropped out from Stanford and continued work on Google. Page and Brin rented a garage from a friend to house operations in 1998. By 1999, they outgrew their garage office, handling more than 500,000 searches a day, and had to move to an office building in Palo Alto. The plan was to make a great search technology and...