Topic > The Entrepreneurship Readiness Training Project

The name of the project is “Entrepreneurship Readiness (RE)”. The RE program helps interested individuals who are unemployed and are interested in starting a business locally (by city or county). Once candidates have been selected based on objective criteria, successful candidates are entitled to receive training on specific skills for six months or one year. The training period will depend on the area of ​​establishment. Additionally, candidates can receive financial support after training and interviews. Furthermore, there is a strict condition when starting a new business: they must open a business within their administrative boundaries (at least in neighboring counties). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Several conditions will be considerable for selection. Age Schooling/education Periods of unemployment Experience in previous workplace Start-up experience2. What are the benefits and costs of the project? Obviously, selected candidates will benefit from the RE program. They will have the opportunity to gain sufficient knowledge and skills before starting their own business. Additionally, if they qualify to receive financial support from the local government, it should be easier to start a business. Meanwhile, local residents who are supposed to pay taxes may be dissatisfied. Since the local budget is limited, the budget to support the unemployed may lead to budget cuts in other areas of the public service. However, it may be possible to apply federal subsidies for local economic development.3. Relevant articles and evidence According to Acs (2006), there are two types of entrepreneurship: necessity entrepreneurship and opportunity entrepreneurship. The necessary entrepreneurship has no choice but to be an entrepreneur. Unemployment could be one of the reasons for being an entrepreneur out of necessity. In contrast, opportunity-based entrepreneurship is the result of opportunity recognition. Based on the Global Entrepreneurship Monitor (GEM) database, it concludes that all entrepreneurship does not contribute to economic development. Necessity-based entrepreneurship is not helpful for economic growth, while opportunity-based entrepreneurship can drive economic development. Therefore, economic growth is determined by the relationship between necessary entrepreneurship and opportunity entrepreneurship. According to his thesis, if the unemployed start new businesses, the phenomenon is considered necessary entrepreneurship. It can be deduced that there is a very positive relationship between the necessary entrepreneurship (self-employment) and the number of unemployed. As a “supply-push” effect of unemployment, Koellinger and Thurik (2012) find that rising unemployment can cause new businesses to start. Using Granger causality analysis, they conclude that “entrepreneurship is often an escape route for people who have lost their jobs to make a living” (Koellinger & Thurik, 2012: 1149). Not surprisingly, there is empirical evidence showing that entrepreneurship by necessity is difficult to achieve. Necessity entrepreneurship and people who experience long-term unemployment tend to be significantly less satisfied with their businesses (Block & Koellinger, 2009). Low satisfaction can be explained by motivation (aspiration) and the decision-making process itself. In particular, the authors specifically explain the reasons: Entrepreneurship out of necessity usually misses an opportunity for free will and leads to low satisfaction. Therefore, it is reasonable to expect that if i.