Entrepreneurship, business startups and youth unemployment

Abstract

This study, conducted at Makerere University in Kampala, Uganda, delves into the into the relationship between entrepreneurship, business startups, and youth unemployment with the aim of contributing valuable insights for policymakers, educators, and stakeholders grappling with the challenges of youth unemployment through entrepreneurial avenues. The research objectives encompassed an exploration of the relationships between youth unemployment and business startups, business startups and entrepreneurship, and finally youth unemployment and entrepreneurship. Employing a quantitative approach employing a cross sectional research design. The quantitative method aided in analyzing statistical data. The study meticulously selected a purposive sample of 52 students from the Makerere University Innovation and Incubation Center. Data collection, facilitated through an online survey, focused on participants' business ventures, employment status, challenges faced, and perceptions of government support. The results revealed that the majority of respondents fell within the 18-24 age range. Notably, participants held at least a Bachelor's degree, with diverse employment statuses ranging from employed and unemployed to students and self-employed individuals. The study discovered a positive relationship between youth unemployment and entrepreneurship indicating that being employed is associated with an enhanced understanding of entrepreneurship. Furthermore, a positive relationship was identified between youth unemployment and business startups suggesting that employed individuals are more prone to contemplate entrepreneurship. The study revealed a weak relationship between entrepreneurship and business startups. Implying that individuals with a better understanding of entrepreneurship are slightly more inclined to consider initiating their own ventures. In conclusion, this study has found that due to unemployment youths in developing countries start businesses to find what to do and get income. The study has confirmed a robust relationship between entrepreneurship and initiation of business startups. However, new business startups that fail to pay overhead costs end up closing shop.