View of Students about Unemployment

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Updated: Aug 21, 2023
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This study considers the effectiveness of public and private sector SME-development programs and the current development of SMEs in AJK. The study presents several major findings and includes a brief review of international literature. To examine the status of small and medium-sized enterprises and their developmental strategies, a questionnaire survey was conducted among owners and top managers. A Chi-square test was used to analyze the information. The results reveal that SMEs face numerous challenges, including burdensome business rules and regulations, inadequate financing, and limited HR and technological capabilities.

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Furthermore, SMEs account for more than 90% of all firms outside the agricultural sector, making them vitally important to AJK. Notably, the government has been the primary supporter of SMEs in AJK, though both government and private programs have been less effective in fostering their development. This study suggests public-private partnership (PPP) as a future strategy for SME development in AJK.

The Influence of Demographical Factors on the Interaction between Entrepreneurship and Unemployment:

1. The relationship between unemployment and entrepreneurship serves as an indicator of a person’s status in the labor market. An examination of the interconnections between unemployment and entrepreneurship reveals both pull and push effects in theory and practice.

2. Demographic factors identified in observational studies, such as age, gender, education, marital status, employment/unemployment level, immigration, race, and ethnic minorities, all have differentiated impacts on business development. Factors such as age, education, and unemployment level can exert either positive or negative effects on businesses. Also, the presence of a spouse or parent from an ethnic minority, work experience, emigration, and entrepreneurship can positively impact a business. However, gender differences might negatively affect a business. Marital status can influence men’s and women’s propensity to start up a business.

3. According to Pearson’s correlation and regression calculations involving business and demographic characteristics, there is a strong relationship between the number of established companies and unemployment rates among men and women with higher education or occupational training. Furthermore, the short-term duration of unemployment (1-2 months, 3-5 months) among operating firms suggests reduced unemployment rates due to higher education. This has positive effects on business creation, validating a strong “push” effect from demographic factors.

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View of students about unemployment. (2020, Mar 11). Retrieved from