Issues in Labor Statistics - Case Study Example

? Entrepreneurship by necessity: Key factors of success Task: 2 SURVEY The study applied diverse survey approaches. This was in an effort to amplify the trustworthiness of the data collected. The survey used both open-ended, as well as close-ended questions while obtaining the required information from the public. These significantly helped in acquiring concise answers that appreciably aided in data interpretation, as well as having an overview of the strengths and the challenges of entrepreneurship, as opposed to formal employment. Some of the close-ended questions were such as “Would an individual go back to formal employment if she or he had a chance and quit being an entrepreneur? Whereas, an example of an open-ended question was how does an individual view entrepreneurship in the next 5 years? This was in an endeavor to obtain sufficient data, therefore, enabling the survey to have a clear view of the self-employment as an alternative to job seeking. The research also looked into past researches done by other researchers. Additionally, archive information from the relevant authorities that relate to unemployment and entrepreneurship in the US was of momentous significance. Moreover, the survey utilized a random population with a sufficient number of individuals in self-employment, thereby considering factors that aided their decision to venture in entrepreneurship. The study also applied direct interviews, in a bid to collect sufficient information regarding entrepreneurship within the United States. However, this was not without some delimiting factors, since some interviewees were uncomfortable with the approach. 2.2. RESULTS The study revealed that most entrepreneurs ventured into this form of self-employment after the frustration due to the failure of securing employment in various firms. According to the survey, 60% of all interviewees had initially opted for employment other than self-employment. As a result, the survey showed a strong correlation between unemployment and entrepreneurship. This was an indication that unemployment was a key driving force for the innovative entrepreneurship. The U.S. education system also depicted a weakness in training the youth on better entrepreneurship. The learning system seemed to train their youth to acquire skills and search for employment opportunities, as opposed to educating the youth on the benefits of entrepreneurship, particularly during this economic recession. This appeared to produce countless ratios of skilled but unemployed individuals. As a result, there was the need to revisit the education system of the U.S. and orient the youth towards job creation rather than job searching. Moreover, further assessment proved that the larger proportion of entrepreneurs had better capacities in solving predicaments and making wise and informed decisions quickly, as opposed to their employed counterparts (Shane, 2005). Moreover, the survey indicates that entrepreneurship has significantly reduced unemployment within the United States citizens, particularly the youth. Conversely, the survey also showed that unemployment may also hinder entrepreneurship. This results from the fact that for individuals to venture into self-employment they need enormous amounts of capital. Moreover, though there are other sources of capital, the survey shows that employment is the main source for entrepreneurship. As a result, the employed professional seemed suited to venture into entrepreneurship than their unemployed counterparts. This implies that the high levels of unemployment correlate with a slowed economic development thus the entrepreneurial prospects. Besides, entrepreneurship in itself promotes employment, since entrepreneurs employ the jobless individuals to work in their diverse firms. Additionally, the study revealed the larger percentage of entrepreneurship aided individuals in attaining self-adequacy economically, thereby setting them free, as they own their jobs. Additionally, the survey showed that government intervention, together with other concerned institutions, has significantly aided in encouraging entrepreneurship within the US, since it has set policies that loan individuals, or groups that present valid entrepreneurial proposals. Besides, the government and the concerned institutions have played a critical part in educating these individuals on proper entrepreneurial skills and viable opportunities into which to venture. This provides an appropriate environment for entrepreneurship, therefore mitigating the unemployment levels thus boosting the country’s economy to considerable levels. The chart below shows business establishments in the U.S. from 1994 to 2010. (Shane, 2005). Source: Labor Statistics Bureau. Besides, based on another survey, the study showed that nearly 350 per 10 000 individuals commenced their own businesses, owing to the adverse effects of the economic recession in 2010, making it the year where the U.S. had the largest sole-owned business in the last decade. The survey conducted an intense interview with various personnel in the labor department in order to test the credibility of this survey. In addition, it was clear that between 2009 and 2010, the percentage of entrepreneurial growth increased from 0.5 to over 0.6 (Shane, 2005). 2.3. DATA ANALYSIS During the survey, 500 questionnaires went to individuals within New York. This was in an attempt to have an overview of employment, as well as the entrepreneurial rates in the city. Moreover, the survey applied personal interview to 200 individuals within the city. The percentage of male respondents was 52%, while that of their female counterparts amounted to 48%. The table below shows the employment and the unemployment rates within the U.S. in 2009. The entrepreneurs further fall into former and non-former employees. POSITION RESPONSE (NUMBER) RESPONSE (PERCENTAGE) Self-Employed (Entrepreneur) 420 60 Employed 203 29 Unemployed 77 11 TOTAL 700 100.0 Employed before being an Entrepreneur 143 34 Unemployed before being an entrepreneur 277 66 Total 420 100.0 The survey indicates that the number of entrepreneurs has significantly surpassed that of the employed individuals. Moreover, it is clear that unemployment has compelled many individuals into commencing their own businesses, and thus become entrepreneurs (Shane, 2005). Additionally, on the issue of entrepreneurial information, the survey came up with the data below: STATUS NUMBER PERCENTAGE With Prior Knowledge from Education system 210 30 Without Prior Knowledge from Education system 490 70 TOTAL 700 100.0 This is a clear indication that the education system in the U.S. has employed extremely little effort in educating the youth about the proper entrepreneurial skills and prospects. 2.4. FINDINGS After the survey, it was clear that the number of entrepreneurs has significantly increased in the past 5 years. However, most entrepreneurs are not apt with quality entrepreneurial skills and only rely on experience and their inborn instincts. Moreover, unemployment has played a significant role in driving individuals towards entrepreneurship. 2.5. RECOMMENDATIONS Entrepreneurs should seek suitable skills, since this will provide a better platform to overcome obstacles and hence grow economically. Additionally, the government and other concerned parties should intervene and help these entrepreneurs both by finances and through rigorous entrepreneurial training. Additionally, the education systems need to shift their emphasis from employments to entrepreneurship. 2.6. FUTURE RESEARCH SUGGESTIONS The survey covered an extremely small area in New York due to the scarcity of funding. Therefore, further studies should expand their survey sample and cover a wider area. Additionally, the survey used limited data collection techniques, and further studies should apply more data collection methods. 2.7. CONCLUSION The economic recession has forced many firms to lay off employees, leaving many U.S. citizens unemployed. Moreover, qualified personnel fruitlessly seek for formal employment. As a result, many individuals have opted to become entrepreneurs, thereby starting their own businesses. The rate of unemployment seems to be the driving factor to this entrepreneurial trend. However, these entrepreneurs face many challenges, some of which include the inadequate experience coupled by educational background. In this perspective, the government needs to intervene and devise measures that will boost this entrepreneurship, since it has significantly managed the issue of unemployment. Moreover, the education system needs to focus on entrepreneurship, as opposed to formal employment, since the latter has augmented benefits. References BLS. (2011, December 2). Employment Situation Summary. Retrieved December 18, 2011, from BLS http://www.bls.gov/news.release/empsit.nr0.htm BLS. (2011, May). Issues in Labor Statistics. Retrieved December 18, 2011, from BLS: http://www.bls.gov/opub/ils/pdf/opbils89.pdf Gartner, W. B., & Shane, S. A. (1995). Measuring entrepreneurship over time. Journal of Business Venturing 10 , 283-301. Kobe, K. (2007, April). The Small Business Share of GDP, 1998-2004. Retrieved December 18, 2011, from SBA: http://archive.sba.gov/advo/research/rs299tot.pdf Pritts, R., & McGuire, S. (2007). Audio sampling: a practical guide. Burlington, MA: Focal press publishers. Reynolds, P. D. (2007). Entrepreneurship in the United States. New York: Springer. Reynolds, P. D., & White, S. (1997). The Entreprenurial Process: Economic Growth, Men, Women and Minorities. Westport, CT: Quorum. SBA. (2011, January). Frequently Asked Questions. Retrieved December 18, 2011, from SBA: http://www.sba.gov/sites/default/files/sbfaq.pdf Shane, S. (2005). Economic development through entrepreneurship: government, university and business linkages. Massachusetts, MA: Edward Elgar Publishing. Shane, S. (2010). A General Theory of Entrepreneurship: the Individual-Opportunity Nexus. New York: Edward Elgar. Stead, B. (2001). Planning, designing, and reporting research. Midrand, SA: Pearson South Africa publishers. Verheul, I., Bosmaa, N., van der Nol, F., & Wong, T. (2002). Determinants of Entrepreneurship in The United States of America. In D. B. Audretsch, R. Thurik, I. Verheul, & S. Wennekers, Entrepreneurship: Determinants and Policy in a EU-US Comparison. New York: Springer. Zoltan, J., Parsons, W., & Tracy, S. (2008, June). High Impact Firms: Gazelles Revisited. Retrieved December 18, 2011, from SBA: http://archive.sba.gov/advo/research/rs328tot.pdf Read More