The purpose of the study is to examine the role of MSMEs in solving unemployment problem and to find the unemployment trend. The unemployment problem is rising every year and especially youth unemployment is increasing at alarming rate. The study covers Thimphu area whereby a total of 351 samples were determined for the purpose of the study however the response rate was 82.05% with 288 responds qualifying for the analysis. Descriptive analysis was used and the findings reveal that most of the business owned by youth entrepreneurs employed more people though their initial investments were very low.
The study also shows that most of the present business owners has plan of expanding their business in future which will create more jobs. From the studies, it shows that unemployment rate in Bhutan fluctuates and is mainly because of change in the supply and demand in the job markets. It also shows that despite high unemployment rate in the country, preferences for job among the youth remain same. They prefer to join civil servants followed by corporations, NGOs and self-employment or entrepreneurship as the last option.
From this preferences of job and trend of high unemployment rate in the country, it can conclude that there is no refugee in the country nor can say that there is entrepreneurial effect as the entrepreneurship culture in the country is in the verge of developing, therefore entrepreneurial effect can only be tested after some years when the entrepreneurship culture in the country is fully developed.
Table of Contents
Chapter I: Introduction
1.1. Background to the study
1.2. Statement of the problem
1.3. Aims and Objective of the study
1.4. Research questions
1.5. Significance of the study
1.6. Definition of concepts
Chapter II: Literature Review
2.1. The relationship between growth of MSMEs and employment
2.2. Linking entrepreneurship and unemployment
Chapter III: Research Methodology
3.1. Research design
3.2. Population and Sample size
3.3. Response rate
3.4. Data collection
3.5. Method of Data analysis
3.6. Ethical consideration
Chapter IV: Data Analysis and Findings
4.1. Demographic profile of the respondents
Chapter V: Discussions and Conclusions
5.1. Discussions
5.2. Conclusions
Research Objectives and Themes
The primary objective of this study is to analyze the role of Micro, Small and Medium Enterprises (MSMEs) in mitigating the unemployment problem in Bhutan, while simultaneously examining the correlation between MSME growth and fluctuating unemployment trends. The research aims to understand why, despite available entrepreneurship support, many youth still prioritize traditional employment over self-employment.
- The role of MSMEs in employment generation and economic growth.
- Trends in youth unemployment and their relationship with entrepreneurial activity.
- Barriers to youth entrepreneurship and preference for civil service or corporate jobs.
- Evaluation of government policy interventions and their impact on fostering an entrepreneurial culture.
- Comparative analysis of youth entrepreneurship versus traditional sector preferences.
Excerpt from the Book
1.1. Background to the study
Bhutan has been experiencing a period of rapid economic growth over the years. In fact, some international reports have described Bhutan to be the fastest growing economy in the world. This is confirmed by the real GDP rate of 11.8% in 2010. However, on the other hand, Bhutan is experiencing a huge gap in the labour market, thus, giving rise to unemployment issues.
The increasing unemployment rate with accelerating economic growth has become an issue of concern as the impact of unemployment is identified as one of the hazardous factors on people’s welfare, especially, when young people face high unemployment (MoE, 2014). According to the Population and Housing Census (2005), 256,895 people were economically active population (96.9 percent were employed & 3.1 were unemployed) and 168,128 were economically inactive in Bhutan. As per GNH (2010), the total labour force is expected to increase to 318,688 by 2015 which demands an economy to increase its employment opportunities by 24 percent in 2015. On the other hand, there is not many employment opportunities in the public sector. Therefore, the government is in the process of diversifying the economy to create enough employment opportunities. In this regards, micro, small and medium enterprises play an important role in fostering entrepreneurship development, providing employment and reducing poverty (South Asian survey) and also considered as the engine of economic growth (Micro, Small and medium Enterprise policy, 2012).
Summary of Chapters
Chapter I: Introduction: Discusses the economic landscape of Bhutan, the rising concern of youth unemployment, and the strategic importance of MSMEs as recognized by national policy frameworks.
Chapter II: Literature Review: Reviews global and regional perspectives on how MSMEs contribute to job creation and explores the theoretical relationship between unemployment and entrepreneurship, including the "refugee" and "Schumpeter" effects.
Chapter III: Research Methodology: Details the mixed-method research design, sampling techniques used to survey enterprises in Thimphu, and the data analysis approach employing statistical tools like SPSS.
Chapter IV: Data Analysis and Findings: Presents the empirical findings concerning the demographic profile of respondents, business categories, and the specific impact of youth-owned enterprises on employment generation.
Chapter V: Discussions and Conclusions: Summarizes the study's conclusions, highlighting the disconnect between the desire for government jobs and the potential of entrepreneurship, while offering final insights into the role of MSMEs in Bhutanese economic development.
Keywords
Entrepreneurship, Refugee effect, Entrepreneurial effect, Youth, Unemployment, MSMEs, Employment, Bhutan, Economic growth, Labour market, Business development, Private sector, Self-employment, CSMI Policy, Socio-economic challenges.
Frequently Asked Questions
What is the core focus of this research study?
This study examines the effectiveness of Micro, Small and Medium Enterprises (MSMEs) in addressing the rising unemployment crisis in Bhutan and investigates the trends influencing employment and entrepreneurship.
What are the central themes discussed in this publication?
Key themes include the role of MSMEs as engines of economic growth, the challenges of youth unemployment, current employment preferences among the youth, and the impact of national government policies on business development.
What is the primary research objective?
The primary goal is to study the role of MSMEs in reducing unemployment and to analyze the relationship between the growth of these enterprises and the unemployment trend in the country.
Which scientific methods were applied in this work?
The research utilizes a mixed-method approach, incorporating both qualitative insights and quantitative analysis of survey data gathered from 288 respondents in the Thimphu area, analyzed using SPSS software.
What topics are covered in the main body of the text?
The main body covers the economic background of Bhutan, a comprehensive literature review on entrepreneurship theories, the methodology for data collection and analysis, and detailed findings regarding business characteristics and respondent preferences.
Which keywords best characterize this research?
The research is best characterized by terms such as Entrepreneurship, MSMEs, Youth Unemployment, Refugee effect, Schumpeter effect, and Bhutanese Labour Market.
Why do most youth in Bhutan still prefer civil service jobs despite the availability of entrepreneurship support?
The study indicates that despite policy support, youth often view the private sector and entrepreneurship as less secure compared to civil service or corporate roles, and they face challenges regarding initial capital and business experience.
What does the study conclude regarding the 'refugee' vs 'entrepreneurial' effect?
The study concludes that there is currently no significant evidence of either a refugee or an entrepreneurial effect in Bhutan, as the culture of entrepreneurship is still in the early stages of development.
- Citation du texte
- Tashi Tenzin (Auteur), 2014, Micro, Small and Medium Enterprise (MSMEs) in employment generation and its effects on Entrepreneurship, Munich, GRIN Verlag, https://www.grin.com/document/424945
