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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM66138

A Study on the Role of Entrepreneurship in Employment Generation

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM66138

Volume:

10 |

7 |

Jul 2026

Pages:

1-11

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM66138

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

PJ

Pragathi J

MBA_ Student

Vidya Vikas Institute of Engineering and Technology, Mysuru

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Mentors

M

Madhunayaka

Assistant professor

Vidya Vikas Institute of Engineering and Technology, Mysuru

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Abstract

This study explores how entrepreneurship helps create jobs and supports economic growth. It looks at the role of small and medium businesses in generating both direct and indirect employment, especially through factors such as access to finance, business training, market demand, and the background of the entrepreneur. The research was carried out using a quantitative approach with 56 entrepreneurs as respondents. The findings show that many entrepreneurs depend mainly on personal savings or help from family and friends to start their businesses, while formal government support is used less often. The study also found that business growth often leads to new job opportunities, including permanent, seasonal, and part-time roles. Training and previous experience were seen as important in improving business management and increasing the chances of employment generation. However, challenges such as lack of funding, limited resources, and business risks still affect long-term job creation. Overall, the study concludes that entrepreneurship has strong potential to reduce unemployment, but it needs proper support through training, finance, and infrastructure.

KEYWORDS

Entrepreneurship Employment generation small and medium enterprises Job creation Financial support

Cite This Article

Pragathi J, Madhunayaka, "A Study on the Role of Entrepreneurship in Employment Generation," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 7, pp. 1-11, Jul 2026. https://doi.org/10.55041/IJSREM66138

Full Article/Conclusion

In conclusion, the development of entrepreneurship functions as an excellent catalyst for employment, turning job seekers into dependable employers through a perpetual chain of recruitment processes. Whereas urban digital businesses employ semi-skilled manpower while rural programs modernize agricultural manpower, the sustainability of such jobs is strongly dependent on organized training within the institutions. Nonetheless, to tap into such opportunities of employment and cater for vulnerable populations, there is need for government action beyond provision of basic training, especially in addressing the problems of lack of seed funding and poor infrastructure.

References

·                 Adenutsi, D. E. (2023). Growth of small and medium enterprise (SME) and the employment spillover effects in the labor market: An assessment of secondary employment channels in emerging economies. Journal of Developmental Entrepreneurship, 28(2), 145–167. ·                 Alzate-Alvarado, S., Ribes-Giner, G., & Moya-Clemente, I. (2025). Technology adoption dilemma: Firm performance over multiple years, market valuation, and sustainable human resource management in nascent firms. International Journal of Human Resource Management, 36(1), 89–114. ·                 Borah, M., & Bhowal, A. (2023). Creation of jobs in areas of economic distress: An analysis of a direct relationship between entrepreneurship development programs (EDPs) and reduction in local unemployment levels. Journal of Regional Economic Studies, 15(3), 210–228. ·                 Chatterjee, S., & Das, R. (2022). Assessment of Startup India initiative: Sectoral scale-up, economic registry at national level, and effect of state-level financial buffer on private employment generation. Indian Economic Review, 57(2), 301–324. ·                 Gupta, A., & Singh, P. (2022). Role of entrepreneurship education in youth employment and sustainable economic development: A 36 months tracking of graduates' labor market transition. Research in Post-Compulsory Education, 27(4), 512-5. ·                 Ecosystem Assessment of NASSCOM. (2023). Digital labor market pivot: Assessing sectoral division of employment creation within Urban E-commerce and Rural Agri tech startup ecosystems. NASSCOM Strategic Review Series. ·                 National Policy Monitoring Bureau. (2026). Lakhpati Didi and Drone Didi programs (2023–2026): A longitudinal assessment of high-tech vocational devices, self-help groups, and rural micro-entrepreneurship employment support services. Ministry of Rural Development, Government of India. ·                 Rietveld, C.A., & Patel, P.C. (2022). Bridging the entrepreneurial gender gap: A 97 country analysis of underutilized labor potential and community-based employment resilience. Small Business Economics, 58(3), 1421-1445. ·                 Sabon Gari Regional Study Group. (2022). Binary logistic regression model analysis of local economic centres’: A study of innovation versus replication entrepreneurs in youth employment sustainability.

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Publication Date

7/18/2026

Peer Review Type

Double-Blind Peer Review

Review Rounds: 2

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