Relationship between Entrepreneurship and Unemployment: The Case of Georgia

Abstract

The research paper employs the regression analysis of two variables entrepreneurship and unemployment rate from year 2003 to 2013. Entrepreneurship development as a phenomena generating jobs plays a vital role in particular to alleviate high unemployment level in countries like Georgia. It concludes that for Georgia a country in transition entrepreneurship development plays a vital role for solving the unemployment problem. The analyses of two effects “Schumpeter” and “Refugee” have been tested. The effect of entrepreneurship has been found to be statistically significant.