The relationship between entrepreneurship and unemployment has been an interesting topic for

researchers for quite some time. In the time of global recession and mass layoffs different countries
try to stimulate their residents to work on their ideas and to test themselves on the open market
using various forms of subsidizing. It is important to point out that entrepreneurship does not
constitute such a social security as employment in large companies. Entrepreneurship is not just a
mixture of ideas, desires for success and a trend away from employment, integration with the right
business partners and the issues of obtaining the initial capital, but largely also depends on the
laws in each country and the infrastructure which this country offers. Countries with better
entrepreneurial infrastructure (technology parks, university incubators, etc.) are definitely more
open to competition and entrepreneurial activities than others. (Mowlid Adan Diriye, 2018)
According to (Ali Yassin Shaeikh Ali, 2013) “entrepreneurship is the process of creating
something of value by devoting the necessary skills, time and effort, and, assuming the
accompanying financial and sometimes physical and social risks, to reap the resulting monetary
rewards and personal satisfaction”. Today, entrepreneurship is becoming increasingly important.
Individual, social and environmental factors all have a direct bearing on the entrepreneurial
process, its motivation, innovation, continuity and expansion. Entrepreneurship development
contributes to poverty reduction when it creates employment through the startup of new
entrepreneurship or the expansion of existing ones and they increases social wealth by creating
new markets, new industries, new technology, new institutional forms, new jobs and net increases
in real productivity, increases income which culminates in higher standards of living for the
population then it is logically to state that if the number of entrepreneurs of any given country
increase, the poverty indicators will decrease and vice versa.
In recent years, the promotion of youth entrepreneurship as a means of improving youth
livelihoods in the Third World has attracted increasing attention from scholars and policy makers
(Sommers 2010; Chigunta 2012; Chigunta and Chisupa 2013). Most of this attention has focused
on sub-Saharan Africa (SSA, i.e. African countries south of the Sahara desert) where many
countries are faced with seemingly overwhelming problems posed by ever-growing numbers of
unemployed youth (Chigunta, 2017)
Despite that most developing countries of the world are now understanding the impact of
entrepreneurship programs on unemployment and the growth of their economy, and
therefore making deliberate efforts to promote entrepreneurship, maintain and sustaining
effective entrepreneurship development program remains a global phenomenon. The
relationship between effective entrepreneurship program and unemployment is so
important that almost all nations of the world takes entrepreneurship as a top priority in their
agenda. Entrepreneurship is gaining grounds all over the world, as government at all levels
are now taking steps towards promoting its continuation. In spite of this, there is still a
persistent increase in the rate of unemployment all over the world, particularly in Africa.
In Nigeria and even in other countries for example in Bangladesh, Entrepreneurship
Development Program is now being considered as important driver of economic growth,
generating employment, fostering innovation and poverty reduction through the
empowerment of young men and women
The population of Africa is now one billion and by 2050, this figure is projected to increase to
nearly two billion. By demographic transitions, African youths, defined as those between the ages
of 15–35 years old are growing at the fastest rate in the world but they make up 60 percent of the
total unemployed and only 37 percent of the labor force. High youth unemployment is fundamental
to the growing difficulties in Africa, causing various economic, social and moral issues. A World
Bank survey of 200,000 people in 20 countries revealed apathy and hopelessness among the poor,
but self-employment and wages were noted as tools for upward mobility. Therefore, integrating
more youths into the small business sector can contribute to alleviating the triad of unemployment,
underemployment and poverty. (RIMMINGTON, 2011)
Although Somali entrepreneurs started creating private sectors and increased the income of the
families but still the rate of the poverty increased because Somalia has been a country the chronic
complex emergency since 1991 when the Somalia government was collapsed The resulting civil
war and frequent natural disaster have led to a lack of basic services and great human suffering
and humanitarian crises, and many public jobs were lost and rate of poverty has increased and
increased unemployment rate, Somalia is thirds of the world's country who lived poverty
Approximately, 43% of Somalia's population lives below the poverty line. Poverty in Somalia is
more pronounced in the rural areas than in the urban regions. however, This study will investigate
the relationship between Entrepreneurship and poverty reduction .(Ali Yassin Shaeikh Ali, 2013)
CONCEPTUAL FRAMEWORK
ENTREPRENEURSHIP
A definition of entrepreneurship has been debated among scholars, researchers, and even policy
makers since the concept was first established in the early 1970s. Sterntiorr and Burgers (1993)
view of entrepreneurship as the ability to develop a new venture or apply a new approach to an old
business. According to Gana (2001), entrepreneurship as the ability to develop a new venture or
apply a new approach to an old business. Schumpeter (1994) defines entrepreneurship as the ability
to perceive and undertake business opportunities, taking advantage of scarce resource utilization
According to encyclopedia Entrepreneurship is the practice of forming a new business or commercial
enterprise, usually in an industry or sector of the economy with a large capacity for growth.

The international labour organization (ILO) defines the unemployed as the number of all
economically active population who are without work but are available for and are seeking
work, including those who have lost their jobs and those who have voluntarily left work
(World Bank, 2008). According to the International Labour Organization (2007),
unemployed workers are those who are currently not working but are willing and able to
work for pay, currently available to work and have actively searched for work.
Also, in the opinion of Fajana (2000), unemployment refers to a situation where
people who are willing and capable of working are unable to find suitable paid employment.
It is one of the macro-economic problems which every responsible government is expected
to monitor and regulate. In the same vein, According to Olaaele, Akeke, and Oladunjoye
(2011)), unemployment is “a situation in which persons capable and willing to work are
unable to find suitable paid employment”.. Hornby (2010) defines unemployment as “the
facts of a number of people not having a job; the number of people without a job; the state
of not having a job”. Thus, unemployment is a situation where the teaming population who
are mentally and physically capable to work are not able to get a commensurable job. (Ibitomi
Taiwo, 2022)