ENTREPRENEURSHIP, UNEMPLOYMENT AND ECONOMIC GROWTH

The relationship between entrepreneurship and three macroeconomic variables GDP, GNI and unemployment rate is analyzed. GEM project data is used to measure level of entrepreneurship activity for 11 countries. Panel data techniques i.e. random effect model and fixed effect model are applied to investigate the relationship.Results indicate that fear of failure rate is negatively affecting GDP and GNI. Established businesses are contributing their share to boost up GDP and GNI. Unemployment is reduced by early stage entrepreneurial activity executed by both males and females. Only that entrepreneurial activity is found to effect GDP, GNI and unemployment rate which is implemented practically.