An Assessment of the Effect of Entrepreneurship on Youth

Youth unemployment is the tornado of the future concealed by the waves of rapid population growth. With the failure of the One Child policy in China and high fertility rates in the developing economies, the growth of youth unemployment is an inevitable problems with symptoms such as child labour, high youth crimes and terrorism just to name a few. This problem is accentuated if the labour market is rigidity towards the youths. In mapping out a blueprint, entrepreneurship is hypothesised to alleviate youth unemployment. To statistically, support this assertion, a 13 years sample of secondary data was extract for Cameroon from the World Bank database 2014 ranging 1990 2014 on Value Added the proxy for Entrepreneurship, Gross Domestic Product, Real Interest Rate, Youth Unemployment, and Investment. Using the Vector Autoregressive (VAR) technique of analysis it is revealed that Youth unemployment is positively sticky, outcomes of entrepreneurial activities were a results of labour market rigidity, and interestingly increasing youth unemployment is associated with entrepreneurial activities. Consequently, it is recommended that Top Businesses and Entrepreneurs in Cameroon should adopt the Business Leader Apprenticeship Approach as well as the government should foster legality of the entrepreneurial activities through apt conception and implementation of business laws.