1.

2 Problem Statement
Entrepreneurship is a solution to the unemployment problem in somalia since When
entrepreneurship growth generates employment through the start-up of new businesses or the
expansion of existing ones, increases social wealth by fostering the development of new markets,
industries, and technologies, and net increases in real productivity, raises income, and ultimately
raises living standards for the general population, it stands to reason that if the number of
entrepreneurs in a given nation rises.
In Somalia, The majority of Somali entrepreneurs fail to grow their new enterprises, which have
resulted in high rates of unemployment there. According to a UN report, unemployment rate for
young people in Somalia is one of the highest in the world at 67% among all 14 to 24-year-olds.
The Somalia Human Development Report 2012, issued by the UN Development Program
reflects 82% of Somalis to be deprived, with 73% living on less than $2 a day. although Somalia
have been facing many challenges but the main problems is unemployment here there is a factors
influence unemployment in Somalia like; lack of entrepreneur skills, high inflation rate and
interclan conflict, whereas a lot of Somali youth go western countries through risk channel they
may lose lives while some of graduated youth started using drugs including many types.
Despite all the above obstacles, which prevent the educated youth from employment or starting
a successful business that could improve the nation's economy and lower unemployment rates.
There is still a lack of sufficient studies that consider the nexus between unemployment and
Entrepreneurship. This study is going to bridge that gap by ascertaining the role of
entrepreneurship on unemployment reduction in Mogadishu-Somalia.
1.3 PURPOSE OF THIS STUDY
The purpose of this study is to investigate the role of entrepreneurship on unemployment
reduction in Mogadishu-Somalia.
1.4 OBJECTIVE OF THIS STUDY
General objective of the research was to examine the role of entrepreneurship and
unemployment reduction in Mogadishu-Somalia. In addition, there is more specific objectives
like:
1. To analyze the effect of education specially entrepreneurship education on
unemployment reduction
2. To investigate the impact high inflation rate on unemployment in Somalia
3. To describe the effect of interclan conflict in Somalia on unemployment
1.5 RESEARCH QUESTIONS
1. What is the effect of entrepreneurship education on unemployment reduction?
2. What is the impact high inflation rate on unemployment in Somalia?
3. What is the effect of interclan conflict in Somalia on unemployment?