Problems in the development of youth entrepreneurship in the Republic of Armenia

Abstract

Purpose. The study is based on the premise that the development of youth entrepreneurship is a significant factor in the economic development of society and in increasing employment, living standards and economic independence of young people.

The purpose of this study is to assess the degree of favourableness of the business environment for the development of youth entrepreneurship in the Republic of Armenia in comparison with other Eastern Partnership countries, identifying barriers and difficulties that Armenian youth face in translating creative ideas into real business.

Methodology. In order to achieve the goal set in the article and to accomplish the objectives of the study, the methods of quantitative research, analytical diagnostics, content observation, statistical analysis, grouping, questioning and interpretation of results were used. The form developed for the survey of young people (aged 13-35) includes questions which characterize the respondents’ profile, as well as groups of factors which influence the implementation of entrepreneurial activities.

Findings. In the process of the study, conclusions were made on the presence of a number of factors that restrain and limit the development of the business environment in Armenia. The main barriers hindering the opening of a new business are considered by Armenian youth to be the following: the absence (limitation) of start-up capital; lack of courage to take the first step; lack of knowledge and lack of experience; lack of a business idea and business plan. Additional factors constraining youth entrepreneurship in Armenia are as follows: lack of connections, lack of development or lack of a material and technical base, lack of awareness or inefficiency of business support programmes.

Value. The article identifies problems, the elimination of which will improve the environment in order to stimulate young people to start their own businesses. It also identifies barriers to the development of youth entrepreneurship.

The results obtained in the study can form the basis for the development of youth policy in Armenia.