Answer to Question #231953 in Economics for Nee

Question

The Ministry of Education wants to know whether entrepreneurial education affects students’ decision to start a business rather than seeking for employment.

(a) Construct a research question based on the scope.

(b) Develop a suitable economic model with at least three independent variables.

(c) Based on (b), define how you measure the variables and construct an econometric model which contains an error term or disturbance.

(d) Give reasons as to why the random error exists.

(e) If data is non-parametric, what technique or test will you consider?

Answer 1

The survey method showed that the main obstacle to organizing your own business is the lack of start-up capital. The result of using two research methods turned out to be very interesting.

Most of the respondents, namely 56.7% of the surveyed respondents, chose this answer. But experts who are directly involved in the implementation of the business argue that this is a stereotype. The main barrier to starting a business is limited knowledge. The problem takes on a completely different form. Experts say that start-up capital is not required, it is better to attract investors - and here we are faced with a new barrier. According to experts without experience and knowledge attracting investors to a young business is very difficult, it scares future potential entrepreneurs.