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Abstract

The paper deals with the problem of youth unemployment and entrepreneurship as a way out of unemployment. The battle against youth unemployment is a top European priority, since the youth unemployment rate is more than twice as high as the adult one, because the chances for a young unemployed person of finding a job are low, because their jobs tend to be less stable, because there are significant skills mismatches on the labor market. Entrepreneurship is a powerful driver of economic growth and job creation; it makes economies more competitive and innovative. The motivation for entrepreneurial career is different with different age cohorts. Youth represent a group with the highest entrepreneurial potential. In the empirical study, we analyze entrepreneurial tendencies among Slovene students of business schools and with factor analysis approach we try to define underlying entrepreneurial tendency dimensions as the literature suggests that entrepreneurial characteristics play an important role in influencing the individual’ decision to become entrepreneurs. We defined four such entrepreneurial tendency dimensions: need for independence and achievement, problem solving, planning, and dealing with uncertain situations. However, the need for independence and achievement and problem solving are the strongest drivers of entrepreneurial tendency. The results of the study can be of help to policymakers when updating labor market policy measures in connection with the educational policy.

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