5% increase of employment in cities by 10% growth of entrepreneurship

Entrepreneurship is activities and measures that a creative person tries to do by taking advantage of personal creativity and ideation power, resources, capacities, and infrastructures to create value added and produce goods and services based on current and future needs, he said at the conference on “the position of resistance economy in urban development and entrepreneurship.”

Saying that entrepreneurship is counted as the main source of economic growth in national and local economies, he added one of the factors that should be identified and determined in economic growth of countries, as an important factor is entrepreneurship.

Regarding urban entrepreneurship as one of the most important aspects of entrepreneurship that is achieved in urban context and by considering municipal relations and facilities, he further said currently, the world moves toward urbanization and its rate is two times more than global average in Iran. According to Iran’s Statistical Center, more than 73 percent of people lived in cities in 2011.

Emphasizing that unemployment rate fluctuated between 14.3 and 10.3 percent during 2000 to 2004 and there was no specific trend in this rate, he said unemployment rate in cities is worse than villages indicating more crime and violence in cities rather villages.

Adding that unemployment rate increased to 11 percent in the country in 2015 rather 2014 that it was 12.2 percent in cities and 8.1 percent in villages, he said unemployment rate reached 12.7 percent this summer and this rate was recorded 14.4 percent in urban areas and 7.9 percent in rural areas.  

Dealing with the relationship between urban entrepreneurship and improvement of urban economy, he added according to the researches, nearly 1 to 1.5 percent urban employment and 2.5 to 3.5 percent urban revenue increase by 10 percent urban entrepreneurship in the cities of developed countries on average.

Regarding the potential and unapplied capacities in the economy of Iran’s cities, it seems that by 10% growth of urban entrepreneurship will result in 4 to 5 % increase of employment in cities and 7 to 8 percent increase in urban revenue on average, the expert said.

Referring to the relationship between entrepreneurship and implementation of resistance economy in urban context, Dr. Tabatabaei said one of the most important topics of resistance economy is entrepreneurship and creation of productive employment in the country.

Attention to knowledge-based entrepreneurship, increase in social equity in cities, and supporting domestic product are some of the most important components of resistance economy in urban space with approach to urban entrepreneurship, Dr. Tabatabaei said.

It is noteworthy that the book on “good urban governance” written by Dr. Mohammad Hossein Pourzarandi and Dr. Seyyed Mohsen Tabatabaei Mozdabadi was unveiled at this event.