Arguments evaluation (encouraging young entrepreneurs): Should young entrepreneurs be actively encouraged? Assess—(I) Yes: they will aid industrial development, (II) Yes: they will reduce the burden on the employment market—decide which argument(s) are strong on development and labour absorption.

Given data

• Policy: Encourage young entrepreneurs.
• I: Leads to industrial development (innovation, investment, productivity).
• II: Eases pressure on job markets by creating employment.

Concept / ApproachBoth arguments present distinct, valid benefits that directly follow from entrepreneurship: output growth and job creation.

Step-by-step evaluationStep 1: Entrepreneurial activity expands industries and services through new firms and products (supports I).Step 2: New and growing firms hire labour, thereby reducing unemployment and underemployment (supports II).Step 3: Since both reasons are relevant and complementary, both are strong.

Verification / AlternativeEconomic development literature consistently links entrepreneurship with innovation-led growth and employment multipliers.

Common pitfalls

• Seeing the two outcomes as mutually exclusive; they often occur together.

Final AnswerBoth I and II are strong.