The Effect of the Investment Guarantee Funds on Growth of Entrepreneurship

Abstract

Entrepreneurship development and employment stability are derived from investment security, and these
two are interrelated. Accordingly, investment guarantee funds are formed in order to identify shortness
and to strengthen the two approaches of economic security. Guarantee funds are effective measures of
governments in creating and increasing of economic security and improving economic indicators,
including employment, economic development and growth of entrepreneurs. This study is practical and
examined the impact of the cooperative investment fund guarantees on venture rates and entrepreneurship
in cooperatives. The population of this study is all the data from entrepreneurship projects in cooperative
sector (credit, interest rate, amount of warranty) including 630 projects requesting guarantee between
2012 to 2015. Data were analyzed using E-views Software. Results revealed that the impact factor of
guarantee is 0.644 and the impact factor of loans is 0.591. The result reflects the impact of the loans on
entrepreneurship is more than guarantee. Finally, the regression equation was presented showing how
guarantee in investment rates causes entrepreneurship.