The cultural and creative industries have become one of the most influential sectors contributing to sustainable economic development, employment generation, innovation, and social cohesion across the world. These industries transform cultural heritage, artistic creativity, and intellectual assets into economic value while preserving cultural identity and promoting social welfare. Although Iran possesses remarkable cultural resources and ranks among the leading countries in handicraft diversity, the contribution of the cultural and artistic sector to national economic development remains considerably lower than its potential. Numerous structural, institutional, educational, and managerial challenges have limited the expansion of artistic entrepreneurship and sustainable employment opportunities within this sector. Therefore, identifying these barriers and proposing practical solutions is essential for policymakers and cultural managers. This study aimed to identify the barriers and propose effective strategies for employment generation in the culture and arts sector with an emphasis on artistic entrepreneurship in Semnan Province, Iran. A qualitative research approach was adopted using focus group discussions involving artists, university professors, cultural experts, entrepreneurs, and governmental managers. Data were analyzed through qualitative content analysis using open and axial coding techniques. The findings indicate that employment barriers can be classified into three major categories, including conceptual barriers, structural barriers, and skill-related barriers. Furthermore, the study proposes several practical strategies, including strengthening entrepreneurial education, institutionalizing the concept of the art economy, reducing excessive governmental intervention, supporting creative businesses, improving legal infrastructures, and enhancing cooperation among governmental institutions, universities, and private-sector stakeholders. The results highlight the necessity of adopting integrated cultural and entrepreneurial policies to achieve sustainable employment and strengthen the creative economy in Iran.