IMPACT OF ENTREPRENEURSHIP ON ECONOMIC DEVELOPMENT IN NIGERIA

Authors

  • Vincent Adewale Omotayo

Abstract

Entrepreneurship is seen as a significant factor used in modern economies for wealth creation, improvement in the standard of living, and the development of the economy. Despite these loadable roles, its impact in the attainment of required development has not been well felt in Nigeria. This study examined the impact of entrepreneurship on economic development in Nigeria. Annual time series data spanning from 1992 to 2022, analysed with ARDL techniques was employed. Rate of self-employment existing in the country was used to proxy entrepreneurship. Contribution of SMEs, private sector credit and inflation rate were also added in the model while human development index was used to represent economic development The result showed that self-employment rate is positive but insignificant in the short-run while its impact on economic development in the long-run is significant. Contribution of SME and credit to private sector is positive but insignificant on the long-run while the impact of inflation rate is inversely related. This indicated that government in conjunction with monetary authorities should formulate and implement sound economic policy that will make entrepreneurship to strive; this should not be done without taken cognizance of macroeconomic variables. More importantly, the financial institutions especially deposit money banks should be made to support entrepreneurship development by providing the start-up funds for entrepreneur at a reduced or concessionary rate.

References

Asogwa, O. S., & Arinze, A. S. (2017). Impact of entrepreneurship development on economic growth of Enugu State: a study of registered entrepreneurs in Enugu State, Nigeria. International Journal of Economics, Business and Management Research, 1(02), 227-242.

Chigbu, E. E. (2006). Finance for development, in economic development and management, Lagos: Don Vinton Limited.

Dau, l. A., & Cuervo-cazurra, A. (2014). To formalize or not to formalize: Entrepreneurship and pro-market institutions. J Bus Vent 29, 668-686.

Faajir, A. (2019). Effect of entrepreneurship and small business on Nigeria’s economy. The Business and Management Review, 10(5). 60-65.

Juliana, N. O., Hui, H. J., Clement, M., Solomon, E. N., & Elvis, O. K. (2021). The Impact of Creativity and Innovation on Entrepreneurship Development: Evidence from Nigeria. Open Journal of Business and Management, 9, 1743-1770.

Okechukwu, E. U., & Nwekwo, M. N. (2020). Youth entrepreneurial development: A panacea for overcoming security challenges and unemployment in Nigeria. Unizik Journal of Business, 3(1), 26-42.

Okoye, C. R., & Nwisienyi, K. J. (2019). Entreprenuership and economic growth in Nigeria; An empirical approach. International Journal of Research and Development (IJRD), 4(9), 163-170.

Olaniyan, T. A. & Ayangbekun, O. J. (2017). Entrepreneurship and economic development towards sustainance of peace and progress. International Journal of Development and Sustainability, 6(11), 1768-1773.

Omoruyi, E. M. M., Olamide, K. S., Gomolemo, G., Donath, O. A. (2017). Entrepreneurship and economic growth: Does entrepreneurship bolster economic expansion in Africa?. J Socialomics 6(4), 1-11.

Onileowo, T. T., & Anifowose, O. D. (2020). Catalyst and instrument of national growth: interrogating the significance of entrepreneurship in Nigerian economic development. European Journal of Business and Management, 12(3), 103-110.

Uma, K. E., Onwusogbolu, R. D., & Obidike, P. C. (2015). A review of mentorship and entrepreneurship: Impact on Nigeria’s economic development. International Journal of Innovative Science, Engineering & Technology, 2(9), 41-55.

Vatavu, S., Dogaru, M., Moldovan, N., & Lobont, O. (2021): The impact of entrepreneurship on economic development through government policies and citizens’ attitudes. Economic Research-Ekonomska Istraživanja, 1-15.

Published

2024-09-02

How to Cite

Omotayo, V. A. (2024). IMPACT OF ENTREPRENEURSHIP ON ECONOMIC DEVELOPMENT IN NIGERIA. Acta Universitatis Danubius. Œconomica, 20(4). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2916

Issue

Section

Business Administration and Business Economics