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Does Entrepreneurship Guarantee Youth Empowerment in Nigeria? The Role of Small and Medium Scale Enterprises

Author

Listed:
  • Wahid Damilola Olanipekun

    (Senior Faculty Member and Director, Collaboration, Research and Consultancy Centre, College of Management and Information Technology, American International University, West Africa. The Gambia)

  • Yimka Samson Alalade

    (Department of Finance, Babcock University, Ilishan Remo, Nigeria)

  • Bolanle Olubunmi Amusa

    (Department of Business Administration and Management, Gateway (ICT) Polytechnic, Saapade, Ogun State, Nigeria)

  • Timothy Ayomitunde Aderemi

    (Department of Economics, Accounting and Finance, Bells University of Technology, Ota, Nigeria Aderemi)

Abstract

The aim of this study is to examine the impact of entrepreneurship within the context of SMEs on youth empowerment in Nigeria. Providing an empirical evidence to answer the research question required the extraction of data between 1991 and 2019 from the World Development Indicators. Meanwhile, the data was subjected to various pre-tests such as unit roots and Co-integration tests before the adapted models were estimated using Fully Modified Least Squares (FMOLS) and Granger causality techniques. The summary of the major discoveries in the study were enunciated as follows; self-employment and youth unemployment had a significant negative relationship in Nigeria. In the same vein, population growth rate and youth unemployment had a significant negative relationship. However, commercial banks loans to SMEs and youth unemployment had an insignificant positive relationship in the country. By and large, self- employment generated by SMEs reduces youth unemployment significantly in Nigeria. Furthermore, a long run convergence existed among the variables of interest in one hand, a unidirectional causal relationship running from youth empowerment to SMEs financing existed in the study. Also, a unidirectional causality running from self- employment to population growth rate was discovered. Therefore, the study concludes that entrepreneurship - SMEs has the capacity to guarantee youth empowerment in Nigeria. Against this backdrop, this study recommends that the policymakers and other stakeholders in Nigeria should embrace entrepreneurship, especially SMEs as a reliable means of youth empowerment through employment generation in the country.

Suggested Citation

  • Wahid Damilola Olanipekun & Yimka Samson Alalade & Bolanle Olubunmi Amusa & Timothy Ayomitunde Aderemi, 2021. "Does Entrepreneurship Guarantee Youth Empowerment in Nigeria? The Role of Small and Medium Scale Enterprises," Business & Management Compass, University of Economics Varna, issue 4, pages 429-442.
    • Handle: RePEc:vrn:journl:y:2021:i:4:p:429-442
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entrepreneurship; Youth Empowerment; SMEs; Self-employment; Youth Unemployment;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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