Entrepreneurship and Economic Development in Nigeria

Yeigba; Burudaniebi Paul

doi:10.56201/wjeds.v11.no5.2026

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Entrepreneurship and Economic Development in Nigeria

Yeigba, Burudaniebi Paul

Abstract

Entrepreneurship has emerged as a major driver of economic development, particularly in developing economies where unemployment, poverty, and economic instability remain persistent challenges. In Nigeria, entrepreneurship contributes significantly to employment generation, innovation, industrialization, income creation, and economic diversification beyond the oil sector. This paper examines the relationship between entrepreneurship and economic development in Nigeria by analyzing the contributions of entrepreneurial activities, the role of government policy interventions, and the major challenges confronting entrepreneurs. The study adopts a qualitative and theoretical approach anchored on Schumpeter’s Innovation Theory, Kirzner’s Theory of Entrepreneurial Alertness, McClelland’s Need for Achievement Theory, the Resource-Based View, Institutional Theory, and the Endogenous Growth Theory. Empirical evidence indicates that entrepreneurship has significantly contributed to Nigeria’s Gross Domestic Product, job creation, poverty reduction, technological advancement, and the growth of Micro, Small, and Medium Enterprises. The paper further reveals that despite several government initiatives such as the Bank of Industry intervention programs, the Nigerian Youth Investment Fund, the Development Bank of Nigeria, and the Nigeria Startup Act 2022, entrepreneurs continue to face challenges including limited access to finance, poor infrastructure, insecurity, corruption, policy inconsistency, and inadequate entrepreneurial education. The paper concludes that entrepreneurship possesses enormous potential for driving sustainable economic development in Nigeria if supported by effective institutional frameworks, infrastructural development, financial inclusion, and policy consistency. The study recommends stronger institutional support, improved access to finance, enhanced entrepreneurial education, investment in innovation and technology, and the creation of a more enabling business environment to maximise entrepreneurship’s contribution to national development.

Keywords

EntrepreneurshipEconomic DevelopmentInnovationMSMEsNigeriaPolicy Intervention

References

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Entrepreneurship and Economic Development in Nigeria

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