Examination of the Contribution of Entrepreneurship Development on Nigeria’s Economic Growth (1999-2015)

Abstract

Nigerian economy which is characterized by the by heavy dependence on oil, low agricultural production, high unemployment, low utilization of industrial capacity, high inflation rate, and lack of industrial infrastructural base. These constraints limit the rate of growth of entrepreneurial activities in Nigeria. Hence, this paper seeks to investigate the contribution of entrepreneurship development in Nigeria to the Nigerian economy. In this study, both descriptive and explanatory methods otherwise referred to as Narrative-Textual Case Study (NTCS) methodology was used. This method is preferred because of the absence of sequential data related to entrepreneurship development in Nigeria. This study employed the secondary data from statistical records of the Central Bank of Nigeria (CBN) from 1999 to 2015. Findings from the study shows that in the past seventeen (17) years (199-2015), while the percentage contributions of agriculture and industrial subsectors in GDP recorded declining trends from 1999 to 2015, contribution of the construction and services subsectors to GDP recorded growth and shows upward sloping trends. In line with economic theory that a rise in the productive activities of entrepreneurs will increase the total output of goods and services produced in the country and lead to an increase in the GDP position of the country, these implies that the declines in the productive activities of entrepreneurs in the agriculture and industrial subsectors decreased the total output of goods and services produced in the country and led to a decrease in the GDP while the growths recorded in the services and construction subsectors suggest increases in the activities of entrepreneurs and will bring about increases in the total output of goods and services produced in the country as well as an increase in the GDP. The study thus recommends the tackling of problems impeding the development of SMEs in Nigeria. Some of the principal problems SMEs face in Nigeria include the following: inadequate funding, inadequate infrastructural facilities, low capacity utilization perpetually gotten from the low demand for SMEs products owing to their poor quality as well as exorbitant prices, raw material management and choice of appropriate technology. All these are fundamental for growing and developing any business, be it large or small which if confronted can drive them to promote economic growth and development.

Keywords: Entrepreneurship; SMEs; Economic Growth; GDP.