Entrepreneurship, Employment and Sustainable Development in Nigeria

Abstract

This paper investigated the potency of entrepreneurship to generate employment, thus, underscoring the quintessence, significance and relevance of this sub-sector in the sustainable development of any given economy. The objective of the paper is to examine entrepreneurship, employment and sustainable development nexus in Nigeria. Data sourced from Central Bank statistical Bulletin, National Bureau of statistics, World Development Indicators and CIA Fact Sheet and other institutional publications to provide empirical basis for the study spanned from 1980-2013. The methodology adopted in this research is the use of co integration and Vector Error Correction Mechanism (VECM) which established the long-run and short-run estimates of the parameters. On the long-run estimates, employment (LEMPL) and average capacity utilization (LCAP) are found to be statistically significant implying that employment and capacity utilization can be generated through entrepreneurship for sustainable development. Industrial Production index (LINPI) on the other hand is wrongly signed implying that it does not contribute to LHDI (sustainable development)  for the period under review. The short-run estimates also show the significance of the parameters in respect to LEMPL and LINPI. The error correction mechanism (ECM) is rightly signed and significant. It shows that the speed of adjustment of the model from short-run distortions to long-run equilibrium is about 12.7%. The diagnostic tests of unit root showed that the variables are integrated of order one, I (1). This means that though individually the variables are non-stationary, a linear combination of the variables was stationary, hence they are co-integrated. Based on the findings the study recommends that if the Nigerian government must revitalize its economy, reduce unemployment progressively, and generate more employment opportunities for sustainable development, a paradigm shift in policy that is critical to effective entrepreneurship development becomes imperative. This can be done through building more capacity utilization and creation of enabling environment for industries to thrive.