Introduction

Entrepreneurship is an important part of Africa's economic development. It creates

jobs, drives innovation, and helps to build a more diverse economy. However, there
are still many challenges that entrepreneurs face, such as limited access to
financing, infrastructure, and markets.

DEFINITION
Entrepreneurship is the process of creating, developing, and running a new business
venture in order to make a profit. It involves identifying a market need,
developing a product or service to meet that need, and then launching and managing
the business to achieve success.

Entrepreneurship development is the process of enhancing entrepreneurial skills and

knowledge through structured training and institution- building programs. It aims
to enlarge the base of entrepreneurs to speed up the pace at which new ventures are
created. The focus is on the individual who wishes to start or expand a business,
with concentration on growth potential and innovation.

Evolution of Entrepreneurship in Nigeria

In the beginning, entrepreneurship started when people produced more products than
they needed, as such, they had to exchange these surpluses. For instance, if a
blacksmith produced more hoes than he needed, he exchanges the surplus he had with
what he had not but needed; maybe he needed some yams or goat etc. he would look
for someone who needed his products to exchange with. By this way, producers came
to realize that they can concentrate in their areas of production to produce more
and then exchange with what they needed. So through this exchange of products,
entrepreneurship started. A typical Nigerian entrepreneur is a self made man who
might be said to have strong will to succeed, he might engage the services of
others like; friends, mates, in-laws etc. to help him in his work or production.
Through this way, Nigerians in the olden days were engaged in entrepreneurship.

Entrepreneurship and Social Development

Entrepreneurship not only brings in economic growth but also is followed by social
security and stability. Economic growth denotes the power of wealth in the hands of
the common people. This is an outcome of stable business activity. The monopoly of
large enterprises always leads to economic instability and concentration of wealth
in the hands of the few. But, with the emergence of small enterprises and
entrepreneurs, the wealth reaches the common segment of the society maintaining a
balance.

Importance of Entrepreneurship:
Entrepreneurship drives the growth and diversification of the economy and
contributes to the creation of wealth. Before we get into the role of
entrepreneurship in economic development, let’s briefly look its significance.
Entrepreneurship’s importance lies in the following:
1. Drives economic growth and creates new job.
2. Encourages innovation by bringing new ideas, products, and services to
the market.
3. Contributes to social change by developing products or services that
reduce people’s dependence on outdated technologies.
4. Addresses social and economic problems by creating solutions that meet
the needs of society.
5. Enables competition which improves business efficiency and lowers
prices for consumers.

Role of Entrepreneurship in Economic Development

* Job Creation and Economic Growth: Entrepreneurs in Africa often create new
businesses and ventures, which in turn generate employment opportunities for the
local population. This helps in reducing unemployment rates and contributes to
overall economic growth.
* Innovation and Problem Solving: Entrepreneurs are often driven by the
desire to solve local challenges and address unmet needs. They develop innovative
products and services that cater to specific demands in their communities,
contributing to improvements in the quality of life.
* Wealth Generation: Successful entrepreneurship can lead to the
accumulation of wealth for the entrepreneurs themselves, which can be reinvested
into the business or used to support other ventures. This process can contribute to
the growth of the local economy.
* Fostering a Culture of Entrepreneurship: The success stories of
entrepreneurs can inspire others in the community to take risks and start their own
businesses. This fosters a culture of entrepreneurship, which is vital for
sustained economic development.
* Empowerment of Marginalized Groups: Entrepreneurship has the potential
to empower women, youth, and other marginalized groups in society. By providing
opportunities for these individuals to start businesses, it can lead to increased
economic and social inclusion.
* Access to Finance: Access to finance is often a significant challenge
for African entrepreneurs. Establishing a conducive financial system that provides
affordable loans and investment capital is crucial for nurturing entrepreneurship
in the region.
* Supportive Policy Environment: Government policies that promote
entrepreneurship, innovation, and ease of doing business are essential for the
growth of entrepreneurial ventures. Streamlining regulations, reducing bureaucratic
hurdles, and providing incentives can encourage more individuals to start and grow
businesses.
* Entrepreneurship Education and Training: Equipping aspiring
entrepreneurs with the necessary skills and knowledge through education and
training programs can enhance their chances of success and make them more resilient
in the face of challenges.
* Access to Markets: Entrepreneurs need access to markets to sell their
products and services. Improving trade infrastructure, regional integration, and
supporting export-oriented businesses can help entrepreneurs reach broader markets
and drive economic growth.
* Technology and Digital Transformation: Embracing technology and the
digital economy can open up new opportunities for entrepreneurs, especially in
sectors like fintech, e-commerce, and agriculture.

N/B: According to the Global Entrepreneurship Monitor, entrepreneurship is

responsible for creating millions of jobs worldwide. This is particularly important
in developing countries, where job creation is critical for economic growth and
poverty reduction

The Contribution of Entrepreneurship to Nigeria’s Economic Development?

i. Entrepreneurship has contributed significantly to Nigeria’s economy development,

because it has created more employment for job seekers;
ii. The unfavorable economic condition has not allowed entrepreneurship development
to promote Nigeria’s economic development.
iii. Corruption and nepotism has made government efforts to promote
entrepreneurship to below expectation; hence no significant contribution has been
made.
iv. The large-scale unemployment that bedevils the economy shows that no
significant improvement has been made in the area of entrepreneurship development.
v. The contribution of entrepreneurship to Nigeria’s economic development is
marginal due to the lack of access to capital.
CONCLUSION
In conclusion, entrepreneurship has the potential to significantly contribute to
African development by creating jobs, fostering innovation, and empowering
marginalized groups. However, to fully realize these benefits, there is a need for
supportive policies, improved access to finance, and a nurturing environment that
encourages entrepreneurial endeavors.

Reference

Dr. Adeoye Afolabi, THE EFFECT OF ENTREPRENEURSHIP ON ECONOMY GROWTH AND

DEVELOPMENT IN NIGERIA, Vol.3, No. 2, pp.49-65, May 2015
https://www.eajournals.org/wp-content/uploads/The-Effect-of-Entrepreneurship-on-
Economy-growth-and-development-in-Nigeria.pdf

Role of Entrepreneurship in Economic Development

https://www.nexford.org/insights/role-of-entrepreneurship-in-economic-growth

Know the Impact of Entrepreneurship on Economy and Society

https://www.opengrowth.com/resources/know-the-impact-of-entrepreneurship-on-
economy-and-society