INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
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Exploring the Influence of Effective Entrepreneurial Education on
Youth Employment in Nigeria
Wisdom Nkoro CHIDI
University of Wales Trinity Saint David, London, Essex, United Kingdom
DOI: https://dx.doi.org/10.51244/IJRSI.2025.1210000166
Received: 16 October 2025; Accepted: 24 October 2025; Published: 13 November 2025
ABSTRACT
In Nigeria, youth employment has remained a persistent challenge for successive governments. Despite
numerous entrepreneurship and job creation programmes, the outcomes have been insufficient to reverse the
trend, resulting in socio-economic issues such as high unemployment, underemployment, insecurity, and poverty.
Data from the World Bank and National Bureau of Statistics (NBS) indicate that youth unemployment fluctuated
between 6.3% and 33% from 2010 to 2020, as millions of young people in their twenties entered the labour
market annually with limited employment opportunities. Although the decline in unemployment to 4.3% in 2024
appeared promising, it was met with skepticism because poverty levels remained high at 38.3%, underscoring
persistent structural and socio-economic challenges.
These socio-economic challenges have produced two distinct categories among Nigerian youths. The first
comprises those who, due to unemployment and limited opportunities, resort to criminal activities and contribute
to insecurity. The second category includes youths who, driven by necessity, engage in small-scale
entrepreneurial activities in line with the Necessity-Based Theory of Entrepreneurship. While these ventures may
serve as survival strategies and avenues for poverty reduction, many of these young entrepreneurs lack the
requisite skills to establish and sustain viable businesses. This study, therefore, seeks to promote entrepreneurial
education with an effective curriculum that strategically equips youths with competencies in innovation, business
planning, risk management, and financial literacy, thereby enhancing their capacity for sustainable enterprise
creation.
This research utilizes a mixed-methods approach, combining qualitative strategy to critically review existing
literature and theoretical concepts of the study; and quantitative strategies to analyze historical statistical data
from the World Bank and NBS.
A pilot study was conducted using structured questionnaires distributed to a purposive sample of 90 alumni
members of a secondary school, with a focus on identifying those who are self-employed. From this group, 18
valid responses were received. The data from this pilot study are analyzed descriptively to generate preliminary
insights into the experiences, challenges, and entrepreneurial trajectories of young entrepreneurs. These findings
complement the broader statistical and theoretical analysis by offering micro-level evidence.
The theoretical foundations of this study are grounded in four key perspectives. First, the Necessity-Based
Theory of Entrepreneurship explains how limited employment opportunities compel individuals to establish
small ventures as a survival strategy. Second, the Psychological Theory of Entrepreneurship emphasizes the role
of individual traits—such as self-reliance, risk-taking, and autonomy—that influence entrepreneurial intentions
and the pursuit of self-employment. Third, the Human Capital Theory which emphasizes education and skills.
Fourth, Institutional Theory which are government interventions to support entrepreneurship. Together, these
frameworks provide a lens through which the interplay between structural constraints and individual agency in
youth entrepreneurship can be understood.
Keywords: Youth Entrepreneurship, Self-employment, socio-economic challenges, entrepreneurial education,
financial literacy, Informal sector, Access to finance, Business creation readiness
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
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INTRODUCTION
Entrepreneurship plays a pivotal role in driving economic growth through job creation and fostering innovation
especially in emerging economics with limited formal employment (Osakwe, 2024). It involves individuals
taking financial risks to create value through new ventures (Rusu & Roman, 2024). Success depends on
competencies such as creativity, problem-solving, financial literacy, and managerial skills, which can be
developed through structured entrepreneurial education (Hassan & Sofoluwe, 2022; Ibidunni et al., 2021).
Scholars highlight that entrepreneurship education equips youths for sustainability and competitiveness (Omri,
2020; Klimas et al., 2021). Beyond individual success, entrepreneurship also reduces youth unemployment and
fosters inclusive economic growth (Oyinlola et al., 2024).
In Nigeria, youth unemployment persists despite interventions like N-Power, SAED, and education reforms
(Korter, 2023). A key challenge is the weak integration of indigenous apprenticeship systems—effective for skill
transfer into formal curricula (Lawal, 2024; Omosunlade & Gbadamosi, 2022; Agu & Nwachukwu, 2020). While
apprentices often lack formal education to scale ventures, university graduates possess theory without practical
entrepreneurial skills (Okoro & Nwankwo, 2022). This mismatch leaves both groups underprepared for
entrepreneurship. Policy and curriculum gaps further fuel unemployment, frustration, and reliance on informal
survival strategies, increasing insecurity and instability (Adewole, 2023).
The primary aim of this project is to investigate how the incorporation of apprenticeship and vocational models
into the formal education curriculum would connect practical skills to theoretical knowledge, alongside the
establishment of University-Based Enterprises (UBEs) to function through public–private partnerships to
provide startup internships to connect theoretical knowledge to practical skills.
The article is structured into two main sections: Section One presents the pilot study conducted on the subject,
whereas Section Two provides reflective accounts of the processes and insights gained during the pilot study.
Research Problems
The mismatch between formal education and the need of the labour market in Nigeria has fueled high youth
unemployment and underemployment. Government interventions such as N-Power, NYSC SAED, and education
reforms have had limited success, as many youths still lack the practical skills required to start and sustain
businesses. While traditional apprenticeship provides valuable hands-on skills, it often lacks the formal education
needed for scaling ventures. This dual gap—weak integration of apprenticeship into formal education and
inadequate vocational training in higher institutions limits entrepreneurial readiness and growth. Addressing this
requires examining how entrepreneurial education, formal schooling, and practical training can strengthen youth
intentions, promote business formalization, and improve access to finance.
Research Aims / objectives
1. To examine the effect of entrepreneurial education on the readiness and intentions of Nigerian youths to
start businesses.
2. To assess how formal education levels influence youth engagement in self-employment and business
formalization.
3. To evaluate the role of practical business training in enhancing entrepreneurial skills and sustainability.
4. To investigate the effect of entrepreneurial education and training on youth access to formal financial
services.
5. To provide recommendations for integrating entrepreneurship and practical skills into formal and
informal education programs to reduce youth unemployment.
Research Questions
1. To what extent does entrepreneurial education enhance the business creation readiness of Nigerian
youths?
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2. What Factors Influence youths in Nigeria to become Self-Employed?
3. To what extent does the educational level of entrepreneurs affect formal financing?
4. Can the level of formal education impact on the nature and formality of youth enterprises?
5. How would compulsory entrepreneurial education and the integration of practical business training in
schools affect the entrepreneurial intentions of young Nigerians?
Research Gaps
1. Integration of Practical Skills: Studies show a gap between formal education and practical
entrepreneurship skills in Nigeria, as apprenticeship programs provide hands-on experience but are rarely
included in the formal curriculum (Lawal, 2024; Korter, 2023).
2. Sustainability of Youth Ventures: Research shows that youths with practical skills often lack the
theoretical knowledge to scale and sustain their businesses, while graduates with formal education lack
practical skills to initiate ventures (Agu & Nwachukwu, 2020; Omosunlade & Gbadamosi, 2022). This
gap limits understanding of how integrated educational models could enhance entrepreneurial
sustainability.
3. Policy Implementation Gaps: Although numerous government initiatives exist, there is insufficient
research analyzing why such policies have not fully translated into sustainable employment or
entrepreneurship outcomes among the youth (Okechukwu & Adebayo, 2025).
METHODOLOGY
This study adopted a mixed-methods approach to examine youth entrepreneurship in Nigeria, focusing on
entrepreneurial education, formal education levels, venture characteristics, and access to finance.
LITERATURE REVIEW
Approach
A comprehensive literature review was conducted to map existing theoretical and conceptual frameworks
relevant to youth entrepreneurship. This review helped identify the key factors influencing entrepreneurial
intentions, venture formalization, and access to financial resources among Nigerian youths. The insights gained
informed the design of the empirical study and helped establish a theoretical grounding for interpreting the
findings.
Pilot Study
A pilot study was conducted with 18 young entrepreneurs from one secondary school in Aba, Nigeria.
Participants met the inclusion criteria of being aged between 21 and 46 and actively engaged in small business
activities. The pilot helped refine the data collection instruments, ensuring that the questions were relevant, clear,
and capable of capturing meaningful information on entrepreneurship trends among youths.
Empirical Data Collection
Empirical data were collected from the selected entrepreneurs to explore trends in entrepreneurial education,
formal education levels, the nature and duration of their ventures, motivations for starting businesses, sources of
capital, and business registration status. These variables were chosen to evaluate the existing interventions and
the broader entrepreneurial environment for youth. By analyzing these factors, the study aimed to understand
how education and training influence entrepreneurial readiness and formalization.
Rationale and Limitations
Selecting a single secondary school allowed efficient access to a concentrated group of youth entrepreneurs and
facilitated practical data collection. While the single-site, small sample size limits generalizability, the findings
provide valuable insights to inform policy and larger-scale studies.
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Data Analysis
During the data cleaning process, incomplete questionnaires were removed from the dataset, resulting in a final
sample size of 18. This procedure was necessary to ensure that only complete and reliable responses were
included in the analysis. Data integrity was particularly critical given the application of Structural Equation
Modeling (SEM) to evaluate the relationships among variables and to test the fit of the proposed theoretical
models. Prioritizing data quality over quantity enhanced the validity and accuracy of the SEM analysis. In light
of the small sample size, descriptive statistical techniques—including frequencies, medians, and ranges—were
employed as part of the initial analysis. These methods facilitated the identification of patterns and trends within
the dataset, thereby providing a foundation for discussion and interpretation in the context of youth
entrepreneurship.
FINDINGS AND DISCUSSIONS FROM PILOT STUDY
Age Distribution of the surveyed Entrepreneurs
18 entrepreneursrespondents drawn from three different age groups from 21 to 50 were received. The findings
are presented below:
Figure 1: Respondent's age group
Age Group
Number of responses
Percentage of result
21-30
6
33.3%
31-40
2
11.1%
41-50
10
55.6%
Figure 2: pie chart showing age group distribution
The age group of 31–40 years is underrepresented among respondents, with only 2 participants, accounting for
11.1% of the total responses. This may indicate that entrepreneurs in this age bracket show limited engagement
with their ventures, potentially maintaining businesses primarily due to a lack of alternative employment
opportunities (Fredström et al., 2021; Ndofirepi, 2020). Many may operate informally or run less profitable
ventures due to low level of education (Moyo, 2022), could also contribute to their lower participation in the
study.
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Dominant Age Group (41–50 years): This group accounted for 10 of the 18 survey responses, representing 55.6%
of the surveyed entrepreneurs. While they may lack formal entrepreneurial education, many have gained
experience through trial and error, or what Gottschalk & Müller (2022) describe as “learning the hard way,
which can effectively increase knowledge and skills. Similarly, Mayr et al. (2020) suggest that failure can be a
critical avenue for skill development and resilience in entrepreneurship. Adelowo & Henrico (2025) further note
that even with limited formal education, prior business failures and persistence can foster resilience. However,
St-Jean & Tremblay (2020) and Olayemi & Abdul (2023) caution that not all entrepreneurs have the capacity to
recover from failure, and initial setbacks may lead some to permanently exit entrepreneurship. This indicates
that while many youths might stop trading after early failures, those aged 41–50 tend to remain more engaged
and responsive in their ventures, potentially due to professional maturity, lessons learned from previous failures,
experience with business cycles, career stability, or personal interest.
Youth Participation (21–30 years): This group accounted for 33.3% of responses, representing a significant
portion, though not the majority. Many youths in this age range appear to have entered entrepreneurship through
Igbo Apprenticeship Schemes (APS). According to Agu & Nwachukwu (2020) and Iwara & Adeola (2023), the
APS involves a mentor taking on a mentee for practical, on-the-job training lasting approximately five years or
more, after which the mentee may receive startup capital to launch their own business. This apprenticeship model
is largely practical, and many mentees have limited formal education, lacking the theoretical and high-quality
educational skills necessary for sustainable enterprise management. This deficiency often contributes to the
failure of their ventures (Sallah & Caesar, 2020). These younger categories are relatively new to entrepreneurship
and may lack formal entrepreneurial education. Their limited participation in the survey could be attributed to
Agu & Nwachukwu, (2020) study of their low awareness of entrepreneurship outside practical. This indicates
potential challenges in adapting to changes and managing environmental factors affecting their ventures
effectively, due to insufficient entrepreneurial skills and knowledge.
Self-Employment Categories Among Respondents
Job Types and Nature of Ventures: The participants reported engaging in a wide range of entrepreneurial activities
across creativity, commerce, modern services, and traditional services. Specifically, these included Fashion
Design, Consultancy, Traditional Medicine Practice (Tradi-medicinal), Trading, Maritime Agency, Information
Technology Consultancy (ITC), Cosmetics Retail, Electrical Motor Rewinding/Electrical Wiring of Control
Panels, Tailoring, Electrical Work, Mechanical Services, Retailing, Car Spare Parts Dealership, Hair and Beauty
Services, and App Development. This diversity reflects the varied skill sets and interests of the youth
entrepreneurs surveyed. These are shown in the diagram below:
Figure 3: jobs types reported by the participants
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The jobs reported by participants show strong representation in both manual and skilled trades, reflecting the
continued importance of practical skills as a pathway to self-employment. Occupations such as tailoring,
electrical work, mechanical services, electrical wiring, and car spare parts trading demonstrate a heavy reliance
on hands-on, technical, and mechanical expertise. Many participants are also engaged in trading, retailing, and
cosmetics sales, highlighting commerce as a widely pursued entrepreneurial avenue.
Additionally, a notable number of participants operate in tradi-medicinal practices, underscoring the ongoing
relevance of traditional health services, particularly in communities where conventional healthcare is limited or
costly. Some participants have ventured into modern service-oriented or technology-driven jobs, such as
consultancy, maritime agency, IT consultancy, and app development; however, these remain fewer compared to
manual and retail-based enterprises.
Roles in fashion design, hair, and beauty demonstrate that creative industries are significant contributors to youth
self-employment. The diverse range of self-employment roles helps reduce unemployment, promote selfreliance,
fosters creativity, and strengthens economic resilience (Uwa et al., 2021). It also enhances problem solving,
innovation, and confidence among youth (Ndofirepi, 2020).
However, mixed outcomes challenge the sustainability of these ventures, undermining youth-led startups. Key
obstacles persist in areas such as access to funding, skills training, mentorship, and supportive policy frameworks
(Obaji & Olugu, 2022; Adu & Ojelabi, 2023; Kazeem & Akinyemi, 2024).
To effectively support youth in starting and sustaining ventures, entrepreneurship initiatives must combine well-
designed policies, practical mentoring, hands-on training, and reliable access to funding. Such integrated
measures are essential to harness the potential of entrepreneurship in reducing unemployment, insecurity, and
poverty.
Participant Responses on Receiving Entrepreneurial Education
Three sub-variables were used to assess whether participants received entrepreneurial education in school prior
to starting their businesses: “probably not,” “probably yes,and “might or might not.
13 participants indicated that they did not receive entrepreneuria
education.
4 participants reported that they had received entrepreneurial
education.
1 participant was unsure whether they had received such education.
The distribution of responses is illustrated in the figure below:
Figure 4: Entrepreneurial education among participants.
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The findings indicate that most participants (13 out of 18) did not receive entrepreneurial education or training
before starting their ventures, reflecting a major gap in formal entrepreneurial preparation. This lack of training
limits business planning, preparedness, and long-term sustainability. Two explanations emerge: first, many
entrepreneurs may have entered traditional businesses based on Psychological Theory, which links
entrepreneurship to upbringing traits fostering self-reliance (Agu & Nwachukwu, 2020). Second, others may
have been pushed into entrepreneurship out of necessity, driven by unemployment, job insecurity, or job loss
(Fredström et al., 2021; Sirola, 2020; Sallah & Caesar, 2020; Ibidunni et al., 2021).
From an Institutional Theory perspective, government interventions such as YouWiN, N-Power, and NYSC
SAED were designed to equip youths with entrepreneurial skills but have been weakened by political
interference, irregularities, and short training periods (Oduwole & Fadeyi, 2020; Ogunmodede et al., 2020;
Deebom & Daerego, 2020). The small number of participants who did receive entrepreneurial education (4 out
of 18) likely benefited from such programs, underscoring the potential of embedding entrepreneurship more
effectively into school curricula. The one unsure response further suggests limited awareness or clarity about
entrepreneurial education.
ParticipantsHighest Educational Qualification
To assess the participants level of formal education, three categories were used: GCSE/SSCE, Diploma, and
Graduate/Postgraduate. The distribution of responses is illustrated in Figure 5 and 6 below:
Educational Level
Percentage of result
GCSE/ SSCE
38.9
Diploma
22.2
Graduate/post graduate
38.9
Figure 5: Responses by Education Level
Figure 6: pie chart showing the distribution of responses by education level:
The entrepreneurs were evenly distributed at both the top and bottom of the education scale: GCSE/SSCE holders
and Graduate/Postgraduate holders each accounted for 7 participants (38.9%). This suggests that entrepreneurial
participation cuts across both foundationally educated and highly educated individuals. For the graduates, entry
into business appears to be driven more by the lack of formal employment opportunities after graduation, as the
data indicates limited exposure to entrepreneurial education during their studies.
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Diploma holders, however, were underrepresented with only 4 participants (22.2%). Their weaker participation
may suggest interrupted educational pathways—possibly due to financial constraints—leading them to
entrepreneurship more as a necessity than as a planned career choice.
Implications: The findings reveal two contrasting but significant patterns. The Graduate/Postgraduate holders
(38.9%), despite possessing high-quality formal education, lack entrepreneurial training and skills, which
restricts their ability to transition effectively into business ventures. Conversely, the GCSE/SSCE holders
(38.9%) often enter entrepreneurship through apprenticeship systems, gaining practical knowledge and handson
skills via mentorship. However, they lack the benefits of higher formal education that could enhance the
sustainability, innovation, and scalability of their enterprises.
This duality underscores a structural gap: one group has education without entrepreneurial skills, while the other
has skills without higher education. As a result, many youths venture into business out of necessity rather than
opportunity, which aligns with the Necessity Entrepreneurship Theory (Ndofirepi, 2020: Fredström et al., 2021).
This outcome also highlights the limits of Nigeria’s existing interventions, such as N-Power and NYSC SAED,
which often fail to bridge the disconnect between theoretical knowledge and practical entrepreneurial readiness.
Crucially, these findings reinforce the research problem: the inadequate integration of apprenticeship and
vocational training into formal education systems. Without a strategic blend of formal education and
apprenticeship-based practical learning, youths remain caught between underutilized academic qualifications
and underdeveloped entrepreneurial skills. Addressing this gap through curriculum reforms and University
Based Enterprises (UBEs) could equip youths with both the theoretical foundations and the practical
competencies needed to sustain ventures, enhance self-employment, and reduce unemployment.
The findings from the pilot study revealed an even split between entrepreneurs with GCSE/SSCE qualifications
and those with Graduate/Postgraduate qualifications (38.9% each). The former typically entered
entrepreneurship through apprenticeship schemes, gaining practical skills and mentorship but lacking the
benefits of formal higher education. The latter, though highly educated, often ventured into business out of
necessity due to limited employment opportunities, without adequate entrepreneurial training. Diploma holders
were underrepresented (22.2%), possibly reflecting challenges such as financial constraints and interrupted
education, which pushed them into business as a survival strategy.
These results suggest that both groups face limitations in sustaining entrepreneurial ventures. For GCSE/SSCE
holders, the absence of higher formal education restricts their capacity for critical thinking, strategic planning,
and integrating sustainability principles into their ventures. Verdugo and Villarroel (2021) highlighted that higher
levels of education enhance the ability to embed sustainable practices into business models. On the other hand,
Graduate/Postgraduate entrepreneurs—while highly educated—lack entrepreneurial education and practical
business skills, which weakens their resilience in navigating the business environment. Akinbami (2021),
Aaltonen and Kurvinen (2025), and Ibidunni et al. (2021) similarly noted that low exposure to entrepreneurial
training undermines the ability to navigate regulatory systems, secure funding, adapt to technological changes,
and remain sustainable.
Overall, the evidence suggests that while apprenticeship builds practical knowledge and higher education
strengthens analytical capacity, the absence of an integrated approach combining both strands leaves most youth
enterprises informal, vulnerable, and unsustainable.
Analysis of Entrepreneurial Education Trends
Figure 7: Showing entrepreneurial education by age group:
Age group
No. of responses
With entrepreneu- rial education
Without entrepre- Neurial education
21-30
6
2
4
31-40
2
0
2
41-50
10
2
8
Total
18
4
14
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When analysing the trends across three decades of entrepreneurial education by age group, the respondent who
was unsure about receiving entrepreneurial education was classified as not having received it. The results show
that within the 21–30 age group, 2 out of 6 respondents reported having received entrepreneurial education,
while all 2 participants in the 31–40 age group reported none. In the 41–50 age group, the majority also lacked
entrepreneurial education, with only 2 respondents indicating they had received it.
Overall, the findings reveal that 16 out of the 18 respondents had no entrepreneurial education before venturing
into business. This strongly suggests that the majority of these entrepreneurs entered business primarily out of
necessity, rather than as a result of structured entrepreneurial training.
Figure 8: pie chart Showing percentage of entrepreneurial education by age group
From the chart above, 77.8% of respondents reported not having received entrepreneurial education, while 22.2%
indicated that they had, as illustrated in the pie chart below. The 22.2% who received entrepreneurial education
are evenly distributed between the 21–30 and 41–50 age groups, as shown in the table above. This uneven
distribution highlights inconsistencies in Nigeria’s entrepreneurial policy and education framework, a common
issue in emerging economies that contributes to high rates of business failure and informality among
entrepreneurs (Hagin & Caesar, 2021; Floridi et al., 2020; Okeremi et al, 2021).
Verdugo & Villarroel (2021) and Okeke & Alonta (2022) note that such gaps often promote informal learning
channels, such as local apprenticeship schemes, which shape entrepreneurial values, particularly regarding
sustainability. This indicates that there is no standardized integration of sustainability or entrepreneurship in
Nigeria’s formal education policy. The fact that 77.8% of respondents likely did not learn entrepreneurship in
school underscores a substantial gap in formal entrepreneurial education, revealing a critical area for policy
intervention and improvement to foster effective and sustainable entrepreneurship.
Factors Influencing the Decision to Become Self-Employed
Participants reported several factors influencing their decision to become self-employed, including personal
choice, necessity due to lack of employment, and engagement in apprenticeship programs. The distribution of
these responses is illustrated in the chart below, highlighting the diverse motivations behind youth
entrepreneurship:
Factors
Number of responses
Percentage of result
Choice and need
9
50
Lack of employment
5
27.78
Through apprenticeship
4
22.2
Figure 9: showing why participants choose self-employment
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Figure 10: pie chart Showing reasons for self-employment by percentage
Choice and Need: Half of the participants (50%) indicated that they became self-employed based on a
combination of personal choice and necessity. This represents the most common motivation among respondents,
suggesting that many individuals actively opted for self-employment either due to psychological needs, such as
personal aspirations, or economic necessity. This category appears to include many who operate family
businesses.
These findings align with Ufua et al. (2022), who noted that entrepreneurial motivations often combine strategic
personal choice with socio-economic necessity. Similarly, Sahai et al. (2020) and Kanu (2020) argued that
operating family businesses enables entrepreneurs to create jobs that support household income and foster family
unity and collaboration.
Overall, this dual motivation indicates that youth entrepreneurship in Nigeria is not purely driven by passion or
innovation but also reflects a pragmatic approach to economic survival.
Lack of Employment: About 27.78% of participants indicated that they became self-employed due to limited
formal employment opportunities. This highlights structural unemployment in the labor market, where job
seekers—particularly graduates and youths—struggle to find adequate work and are consequently pushed into
entrepreneurship as a survival strategy.
Adelekan (2021) and Fredström et al. (2021) observed that many Nigerian youth entrepreneurs are compelled to
create livelihoods out of necessity due to high unemployment and scarce job opportunities. Similarly, Salawu &
Fasakin (2023) affirmed that necessity is a primary driver of youth entrepreneurship in Nigeria.
Through Apprenticeship: About 22.22% of the surveyed participants entered self-employment through
apprenticeship, mainly those with GCSE-level education or vocational training. This group possesses practical
knowledge and hands-on skills relevant to their businesses but generally lacks high-quality formal education,
which can affect the nature and sustainability of their ventures.
Studies by Eze & Okonkwo (2021) and Obioma & Chinwokwu (2020) show that apprenticeship, particularly
within the Igbo cultural context, facilitates the transition into entrepreneurship and provides youth with essential
business skills. Apprenticeship also fosters self-reliance by equipping participants with practical entrepreneurial
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abilities (Iwara & Ojakorotu, 2025; Obioma & Chinwokwu, 2020; Agu & Nwachukwu, 2020). However, the
absence of advanced formal education among these youths can hinder business growth, scalability, and longterm
sustainability (Agu & Nwachukwu, 2020).
Overall, these findings suggest two main influences on youth entrepreneurship. First, some youths are driven by
necessity—lack of employment, underemployment, or job insecurity—which aligns with the Necessity Theory
of entrepreneurship (Fredström et al., 2021; Sirola, 2020). Second, others pursue entrepreneurship out of personal
choice or through apprenticeships, reflecting Psychological Theory as cited in Agu & Nwachukwu, (2020),
where upbringing, self-reliance, and formative traits motivate individuals to create and sustain ventures.
Apprenticeship programs provide practical skills and mentorship, bridging the gap for those lacking formal
entrepreneurial education. However, gaps in entrepreneurial education and higher-level skills limit the
sustainability and growth potential of many ventures.
The motivations for self-employment—choice and need, lack of employment, and apprenticeship underscores
the studies of Sirola, (2020) and Sallah & Caesar, (2020) that while Nigerian youths are actively engaging in
entrepreneurship, their ventures are largely driven by survival needs and traditional training rather than structured
entrepreneurial education. This aligns with the research aim by showing that without formal entrepreneurial
education and supportive policies, many youth-led enterprises remain informal, necessity-driven, and
unsustainable. Strengthening entrepreneurial education, combining it with apprenticeship systems, and
addressing unemployment challenges could therefore enhance youth readiness, enterprise formalization, and
long-term employment creation.
Duration of Self-Employment Among Participants
Three age groups (1–3 years, 4–6 years, and 7 years & above) in the Pilot study were used to investigate how
long the surveyed entrepreneurs have sustained their entrepreneurial activities. The findings are presented in the
figures 11 and 12 below:
Figure 11: Duration of self-employment among participants
Years in business
Number of responses
Percentage of result
7 years and above
12
66.7
4 - 6 years
3
16.65
1 - 3 years
3
16.65
Figure 12: Duration of self-employment among participants
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A majority of 66.70% of the businesses have operated for 7 years or more, suggesting resilience, maturity and
potential stability. This suggests most of the respondents have established experience in self-employment,
possibly making their insights more informed or reflective of sustained challenges and successes. There’s a
strong upward trend in the number of people who have remained self-employed over time, retention appears
high suggesting the longer people stay self-employed, the more likely they continue and that once individuals
start and sustain their businesses for the past 6 years, they tend to continue successfully. 66.70% of businesses
have operated for 7 years or more without formal entrepreneurial education—reveals a critical insight into
Nigeria's entrepreneurial landscape, many of these long-standing businesses may remain informal or microscale.
4-6 years in operation and the 1-3 years in operation shared 16.65% for each which may reflect recent
entrepreneurial activity or a higher turnover in youth-led SMEs. This mix of business age could indicate a healthy
blend of experienced and emerging youth entrepreneurs. Their venturing into business has helped to reduce
official unemployment in Nigeria. However, it seems that the majority of entrepreneurs are contributing to
underemployment and low economic productivity despite years of operation. Nigeria’s unemployment and
poverty index data reveals that while unemployment rate reduced from 5.30% to 4.30% in the second quarter of
2024, the poverty index rose from 36.9% to 38.3% in the same period (NESG, 2024: World Bank, 2024: Nigeria
Bureau of Statistics, 2024), which could possibly imply low unemployment but with high underemployment
causing an upward shift in poverty rate in Nigeria.
Factors of Self-Employment and Their Relationship to Duration
To further understand the dynamics of youth entrepreneurship, the reasons for self-employment were compared
against the duration of business operations. This comparison sought to identify whether motivations for
becoming self-employed (choice and need, lack of employment, or apprenticeship) have any observable
correlation with the longevity of entrepreneurial ventures.
The results are presented in the table and illustrated in the line graph below.
Figure 13: Factors for self-employment vs Duration
Factors of self-employment
1-3 years
4-6 years
7-9 years
Total
Lack of employment
3
2
3
8
Choice and need
0
0
6
6
Through apprenticeship
0
0
4
4
The survey shows that those who became entrepreneurs due to lack of employment are spread throughout all
years, all those who entered entrepreneurship through apprenticeship or choice and need are strongly in their
businesses for longer durations of 7 to 9 years and above showing strong correlation. This is represented in the
line graph below:
Figure 14: Line graph showing reasons for self-employment vs duration
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Lack of employment - The findings reveal that Lack of Employment is the most common reason across all
durations with 1–3 years (3 people), 4–6 years (2 people), 7–9 years (3 people). This may imply that many
individuals become self-employed out of necessity due to unemployment. Some have sustained their ventures
for several years, showing resilience despite the involuntary start.
The findings align with those of Salawu & Fasakin, (2023), and Fredström et al, (2021) that most entrepreneurs
in Nigeria started ventures out of necessity. It also corresponds with the study of Ibidunni et al, (2021), Adeoye,
(2020), and Sallah & Caesar, (2020) which stated that the harsh Nigeria economic system pushes individuals to
learn trade and skills to sustain themselves.
Choice and need - The findings investigated that all 6 participants who stated choice and need as reasons for
self-employment are all associated with longer duration of over 7 to 9 years in self-employment. Because they
voluntarily choose to be self-employed and it aligns with their personal goals, they are therefore more likely to
stay longer in self-employment with stronger commitment and planning (Deebom & Daerego, 2020).
Through Apprenticeship - all 4 respondents who learned through apprenticeship have been self-employed for
7–9 years and above. This indicates that these entrepreneurs who have developed practical skills and talents and
may have customer bases even during the training which in turn creates stability resulting in long time in self-
employment (Okeke & Alonta (2022)
Classification of Entrepreneurial Activity: Formal vs. Informal
To determine whether the participantsbusinesses operated in the formal or informal sector, a direct question was
included in the survey: Is your business registered with the Corporate Affairs Commission (CAC)?
Respondents were given two possible options: “Definitely Yesor “Definitely Not.
In Nigeria, business registration and regulations are the responsibility of The Corporate Affairs Commission
(CAC). Their primary roles include business registrations, incorporation and regulations, enforcement of annual
returns. (Corporate Affairs Commission, 2025). CAC registration enables businesses to open business accounts,
seek loans and grants. It ensures that all business entities are properly registered, making them legitimate and
legally recognized. Lack of CAC registration hinders informal enterprises from accessing formal finance and
institutional support (Corporate Affairs Commission, 2025).
The response from the participants indicates that 8 businesses representing 44.4% of respondents said their
business is definitely registered while 10 businesses representing 55.6% are not registered. This is shown in the
pie chart below:
Figure 15: formal and informal entrepreneurial businesses among participants.
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The key insight reveals that 55% of participants have not registered their businesses, indicating a strong informal
sector presence among youth entrepreneurs. This aligns with wider national trends, as the informal sector
accounts for an estimated 57% of Nigeria’s economy (World Economics, 2024). Such informality provides
immediate opportunities for survival and income generation but poses serious obstacles to sustainable growth.
The World Bank (2021) highlights informality as one of the major barriers to youth entrepreneurial development
in Nigeria.
Evidence from this study suggests that business informality is closely linked to lower levels of education. Both
Akinbami (2021), Shahid et al. (2020), and Floridi et al. (2020) argue that less-educated youth are more likely
to operate outside the formal economy. This restricts their access to finance, training, and government support
schemes that require formal registration. Conversely, those with higher education, though fewer in number, are
more likely to register their businesses formally and leverage institutional support.
This analysis demonstrates that the relationship between education and business formality is critical: while
practical skills and apprenticeship may help youths enter self-employment, the absence of higher educational
attainment often traps them in informal structures, limiting both business scalability and long-term resilience.
Impact of Educational Level on Business Formality
Analysis of the correlation between education level and business formality, all the 7 participants who are
graduates have their business registered, none of the 4 participants at diploma level are registered, only one of
the 7 participants in the GCSE level is registered. The table below is a summary of the participants' responses.
Figure 16: Relationship between education level and business formality
Education Level
formality
informality
Total respondents
GCSE
1
6
7
Diploma
0
4
4
Graduates
7
0
7
Total
8
10
18
Figure 17: Bar chart: relationship between education level and business formality.
All graduate entrepreneurs (100%) operate formally, indicating a strong link and positive correlation between
higher education and business registration. In contrast, none of the entrepreneurs with diplomas have registered
their businesses indicating a strong negative correlation. GCSE holders show the highest level of informality,
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with only 1 out of 7 registering their businesses indicating a negative correlation. This could possibly imply that
most entrepreneurs with a low level of education in Nigeria operate informally while those with higher education
operate formally. The findings in this study align with Okeke & Alonta (2022) and Moyo (2022), who
emphasized that higher educational attainment significantly facilitates business formalization, as educated
entrepreneurs are more likely to understand regulatory processes and the benefits of compliance. Conversely,
limited education strongly correlates with reduced access to formal registration, financial services, and
institutional support, thereby keeping many youth entrepreneurs confined to the informal sector. This reinforces
the evidence that education plays a critical role in shaping entrepreneurial formality and long-term sustainability.
Registered businesses are positioned for growth, 44.4% of the participants who operate formally are more likely
to benefit from access to bank loans and government incentives, market trust and legitimacy, easier partnerships
and expansion opportunities (Corporate Affairs Commission, 2025; World Bank, 2021).
This study, therefore, supports Human Capital Theory, demonstrating a strong positive correlation between
higher formal education and business formality, and conversely, a strong negative correlation between low formal
education and business informality. The findings suggest that educational attainment equips entrepreneurs with
the skills and ability to navigate formal regulatory systems, access finance, and sustain their ventures, whereas
limited education constrains these opportunities, reinforcing informality in youth-led enterprises.
Sources of Capital (formal or informal financing)
When assessing the sources of business capital among the youth entrepreneurs, three sub variables were created
which are Family and friends, savings, and bank loans. The findings show that 10 of the 18 participants relied
on family and friends (informal financing), 7 participants relied on savings (informal financing), only 1
participant relied on bank loans (formal Financing). This is represented in the diagrams below:
Figure 18: showing Sources of Capital
Sources of capital
Number of respondents
percentage
Family and friends
10
55.6
Savings
7
38.9
Bank loans
1
5.6
TOTAL
18
100
Figure 19: pie chart showing percentages of Sources of Capital
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
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The analysis: 10 of the 18 participants represents 55.6% relied on family and friends. 7 of the 18 participants
represented, 38.9% relied on their savings, with only 1 participant or 5.6% who relied on bank loans. The
evidence reinforces World Bank (2021) analysis that entrepreneurs dominantly rely on informal lending or
support networks likely due to limited access to formal credit, or lack of trust and collateral (Nguyen and Canh,
2021). It further suggests that there exists an intention leading to preparation as the youth embark on savings to
create capital. Low access to formal finance aligns with Shahid et al. (2020) and Okeke & Alonta (2022) that
young entrepreneurs either may not have collaterals, lack enough education and financial literacy to motivate
them to seek formal financing or there are barriers such as high interest rates, lack of credit history, or
bureaucratic processes.
Impact of Education Level on Access to Institutional Credit
In analyzing the relationship between the level of education and formal financing. Only 1 of the 18 participants,
which also includes 7 graduates, accessed formal financing e.g bank loans.
Although registered businesses are presumed to grow, as they are more likely to benefit from access to bank
loans and government incentives, market trust and legitimacy, easier partnerships and expansion opportunities
(Corporate Affairs Commission, 2025; World Bank, 2021). However, this study investigates that lack of access
to formal financing does not have much to do with the educational level of the entrepreneurs as all the youth
entrepreneurs surveyed which includes the graduates except one relied on informal financing and may find
informal financing more attractive than formal funding. Rather this study aligns with Adike et al, 2022; Nguyen
and Canh, 2021; and Akinbami, 2021; who demonstrated that ambiguity, lack of trust, cost and complexity of
registration process, unclear policy are also part of the reasons why most entrepreneurs remain informal and
avoid formal funding in their businesses.
This could possibly imply that government funding is unreliable, severe corruption, high interest rates, unrealistic
collateral etc. These may hinder young people from accessing formal funding which could also possibly affect
their trust with business registration revealing that government policy on entrepreneurship is not effectively
implemented.
CONCLUSION
The pilot study of youth entrepreneurship in Nigeria revealed that most participants lacked formal entrepreneurial
education, with only 22.2% having received it, despite 38.9% holding graduate or postgraduate degrees.
Motivations for self-employment were driven by choice and need (50%), lack of formal employment (27.8%),
and apprenticeship (22.2%), highlighting a mix of opportunity- and necessity-driven entrepreneurship.
Participants operated across manual trades, commerce, creative industries, traditional medicine, and technology
based ventures, with over half (55%) running informal businesses. Higher education correlated with business
formalization, while lower education and reliance on informal financing limited business growth and
sustainability. The findings underscore the need for standardized entrepreneurial education, improved access to
formal finance, and supportive policies to enhance the success, resilience, and formalization of youth-led
enterprises in Nigeria.
Connecting to the theoretical framework answered the research questions and closed the identified gaps as the
findings align with Human Capital Theory, showing that higher education facilitates formal business practices,
and with Necessity-Based Theory, as many youths pursue entrepreneurship out of economic need rather than
opportunity. Psychological Theory explains the role of upbringing and self-reliance in driving entrepreneurial
intentions, while Institutional Theory highlights how gaps in policy and support programs shape the
entrepreneurial environment. Overall, the study reinforced that effective youth entrepreneurship requires both
individual preparedness and supportive institutional structures.
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