Project – Entrepreneurial Skill Acquisition and Youth Empowerment: A Study of Micro and Small Enterprises in Ikorodu Local Government Area, Lagos State

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study

Entrepreneurial skill acquisition has become a central strategy for addressing youth unemployment and underemployment in many developing economies, including Nigeria. Youth empowerment through entrepreneurship is grounded in the notion that equipping young people with relevant skills enables them to identify opportunities, create value, and contribute meaningfully to economic development. The unemployment rate among Nigerian youths remains high, with estimates suggesting that over 40% of young Nigerians are either unemployed or underemployed (National Bureau of Statistics [NBS], 2023). This persistent challenge has compelled policymakers, educators, and development practitioners to explore alternative pathways to sustainable livelihood for young people.

The concept of entrepreneurial skills encompasses competencies such as opportunity recognition, resource mobilization, risk management, business planning, and financial literacy (European Commission, 2012). These competencies are considered essential for starting and sustaining micro and small enterprises (MSEs), which, in turn, are key drivers of economic growth, innovation, and employment generation. In Nigeria, micro and small enterprises contribute significantly to Gross Domestic Product (GDP) and account for over 80% of total businesses in the country (Small and Medium Enterprises Development Agency of Nigeria [SMEDAN], 2021). Despite their importance, many MSEs struggle with sustainability due to insufficient skillsets among young entrepreneurs.

Ikorodu Local Government Area in Lagos State represents a vibrant hub of informal and formal micro and small enterprises. With a burgeoning youth population, the area offers a unique context for studying the intersection between entrepreneurial skill acquisition and youth empowerment. Lagos State itself is Nigeria’s commercial nerve centre and host to a dynamic entrepreneurial ecosystem characterized by innovation, competition, and diverse sectors such as trade, services, manufacturing, and technology (Adeoti, 2019). Nonetheless, in Ikorodu, many young entrepreneurs face barriers to effective enterprise management, including limited access to quality training, capital constraints, inadequate mentorship, and weak market linkages.

Youth empowerment refers not only to economic self-reliance but also to increased confidence, autonomy, and social inclusion. Theoretical frameworks such as Human Capital Theory posit that investment in skills and education enhances individual productivity and economic prospects (Becker, 1993). Similarly, Empowerment Theory underscores the transformation of power relations and the capacity of individuals to make strategic life choices (Zimmerman, 2000). Applied to entrepreneurship, these frameworks suggest that when youths are equipped with entrepreneurial skills—and when structural supports are available—they are better positioned to launch, maintain, and grow sustainable businesses.

Despite government initiatives such as the Youth Enterprise with Innovation in Nigeria (YouWIN!) and Skills Acquisition and Entrepreneurship Development Centres (SAEDCs), the translation of skills into tangible empowerment outcomes remains unclear at the local level (Owolabi, 2022). Specifically, how entrepreneurial skill acquisition influences youth empowerment in the context of micro and small enterprises in Ikorodu remains under-researched. Understanding this relationship is critical for crafting targeted interventions that enhance business sustainability and youth socio‑economic well‑being.

1.2 Statement of the Problem

Youth unemployment and underemployment remain persistent socio‑economic problems in Nigeria despite various policy reforms and empowerment programs. In Ikorodu Local Government Area, many young people engage in micro and small businesses as a means of livelihood. However, a significant proportion of these enterprises are short‑lived or poorly managed, raising concerns about the extent to which entrepreneurial skill acquisition translates into genuine empowerment. Although several skill acquisition initiatives target youths, there is limited empirical evidence on whether these initiatives actually improve business performance, income generation, and overall empowerment.

More specifically, there is observed inconsistency between the availability of training programs and the level of entrepreneurial success among young micro and small business owners. Some youths who undergo training still struggle with financial management, marketing, record keeping, and strategic planning, which can undermine their confidence, sustainability, and economic independence. These gaps suggest that existing skill acquisition efforts may not be effectively aligned with the real needs of young entrepreneurs in Ikorodu. Consequently, the exact nature and strength of the relationship between entrepreneurial skill acquisition and youth empowerment in this locality remain largely unknown.

This knowledge gap hinders the capacity of stakeholders—including government agencies, non‑governmental organizations, and training institutions—to design evidence‑based programs that can genuinely enhance youth entrepreneurial success. Therefore, this study seeks to investigate how entrepreneurial skill acquisition impacts youth empowerment among micro and small enterprise operators in Ikorodu Local Government Area, Lagos State.

1.3 Research Questions

The study will be guided by the following research questions:

1. What types of entrepreneurial skills are acquired by youths operating micro and small enterprises in Ikorodu Local Government Area?

2. To what extent does entrepreneurial skill acquisition influence business sustainability among youth‑owned micro and small enterprises in Ikorodu?

3. What is the relationship between entrepreneurial skill acquisition and youth empowerment in Ikorodu Local Government Area?

4. What challenges do youths face in leveraging acquired entrepreneurial skills for business growth and empowerment?

1.4 Research Objective

The main objective of this study is to examine the relationship between entrepreneurial skill acquisition and youth empowerment in Ikorodu Local Government Area.

The specific objectives are:

1. To identify the types of entrepreneurial skills acquired by youths engaged in micro and small enterprises.

2. To assess the influence of entrepreneurial skill acquisition on business sustainability among youths.

3. To determine the relationship between entrepreneurial skill acquisition and youth empowerment.

4. To examine key challenges impeding the effective utilization of entrepreneurial skills by youths.

1.5 Research Hypothesis

The study will test the following hypothesis:

H₀: There is no significant relationship between entrepreneurial skill acquisition and youth empowerment among micro and small enterprise operators in Ikorodu Local Government Area, Lagos State.

1.6 Significance of the Study

This study is significant for several reasons:

1. Policy Formulation: The findings will provide evidence‑based insights for policymakers to refine youth empowerment strategies, improve skill acquisition programs, and tailor interventions that address specific gaps in the entrepreneurial ecosystem.

2. Educational Planning: Training institutions and non‑governmental organizations will benefit from understanding which entrepreneurial skills have the greatest impact on youth empowerment, enabling more effective curriculum and program design.

3. Business Support Services: The study will help business development service providers and mentors to align their support with the actual needs of young entrepreneurs, leading to improved business performance and sustainability.

4. Academic Contribution: By focusing on Ikorodu, this research adds to the limited body of empirical literature on entrepreneurship and youth empowerment at the local government level in Nigeria.

1.7 Scope of the Study

This study will focus on youth operators of micro and small enterprises within Ikorodu Local Government Area, Lagos State. It will examine the types of entrepreneurial skills acquired, the extent to which these skills affect business sustainability, the relationship between these skills and youth empowerment, and the challenges encountered in utilizing entrepreneurial skills. The age range for “youths” in this study will be based on Nigeria’s National Youth Policy definition (15–35 years). The study will cover a period of five years (2021–2025) to reflect recent trends and experiences.

1.8 Operational Definitions

• Entrepreneurial Skill Acquisition: The process through which individuals gain knowledge, competencies, and abilities required to start, manage, and grow a business (European Commission, 2012).

• Youth Empowerment: A multi‑dimensional concept that includes economic self‑reliance, confidence, decision‑making ability, and improved socio‑economic status (Zimmerman, 2000).

• Micro and Small Enterprises (MSEs): Business entities with limited capital, workforce, and turnover, often registered informally, and operating in sectors such as retail, services, and crafts (SMEDAN, 2021).

• Business Sustainability: The ability of an enterprise to endure, grow, and maintain profitability over time.

Project – Entrepreneurial Skill Acquisition and Youth Empowerment: A Study of Micro and Small Enterprises in Ikorodu Local Government Area, Lagos State