IMPACT OF ENTREPRENEURIAL HUMAN CAPITAL DEVELOPMENT ON RURAL ENTREPRENEURSHIP GROWTH

Abstract

In Nigeria and other developing nations of the world, the strategic role of the entrepreneur as an agent of economic development cannot be over emphasised, particularly in the aspects of employment generation, wealth creation and poverty reduction. Statistics show that the incidence of poverty in developing countries is more prevalent in rural areas, where more than half of the population reside, hence the focus of attention on rural entrepreneurship as a strategy for tackling the problem, has been on the increase. The problem of rural-urban drift of youths (especially the educated ones), which has led to overpopulation in urban centres, is also another major reason why encouraging rural entrepreneurship is imperative. Achieving success with this strategy however, depends, to a large extent, on the human capital of the rural entrepreneur, whose role in the enterprise is very strategic, and often determines the chances of survival of the enterprise. This study therefore examined the impact of entrepreneurial human capital development, in terms of entrepreneurship education, on rural entrepreneurship growth in selected rural communities in Ayedire Local Government of Osun State, Nigeria. Fifty rural enterprises were selected and data was sourced with a questionnaire. Their responses were analysed using Simple Regression Analysis where the result revealed that 61% variation in rural entrepreneurship growth is explained by entrepreneurial human capital development. It was concluded from the findings, that entrepreneurial human capital development has a positive and significant impact on rural entrepreneurial growth. Many young rural entrepreneurs however, do not have access to tertiary education due to poverty, and are therefore denied entrepreneurship education, which is presently incorporated only in tertiary education curriculum in Nigeria. The need to include entrepreneurship education in secondary school curriculum is therefore imperative.