ENTREPRENEURSHIP, ECONOMIC GROWTH AND UNEMPLOYMENT REDUCTION IN SUB-SAHARAN AFRICA
ENTREPRENEURSHIP, ECONOMIC GROWTH AND UNEMPLOYMENT REDUCTION IN SUB-SAHARAN AFRICA

Summary/Abstract: The study investigates whether economic growth affects the impact of entrepreneurship development on unemployment reduction in SSA. Adopted dynamic panel data method of analysis, the study finds that; entrepreneurship development has positive but not significant effects and the result reflects how entrepreneurship is measured. The study for instance, finds that entrepreneurship activities in terms of early-stage Entrepreneurial Activity (TEA) has positive and significant effects on economic growth, while self-employment and high job expectation creation (HJEC) are found to be positive but not significant. The study finds that entrepreneurship development in terms of TEA and SEM has negative but insignificant effect on unemployment reduction, while, HJCE as a measure of entrepreneurship has a negative and significant effects on unemployment reduction, hence the ambiguity in the empirical evidence. Our result indicates that SEM and economic growth also reveal negative but insignificant relationship on unemployment reduction. The study concluded that unemployment is very responsive to TEA –economic growth channel. The study concluded that the marginal impact of HJEC on unemployment reduction is increasing with the level of economic growth. The study concluded that HJEC have contributed to reducing unemployment in countries with robust economic growth systems. The findings that all entrepreneurial development measured employed - TEA, SEM and HJEC have contributed to reducing unemployment in countries with robust bank credit given is a major indication that, credit giving by banks helps invigorate the climate for entrepreneurship development that is fundamental to unemployment reduction.

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