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Entrepreneurship: structural transformation, skills and constraints

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  • Ralitza Dimova

    (University of Manchester)

  • Kevwe Pela

    (University of Manchester)

Abstract

This paper revisits the place of the entrepreneur in the process of structural transformation and economic development, using representative data from Nigeria. The focus is on the allocation of self-employed individuals with different skill levels across sectors—primary, secondary and tertiary—and on its link to selectivity corrected returns to skills in these sectors. While self-employment is dominated by service sector activities and these activities attract more skilled individuals than do the manufacturing and primary sectors, the level of skills across all three entrepreneurial sectors is lower than that of both salaried workers and individuals who do not work. Returns to skills among self-employed individuals in the manufacturing sector are particularly low. This is at least partially explained by constraints to productive entrepreneurial activities and is inconsistent with the idea of smooth structural transformation towards innovative entrepreneurship. We discuss some conceptual and policy implications.

Suggested Citation

  • Ralitza Dimova & Kevwe Pela, 2018. "Entrepreneurship: structural transformation, skills and constraints," Small Business Economics, Springer, vol. 51(1), pages 203-220, June.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:1:d:10.1007_s11187-017-9916-0
    DOI: 10.1007/s11187-017-9916-0
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    Cited by:

    1. Ali Sher & Saman Mazhar & Azhar Abbas & Muhammad Amjed Iqbal & Xiangmei Li, 2019. "Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
    2. Deusdedit Rwehumbiza & Marin A. Marinov, 0. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    3. Deusdedit Rwehumbiza & Marin A. Marinov, 2020. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 667-689, June.
    4. Pindado, Emilio & Sánchez, Mercedes & García Martínez, Marian, 2023. "Entrepreneurial innovativeness: When too little or too much agglomeration hurts," Research Policy, Elsevier, vol. 52(1).
    5. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.

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    More about this item

    Keywords

    Entrepreneurship; Structural transformation; Economic development; Nigeria;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N80 - Economic History - - Micro-Business History - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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