Digital Entrepreneurship as a Catalyst for Youth Employment and SME Growth in Nigerian Tertiary Institutions
Keywords:
: digital entrepreneurship; youth employment; SME growth; entrepreneurship education; human capital; dynamic capabilities; entrepreneurial ecosystems; tertiary institutions; NigeriaAbstract
Nigeria’s tertiary institutions are increasingly expected to improve graduate employment while stimulating the growth of micro, small and medium-sized enterprises. Yet entrepreneurship and digital-skills interventions are often evaluated as though educational exposure were equivalent to employment creation or firm growth. This conceptual article develops a dual-pathway capability-conversion framework that explains when and how digital entrepreneurship can act as a catalyst for youth employment and SME growth. The framework integrates human capital theory, individual employment-enactment capabilities, venture-level dynamic capabilities and entrepreneurial ecosystem theory, while using decent-work and agency considerations to evaluate outcome quality. Digital entrepreneurship is conceptualised as an institutional architecture comprising integrated curriculum, experiential practice, digital infrastructure, mentoring, incubation and industry–market linkages. These inputs build digital entrepreneurial human capital, which follows two distinct conversion routes. At the individual level, employment-enactment capabilities convert human capital into wage employment, self-employment and digitally mediated work. At the venture level, dynamic capabilities convert human capital into SME survival, revenue growth, productivity, market reach and organisational resilience. SME growth may subsequently generate additional youth employment, creating a cross-level feedback effect. Six proposition families specify the direct, mediated and moderated relationships, while digital inequality, platform dependence, sector, venture stage, time and employment quality delimit the framework’s boundary conditions.
Downloads
References
Anosike, P. (2019). Entrepreneurship education as human capital: Implications for youth self-employment and conflict mitigation in Sub-Saharan Africa. Industry and Higher Education, 33(1), 42–54. https://doi.org/10.1177/0950422218812631
Autio, E., Nambisan, S., Thomas, L. D. W., & Wright, M. (2018). Digital affordances, spatial affordances, and the genesis of entrepreneurial ecosystems. Strategic Entrepreneurship Journal, 12(1), 72–95. https://doi.org/10.1002/sej.1266
Bae, T. J., Qian, S., Miao, C., & Fiet, J. O. (2014). The relationship between entrepreneurship education and entrepreneurial intentions: A meta-analytic review. Entrepreneurship Theory and Practice, 38(2), 217–254. https://doi.org/10.1111/etap.12095
Becker, G. S. (1994). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.
Debarliev, S., Janeska-Iliev, A., Stripeikis, O., & Zupan, B. (2022). What can education bring to entrepreneurship? Formal versus non-formal education. Journal of Small Business Management, 60(1), 219–252. https://doi.org/10.1080/00472778.2019.1700691
Decker-Lange, C., Lange, K., & Walmsley, A. (2024). How does entrepreneurship education affect employability? Insights from UK higher education. International Journal of Entrepreneurial Behavior & Research, 30(5), 1249–1269. https://doi.org/10.1108/IJEBR-08-2023-0856
Elia, G., Margherita, A., & Passiante, G. (2020). Digital entrepreneurship ecosystem: How digital technologies and collective intelligence are reshaping the entrepreneurial process. Technological Forecasting and Social Change, 150, 119791. https://doi.org/10.1016/j.techfore.2019.119791
Federal Ministry of Communications and Digital Economy. (2019). National digital economy policy and strategy (2020–2030). https://nitda.gov.ng/wp-content/uploads/2020/06/National-Digital-Economy-Policy-and-Strategy.pdf
Federal Ministry of Youth and Sports Development, & United Nations Population Fund. (2019). National youth policy: Enhancing youth development and participation in the context of sustainable development. https://nigeria.unfpa.org/en/publications/national-youth-policy-enhancing-youth-development-and-participation-context-sustainable
Federal Republic of Nigeria. (2022). Nigeria Startup Act, 2022. https://startup.gov.ng/
Fugate, M., Kinicki, A. J., & Ashforth, B. E. (2004). Employability: A psycho-social construct, its dimensions, and applications. Journal of Vocational Behavior, 65(1), 14–38. https://doi.org/10.1016/j.jvb.2003.10.005
Huang, Y., Yuan, Y., Sun, W., & Li, P. (2025). From classroom to workplace: How entrepreneurship education influences university students’ employability. Humanities and Social Sciences Communications, 12, 1108. https://doi.org/10.1057/s41599-025-05316-7
International Labour Organization. (2021). Nigerian youth employment action plan 2021–2024. https://www.ilo.org/publications/nigerian-youth-employment-action-plan-2021-2024
International Labour Organization. (2024). Global employment trends for youth 2024: Decent work, brighter futures. https://doi.org/10.54394/ZUUI5430
Jaakkola, E. (2020). Designing conceptual articles: Four approaches. AMS Review, 10, 18–26. https://doi.org/10.1007/s13162-020-00161-0
Joensuu-Salo, S., & Matalamäki, M. (2023). The impact of digital capability on firm performance and growth in incumbent SMEs. Journal of Enterprising Culture, 31(2), 211–232. https://doi.org/10.1142/S0218495823500073
Kabeer, N. (1999). Resources, agency, achievements: Reflections on the measurement of women’s empowerment. Development and Change, 30(3), 435–464. https://doi.org/10.1111/1467-7660.00125
Khokhawala, S. M., & Iyer, R. (2021). Entrepreneurial ecosystems: Spanning the institutional gaps in emerging economies via incubator networks. Journal of the International Council for Small Business, 2(3), 177–202. https://doi.org/10.1080/26437015.2021.1881930
Martin, B. C., McNally, J. J., & Kay, M. J. (2013). Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business Venturing, 28(2), 211–224. https://doi.org/10.1016/j.jbusvent.2012.03.002
Martinez Dy, A., Marlow, S., & Martin, L. (2017). A web of opportunity or the same old story? Women digital entrepreneurs and intersectionality theory. Human Relations, 70(3), 286–311. https://doi.org/10.1177/0018726716650730
Meyer, M. H., Lee, C., Kelley, D., & Collier, G. (2020). An assessment and planning methodology for university-based entrepreneurship ecosystems. The Journal of Entrepreneurship, 29(2), 259–292. https://doi.org/10.1177/0971355720930571
Nabi, G., Liñán, F., Fayolle, A., Krueger, N., & Walmsley, A. (2017). The impact of entrepreneurship education in higher education: A systematic review and research agenda. Academy of Management Learning & Education, 16(2), 277–299. https://doi.org/10.5465/amle.2015.0026
Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship Theory and Practice, 41(6), 1029–1055. https://doi.org/10.1111/etap.12254
National Bureau of Statistics. (2024). Nigeria labour force statistics report Q2 2024. https://www.nigerianstat.gov.ng/elibrary/read/1241594
National Information Technology Development Agency. (2023). National digital literacy framework. https://nitda.gov.ng/wp-content/uploads/2023/07/Digital-Literacy-Framework.pdf
National Universities Commission. (2022, November 3). Entrepreneurship education will make students fit-for-purpose to labour market—Prof. Rasheed. https://www.nuc.edu.ng/entrepreneurship-education-will-make-students-fit-for-purpose-to-labour-market-prof-rasheed/
OECD. (2021). The digital transformation of SMEs. https://doi.org/10.1787/bdb9256a-en
O’Higgins, N., Karkee, V., Levina, K., Cuaulte Segovia, M., & Barford, A. (2023). ILO youth country briefs: Nigeria. International Labour Organization. https://doi.org/10.17863/CAM.107207
Okoro, P. E. (2021). Entrepreneurship skills needed by Nigerian tertiary institution students and graduates for global relevance. International Journal of Higher Education, 10(4), 247–257. https://doi.org/10.5430/ijhe.v10n4p247
Onjewu, A. K. E., Haddoud, M. Y., & Nowiński, W. (2021). The effect of entrepreneurship education on nascent entrepreneurship. Industry and Higher Education, 35(4), 419–431. https://doi.org/10.1177/09504222211014038
Osano, H. M. (2021). Universities in entrepreneurial ecosystems and MSME revitalization. Journal of the International Council for Small Business, 2(4), 355–364. https://doi.org/10.1080/26437015.2021.1942327
Saeedikiya, M., Salunke, S., & Kowalkiewicz, M. (2024). Toward a dynamic capability perspective of digital transformation in SMEs: A study of the mobility sector. Journal of Cleaner Production, 439, 140718. https://doi.org/10.1016/j.jclepro.2024.140718
Smolka, K. M., Geradts, T. H. J., van der Zwan, P. W., & Rauch, A. (2024). Why bother teaching entrepreneurship? A field quasi-experiment on the behavioral outcomes of compulsory entrepreneurship education. Journal of Small Business Management, 62(5), 2396–2452. https://doi.org/10.1080/00472778.2023.2237290
Soluk, J., Decker-Lange, C., & Hack, A. (2023). Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs. Technological Forecasting and Social Change, 191, 122490. https://doi.org/10.1016/j.techfore.2023.122490
Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice, 41(1), 49–72. https://doi.org/10.1111/etap.12167
Stam, E. (2015). Entrepreneurial ecosystems and regional policy: A sympathetic critique. European Planning Studies, 23(9), 1759–1769. https://doi.org/10.1080/09654313.2015.1061484
Stam, E., & van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Business Economics, 56, 809–832. https://doi.org/10.1007/s11187-019-00270-6
Sussan, F., & Acs, Z. J. (2017). The digital entrepreneurial ecosystem. Small Business Economics, 49(1), 55–73. https://doi.org/10.1007/s11187-017-9867-5
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341–358. https://doi.org/10.1016/j.jbusvent.2009.09.004
von Briel, F., Davidsson, P., & Recker, J. (2018). Digital technologies as external enablers of new venture creation in the IT hardware sector. Entrepreneurship Theory and Practice, 42(1), 47–69. https://doi.org/10.1177/1042258717732779
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Welter, F. (2011). Contextualizing entrepreneurship—Conceptual challenges and ways forward. Entrepreneurship Theory and Practice, 35(1), 165–184. https://doi.org/10.1111/j.1540-6520.2010.00427.x
World Bank. (2019). Nigeria digital economy diagnostic: A plan for building Nigeria’s inclusive digital future. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/387871574812599817/nigeria-digital-economy-diagnostic-a-plan-for-building-nigeria-s-inclusive-digital-future
Wurth, B., Stam, E., & Spigel, B. (2022). Toward an entrepreneurial ecosystem research program. Entrepreneurship Theory and Practice, 46(3), 729–778. https://doi.org/10.1177/1042258721998948
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the Academic World Journal of Scientific and Engineering Innovation the right of first publication. Published articles are distributed under the Creative Commons Attribution 4.0 International Licence, which permits use, sharing, adaptation, distribution and reproduction, provided appropriate credit is given to the original author(s) and source.
