Entrepreneurship Financing and Human Capital Development in Nigeria

Abstract

This study examined the relationship between entrepreneurship financing and
human capital development in Nigeria from 1992 to 2021. Data were sourced from the Central
bank of Nigeria, statistical bulletin. Autoregressive Distributed Lag length was used to analyze
the data having fulfilled the conditions necessary for its empirical usage. The results showed that
entrepreneurship financing signed positive and significant to the human capital development as
depicted in the long run analysis which implied that the credit to small and medium scale
enterprises contributed significantly to the growth of human capital in Nigeria during the period
under review. The results of the study further confirmed that interest rate did not contribute
positively to growth of Human Capital in the short and long run in Nigeria. However, the credit
to SMEs and exchange rate contributed positive to Human Capital development in the short and
long run respectively. But trade openness contributed positively to human Capital Development
in Nigeria only on the long run. In view of the above, the study recommend that policy maker
should increasingly provide funds towards financing of entrepreneurship and lower of interest
rate to make SMEs finance more accessible to end users.