Human Capital and Entrepreneurial Development in Lagos State, Nigeria

This study investigates the influence of human capital on entrepreneurial development in Lagos State, Nigeria, focusing on the roles of education, work experience, and skills. Grounded in the Resource-Based View and Human Capital Theory, it addresses a critical knowledge gap on how these factors drive entrepreneurial growth. A descriptive research design was adopted, targeting 1,500 entrepreneurs across Lagos State’s three senatorial districts. The research instruments, validated through a pilot study involving 150 SMEs in Ibadan, achieved a reliability coefficient of 0.83. Data were analysed using hierarchical regression. The results reveal a strong positive relationship between entrepreneurial development and human capital components. Education contributed a modest but significant proportion to entrepreneurial success (R² = 0.008), while work experience and skills accounted for a substantial predictive power (R² = 0.941). These findings underscore the vital role of human capital in fostering entrepreneurship, indicating that individuals with higher education, relevant experience, and advanced skills are better positioned to succeed in entrepreneurial ventures. The study concludes that human capital is a pivotal determinant of entrepreneurial development in Lagos State. To enhance entrepreneurship and drive economic growth, investments in education, skill acquisition, and work experience are essential. Policymakers, educational institutions, and private organisations must collaborate to implement policies and programmes that prioritise human capital development as a strategic driver of entrepreneurship and sustainable economic progress.