Assessment of the Impact of Entrepreneurship on Economic Growth: A Ghanaian Case Study
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Abstract
It is interesting to note that entrepreneurship is contributing immensely
towards the economic growth and development of most nations. Particularly in less
developed economies where it is somewhat difficult to get jobs in the public or
private sectors, we see a lot of people trying to start-up their own small businesses
and in the long run these business contribute their quota towards economic growth
and development. The objective of this write up is therefore to assess the impact of
start-ups and own businesses on economic growth and development using Ghana a
case study. To achieve this, the Ease of Doing Business data which is measured by
the score of starting a business from the world bank databank and the Self-
Employment which is also measured as a percentage of total employment are used
as proxies for entrepreneurship. To test if the data obtained is authentic and that it
is not going to produce any spurious results, a stationary test is conducted using
the Augmented Dickey Fuller (ADF) test. After, the study employs the Fully
Modified Ordinary Least Square (FM-OLS) to examine the relationship amongst
the variables of interest. Using Ghana as the case study and a period between 2000
to 2020, the results from the FM-OLS indicate that the respective dependent
variables have a significant and positive impact on economic growth.