INFORMAL BUSINESSES IN NIGERIA: EXPLORING THE ROLE OF LOCAL ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Abstract

Informal businesses constitute a significant portion of Nigeria's economy, providing employment, income, and essential goods and services in the face of limited formal job opportunities. This study explores the role of local entrepreneurship within the informal sector as a driver of economic development in Nigeria. It examines how small-scale, unregistered businesses contribute to poverty reduction, innovation, and community resilience, while also addressing the challenges they face, including limited access to finance, regulatory constraints, and infrastructural deficits. Using qualitative and descriptive method of data analysis, the research highlights the adaptive strategies of informal entrepreneurs and their potential to spur inclusive growth. The findings underscore the need for supportive policies that recognize the value of informal enterprises and facilitate their integration into broader economic planning. This study contributes to a deeper understanding of the informal economy's role in national development and offers policy recommendations to harness its full potential for sustainable economic progress.