Social Entrepreneurship As A Mechanism For Poverty Reduction: Evidence From Southwestern Nigeria

Abstract

Poverty remains one of the most persistent developmental challenges in Nigeria, particularly in rural and peri-urban areas where unemployment, income inequality, and weak institutional support limit opportunities for sustainable livelihoods. In recent years, social entrepreneurship has emerged as a promising alternative mechanism for addressing poverty through innovative, inclusive, and locally driven solutions. This study examined the role of social entrepreneurship as a mechanism for poverty reduction in Southwestern Nigeria. A mixed-method approach was adopted, combining survey data from 250 respondents (comprising 50 social entrepreneurs, 180 beneficiaries, and 20 local government officials) with key informant interviews. Quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis, while qualitative responses were thematically interpreted using Braun and Clarke's (2013) six-step framework. The findings revealed that social entrepreneurship has significantly improved income generation, employment creation, and access to essential services among low-income households. Regression analysis indicated that social entrepreneurship activities explained 62.3% of the variation in poverty reduction outcomes (R² = 0.623, p < 0.05). However, challenges such as inadequate funding, weak policy frameworks, and low public awareness hindered wider impact. The study concludes that social entrepreneurship can serve as a sustainable mechanism for poverty reduction if adequately supported through enabling policies, access to finance, and capacity building. The paper recommends the establishment of regional hubs for social innovation and stronger public–private partnerships to scale impactful ventures across Southwestern Nigeria.