Assessing the Role of Formal Education in Promoting Entrepreneurship

Abstract

Entrepreneurship has been an economic tool for many governments, especially those facing unemployment challenges. Ghana is facing high unemployment among its youth. Various administrations have implemented policies, including the National Youth Employment Program and the YouStart Program, to solve the unemployment challenge. These initiatives, however, have yet to solve unemployment. This study examines the role of formal education in fostering entrepreneurship. Data were collected using a quantitative approach through a structured questionnaire survey administered to 140 entrepreneurs in Ghana’s Sunyani Municipality. The data were analyzed using SPSS version 25. Correlational analysis was performed to examine the relationship between formal education and entrepreneurial performance. The study findings show that entrepreneurial-based education, not only formal education, helps graduates successfully establish and operate their own businesses. This contributes immensely to reducing unemployment. The results also reveal a weak positive correlation between formal education and entrepreneurial performance; however, the observed correlation was not statistically significant. Thus, formal education may influence entrepreneurial performance, but other variables may have a greater influence. The implications of these results highlight the importance of equipping students with entrepreneurial knowledge and skills to help them succeed as entrepreneurs. This can boost economic growth and lower unemployment. The study's implications go beyond Ghana, as many nations struggle with unemployment. Findings form this research would drive policy-making and educational restructuring efforts to promote entrepreneurship and reduce global unemployment. The authors recommended modifying the existing educational curriculum to include more emphasis on entrepreneurship education, spanning from primary to higher education levels.