Impact evaluation of the Igbo Apprenticeship System: multi-component frameworks for sustainable entrepreneurship

This study evaluates the impact of the Igbo Apprenticeship System (IAS), a locally developed entrepreneurship model, on business outcomes, specifically profitability, customer growth, revenue increase, and profit reinvestment, using a sample of 591 Nigerian business owners in Lagos and Anambra State. Employing Ordinary Least Squares (OLS), Instrumental Variable (IV) estimation, and Propensity Score Matching (PSM), the study compares the effect of IAS participation versus non-participation. The findings reveal robust positive effects across all methods, with notable gains in business profitability (OLS: 0.2779, IV: 0.2414, PSM: ATT 0.2754 & ATET 0.2677), Customer growth (OLS: 0.2868, IV: 0.2189, PSM: ATT 0.2314 & ATET 0.2538), revenue Increase (OLS: 0.5374, IV: 0.5276, PSM: ATT 0.4920 & ATET 0.4750), business satisfaction (OLS: 0.2386, IV: 0.2007, PSM: ATT 0.1635 & ATET 0.1489), profit reinvestment (OLS: 0.1276, IV: 0.0554, PSM: ATT 0.0737 & ATET 0.1976), underscoring the efficacy of IAS’s multicomponent structure. Key lessons from the IAS’s multi-componentality and cyclicality reveal that the combined effect of mentorship, hands-on training, and capital support not only contributes to business success but also cultivates a self-perpetuating cycle through community-based empowerment. As apprentices transition into business owners, they, in turn, mentor the next generation, reinforcing a self-sustaining model that continuously fuels local economies and reduces poverty. This cyclicality ensures that the benefits of IAS extend beyond individual participants, creating a ripple effect of economic and social upliftment within communities. These findings contribute to the understanding of how indigenous apprenticeship models may serve as effective mechanisms for economic empowerment in the realm of entrepreneurship. By emphasizing the compounded benefits of mentorship, skill transfer, financial support, and the cyclic, self-reinforcing structure of IAS, this study offers valuable insights for policymakers aiming to design apprenticeship-based entrepreneurship programs for sustainable development and poverty reduction.