Micro Snack Enterprises and Youth Employment: Evidence from Urban Africa
Abstract:
Youth unemployment persists across many African cities despite policy attention and episodic programmes. This paper evaluates whether micro snack enterprises, specifically plantain chips and chinchin ventures, function as employment incubators for young people in dense urban economies. Anchored in Informal Sector Theory, Youth Empowerment Theory, and Human Capital Theory, we implement a mixed-methods study in Lagos (Ikeja), combining structured surveys (n = 300) and semi-structured interviews (n = 20). Reliability and construct checks indicate acceptable psychometrics (Cronbach’s α = 0.84; KMO = 0.79; Bartlett p < 0.001). Descriptives show that 78% of workers are aged 18–35; mean firm size is 4.6 employees. Multivariable OLS models reveal that access to microfinance (β = 0.23, p = 0.003), technical training (β = 0.19, p = 0.011), and regulatory ease (β = 0.17, p = 0.018) are independently associated with profitability; model fit R² = 0.58. Robustness checks and sensitivity tests preserve significance. Qualitative data triangulate mechanisms: low entry costs, short working-capital cycles, and rich value-chain spillovers. We conclude that micro snack enterprises absorb youth labour and stimulate grassroots incomes, but scale is constrained by finance, infrastructure, and informality frictions. Policy priorities include targeted micro-credit, food-hygiene/production training, light-touch formalisation, and micro-industrial clusters aligned with youth enterprise. The findings generalise to comparable African cities with thick informal markets and similar regulatory conditions.
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