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    Effect of Entrepreneurship Education on the Youth Entrepreneurs of Luwero

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    This study set out to investigate the effects of Entrepreneurship Education on the Youth Entrepreneurs in Luwero town council, Luwero District. The importance of Entrepreneurship Education is crucial with regards to grooming successful entrepreneurs and in the process of Economic development and it is widely recognized by scholars, researchers, governments, development agencies and policy Makers.

    Entrepreneurship education is able to change the youths’ mindset and provide them with relative knowledge on how to become job creators and curb down the unemployment rates and it’s far reaching effects. In secondary and tertiary institutions entrepreneurship and innovation have been developed and offered due to increased international and local demand in all sectors of the economy; this has led to emerging social entrepreneurs, business entrepreneurs and others.  In this case entrepreneurship takes a wide range of explanation and importance in the economy’s development.

    The major objective was to investigate the effects of Entrepreneurship education on the Youth entrepreneurs in Luwero town council Luwero district. The study was both qualitative and quantitative following a case study design a sample of 40 respondents was used and purposive, snowball, and volunteer sampling techniques were used.

    Findings show that there is a need for quality entrepreneurship education and streamlined policies to enhance this education and well thought about and laid down policies that are applicable and can suit the people thus having greater impact on young entrepreneurs for a quality sustainable living and reduced job seekers of this era.

    It is clear that the Entrepreneurship Education is important because these relationships between the effects of entrepreneurship education and successful entrepreneurs can help to decrease the risks and challenges that young people face in becoming successful entrepreneurs or become involved in other activities, harmful to themselves and to society in Luwero town Council.

    It should also be noted that Entrepreneurship education is part of lifelong learning; in that, entrepreneurial skills are developed and supplemented at different points in life. It is a question of life management, interaction, self-guided action, a capacity for innovation and an ability to encounter change. Education and training help entrepreneurship evolve into a mode of operation, in which attitude, will and a desire to take action combine with knowledge and advanced competence. This cannot be done in isolation but in like in a situation of a “delivering mother and a mid-wife”

    Recommendation, Entrepreneurships Education should start as early when children are young, should be practical centered, the policy of the government should conducive for the study and students should be encouraged to innovate and sustain these business for the country development and better standards of living.


    This dissertation aims at investigating the effects of Entrepreneurship Education on the characteristics of the youth in Luwero town council located in Uganda. It is important to note that entrepreneurship education is of high importance in the process of economic development and therefore is globally known by scholars, researchers, governments, development agencies and policy makers worldwide.

    Namagembe (2004) cites Schumpter (1959) saying that development has vitality therefore seems to be an element of original adaptation, a restless adventurousness in the search for opportunity which cannot be simply explained by the exploitable resources.

    For economic, social and technology development, entrepreneurship education has contributed its part, to the extent that entrepreneurship education and enterprise development have been found to be one of the most effective means of addressing the ever increasing unemployment with in the developing and developed countries (Namagembe 2003).  And for this reason most developing countries for instance Uganda continue to adopt this education at many levels in both private and public organizations so as to boost the economic and social development of the country.

    This chapter covers the background of the study, statement of the problem, the purpose of the study, major objective, specific objectives of the study, research questions, scope of the study, significance of the study, justification and operational definitions of terms and concepts.

    Background of the Study

    Lately economies are driven by ideas through innovation and entrepreneurship; which are complementary therefore governments should encourage their youth to venture into both equitable and sustainable growth and development. Uganda has taken steps towards sustainable growth and economic development by training its people to think critically, exclusively and to develop innovative and creative products or services (MoES 2010).

    The Uganda national curriculum and science driven initiative are now infused with entrepreneurship studies so as to educate and equip its people with the necessary tools and entrepreneurial skills and encouraging young people to become entrepreneurs when they are of age.

    These steps have been take in the hope that unemployment will be curbed as being an entrepreneur encourages job creation. Several kinds of entrepreneurs including social and business entrepreneurs have sprouted out due to the introduction of entrepreneurship studies and innovation in secondary and other tertiary institutions.

    The Global Entrepreneurship Monitor (GEM) 2011 did an annual survey of the rate and profile of entrepreneurial activity worldwide with several interviews of people (18-64 years of age) covering 54 economies in diverse geographical areas and a wide range of development level. The GEM survey indicated that 388 million entrepreneurs were actively engaged in starting and running new businesses in 2011.

    These included an estimated:

    • 163 million women early-stage entrepreneurs
    •  165 million young early-stage entrepreneurs between the ages of 18 and 35
    • 141 million early-stage  entrepreneurs who expected to create at least five new jobs in the next five years
    •  65 million early-stage entrepreneurs who expected to create 20 or more new jobs in the next five years
    • 69 million early-stage entrepreneurs that offer innovative products and services that are new to customers and have few other competitors
    • 18 million early-stage entrepreneurs that sell at least 25% of their products and services internationally.
    • Thus deeming entrepreneurship as a driver for innovation and creativity as well as a necessity for development.

    The 2016/17 GEM report indicates that entrepreneurship activities and education are currently done in 64 countries worldwide which are working hard to improve skills that would lead developed and developing countries into economic growth and development while curbing unemployment. Knowing this it is then important for educators, trainers and other academicians to base their education curriculum on the unique needs of the people being targeted so as to easily identify, develop and motivate potential entrepreneurs. Programs may focus on the specific needs of people in the process of starting a business as opposed to those who are running new or established businesses. (Kumar et al 2008)

    According to the GEM report, entrepreneurial development could be hindered by financial constraints however this is to be addressed by development of business skills especially if an economy is factor driven. More so it will focus on providing business skills as well as financial literacy and education. Specialized and targeted entrepreneurial education is usually tackled by efficiency driven economies and innovation driven economies for the benefit of access to equity capital and transparent banking.

    Entrepreneurship education has tremendously improved in Africa for the past years with various courses and research done (Johnson, et al 2011) whilst encouraging participation in policy making and policy entrepreneurship. It is important to note that in a few countries there is 90% to 100% participation in vocational programs pertaining entrepreneurship. Even so one shouldn’t ignore the difference in intensity and effectiveness of the planned programs.

    In addition, there is a need to question the competence of the teachers in higher institutions of learning as most of them lack the practical experience of entrepreneurship. Teachers and tutors require trainings so as to curb the problem and they need to be done with a systematic approach. This is important because youth entrepreneurship education has taken center stage as a way to promote and cultivate an entrepreneurial culture. More so facilities have been set up in over 53 countries for the education of the children, youth and women. (GEM 2011)

    According to his study on the quality of entrepreneurship education in colleges within the sub-Sahara African region, Kabogo, J. D. (2008) found that out of 66 institutions in 36 countries, only 57 set up an entrepreneurship course meaning that all over the continent, entrepreneurship education is stressed as a key course because of the expected benefits it would yield as part of the development of Africa’s economy.

    Entrepreneurship education in Uganda rather follows an overlapping, three-tier business, technical and vocational education and training (BTVET) system: craftsman-level training; technician-level training; and graduate engineer-level training at universities. BTVET is provided by 133 public institutions, about 600 private training service providers, and 17 apprenticeship programs.

    The Government of Uganda (GOU) is now formulating a ten-year BTVET strategic plan to guide the use of resources and implementing a new BTVET policy to create new vocational centers and utilize community polytechnics to provide training and certificates (MoES 2011).

    The MoES is working on the mechanics of a levy on private companies to finance skills training. And the policy and emphasizes employment creation through youth-led enterprise development. All this is done through empowering youths in entrepreneurship education. (MoES 2011)

    Entrepreneurship is one of the many factors that lead to economic development, growth and prosperity through innovation that attracts economic value. Aside from other benefits of entrepreneurship, it also boosts modernization with the introduction of new ideas and dissemination through the private sector without forgetting introduction of new industry products and services.

    One needs to not forget the purpose of entrepreneurship to the society as it can be used as a means to curb poverty and deprivation by providing a steady income to business owners who create an inspiration and hope for better lives. Uganda’s first entrepreneurial and education  activity national survey was done by the GEM with the help of Makerere University Business school (MUBs) in 2003 and the report that year indicated that Ugandans are the most entrepreneurial people in the world. This was s because of the fact that Ugandans had to make ends meet by starting businesses that readily sprouted out of available opportunities.

    Uganda does not maintain the most conducive environment and yet people still figure out a way to be entrepreneurs as the reports from GEM would suggest in both 2003 and 2004, Ugandans are indeed more entrepreneurial that anticipated. GEM Ugandan Report (2004:10).

    According to the Total Entrepreneurial Activity (TEA) index (31.6), Uganda is second in rank out of all the GEM countries indicating that for every 100 Ugandans, 32 practice entrepreneurial activities. USA and Japan both hold a score of 11.3 and 1.5 rates respectively with high rates in both males and females whereas Uganda possesses a higher TEA rate for men.

    As reported b the GEM consortium, Uganda’s entrepreneurship activity is mostly inspired by high rates of both opportunity and necessity with high scores on the number of business angles. However, the average amount of money invested by these “angels” is very low. (GEM Report 2004).  This depicts how the government and the population are engaged in entrepreneurship as a source of living and contribution to the general development of the nation.

    GEM Uganda Reports that, entrepreneurship activities are relatively higher amongst men than in women and that Ugandans aged 25-34 years of age are more likely to engage in entrepreneurial activity, especially in terms of opportunity entrepreneurship. Those over 55, however, are much more likely to have higher rates of necessity entrepreneurship.

    In terms of education, rates of opportunity entrepreneurial activity rise with educational qualifications and rates of necessity entrepreneurship fall. In 2003, the relationship between entrepreneurial activity and income is pronounced, closely following the results for education, with which income is significantly correlated.

    Ugandans earning more than UGX 60,000 per month were much more likely to have a high TEA, particularly a high opportunity TEA. These figures are consistent with the 2003 trends. This conclusively shows that Ugandans are by nature entrepreneurs, however the level of sustainability is one most questioned.

    Governments at national and local level need to encourage a broad and dynamic concept of entrepreneurship to stimulate both personal initiative and initiative in a broad variety of organizations which include but reach beyond, the private sector: small and large enterprises, social entrepreneurs, cooperatives, the public sector, the trade union movement and youth organizations Kofi Annan (2005:15).

    Like any other region in Uganda Entrepreneurship education is widely offered to youths, women and men in this area.  It is offered by both government and private bodies like schools ate Advanced level implementing the national curriculum, and by empowering women to start up jobs, youths to innovate, and so on.  This is done by NGOs like Plan Uganda and more others.

    Statement of the Problem

    As entrepreneurship education takes shape, governments endeavor to create new channels of development so as to empower its citizens, for instance creating new districts and encouraging NGOs but this is barely sufficient for the 60,000 graduates from higher learning institutions each year with only 9000 being able to maintain their startups. (Monitor News Paper July, 2012)

    Entrepreneurship Education is offered in Uganda at different levels like Universities, Vocational, private and government bodies, and NGOs in what is called income generating activities and it is taught on the UNEB syllabus at “A” level.  Entrepreneurship courses are offered at Universities, however whereas more education and skills have been imparted to these youths, few jobs are created and if they are created few jobs are sustained.

    According to GEM report (2004) Uganda was ranked the second most entrepreneurial country in the world amongst the Global Entrepreneurship Monitor (GEM) countries with total entrepreneurial Activity (TEA) index (31.6%) signifying that approximately 32 out of 100 people are entrepreneurs but the 2004 stated that 30% of the businesses that are started failing Uganda as a result of competence of many entrepreneurs.

    Is it that most Ugandan youth entrepreneurs lack requisite traits for successful entrepreneurship or is it the education that is not delivered professionally? Therefore the study, sought to investigate the effects of Entrepreneurship Education on the youth Entrepreneurs.

    The conceptual framework is a representation of the effect of entrepreneurship education on youth entrepreneurs with key variables, their dimensions and indicators. (Barifaijo et,al 2010)

    The independent variables are competence development, innovation and creativity, opportunity identification, entrepreneurship behavior and mindset, developing negotiation skills, network and social capital, managing complexity and predictability. Any particular individual could be born with entrepreneurial characters and yet we all vary when it comes to our creativity levels thus the need for entrepreneurship education to better boost our creativity into becoming a successful entrepreneur.

    The conceptual frame work above depicts that for the entrepreneurship education impact to occur we need the intervening variables to boost the independent variables so as to better target the dependent variables with positive results. So to speak the quality of Entrepreneurship Education delivered, the delivery or training process, access to information, availability of timely and accurate information, government policy, attitudes of young people and accessibility to funding can collectively lead to more successful entrepreneurs.

    The dependent variables are the basis for assessment of success of entrepreneurship education. Successful entrepreneurship education would mean increased number of successful youth entrepreneurs, reduction in unemployment rate, new innovations, increased income level, reduction in crime rates, improved quality of life, and reduction in dependency ration.

    In this chapter, the researcher provides related literature on the study topic. The chapter includes information gaps identified and making case of further research. The literature is reviewed according to the objectives, however before reviewing literature; one would explain the definition and the concept of Entrepreneurship in general.

    Definition and Objectives of Entrepreneurship Education

    Entrepreneurship education is a formal structured instruction that conveys entrepreneurial knowledge and develops focused awareness relating to opportunity, recognition and aids in the creation of new ventures as defined by Sexton and Smilor (1997).

    Mauchi et, al (2011) and Jones and English (2004) define entrepreneurship education as the process of providing individuals with the ability to recognize commercial opportunities and the knowledge, skills and attitudes to act on them. Therefore, entrepreneurship education can be seen as process of imparting learners with entrepreneurial knowledge, skills and attitudes through a formal structured instruction.

    A formal structured instruction is usually guided by well-defined aims, goals and objectives of a specific program. According to Colton (1990) cited in Mauchi et, al (2011) entrepreneurship education and training programmers are aimed directly at stimulating entrepreneurship which may be defined as independent small business ownership or the development of opportunity-seeking managers within companies.

    The major objectives of entrepreneurship education are to develop enterprising people and inculcate an attitude of self-reliance using appropriate learning processes.

    The following are the most commonly cited objectives of entrepreneurship education and training programmed: to acquire knowledge germane to entrepreneurship; to acquire skills in the use of techniques in the analysis of business situations, and in the synthesis of action plans; to identify and stimulate entrepreneurial drive, talent and skills; to undo the risk-adverse bias of many analytical techniques; to develop empathy and support for all unique aspects of entrepreneurship; to devise attitudes towards change; to encourage new start-ups and other entrepreneurial ventures. Thomas and Barra, (1994), cited in Mauchi et al (2011).

    It can be seen that these objectives underscore the fact that entrepreneurship education should reflect carefully on acquisition of business skills and ways of enhancing the probability of success. The objectives of entrepreneurship education are mainly focused on starting a business and subsequent sustainability of the business. Thus, entrepreneurs are characterized by innovative behavior and employ strategic skills.

     The Concept of Entrepreneurship

    Entrepreneurship is usually understood with reference to individual business. Entrepreneurship has rightly been identified with the individual, as success of enterprise depends upon imagination, vision, innovativeness and risk taking. The production is possible due to the cooperation of factors of production, popularly known as land, labor, capital, market, management and of course entrepreneurship.

    Entrepreneurship is a risk-taking factor, which is responsible for the end result in the form of profit or loss. According to Kumar, et al (2003) entrepreneurship as an individual process flourishes when the interlinked dimensions of individual psychological entrepreneurship, entrepreneurship traits, government policies, social encouragements, availability of plenty of resources and opportunities cover the common good of development of the society in an economy.

    According to A. Schumpeter (1959) “The entrepreneurship is essentially a creative activity or it is an innovative function”. The economic activity with a profit motive can only be generated by promoting an attitude towards entrepreneurship. The renewed interest in the development of entrepreneurship to take up new ventures should emphasize on the integrated approach. The development of entrepreneurship will optimize the use of the unexploited resources; generate self-employment and a self-sufficient economy.

    The youth entrepreneur should be motivated to come out with determination to-do something of their own and also to contribute to the national income and wealth in the economy.   If the country wants to achieve the growth at grass root level, through social justice and the crimination of poverty, it will have to provide institutional support and structural changes in organization financial institutions to promote entrepreneurship development. Industrial development in any region is the outcome of purposeful human activity and entrepreneurial thrust.

    However according to the Uganda National Youth council Strategic Investment plan (2004-2008) says this: Past experience of implementing youth programs have indicated there is serious lack of competence among youth leaders these include: youth leaders ‘ability to cope with social economic changes with in diversified societies of today, application of principles and methods of youth work, entrepreneurship and leadership skills, behavior and practice.

    Information shows that all these youth leaders are educated but there is a gap of lack of initiative. David Melland emphasized the importance of achievement motivation as basis of entrepreneurial personality and a cause of economic and social development through entrepreneurship by fulfilling the following needs such as 1) Need for power 2) Need for affiliation and 3) Need for achievement.

    Another school thought says “entrepreneurship is a function of several factors i.e. individual socio-cultural environment and support system ”.Entrepreneurship is vibrant assertion of the facts that individual can be developed, then outlook can be changed and ideas can be converted into action though on organized and systematic program for entrepreneurs. It was also felt that systematic training can be given a better output and attracting people for taking up business venture can change economic scenario (Zolta, et al 2009).

    The basic objective of developing entrepreneurship education in the society is to be able to generate productive human resource, mobilize and sustain the same in subsequent process of development. The spontaneity and continuity of the process would depend on the kind of people that can be prompted and groomed in the entrepreneurial career.

    Sociologists, psychologists and economists have all attempted to give a clear picture of the entrepreneur. Sociologists analyze the characteristics of entrepreneurs in terms of caste, family, social value and migration (Minniti Maria 2009).

    Psychologists on the other hand attempt to isolate entrepreneurs from general population on various personality trials such as need for achievement, creativity, propensity to take risks, independence leadership etc (Hisrich, et al 2008). Economists lighted situational technological experience and managerial skills with economic gains considered as characteristic of entrepreneur (Zolta et al 2009). However all sectors of the economy for sustainable development need entrepreneurs and innovation.

    Entrepreneurship Education Development and Administration

    According to Kofi Annan (2005) Governments at national and local level need to encourage a broad and dynamic concept of entrepreneurship to stimulate both personal initiative and initiative in a broad variety of organizations which include but reach beyond, the private sector: small and large enterprises, social entrepreneurs, cooperatives, the public sector, the trade union movement and youth organizations.

    The value of the phenomenon of entrepreneurship is well established, both in terms of economic vitality and research and development. We may be interested in supporting and facilitating the process in the interests of national well-being, economic development, or advancing the standard of living.

    We may be concerned about designing and administering entrepreneurial education and training programs to inculcate the skills and abilities required for success. In either event, but particularly so in the latter case, we must begin by understanding the initiator: the entrepreneur. How can one design a training program or a curriculum of entrepreneurship education if one does not understand the drives and characteristics which lead to the decision to initiate a venture, to concentrate on its growth, to take it public, to strive to dominate an industry? To teach the dance, one must teach the dancer. Here, then, is our effort at understanding the dancer, at unraveling the enigma of entrepreneurship.

    However many organizations carrying out Entrepreneurship Education do not have relevant curriculum of entrepreneurship education, as some of them just train for the sake because funders have grants for entrepreneurship education so it becomes just a bandwagon, thus teaching a dance to unwilling dancers, or by incompetent teachers without practical skills (Minniti 2009).

    Based on belief that potential entrepreneurs can be identified and trained, it is designed to promote small enterprises by tapping this latent talent. It is the approach which remains ground in belief that effective psychological behavior testing can identify potential entrepreneurs and appropriate practical training can develop successful entrepreneurs Kumar et al (2007), it is always characterized by emphasis on operational rather than academic training, flexibility design of training program to meet specific needs of the participant active involvement of financial and business communities.

    However, in Uganda, it is not done by identifying potential entrepreneurs it just recruiting anyone who comes, whether because of money drives but often times for example at University, students are just recruited without any pre –test of finding out whether those being recruited are potential entrepreneurs. No wonder even after three years of Entrepreneurship training still graduates go back to streets to look for jobs or to their parents to beg for money than to apply the skill acquired.

    In general, the implementation of any type of training, including entrepreneurship education, is a process with several phases that can be specified in different ways. The figure below represents one out of several possible comprehensions of the process. Decisions made and procedures followed in each of the suggested phases, have implications for the further development and for costs, and might influence final outcomes.

    It is important to point out that the figure must be viewed merely as an indicative structure of steps. In the real world, the process might not be as straightforward and simple as in the illustration, with successive and clear-cut phases. A reality. For analytical purposes, however, a simplified model like the one presented can be expedient (Minniti Maria 2009).

    Entrepreneurship education should not be confused with general economic studies. In fact, the teaching of entrepreneurship will aim either at stimulating from an early age those personal skills that form the basis of entrepreneurial behavior, or at encouraging self-employment as a career option. (European Commission 2005)

    Although there may be certain areas where the two concepts are partially overlapping – as it would be the case for example when providing primary school pupils with some basic knowledge of the functioning of economy and of the role of entrepreneurs, or when teaching management in higher education – entrepreneurship should be considered as an innovative and cross curricular approach, as a teaching methodology or as subject in its own right, also depending on the level of education (European Commission 2005).

    However most Entrepreneurship education is very narrow and shallow that, students or participants are just given a very short time, of say a week, and most times without follow because no one can learn within a short time and activates, a contradictory system like in Uganda it takes 16 years for a person to become a graduate but Entrepreneurship education is given very short period which most times render it unsuccessful in many situations and locations. Therefore there is a gap to be addressed.

    The process of administering Entrepreneurship Education is always dependent on the organization and the target group as intended, Policies and goals that illustrate the degree of an institution’s commitment to entrepreneurship education Entrepreneurship goals: Entrepreneurship objectives embedded in the institution’s mission statement or overarching goals to promote entrepreneurship. However many organizations seeming to offer entrepreneurship education they have no policy yet, most especially the NGOs which are sometimes formed on basis for survival of those “directors”.  There is a gap to be addressed.

    Therefore Entrepreneurship policies should be established and institution-wide policies or action plans are written to support entrepreneurship. The Strategic embeddedness where appointed persons (principal, provost, vice-chancellor, dean, professor, lecturer) with management influence to oversee the implementation of policies and goals in order to attain quality education and capable students who can start and run their own ventures to maturity.

    Many institutions have appointed persons that can teach theoretical Entrepreneurship education but few can offer the practical part of Entrepreneurship education  European Commission (2005)  I agree with the researcher because many entrepreneurship teachers do not even own  one chick as their venture, but keep on teaching theoretical Entrepreneurship Education which gives no difference, this gap needs to be addressed that only practical entrepreneurs can be in position to teach by example rather than theory.

    Looking at the Institutional Infrastructure, which includes sources of support outside the classroom for those interested in entrepreneurship, this is really a very big challenge that many venture into different entrepreneurship projects and businesses but are not supported institutionally, thus a gap  to address.

    In addition is the approaches used in administering Entrepreneurship education: such as Access to entrepreneurship departments, entrepreneurship centers, incubator facilities and/or technology transfer offices. These in many countries are wanting and those which have them are not fully equipped.  Looking at Entrepreneurship appointments:  appointed entrepreneurship chairs (tenured and non-tenured), not including associate and assistant professors, to support entrepreneurship across campus. Research in entrepreneurship (European Commission 2005).

    This is very limited or not available that renders entrepreneurship very hard to take off to a success level Research on entrepreneurship and entrepreneurship education. Cross-discipline structures: Structures to permit students to receive credit towards their degree for taking entrepreneurship courses. The sub-dimension also considers cross-faculty entrepreneurship activities to offer opportunities for students from different faculties to work together Resources: Funding and resources dedicated to entrepreneurship education, (European Commission 2005).

    Budget allocation: Financial support for entrepreneurship education and an overall budget for entrepreneurship.

    As the budget of the many sectors, entrepreneurship education has not been allocated enough resources as it ought to be, not forgetting that, the many government heads mistake Entrepreneurship to be technological innovation, a case in point is Uganda where the president thinks that for innovation to take place all students are supposed to be scientist, failure to understand entrepreneurship as  a process of generating an idea and bring it birth in all sectors of the government has led to limited financial allocation to Entrepreneurship education,  Income generation: Money raised for entrepreneurship education.

    Type of funding: Established. This leaves a gap to revisit and allocate enough funds of financing and having financial commitments towards entrepreneurship education short-, medium- or long-term financing (Kumar et al 2007)

    Teaching and Learning:  In administering Entrepreneurship Education it should be noted that it discipline which requires both Theoretical learning component of entrepreneurship education.  This should be looked at the point of view of Courses that is, Number of courses in entrepreneurship education, by level of study (undergraduate, graduate, and postgraduate).

    If in this case students have access to degree programs in entrepreneurship, by level of study,  Curriculum should have  Methods used in the development of an entrepreneurship curriculum, such as learning from other institutions, liaising with practitioners or cross-faculty

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