Entrepreneurship, Technical Education and Global Poverty Reduction: An Empirical Overview

Abstract

This study empirically examines the individual and joint effects of entrepreneurship and technical education on global poverty reduction using panel data from 30 countries over the period 2010–2024. Drawing on data from the World Bank Development Indicators, Global Entrepreneurship Monitor (GEM), and UNESCO Institute for Statistics, the study employs panel regression techniques, including Fixed Effects and Random Effects models, with the Hausman test guiding model selection. The findings reveal that both entrepreneurship and technical education exert significant negative effects on poverty levels, indicating their effectiveness in reducing poverty. More importantly, the interaction term between entrepreneurship and technical education is negative and statistically significant, suggesting that their combined effect produces a stronger poverty-reducing impact than either factor independently. Diagnostic tests confirm the robustness of the model, with no evidence of multicollinearity, heteroskedasticity, or serial correlation. The study concludes that integrated policy frameworks that combine entrepreneurial capacity development with technical skills acquisition are more effective tools for poverty alleviation. It recommends the restructuring of educational systems to embed entrepreneurship within technical and vocational training programmes.