This study was carried out to empirically evaluate the effect of entrepreneurship on poverty reduction in Sokoto State of Nigeria. Primary data were obtained using the instrument of questionnaire which was administered on 300 respondents comprising 233 entrepreneurs and 67 non-entrepreneurs. The Chi-Square Test of Independence and Spearman’s Rank Correlation were used as the main statistical tools of data analysis. The results of chi-square analysis indicated that entrepreneurship lifted 86% of the sampled entrepreneurs out of poverty. Although a significant positive relationship was found to exist between entrepreneurship and poverty reduction – meaning that as the level of entrepreneurship went up the rate of poverty reduced – the relationship was found to be weak with the value of correlation coefficient being 0.177. The study recommends that government should provide support funds, power and good transportation system as well as entrepreneurship skills programmes within its policy framework in order to boost the level of entrepreneurship and thus reduce the level of poverty in the State. Government should not only intensify the level of awareness of the benefits of entrepreneurship to the generality of its people but also provide the enabling environment for entrepreneurial activities to thrive in the State.