Open Access
Subscription Access
Open Access
Subscription Access
Entrepreneurship and its Determinants in Nigeria: Empirical Evidence from Micro and Small Enterprises in Kano State
Subscribe/Renew Journal
The objective of this paper is to examine the determinants of entrepreneurship in Kano state. Survey research design was employed to collect data from the selected samples of micro and small entrepreneurs in the state. Questionnaire and interview instruments were used to collect data accordingly. Interview was purposely conducted to complement information obtained through the use of questionnaire by exploring to get more information directly from the selected key informants. Simple linear regression was used to estimate the coefficients of all the variables in the regression model. In spite of high poverty and unemployment in the state, it is discovered that there is no motivation for poor and unemployed people to start up their own business. Therefore, lack of start up capital is found to be a major factor or determinant for entrepreneurship activity. Women were less likely to partake in entrepreneurial activities in comparison to their men counterpart. There is need for the government to revisit the existing microfinance policy so as to address the financial problem of the poor and unemployed. Women should be encouraged to participate in entrepreneurship through training and financial support.
Keywords
Entrepreneurship Development, Micro And Small Business, Liquidity Constraint, Start Up Capital, Gender.
Subscription
Login to verify subscription
User
Font Size
Information
- Andersson, L. & Hammarstedt, M. (2010). Intergenerational transmissions in immigrant self employment: Evidence from three Generations. Small Business Economics, 34(3), 261-276.
- Bandura, A. (1977). Social Learning Theory. New York: General Learning Press.
- Bardasi, E., Blackden, C. M. & Guzman, J. C. (2007). Gender, Entrepreneurship and Competitiveness in Africa. African Competitiveness Report at World Bank.
- Bekele, E. & Muchie, M. (2009). Promoting micro, small and medium enterprises (MSMEs) for sustainable rural livelihood. DIIPER Research Series Working Paper No. 11. Retrieved from www.diiper.ihis.aau.dk/research/3397011
- Bekele, E. & Worku, Z. (2008). Women entrepreneurship in micro, small and medium enterprises: The case of Ethiopia. Journal of International Women's Studies, 10(2), 3-19.
- Bergmann, H. & Sternberg, R. (2007). The changing face of entrepreneurship in Germany. Small Business Economics, 28(2-3), 205-221.
- Berihun, H., Tsegaye, T., Kidane, T. & Hanna, T. (2009). Financial need of micro and small entreprises (MSE) operators in Ethiopia. AEMFI Occasional Paper No 24.
- Bonte, W., Falck, O. & Heblich, S. (2007). Demographic and innovative entrepreneurship. CSEifo Working Paper 2115 Munich.
- Borjas, G. J. & Bronars, S. G. (1989). Consumer discrimination and self employment. Journal of Political Economy, 97(2), 581-167.
- Brush, C. G. (1992). Research on women business owners: Past trends, new perspective and future directions. Entrepreneurship Theory and Practice, 16(4), 5-30.
- Buera, F. J. (2009). A dynamic model of entrepreneurship with borrowing constraints: Theory and evidence. Annals of Finance Journal, 5, 443-464.
- Buttner, H. & Moore, D. (1997). Women's organizational exodus to entrepreneurship: Self reported motivations and correlates with success. Journal of Small Business Management, 35(1), 34-46.
- Colombier, M. & Masclet, D. (2008). Intergenerational correlation in self employment: Some further evidence
- from French ECHIP data. Small Business Economics, 30, 423-437.
- Cowling, M. & Mitchell, P. (2003). Is the small firm loan guarantee scheme hazardous for banks of helpful to small business? Small Business Economics, 21, 63-71.
- Cromie, S. (1987). Motivations of aspiring male and female entrepreneurs. Journal of Organisation Behaviour, 8(3), 251-261.
- Curran, J. & Blackburn, R. A. (2001). Older people and the enterprise society: Age and self-employment propensities. Work, Employment & Society Journal, 15(4), 889-902.
- Dawson, C., Henley, A. & Latreille, P. (2009). Why do individuals choose self- employment? Discussion paper 3974, No. 42. Retrieved from http/ftp.iza.org/dp3974.
- De Kok, J. M. P., Ichou, A. & Verheul, I. (2010). New firm formation: Does the age of founders affect employment creation? SCALES and EIM Financed Research No. H201015.
- Delmar, F. & Davidsson, P. (2000). Where do they come from? Prevalence and characteristics of nascent entrepreneurs. Entrepreneurship and Regional Development, 12(1), 1-23.
- Duun, T. A. & Holtz-Eakin, D. J. (2000). Financial capital, human capital and transition to self employment: Evidence from intergenerational links. Journal of Labour Economics, 18(2), 282-305.
- Evans, D. S. & Jovanovic, B. (1989). An estimated model of entrepreneurial choice under liquidity constraints. Journal of Political Economy, 97(4), 808-827.
- Fairlie, R. W. & Robb, A. M. (2004). Families, human capital, and small business: Evidence from the characteristics of business owners survey. IZA Discussion Paper No. 1296.
- Field, J. (2003). Social Capital. London and USA: Routledge Published.
- Fazzari, S., Hubbard, R. & Petersen, B. (1987). Financing constraints and corporate investment. NBER Working Paper No 2387.
- Fonseca, R., Michaud, P. & Sopraseuth, T. (2007). Entrepreneurship, wealth, liquidity constraints and start-up costs. The Institute for the Study of Labour (IZA) Discussion Paper No. 2874.
- Foss, N. J. & Klein, P. G. (2005). Entrepreneurship and the economic theory of firm: Any gains from trade? In a R. Agarwal, S.A. Alvarez & O. Sorensen (eds.), Handbook of Entrepreneurship: Disciplinary Perspectives (pp. 55-80). Norwell, Massachusetts: Kluwer.
- Gatewood, E. J., Shaver, K. G. & Gartner, W. B. (1995). A longitudinal study of cognitive factors influencing start-up behaviours and success at venture creation. Journal of Business Venturing, 10, 371-91.
- Gianneti, M. & Simonov, A. (2004). On the determinants of entrepreneurial activity: Social norms, economic environment and individual characteristics. Swedish Economic Policy Review, 11, 269-313.
- Georgellis, Y., Sessions, J. G. & Tsitsianis, N. (2005). Windfalls, wealth, and the transition to self employment. Small Business Economics, 25(5), 407-428.
- Greene, F. J. (2005). Young entrepreneurship: Latent entrepreneurship, market failure and enterprise support. centre for small and medium sized enterprises, Working Paper No. 87.
- Henley, A. (2005). Job Creation by the Self employment: The Roles of Entrepreneurial and Financial Capital. Small Business Economics, 25, 175-196.
- Hout, M. & Rosen, H. (2000). Self employment, family background and race. Journal of Human Resource, 35(4), 670-692.
- Hurst, E. & Lusardi, A. (2004). Liquidity constraints, wealth accumulation and entrepreneurship. Journal of Political Economy, 112(2), 319-347.
- Irwin, D. & Scott, J. M. (2010). Barriers faced by SMEs in rising bank finance. International Journal of Entrepreneurial Behaviour and Research, 16(3), 245-259.
- Klein, P. G. & Cook, M. L. (2006). T. W. Schultz and human capital approach to entrepreneurship. Review of Agricultural economics, December, 28(3), 344-50.
- Klyver, K. & Grant, S. (2010). Gender differences in entrepreneurial networking and participation. International Journal of Gender and Entrepreneurship, 2(3), 213-227.
- Kon, Y. & Storey, D. J. (2003). A theory of discouraged borrowers. Small Business Economics, 21, 37-49.
- Leoni, T. & Falk, M. (2010). Gender and field of study as determinants of self-employment. Small Business Economics, 34, 167-185.
- Levent, T. B., Masurel, E. & Nijkamp, P. (2003). Diversity in entrepreneurship: Ethnic and female roles in urban economic life. International Journal of Social Economics, 30(11), 1131-1161.
- Lin, Z., Picot, G. & Compton, J. (2000). The entry and exit dynamics of self employment in Canada. Small Business Economics, 15(2), 105-125.
- Lotti, F. (2006). Entrepreneurship: Is there a gender gap? Retrieved from https//mail.sssup.it.
- Marcucci, P. N. (2001). Jobs, gender and small enterprises in Africa and Asia: Lessons Drawn from Bagladesh, Phillippines, Tunisia and Zimbabwe. SEED Working Paper No. 11. Retrieved From www.diiper.ihs.aau.dk/research/3397011
- Martin, S. L. & Paula. S. (2007). Indicators for measuring entrepreneurship. A proposal for a scoreboard. Industry and Higher Education Journal, 21(1), 85-97.
- Mathews, C. H. & Moser, S (1995). Family background and gender: Implication for interest in small firm ownership. Entrepreneurship and Regional Development, 7(2), 365-378.
- Mathews, C. H., Schenkel, M. T. & Hechavarria, D. M. (2009). Family background and influence on nascent entrepreneurs. International Studies in Entrepreneurship, 23(1), 51-67.
- Mondragon-Velez, C. & Pena, X. (2009). Business ownership and self employment in developing countries: The Colombian case. In Lerner, J. & Schoar, A. (ed.), International Differences in Entrepreneurship. Retrieved from http://www.nber.org/books/lern08-2
- Mulfinger, A. (2010). Access to finance: Issue and opportunities in Southeast Europe. Retrieved from http//link.springer.com/chapter/10.1007/3-540. (accessed on July 27, 2001).
- Mulholland, K. (1997). The family enterprise and business strategies, work, employment & society, 11(4), 685-711.
- Mulira, F., Namatovu, R. & Dawa, S. (2011). Panacea or precipitate: The entrepreneurship and poverty paradox. Retrieved from www.aibuma.org/proceedings
- Nestorowicz, J. & Tyrowicz, J. (2010). Cinism start young: Age and entrepreneurship under transition. Working Paper No 2/2010(25), Faculty of Economic Science, University of Warsaw.
- Rogott, E. G. (2008). The issue and opportunities of entrepreneurship after Age 50. AARP Occasional Papers No. 5.
- Rose, R. C., Kumar, N. & Yen, L. L. (2006). The dynamics of entrepreneur's success factors in influencing venture growth. Journal of Asian Entrepreneurship and Sustainability, 2(3).
- Rowe, B. R. & Hong, G. S. (2000). The role of wives in family businesses: The paid and unpaid work of women. Family Business Review, 13(1), 1-13.
- Ruef, M., Aldrich, H. & Carter, N. (2003). The structure of founding teams: Homophily, strong ties and isolation among U.S. entrepreneurs. American Sociological Review, 68, 195-222.
- Scherer, R. F., Brodzinski, J. S. & Wiebe, F. A. (1990). Entrepreneur career selection and gender: A socialization approach. Journal of Small Business Management, April, 28(2), 37-71.
- Scott, C. E. (1986). Why more women are becoming entrepreneurs. Journal of Small Business Management, 24(4), 37-44.
- Selnes, F., Jaworski, B. J. & Kohli, A. K. (1996). Market orientation in United States and Scandinavian companies. Scandinavian Journal of Management, 12(2), 139-157.
- Shane, S., Kolvereid, L. & Westhead, P. (1991). An exploratory examination of the reasons leading to new firm formation across country and gender. Journal of Business Venturing, 6(6), 431-446.
- Singh, R. P. & Crump, M. E. S. (2007). Educational attainment: A key factors for improving the lagging rate of black entrepreneurship. Review of Black Political Economy, 34(2), 217-229.
- Sluis, J. V., Praag, M. V. & Vijverberg, W. (2005). Entrepreneurship selection and performance: A meta-analysis of the impact of education in developing economies. The World Bank Economic Review, 19(2), 225-261.
- Startiene, G. & Remeikiene, R. (2008). Gender Gap in Entrepreneurship. Inzinerine Ekonomika- Engineering Economics, (5), 95-103.
- Steijvers, T., Voordeckers, W. & Vanhoof, K. (2010). Collateral, relationship lending and family firms. Small Business Economics, 34, 243-259.
- Stel, A. & Thurik, R. & Verheul, I. (2006). Explaining female and male entrepreneurship at the country level, scales research reports N200510, EIM Business and Policy Research.
- Van Es, F. & Van Vuuren, D. (2010). A decomposition of the growth in self-employment. CPS Discussion Paper No 145 March 2010.
- Verheul, I. & Van Stel, A. (2010). Entrepreneurial Diversity and Economic Growth. In Bonnet et al. (eds.). Edward Elgar.
- Verheul, I., Wennekers, S., Audretsch, D. & Thurik, R. (2001). An eclectic theory of entrepreneurship. Tinbergen Institute Discussion Paper No. TI 2001-030/3.
- Weaver, M., Dickson, P. & Solomon, G. (2006). Entrepreneurship and education: What is known and not known about the links education and entrepreneurial activity. The small business economy: A report to the President. Chapter 5 U.S Small Business Administration. Office of Advocacy December 2006.
- Wendy, M. T. & Siong-Choy, C. (2007). Theorizing a framework of factors influencing performance of women entrepreneurs in Malaysia. Journal of Asia Entrepreneurship and Sustainability, 3(2).
- Yusuf, A. (1995). Critical success factor for small business: Perception of south pacific entrepreneurs. Journal of Small Business Management, 33(2), 68-73.
- Zhang, Y. & Si, C. (2008). The impacts of external factors on the growth of Chinese entrepreneurial enterprises, an empirical study. Journal of Small Business and Enterprise Development, 15(4), 689-703.
- Zhang, Y. & Yang, J. (2006). New venture creation: Evidence from an investigation into Chinese entrepreneurship. Journal of Small Business and Enterprise Development, 13(2), 161-1.
Abstract Views: 674
PDF Views: 0