IDEAS home Printed from https://ideas.repec.org/a/ags/paaero/348636.html

Macroeconomic Environment and Entrepreneurship in Nigeria

Author

Listed:
  • Anyebe, Daniel
  • Wołoszyn, Andrzej

Abstract

This study investigates the nexus between the macroeconomic environment and entrepreneurship in Nigeria using linear regression with ARMA (autoregressive moving average) analysis. Results indicate a positive relationship between GDP per capita and both new businesses registered and new business density, highlighting the role of economic prosperity in fostering entrepreneurial activity. Conversely, inflation exerts a negative influence on entrepreneurship, with higher inflation rates associated with reduced new business registrations and lower business density. Access to financing emerges as a crucial factor, as reflected in the positive correlation between monetary sector credit to the private sector and new business registered. However, the significance of this relationship is marginally significant, prompting further inquiry into credit provision mechanisms. Furthermore, government expenditure on education is found to negatively impact entrepreneurship, underscoring the importance of aligning education spending with entrepreneurship development initiatives. The findings underscore the need for targeted policies aimed at promoting economic growth, mitigating inflationary pressures, enhancing access to financing, and aligning education spending with entrepreneurship support programs to create a conducive environment for entrepreneurial growth in Nigeria.

Suggested Citation

  • Anyebe, Daniel & Wołoszyn, Andrzej, 2024. "Macroeconomic Environment and Entrepreneurship in Nigeria," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(2).
    • Handle: RePEc:ags:paaero:348636
    DOI: 10.22004/ag.econ.348636
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348636/files/ANYEBE-8%20%281%29.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348636?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sucheta Agarwal & Veland Ramadani & Shqipe Gerguri-Rashiti & Vivek Agrawal & Jitendra Kumar Dixit, 2020. "Inclusivity of entrepreneurship education on entrepreneurial attitude among young community: evidence from India," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 14(2), pages 299-319, May.
    2. Zizi Goschin & Mihai Antonia & Horia Tigau, 2021. "Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach," Sustainability, MDPI, vol. 13(19), pages 1-12, September.
    3. Herkenhoff, Kyle & Phillips, Gordon M. & Cohen-Cole, Ethan, 2021. "The impact of consumer credit access on self-employment and entrepreneurship," Journal of Financial Economics, Elsevier, vol. 141(1), pages 345-371.
    4. Lu, Jiangyong & Tao, Zhigang, 2010. "Determinants of entrepreneurial activities in China," Journal of Business Venturing, Elsevier, vol. 25(3), pages 261-273, May.
    5. Oluyemi Theophilus Adeosun & Kayode Ebenezer Owolabi, 2021. "Gender inequality: determinants and outcomes in Nigeria," Journal of Business and Socio-economic Development, Emerald Group Publishing Limited, vol. 1(2), pages 165-181, July.
    6. E. L. Goryunov & S. M. Drobyshevsky & A. L. Kudrin & P. V. Trunin, 2023. "Causes and lessons of accelerating global inflation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 7.
    7. Villacis, Alexis H. & Mayorga, Joaquin & Mishra, Ashok K., 2022. "Experience-based food insecurity and agricultural productivity in Nigeria," Food Policy, Elsevier, vol. 113(C).
    8. Maribel Guerrero & Francisco Liñán & F. Rafael Cáceres-Carrasco, 2021. "The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies," Small Business Economics, Springer, vol. 57(4), pages 1733-1759, December.
    9. Colombo, Valentina & Paccagnini, Alessia, 2020. "Does the credit supply shock have asymmetric effects on macroeconomic variables?," Economics Letters, Elsevier, vol. 188(C).
    10. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    11. Dong, Jing & Xu, Wanyu & Cha, Jun, 2021. "Rural entrepreneurship and job creation: the hybrid identity of village-cadre-entrepreneurs," China Economic Review, Elsevier, vol. 70(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cristian A Rojas & Felipe Chávez-Bustamante & Rolando Rubilar-Torrealba, 2024. "Human development and entrepreneurship: A cross-country analysis of early-stage, intention, and discontinuation," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-21, November.
    2. Greg Buchak, 2024. "Financing the Gig Economy," Journal of Finance, American Finance Association, vol. 79(1), pages 219-256, February.
    3. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    4. Gil Avnimelech & Yaron Zelekha, 2023. "Religion and the gender gap in entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 629-665, June.
    5. Hassen Elarem & Anis Jarboui, 2026. "Entrepreneurial Dynamics: An Empirical Study of Entrepreneur Profiles, Innovation Ecosystems, and R&D Intensity," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 71-104.
    6. Nezameddin Faghih & Ebrahim Bonyadi & Lida Sarreshtehdari, 2021. "Assessing the entrepreneurship process: an application of the data envelopment analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 311-327, December.
    7. Zhou, Zhengyi, 2022. "The effects of state-led relocation on labor market participation: Evidence from China," China Economic Review, Elsevier, vol. 73(C).
    8. Fenghua Pan & Bofei Yang, 2019. "Financial development and the geographies of startup cities: evidence from China," Small Business Economics, Springer, vol. 52(3), pages 743-758, March.
    9. Denes, Matthew & Lagaras, Spyridon & Tsoutsoura, Margarita, 2025. "Entrepreneurship and the gig economy: Evidence from U.S. tax returns," Journal of Financial Economics, Elsevier, vol. 173(C).
    10. Bu, Di & Liao, Yin, 2022. "Land property rights and rural enterprise growth: Evidence from land titling reform in China," Journal of Development Economics, Elsevier, vol. 157(C).
    11. Qigang Yuan & Yongsheng Ji & Wei Zhang & Ting Lei, 2024. "Cross-Border E-Commerce and Urban Entrepreneurial Vitality—A Quasi-Natural Experiment Evidence from China," Sustainability, MDPI, vol. 16(5), pages 1-23, February.
    12. J. Carter Braxton & Nisha Chikhale & Kyle F. Herkenhoff & Gordon M. Phillips, 2024. "Intergenerational Mobility and Credit," NBER Working Papers 32031, National Bureau of Economic Research, Inc.
    13. Blonz, Joshua & Roth Tran, Brigitte & Troland, Erin, 2026. "The canary in the coal decline: Appalachian household finance and the transition from fossil fuels," Journal of Financial Economics, Elsevier, vol. 175(C).
    14. Ramadani, Veland & Rahman, Md. Mizanur & Salamzadeh, Aidin & Rahaman, Md. Saidur & Abazi-Alili, Hyrije, 2022. "Entrepreneurship Education and Graduates' Entrepreneurial Intentions: Does Gender Matter? A Multi-Group Analysis using AMOS," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    15. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 2016-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Jungsuk Kim & Cynthia Castillejos-Petalcorin & Yothin Jinjarak & Donghyun Park & Pilipinas Quising & Shu Tian, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    17. Ismail Juma Ismail, 2026. "Innovation-driven entrepreneurial design: examining the mediating effect of innovative culture on innovation capabilities and innovation performance," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 16(1), pages 1-12, December.
    18. Marco Savastano & Altaf Hussain Samo & Nisar Ahmed Channa & Carlo Amendola, 2022. "Toward a Conceptual Framework to Foster Green Entrepreneurship Growth in the Agriculture Industry," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    19. Hess, Sophia & Wurth, Bernd & Stam, Erik & Giones, Ferran & Fini, Riccardo & Cavallo, Angelo & Wahl, Andreas & Bosma, Niels & Theodoraki, Christina & Chabaud, Didier & Brem, Alexander & Kuckertz, Andr, 2025. "The future of entrepreneurial ecosystems research: Toward a policy-oriented research agenda," Journal of Business Venturing Insights, Elsevier, vol. 23(C).
    20. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:paaero:348636. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/seriaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.