IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v12y2025i3p922-931.html
   My bibliography  Save this article

Financial Development and Entrepreneurship Growth in Nigeria

Author

Listed:
  • linus, Justin Ogbonna

    (Department of Business Administration Southwestern University, Nigeria)

  • lawal, Faith Chidinma

    (Department of Banking and Finance University of Nigeria)

  • Rasheed Azeez

    (Department of Industrial relations and human resource Management. Lagos State University, Nigeria)

  • Sunday O Okafor

    (Teesside University International Business School, Middlesbrough, England)

  • Ifeanyi Ozioma Patricia

    (Federal College of Agriculture, Ishiagu)

Abstract

This study investigates the response of entrepreneurship to financial development using Nigeria as the geography of interest. The study deployed relevant estimation techniques especially the autoregressive distributed lag model with entrepreneurship growth as the dependent variable and bank development, institutional development and insurance sector development as the independent variables. It was found that bank and institutional development positively and significantly affect entrepreneurship growth while insurance sector growth negatively affects entrepreneurship growth. This implies that while bank development and institutional development drive entrepreneurship growth, insurance sector development inhibits growth. This study is a significant contribution to the role funding plays in driving business activities especially in the informal sector.

Suggested Citation

  • linus, Justin Ogbonna & lawal, Faith Chidinma & Rasheed Azeez & Sunday O Okafor & Ifeanyi Ozioma Patricia, 2025. "Financial Development and Entrepreneurship Growth in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 12(3), pages 922-931, March.
    • Handle: RePEc:bjc:journl:v:12:y:2025:i:3:p:922-931
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-12-issue-3/922-931.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijrsi/articles/financial-development-and-entrepreneurship-growth-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Beck, Thorsten & Cull, Robert, 2014. "SME finance in Africa," Policy Research Working Paper Series 7018, The World Bank.
    2. Ruth V. Aguilera & Valentina Marano & Ilir Haxhi, 2019. "International corporate governance: A review and opportunities for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 457-498, June.
    3. Buckley, Graeme, 1997. "Microfinance in Africa: Is it either the problem or the solution?," World Development, Elsevier, vol. 25(7), pages 1081-1093, July.
    4. Thorsten Beck & Robert Cull, 2014. "Editor's choice SME Finance in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 583-613.
    5. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
    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. Christian Hagin & Livingstone Divine Caesar, 2021. "The antecedents of success among small- and medium-sized enterprises: evidence from Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 279-297, December.
    2. Marus Eton & Fabian Mwosi & Constant Okello-Obura & Abanis Turyehebwa & Gilbert Uwonda, 2021. "Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-23, December.
    3. Zuzana Brixiová & Thierry Kangoye, 2016. "Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland," SALDRU Working Papers 192, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Cao, Bin & Zhong, Yuanguang & Zhou, Yong-Wu, 2024. "The role of completely joint liability in financing multiple capital-constrained firms: Risk sharing, inventory and financial strategies," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1072-1087.
    5. Romain Houssa & Paul Reding & Albena Sotirova, 2017. "Methodological issues of an impact evaluation of development support in agriculture," BeFinD Working Papers 0120, University of Namur, Department of Economics.
    6. Koffi Elitcha, 2021. "The moderating role of stock markets in the bank competition-entrepreneurship relationship," Small Business Economics, Springer, vol. 56(4), pages 1333-1360, April.
    7. Evans Kulu, 2023. "Financial stability gap and private investment nexus: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 35(2), pages 239-250, June.
    8. Herr, Hansjörg & Nettekoven, Zeynep Mualla, 2018. "The role of small and medium-sized enterprises in development: What can be learned from the German experience?," GLU Working Papers 53, Global Labour University (GLU).
    9. Joseph Ochieng Onginjo & Zhou Dong Mei, 2023. "A study on the social and economic sustainability of rewards-based crowdfunding in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9619-9646, September.
    10. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    11. Esho, Ebes & Verhoef, Grietjie, 2018. "The Funding Gap and the Financing of Small and Medium Businesses: An Integrated Literature Review and an Agenda," MPRA Paper 90153, University Library of Munich, Germany, revised 21 Nov 2018.
    12. Nwakego Eyisi & Hyacinth E. Ichoku & Asma Kanwal, 2024. "Front-end Innovation and Top Income Inequality: Evidence from Emerging Markets," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1437-1481, March.
    13. Ebrahim Endris & Andualem Kassegn, 2022. "The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-18, December.
    14. Kanga, Désiré & Soumare, Issouf & Tchuigoua, Hubert Tchakoute, 2024. "Financial sector development and microcredit to small firms," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 96(C).
    15. Covas, Francisco, 2006. "Uninsured idiosyncratic production risk with borrowing constraints," Journal of Economic Dynamics and Control, Elsevier, vol. 30(11), pages 2167-2190, November.
    16. Steven Klepper & Atsushi Ohyama & Serguey Braguinsky, 2009. "Schumpeterian Entrepreneurship," 2009 Meeting Papers 772, Society for Economic Dynamics.
    17. Joao Galindo da Fonseca, 2022. "Unemployment, Entrepreneurship and Firm Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 322-338, July.
    18. Davila, Alberto & Mora, Marie T., 2004. "The scholastic progress of students with entrepreneurial parents," Economics of Education Review, Elsevier, vol. 23(3), pages 287-299, June.
    19. Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2017. "Mode of Entry into Hybrid Entrepreneurship: New Venture Start-Up versus Business Takeover," IZA Discussion Papers 11104, Institute of Labor Economics (IZA).
    20. Bracke, Philippe & Hilber, Christian A.L. & Silva, Olmo, 2018. "Mortgage debt and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 103(C), pages 52-66.

    More about this item

    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:bjc:journl:v:12:y:2025:i:3:p:922-931. 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: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    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.