Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


Determinants of Entrepreneurial Growth in Nigeria: Factor and Principal Component Analyses

Author(s): Egberi, Kelvin A

This paper investigated the determinants of entrepreneurial growth in Nigeria using the cross-sectional survey design. Five (5) determinants of entrepreneurial growth were assessed - global competition, cultural resistance to entrepreneurial activity, taxes and regulations, capital financing and economic potential of innovation. To carry out the study, questionnaires were administered to five hundred and forty-five (545) respondents in the six (6) geopolitical regions of Nigeria. The analytical framework was based on the factor and principal component analyses. The approximation chi-square result supports the factorability of correlation matrix and suitability of dataset for factor analysis. More so, the principal component analysis showed that among the identified determinants of entrepreneurial growth, capital financing had the highest commonality while taxes and regulations had the lowest. This implies that capital financing is the most significant factor driving or determining the growth of entrepreneurial activities in Nigeria. Based on the findings, it was recommended among others that Nigerian government and other established agencies on entrepreneurships should assist in promotion of entrepreneurial activities by providing the required funding for the growth of entrepreneurs.

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