Journal of Entrepreneurship & Management

Abubakar S. Garba ¹, Shazali Abu Mansor ², Fariastuti Djafar ³

Affiliations
1 Department of Business Admin & Management, School of Management Studies, Kano State Polytechnic, universiti Malaysia Sarawak, MY
2 Universiti Malaysia Sarawak, MY
3 Department of Economics, Universiti Malaysia Sarawak, MY

Abstract

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.

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Abubakar S. Garba ¹, Shazali Abu Mansor ², Fariastuti Djafar ²

Affiliations
1 Department of Business Administration and Management, School of Management Studies, Kano State Polytechnic, NG
2 Department of Economics, Universiti Malaysia Sarawak, Sarawak, MY

Abstract

The purpose of the paper is to examine factors influencing entrepreneurship both at individual and aggregate level. The approach for data collection has been broken down in two in order to address the differences in using different levels of analysis. At the individual level, survey has been used to collect data. Ordinary lease square method was employed in estimating the coefficients of the variables in the model. While at the aggregate level, time series data were collected from various official sources. Vector autoregressive (VAR) framework was adopted to systematically capture the rich dynamic in multiple time series. Start-up capital and gender were found to be statistically significant in influencing entrepreneurship at individual level. It is also evident that most of the entrepreneurs are driven by opportunity to start up business. The result at the aggregate level shows that there is long run relationship among the variables. The positive influence of unemployment on entrepreneurship is an indication of the presence of necessity entrepreneurship. Poverty and economic growth influenced entrepreneurship negatively. Therefore, the paper reveals the presence of both necessity and opportunity entrepreneurship in the country. There is paucity of studies on this area that integrate individual and aggregate level. Therefore, the paper attempts to fill this research gap and to provide holistic information on entrepreneurship in Nigeria context.

Keywords

Entrepreneurship, Micro and Small Business, Necessity Entrepreneurship, Opportunity Entrepreneurship.

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