The Effects of Institution on Enterprise Growth in Nigeria

Enterprise in Nigeria has not been growing very rapidly given that Nigeria has a population of about 185million. There are a number of institutional factors which may contribute to the slow enterprise growth in Nigerian economy. This study therefore utilized Nigeria Enterprise Survey data (2014) and apply the multinomial logistic regression model to examine the effects of institution on enterprise growth in Nigeria. It was therefore found by the study that with respect to the growth of partnership enterprises compared to sole proprietorship, enterprise growth is encouraged by corruption, improvement in rule of law, favourable customs trade regulation, and favourable labour regulation. It is however, negatively affected by political instability, crime, theft and disorder, bottlenecks in business license permit, and tax administration in Nigeria. The study however recommended among others that, there is need for sustained political stability, reduction in the crime, theft and disorder rates in the country.