Journals A-Z
All Subjects
Free Journals
sciepub.com
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
ISSN (Print): 2376-1326 ISSN (Online): 2376-1334 Website: https://www.sciepub.com/journal/jbe Editor-in-chief: Pr. Abdelfatteh Bouri
Open Access
Journal Browser
Go
Issue 1, Volume 9
Article Metrics
  • 5559
    Views
  • 6702
    Saves
  • 0
    Citations
  • 1
    Likes
Export Article
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2021, 9(1), 16-35
DOI: 10.12691/jbe-9-1-3
Open AccessArticle

Entrepreneurship Innovation and Finance

Igbonaju Johnpaul Ogochukwu1,

1School of Management, Northwestern Polytechnical University, Xi’an, China

Pub. Date: October 09, 2021
View Full Text Full Text PDF (441 KB) Full Text ePUB(501 KB)

Cite this paper:
Igbonaju Johnpaul Ogochukwu. Entrepreneurship Innovation and Finance. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2021; 9(1):16-35. doi: 10.12691/jbe-9-1-3

Abstract

The study on entrepreneurship innovation and finance was to investigate the relationship that exists between entrepreneurship innovation and finance in Nigeria, and to understand the effect of finance on the failure of entrepreneurship innovation in Nigeria SMEs, the study tends to contribute to the literature on entrepreneurship innovation in Nigeria. The study explored data obtained from 119 enterprises and financial institutions in Nigeria. The population sample was selected through non-probability sampling method to obtain data from SMEs/MSMEs and financial institutions in Nigeria and accessed using google form. Pearson product correlation and standard multilinear regression from SPSS were used to explore the data to determine the relationship between the defined variables and to predict the impact of the independent variables on the dependent variables. The study findings indicated that there is a low positive significant relationship between finance and entrepreneurship innovation in Nigerian SMEs. Further analysis indicated that major entrepreneurship innovation deficiency in Nigeria SMEs could be attributed to education, which emphasizes the important role of adequate finance and education in entrepreneurship innovation, and performance of entrepreneurial firms in any economy. Furthermore; the study found that there is a positive significant relationship between education and entrepreneurship and negative non-significant relationship between education and innovation in Nigeria. The negative non-significant relationship between education and innovation is an implication of non-productive education, that needs to be addressed to offset the defect/deficit and position Nigeria on the path of general economic growth. The data further showed that finance and long-term credit have the highest impact on entrepreneurship performance in Nigeria. The conclusion of the study will help ease the majority of the challenges often encountered by entrepreneurial firms in Nigeria, mostly at the start-up stage of the enterprises that often lead to failures and inability to compete with other global enterprises.

Keywords:
entrepreneurship innovation finance performance education

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Khyareh MM, Khairandish M, Torabi H. Macroeconomic effects of entrepreneurship: Evidences from factor, efficiency and innovation driven countries. International Journal of Entrepreneurship. 2019; 23(1): 1-21.
 
[2]  Peter F. Drucker, Innovation and Entrepreneurship, 1985. Harper & Row.
 
[3]  Sulistyo, Heru. “Innovation capability of SMEs through entrepreneurship, marketing capability, relational capital and empowerment.” Asia Pacific Management Review 21.4 (2016): 196-203.
 
[4]  Hisrich, Robert D., and Veland Ramadani. “Effective entrepreneurial management.” Strategy, Planning, Risk (2017).
 
[5]  Scarborough, Norman M., and Jeffrey R. Cornwall. Entrepreneurship and effective small business management. Pearson Higher Ed, 2014.
 
[6]  OECD. The OECD innovation strategy: Getting a head start on tomorrow. 2010. OECD Publishing.
 
[7]  Van Auken H, Madrid-Guijarro A, Garcia-Perez-de-Lema D. Innovation and performance in Spanish manufacturing SMEs. International Journal of Entrepreneurship and Innovation Management. 2008 Jan 1; 8(1): 36-56.
 
[8]  Reinert, H., & Reinert, E. S. (2006). Creative destruction in economics: Nietzsche, Sombart, Schumpeter. In Friedrich Nietzsche (1844–1900) (pp. 55-85). Springer, Boston, MA.
 
[9]  OECD (2014), “Financing innovative entrepreneurship”, in OECD Science, Technology and Industry Outlook 2014, OECD Publishing, Paris.
 
[10]  Data, I. I. (2005). Oslo manual. Paris and Luxembourg: OECD/Euro-stat.
 
[11]  O'Sullivan M. Finance and innovation. In The Oxford handbook of innovation 2005.
 
[12]  Bessant, J., & Tidd, J. (2015). Innovation and Entrepreneurship Roman by Thomson Digital.
 
[13]  Marcello Tonelli, Entrepreneurship & Innovation Management. Project: Social versus Regular Enterprise. 2012.
 
[14]  Fagerberg, Jan. “Innovation: A guide to the literature.” Georgia Institute of Technology, 2004.
 
[15]  Galindo, Miguel‐Ángel, and María‐Teresa Méndez‐Picazo. “Innovation, entrepreneurship and economic growth.” Management decision (2013).
 
[16]  Erna H., Amir M. The effects of innovation on Business performance of SMEs in Indonesia. WSEAS Transaction on Business and Economics, 2020.
 
[17]  Al-Ansari, Y., Pervan, S. and Xu, J. (2013), “Innovation and business performance of SMEs: the case of Dubai”, Education, Business and Society: Contemporary Middle Eastern Issues, Vol. 6 No. 3/4, pp. 162-180.
 
[18]  Ekpete, Marshall Simon, and M. Iwedi. “Financial intermediation functions of microfinance banks in Nigeria: A vector autoregressive and multivariate approach.” International Journal of Economics and Financial Modelling 2.1 (2017): 7-24.
 
[19]  Radul Milutinovic, Slađana Benkovic, Biljana Stošić, 2018. The review of external sources of innovation financing, ResearchGate, https://www.researchgate.net/publication/327471233.
 
[20]  Ugochukwu Moses Urim, David Imhonopi, 2015. Operationalizing Financing Windows for Entrepreneurship Development in Nigeria. Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 ISSN 2222-2847 Vol.6, No.15.
 
[21]  OECD (2012), OECD Science, Technology and Industry Outlook 2012, OECD Publishing, Paris.
 
[22]  Gregory Murphy, Jeff W. Trailer, Robert C. Hill, Measuring performance in entrepreneurship research. Journal of Business Research, Vol. 36, issue 1, May 1996, Pages 15-23.
 
[23]  Fatima S.M.A Hasan Muneer Mohammed Saeed Al-Mubarak, (2016), “Factors influencing women entrepreneurs’ performance in SMEs”, World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 12 Issue 2 pp. 82-10.
 
[24]  Dr. Osama Jamal Al-Nsour, Relationship between entrepreneurship, innovation and performance. International conference on creativity, innovation, and entrepreneurship in business environment 2019/10: 15-17.
 
[25]  Gautam, Manish Kumar, Dr Singh, and Sunil Kumar. “Entrepreneurship education: concept, characteristics and implications for teacher education.” (2015).
 
[26]  Nganu, Margaret. Entrepreneurship training and performance of small and micro enterprises in information communication technology sector in Nairobi City County, Kenya. Diss. 2018.
 
[27]  Wang, X. K, Research on Enhancing the Effectiveness of Entrepreneurship Education with Entrepreneurship Practice as a Carrier. Creative Education, 11, 275-284, 2020.
 
[28]  OECD (2018), Opportunities for All: A Framework for Policy Action on Inclusive Growth, OECD Publishing, Paris.
 
[29]  https://knoema.com/atlas/Nigeria, Research and Development Expenditure as a share of GDP.
 
[30]  https://knoema.com/atlas/Nigeria/topics/Education, Nigeria - Public spending on education as a share of gross domestic product. World Development Indicators (WDI) 2021.
 
[31]  Lopez-Nicolas C, Merono Cerdan ÁL. Strategic knowledge management, innovation and performance. International journal of information management. 2011 Dec 1; 31(6): 502-9.
 
[32]  Kim, Won Joong, et al. “R&D, training and accessibility to finance for innovation: a case of Vietnam, the country in transition.” Asian Journal of Technology Innovation 27.2 (2019): 172-193.
 
[33]  Isaac O.A., Abimbola O.F. Innovative Approach to SME Financing in Nigeria: A Review of Small and Medium Industries Equity Investment Scheme (SMIEIS). Journal of Social Science, 2005; 11(3): 219-227.
 
[34]  Nwosu C. P., Ochu E.R. Small and Medium Enterprise Financing in Nigeria, Challenges and Way Forward, Journal of Economics and Sustainable development. 2017; ISSN 2222-2855, Vol.8, No.20, pp. 178-189.
 
[35]  Angilella, Silvia, and Sebastiano Mazzù. “The financing of innovative SMEs: A multicriteria credit rating model.” European Journal of Operational Research 244.2 (2015): 540-554.
 
[36]  Cusmano, L.,” SME and Entrepreneurship Financing: The Role of Credit Guarantee Schemes and Mutual Guarantee Societies in supporting finance for small and medium-sized enterprises”, OECD SME and Entrepreneurship Papers, No. 1, 2018 OECD Publishing, Paris.
 
[37]  Imhonopi, D., Urim, U. M., & Ajayi, M. P. (2013). Increasing the access of women entrepreneurs to finance in Nigeria. In D. Imhonopi & U. M. Urim (Eds), A panoply of readings in social sciences: Lessons for and from Nigeria. Pp. at: https://www.researchgate.net/publication/307912347.
 
[38]  A.O. Akinola. Entrepreneurship in Nigeria-Funding and Financing Strategies, European Journal of Accounting Auditing and Finance Research (www.ea-journals.org) Vol.1, No.4, pp.115-128, 2013.
 
[39]  Ibrahim Abdel Gelil, Financing Sustainable Development in Arab Countries. AFED 2018. (Researchgate.net).
 
[40]  Ayyagari M, Demirguc-Kunt A, Maksimovic V. Firm innovation in emerging markets: The role of finance, governance, and competition. Journal of Financial and Quantitative Analysis. 2011 Dec;46(6):1545-80.
 
[41]  Wellalage NH, Fernandez V. Innovation and SME finance: Evidence from developing countries. International Review of Financial Analysis. 2019 Nov 1; 66:101370.
 
[42]  Vasilescu, Laura. “Accessing finance for innovative EU SMEs key drivers and challenges.” Economic Review: Journal of Economics and Business 12.2 (2014): 35-47.
 
[43]  King, Robert G., and Ross Levine. “Finance, entrepreneurship and growth.” Journal of Monetary economics 32.3 (1993): 513-542.
 
[44]  Nwachukwu AC, Ogbo A. The role of entrepreneurship in economic development: The Nigerian perspective. European Journal of Business and Management. 2012; 4(8): 96.
 
[45]  OECD (2015), OECD Investment Policy Reviews: Nigeria 2015, OECD Investment Policy Reviews, OECD Publishing, Paris.
 
[46]  https://www.scidev.net/sub-saharan-africa/enterprise/news/ Lack of R&D commercialization stifling Nigeria’s growth.
 
[47]  Banking, Branchless. “Access to Finance in Nigeria.” (2009).
 
[48]  Okere, A. E. “Entrepreneurial Development and Business Environment in Nigeria.” Capital Journal of Educational Studies (CAJES) 5.1 (2017): 95-107.
 
[49]  Thaddeus E. Perspectives: Entrepreneurship development & growth of enterprises in Nigeria. Entrepreneurial practice review. 2012; 2(2): 31-35.
 
[50]  Albaladejo, M., & Romijn, H. (2000). Determinants of innovation capability in small UK firms: an empirical analysis.
 
[51]  Oseni EF. The relevance of entrepreneurship education to the development of micro, small and medium enterprises (MSMEs) in Nigeria. Journal of Public Administration, Finance and law. 2017(11): 137-44.
 
[52]  Diyoke CI. Entrepreneurship development in Nigeria: Issues, problems and prospects. International Journal of Technical Research and Applications. 2014 Nov; 10(1): 19-23.
 
Manuscript template