Development of Entrepreneurial Firms in Emerging Economies for Economic Diversification: an Insight from Nigeria

Patrick Onochie Okonta (), Ikechukwu Andrew Mobosi () and Victor Chukwunweike Nwokocha ()
Additional contact information
Patrick Onochie Okonta: University of Nigeria
Ikechukwu Andrew Mobosi: University of Nigeria Nsukka
Victor Chukwunweike Nwokocha: University of Nigeria Nsukka

Journal of the Knowledge Economy, 2024, vol. 15, issue 4, No 194, 20778-20796

Abstract: Abstract Economic diversification reduces economic vulnerability to external shocks by transforming the economy from a single income source to multiple sources of income. This can be spread over to various sectors, involving large sections of the population to improve economic performance for sustainable growth. However, given that Nigeria runs a mono-economy, complete diversification of the economic activity base has remained a key challenge for the country. The paper seeks to analyse the development of entrepreneurial firms in emerging economies for economic diversification in Nigeria. This paper used secondary data and applied a quantitative approach in the data analysis. Data were obtained from Nigeria Central Bank Statistical Bulletin (1989–2019). Nigeria’s economic diversification index was derived as the inverse of the Herfindahl-Hirschmann concentration index (HHI). Regression analysis was used to analyze the relationship between index of economic diversification, the initial diversification index (DIV_INDEX), entrepreneurial firms’ business investment value (EFBV) and credit to entrepreneurial firms (CEFs). It was also used to analyse the credit to the private sector (CRP), domestic savings (DSAV), and inflation rate (INF). The result showed that Nigeria is still at a low concentration index of 3.8 and 3.9, respectively, in terms of economic diversification. The paper recommended that given the potential of entrepreneurial firms in creating multiple sources of income for Nigeria’s economy, development planners and policy-makers are expected to create adequate policy frameworks to galvanise the activities of entrepreneurial firms in Nigeria.

Keywords: Economic diversification index; Emerging economies; Entrepreneurial firms; Nigeria (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01611-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-023-01611-3

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01611-3

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().