Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity

Bashir I. Bugaje, Ahmadu Bello UniversityFollow
Azmawani Abd Rahman, University of Putra MalaysiaFollow
Rusmawati Said, University of Putra MalaysiaFollow
Jo A. Ho, University of Putra MalaysiaFollow
Abubakar A. Adamu, Ahmadu Bello UniversityFollow

Abstract

Poverty rates in Sub-Saharan Africa (SSA) have risen, with 47% of the region’s population living in poverty. In Nigeria, approximately 87 million are classified as extremely poor. Existing research on the relationship between entrepreneurship and poverty in this region is fragmented and inconsistent. Traditional economic measures of poverty have proven inadequate, prompting the need for a multidimensional approach. The paper examined the mediating effect of entrepreneurial activity on the relationship between the precursors of entrepreneurship and poverty. The study used a survey method and partial least squares structural equation modeling (PLS-SEM) to analyze the data, which confirmed all hypotheses, revealing significant direct relationships except for uncertainty avoidance. The findings suggest that access to finance, entrepreneurial potential, individualism, and masculinity’s impact on poverty are mediated by entrepreneurial activity. The paper advocates for an increase in formal and informal funding and suggests that government programs should emphasize skill development over business programs. This study enriches the existing literature by detailing the mediating effect of entrepreneurial activity on poverty drivers.

Keywords

access to finance, national culture, self-efficacy, entrepreneurial capacity, poverty

Chinese Abstract

创业活动与贫穷的前因:创业活动的中介作用

隨著撒哈拉以南非洲 (SSA) 的贫困率上升﹐该地区的 47% 的人口正处于贫困状态。在尼日利亞﹐大约有 8,700 万人被列为极度贫困的人口。目前﹐关于该地区创业与贫困之间关系的研究是零碎和不一致的。由于传统的贫困经济衡量标准已证明是不足的﹐更促使了采用多层面方法的需要。本文分析了创业活动对创业与贫困先兆之间的中介作用。本研究通过使用调查方法和偏最小平方法的结构方程模型(PLS-SEM)来分析数据﹐验证了所有假设﹐显示除了不确定性规避之外的其他重要直接关系。研究结果表明﹐融资渠道、创业潜力、个人主义和男性特质对贫困的影响是由创业活动调节的。本文主张增加正式和非正式资金的投放，并建议政府计划应强调技能发展多於商业考量。本研究通过详细阐述创业活动对贫困驱动因素的中介作用，丰富了现有文献。

关键词: 融资渠道、国家文化、自我效能、创业能力、贫困

ORCID Identifiers

Bashir I. Bugaje: https://orcid.org/0000-0002-8237-8925

Azmawani Abd Rahman: https://orcid.org/0000-0002-7590-6427

Rusmawati Said: https://orcid.org/0000-0002-5150-7843

Jo A. Ho: https://orcid.org/0000-0002-7031-7068

Abubakar A. Adamu: https://orcid.org/0000-0003-2672-7251

DOI

10.5038/2640-6489.9.2.1261

Recommended Citation

Bugaje, B. I., Abd Rahman, A., Said, R., Ho, J. A., & Adamu, A. A. (2024). Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity. Journal of Global Business Insights, 9(2), 99-116. https://www.doi.org/10.5038/2640-6489.9.2.1261