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

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...

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Main Authors: Bashir Bugaje, Azmawani Abd Rahman, Rusmawati Said, Jo Ho, Abubakar Adamu
Format: Article
Language:English
Published: University of South Florida (USF) M3 Publishing 2024-09-01
Series:Journal of Global Business Insights
Subjects:
Online Access:https://digitalcommons.usf.edu/globe/vol9/iss2/1
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author Bashir Bugaje
Azmawani Abd Rahman
Rusmawati Said
Jo Ho
Abubakar Adamu
author_facet Bashir Bugaje
Azmawani Abd Rahman
Rusmawati Said
Jo Ho
Abubakar Adamu
author_sort Bashir Bugaje
collection DOAJ
description 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.
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publisher University of South Florida (USF) M3 Publishing
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spelling doaj-art-7a1127a7a2dd4a74b7e07b21cf60a3872025-08-20T03:05:30ZengUniversity of South Florida (USF) M3 PublishingJournal of Global Business Insights2640-64892024-09-019210.5038/2640-6489.9.2.1261Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activityBashir Bugaje0Azmawani Abd Rahman1Rusmawati Said2Jo Ho3Abubakar Adamu4Ahmadu Bello UniversityUniversity of Putra MalaysiaUniversity of Putra MalaysiaUniversity of Putra MalaysiaAhmadu Bello UniversityPoverty 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.https://digitalcommons.usf.edu/globe/vol9/iss2/1access to financenational cultureself-efficacyentrepreneurial capacitypoverty
spellingShingle Bashir Bugaje
Azmawani Abd Rahman
Rusmawati Said
Jo Ho
Abubakar Adamu
Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
Journal of Global Business Insights
access to finance
national culture
self-efficacy
entrepreneurial capacity
poverty
title Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
title_full Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
title_fullStr Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
title_full_unstemmed Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
title_short Antecedents of entrepreneurial activity and poverty: Mediating effect of entrepreneurial activity
title_sort antecedents of entrepreneurial activity and poverty mediating effect of entrepreneurial activity
topic access to finance
national culture
self-efficacy
entrepreneurial capacity
poverty
url https://digitalcommons.usf.edu/globe/vol9/iss2/1
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