The impact of socio-cultural factors on entrepreneurial development in Nigeria

Abstract

Entrepreneur development takes place within a framework of forces that constitute the system environment, which are either external or internal. A critical issue in the entrepreneurial development and growth is firms' ability to adapt to their strategies to a rapidly changing system environment to which the entrepreneurs' role is critical to the success or failure of such firm. For the entrepreneur to be successful, he must be able to identify and find a useful niche within the large environment where it takes risk, makes strategic business plan and takes/implements decisions. The various institutions and forces which determine the success or failure of the entrepreneur is the habitat also referred to as eco-system or critical factors affecting the entrepreneur who is equally dependent on the stability of the environment within which he operates. Environmental stability exists in various degrees. Strategic management of the environment is required for entrepreneurial development to survive in its varying degrees. Generally, the internal forces that the business eco-system entrepreneur must face and take strategic action to adapt in Nigeria are controllable, while the external forces are generally uncontrollable. This paper limits itself to the socio-cultural factor which impacts seriously on entrepreneurial development in Nigeria. These are general environmental forces that do not directly touch on the short-run activities of the organization but that can, and often do influence its long-run decision. These external factors are: (i) demographic forces, (ii) economic conditions (iii) social and cultural forces, (iv) political and legal forces, and (v) technological innovations. The entrepreneur should understand that both the social (external) and task environment must be monitored to detect the strategic factors that are likely to have strong impacts on corporate success or failure. Based on our findings, we recommend that to increase the legitimacy of entrepreneurship, there should be a change in traditional values which have been assumed to be opposed to entrepreneurial development. The issue of security of lives and property should no longer be left in the hands of the government alone, our traditional rulers and town union governments should bring out measures that will collaborate with the efforts of the government in tackling the issue of insecurity. This is because a secured enviroment increases investment.

Keywords: Entrepreneurship, entrepreneurial development, socio-cultural factors.