CULTURE AND ENTREPRENEURSHIP DEVELOPMENT IN

SOUTH EAST, NIGERIA

AMAMBA Okechukwu Evaristus

PG/Ph.D/19/915610

DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF NIGERIA
ENUGU CAMPUS

NOVEMBER, 2023

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 CULTURE AND ENTREPRENEURSHIP DEVELOPMENT IN
SOUTH EAST, NIGERIA

AMAMBA Okechukwu Evaristus

PG/Ph.D/19/915610

BEING A Ph.D THESIS PROPOSAL SUBMITTED TO THE DEPARTMENT OF

MANAGEMENT, FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF NIGERIA, ENUGU CAMPUS, IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF DOCTOR OF PHILOSOPHY (Ph.D)
IN MANAGEMENT

SUPERVISOR:
PROF. E. K. AGBAEZE

NOVEMBER, 2023

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 TABLE OF CONTENTS

Title Page i
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Statement of Hypothesis 4
1.6 Significant of the Study 4
1.7 Scope of the Study 4
1.8 Definition of Terms 5
References 6

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual Review 7
2.1.1 Culture 7
2.1.2 Entrepreneurship 8
2.1.3 Entrepreneurship Development 9
2.1.3.1 Culture Strategies 10
2.1.2.2 Culture Variables 11
2.1.2.3 Economic Variables 11
2.1.2.4 Capital 11
2.1.2.5 Infrastructure: 12
2.1.2.6 Labour: 12
2.1.2.7 Raw Materials: 12
2.1.2.8 Market 12
2.1.2.9 Non-economic factors: 12
2.1.2.10 Social Mobility 13
2.1.2.11 Education: 13
2.1.2.12 Attitude of the Society 13
2.1.3 Cultural Variables that Promote Entrepreneurship Growth in
Southeast Nigeria. 13
2.1.4 Cultural Factors that Inhibits Entrepreneurship Growth in
South east Nigeria. 14

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2.1.5 Explore Ways of Improving the Cultural Factors that Inhibit
Entrepreneurship Development in South East Nigeria. 15
2.1.6 Cultural Components, and Dimensions and its Effect on Marketing
Methodologies 15
2.14 The Six Dimensions of Culture 17
2.2 Theoretical Framework 18
2.2.1 Schumpeter (Neo-growth Model) Theory 18
2.3 Empirical Review 19
2.3.1 The cultural Strategies Involved in Entrepreneurship Development
in South East, Nigeria 19
2.3.2 If Cultural Variables Promotes Entrepreneurship Development in
South East, Nigeria 20
2.1.3 If there are some Cultural Variables that Inhibits Entrepreneurship
Development in South East, Nigeria. 21
2.1.4 If there are ways of Improving a Cultural Factors, that Inhibits
Entrepreneurship Development in South East, Nigeria 23
2.1.5 If there are cultural components and dimensions and its effect
on marketing methodologies 25
References 27

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction 31
3.2 Area of the Study 31
3.3 Research Design 31
3.4 Population of the Study 32
3.5 Sample Size Determination 34
3.6 Sample Frame 35
3.7 Sampling Techniques 35
3.9 Method of Data Collection 35
3.9.1 Research Instrument 35
3.10 Validity and Reliability of Research Instrument 36
3.10.1 Pilot Testing 36
3.10.2 Validity of the Instrument 36

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3.10.3 Reliability of the Instrument 37
3.11 Method of Data Analysis 37
3.11.1 Model Specification 37
References 40
Questionnaire 41

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 CHAPTER ONE
INTRODUCTION

1.1 Background to the Study

The development and dynamics of any society, economy or organization requires micro-
level actors-individuals who have the ability and persistence to make change happen.
Institutions as well as market, religion and organizational structures do not create changes in
the absence of human actors. It is the unique knowledge, perception and goal of individuals
equipped with the drive to take action accordingly that initiate novelty. In order for such
entrepreneurial initiative to lasting impact, however, they need to create value. (Mehdi,
Abzari and Ali Safari, 2019).

However, Muellier and Thomas, (2000) opined that entrepreneurship is a major driver of
economic growth and economic development. Entrepreneurship development is now being
considered a strategic option that can help to minimize some of the deep-rooted socio-
economic challenges facing development particularly in south-east Nigeria. Poverty, falling
standards of living, unemployment and poor disposal income have become common
symptoms of an existing global economic blight.

Entrepreneurship may be described as “the process of bringing together creative and

innovative ideas and coupling these with management and organizational skills in order to
combine people, money and resources to meet an identified needs and create wealth. In the
same vein, Nwangwu (2007), opined that entrepreneurship is the process of bringing
together the fact of production which include land, labour and capital so as to provide a
product or service for public consumption, However, the operational definition of
entrepreneurship is the willingness and ability of a person or persons to acquire educational
skills to explore and exploit investment opportunities, establish and manage a successful
business enterprise.

A lot of questions have been asked as to why some regions, nations, ethnic groups, and
communities have more entrepreneurial tendencies than others. One of the answers is
cultural differences in norms, beliefs, values and practices. Some scholars and researchers
have given reasons why. Prominent among them are Light and Rosenestein (1995). Aldrich
and Waldnger (1990), Harrison and Huntington (2000). Culture can have significance effect
on entrepreneurship which can be positive or negative effect as it can affect the way

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individuals think about and approach business opportunities. For example, a culture that
value risk – taking and innovation maybe more conducive to entrepreneurship than one that
value stability and security. Furthermore, cultural norms and value may have effect on the
entrepreneurship that may be acceptable in addition to government regulations in selected
markets in South East Region.

Some other factors such as “push and pull factors also contributed. Example of ‘push’
factors include but not limited to uncompetitive compensation schemes, weak social
insurance benefit, lack of attractive alternative occupational choice, and limited autonomy
associated with employee status. While the ‘pull’ factors make entrepreneurship more
attractive, such as more autonomy or higher relative pay-offs by being an entrepreneur and
there may be tendency to evade taxes. Therefore, Harris (1999), said that culture consist of
overarching values, motives and moral ethical rules and meanings that are that of the
system.Shorter,(1998)sees culture as the whole way of life,material and non-material of human
society. Hoftstede, (1991) defines culture as a collective programing of the mind which
distinguishes the members of one group or category of people from another.

Benedict (2009), asserts that although a culture is built up of elements and traits, the
significances lies less in its inventory of treats than in the manner of integration.

Overall, culture and entrepreneurship development in South East, Nigeria is complex and
multifaceted issue that requires further research and analysis. Based on this, the need to
evaluate culture and entrepreneurship development in South East, Nigeria.

1.2 Statement of the Problem

Entrepreneurship is a creative process of organizing, managing an enterprise and assuming
the risk involved in the enterprise. “Entrepreneurship is therefore about learning and
acquiring a skills needed to assume the risk of establishing a business … developing the
winning strategies and executing them with all the vigor, persistent and passion needed to
win any game”. Accordingly, culture refers to the social heritage of people, those learned
patterns for thinking, filling, and acting that are transmitted to from one generation to the
next, including the embodiment of those patters in material items especially as it concerns
entrepreneurship development in South East Nigeria. Although studies that examine culture
and entrepreneurship development in South East, Nigeria have been carried out by previous
researchers such as Nwangwu, (2004), Nwachukwu, (2012), among others, it underscores a

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belief that there exist fundamental cultural effect which confront entrepreneurship
development in South East, Nigeria such as religion, individualism, beliefs, norms, ethnicity
etc. but which hitherto have either not been addressed at all or have not been wholesomely
tackled. Therefore, it is still doubtful if there is culture and entrepreneurship in Nigeria and
it remains an empirical question to be resolved in South East, Nigeria and such research
needs further expansion. It is against this backdrop that the researchers have to examine
culture and entrepreneurship development in South East, Nigeria.

1.3 Objective of the Study

The main objective of the study is to evaluate culture and entrepreneurship development in
South East, Nigeria. The specific objectives were to:
i. Examine the cultural strategies involved in entrepreneurship development in South
East, Nigeria.
ii. To ascertain if cultural variables promote entrepreneurship growth in South East,
Nigeria.
iii. To assess if there are some cultural factors that inhibits entrepreneurship
development in South East, Nigeria.
iv. Explore ways of improving the cultural factors that inhibit entrepreneurship
development in South East, Nigeria.
v. Examine the cultural components and dimensions and its effects on marketing
methodologies.

1.4 Research Questions

The following research questions guided the study
i. What is the nature of cultural strategies involved in entrepreneurial development in
South East, Nigeria?
ii. To what extent have cultural variables promote entrepreneurship growth in South
East, Nigeria?
iii. What is the nature of cultural factors that inhibits entrepreneurship development in
South East, Nigeria?
iv. Are there ways of improving the cultural factors that inhibits entrepreneurship
development in South East, Nigeria?
v. Does cultural components and dimensions really have effect on market
methodology?

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1.5 Statement of Hypothesis
The following statement of hypothesis guided the study.
HO: Cultural strategies have no significant effect on entrepreneurship development in
South East, Nigeria.
HO: There is no significant cultural variables that promote entrepreneurship growth in
South East, Nigeria.
HO: There is no significant cultural factors that inhibits entrepreneurship development in
South East, Nigeria.
HO: There are no significant ways of improving the cultural factors that inhibits
entrepreneurship development in South East, Nigeria.
HO: Cultural components and dimensions have no significant effect on market
methodologies.

1.6 Significant of the Study

The study is significant to the South East States of Nigeria, and Nigerians in general
because it will help them to identify areas of culture and entrepreneurship development that
they can modify or improve to help entrepreneurs to develop them. The study will help
academia, researchers and students since it will be used as a reference materials to them.
Furthermore, the result can be made use of in collaboration with other studies by
individuals, organizations, and governments to help the upcoming entrepreneurs to embark
on those cultures that will enhance entrepreneurship development. The study will also help
the entrepreneur to know the best method to balance cultural effect and differences so as to
achieve development. The model developed in this study will guide other researchers who
wish to carry out research in these areas of study. And finally, this study contributes to
knowledge by filling the research gap identified in this study.

1.7 Scope of the Study

The scope of the study originally is culture and entrepreneurship development in South
East, Nigeria. The key management issues were on entrepreneurship development in South
East, Nigeria to provide more insight on the topic. Cultural strategies involved in
entrepreneurship development, cultural variables that promote entrepreneurship growth,
cultural factors that inhibits entrepreneurship development, ways of improving the cultural
factors that inhibits the entrepreneurship development, cultural components and dimensions

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and its effects on marketing methodologies, the geographical scope of the study is in South
East, Nigeria.
Attention is concentrated in South East, Nigeria because entrepreneurship development
concentration is on a high side in South East, Nigeria, one can easily said that South East,
Nigeria is the hub of entrepreneurship. I assumed that South East, Nigeria as a hub of
entrepreneurship development will be used as a yardstick or parameter for other
entrepreneurship development coverage. The time scope for the research cover a period of
ten months from August 2023 to May 2024, and this period of chosen because government
of Nigeria in this new dispensation promotes entrepreneurship development. Because of the
limited resources of funds and fuel subsidy removal by the government of Nigeria, the
researcher is constrained to focus on the topic effect of culture on entrepreneurship
development in South East, Nigeria.

1.8 Definition of Terms

This shed more light in understanding the key words deeper and exposes the operational
definition of the researcher.
Culture: Is defined as the social heritage of a people, those learned patterns for thinking,
feeling and acting that are transmitted from one generation to the next including the
embodiment of those patterns in material items.

Entrepreneurship: This is the willingness and ability of an individual to seek for

investment opportunities to establish and run a business successfully.

Development: The process of producing or creating new or more advanced product. It can
be seen as application of new ideas to practical problems. It is act of improving by
expanding or enlarging or refining of product or services.

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 REFERENCES

Harrison, L.E., and Huntingdon, S.P. (2000). Culture matters, New York: basic books.

Light, I., and Rosensteen, C. (1995). Race, ethnicity and entrepreneurship in urban America
New York:

Mehdi, A., and Ali, S. (2019). The role of culture on entrepreneurship development case
study: Iran. The International Journal of Knowledge, Culture and Change
Management, Annual review.

Mueller, S., and Thomas, A. (200). Culture and entrepreneurship potential: a nine country
study of locus of control and innovativeness. Journal of business venturing, 16(1),
51-57.

Nwachukwu, C.C. (2008). The practice of entrepreneurship in Nigeria, Onitsha: African

first publishers limited.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Review

2.1.1 Culture
Culture means being self-contained, supper organic reality with forces and purposes of its
own (Geertz, 1973). Some people on their own think that culture as fine and performing, to
dance, music, theater and means of disseminating arts and communication industry, (Souza,
1993). The effect of culture on entrepreneurship was first emphasized by Max Weber at the
beginning of twenty century. Weber is of the view that Protestantism boost culture that lay
credence to individualism, motivation, and self-reliance. This ethics was a fundamental
element of the spirit of modern capitalism (Weber, 1976). Religions have a big influence on
culture since religion determines a person’s basic values, beliefs and norms of a group,
community or region.

However, it is worthy of note that culture can be objective or subjective. The objective
culture stands with visible cultural attributes or variables as symbols, language, behaviour,
practice, customs and norms. The subjective culture is a reflection of cultural traits like
tradition, beliefs, priorities, assumptions, values and attitudes which influence the visible
objective culture. Cultural values points at what is considered important to a people. It also
affects perceptions and the way people respond to objects and ideas (Uban, 2007).

Figure 2.1: The Cultural Iceberg

Source: Schwarts, 1992.

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2.1.2 Entrepreneurship
Entrepreneurship fits what many see as the new economy emerging in the 1990s (Main,
1990). As encouraging as the observation might be, how to define, study and develop
entrepreneurs remain elusive and challenging.

There is no single definition of Entrepreneurship. Scholars, authors, researchers define

entrepreneurship the way they sees it consciously from their own perspectives considering
their location, states, regions and other factors which guides them in their definitions. One
cannot talk about Entrepreneurship without bringing to bear who is an entrepreneur because
without an entrepreneur, there will be entrepreneurship. Based on the above submission,
one can conceptualize entrepreneur as change agent, an innovator who is also a risk taker,
who exploits business opportunities, produces new products or services to maximize his
profits and contributing significantly to society’s development.

In the words of Meredith, Nelson and Neck (1991) entrepreneurs are people who have the
ability to see and evaluate business opportunities to gather the necessary resources to take
advantage of them, and to initiate appropriate actions to ensure success. Entrepreneurship is
simply concerned with what an entrepreneur does that is, the utilization of resources in
managing an enterprise and assuming the risk and maximizing profit from the business
venture. In looking for consistent partner in entrepreneurship research, Conningham and
Lischerom, (1991) found that four main areas emerged. This include the study of personal
characteristics, the recognition opportunities, management and leadership style, and
adaptation of an existing venture or intrapreneurship. Other consistencies, noted by Long
(1983) where three main theories found in formal theories of entrepreneurship including (1)
uncertainty and risk stemming from a variety of obstacles and self-employment, (2) the
ability to perform managerial task competently and (3) creative opportunism consisting of
identifying and exploiting ideas.

Kirzaer’s (1973) notion that ‘entrepreneurship consist of a competitive behavior, that drives
the market process. The views include any introduction of new economic activity to the
market place as an instance of entrepreneurship. As such entrepreneurship is manifested not
only by market entry of new firms,but innovative and imitative entries into markets by
established firms.

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2.1.3 Entrepreneurship Development
Comprises of activities that lead to the setting up of new ventures or expanding of existing
businesses. It also include the process of enhancing entrepreneurial skills and knowledge
through structured training and programmes that enhance individual and institutional
capabilities to provide value in the form of goods and services at a profit (Asenge, 2017). In
other words, entrepreneurship development can be achieved through training and
application of the acquired skills and knowledge into reality in practical terms; the expected
result of entrepreneurship development include but not limited to:
1) Employment creation,
2) Economic development
3) Creation of new business venture
4) Wealth generation.

However, Nwokocha and Nwaduwa (2018) are of the view that entrepreneurship
development is about providing opportunities for people to learn and grow in the personal
attributes generally associated with entrepreneurship, particularly leadership, creativity,
self-reliance and self- confidence. They add that entrepreneurship development will help the
entrepreneur to acquire vital entrepreneurial traits of passion, to actualize new venture
plans, flexible management skill, willingness to take risk, capacity to think outside the box,
creativity and innovativeness as well as perseverance and social skills.

Some of the advantages of entrepreneurship development is that it increases the chances of

production and consumption of locally made goods, it increases economic growth, it
reduces unemployment rate, it boost the gross domestic product of entrepreneurship
development of states and region especially Southeast Nigeria.

Ezinwo Ogbakiri, Gogo, Isreal Baminabo and Orji Allwell, (2022) posited that
entrepreneurship development is influenced by four distinct factors: economic development,
culture, technological development and education, adding however that their influence
could be positive or negative. Entrepreneurship development is a programme for both
entrepreneurs to be and already existing entrepreneurs and for results to be achieved, at
must have plans and clear direction, and must be objective in order not to waste both
money, effort and time.

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2.1.3.1 Culture Strategies
One of the benefits of entrepreneurship is not limited but include the sense of-urgency, and
willingness to try new things/ideas and the zeal to grow fast. If it is a team of employees
working under an entrepreneur, there is the possibility for them to generate new ideas, and
for them to be given free hand to act on those ideas. (Nelson Joyce, 2023). Some of the
employees might not be willing to take more initiative because of the urgly past experience
and fear of unknown above all because of fear of job loss; but being more open and
transparent about the entrepreneurial team to be created newly will make them feel more
confident. The strategies are as follows:

(a) Develop a clear method for submitting new ideas and taking actions:
Walt Disney, (2019), is of the view that to achieve this point, a lot of methods new to be
adopted, such as to solicit advice from employees and stakeholders at company meetings,
more so, in one-on-one conversations, some tangible ideas will be revealed. Another,
method is to set up suggestion boxes strategically located within the environment of the
entrepreneurship business to harvest the ideas of employees who may feel shy to contribute
their own ideas during meetings. The entrepreneur will create template for gathering all
inputs and then act on them where necessary.

(b) Give positive feedback to all ideas:

Some ideas had adverse effect, and negative consequences when applied or have failed in
the past, too costly, or ill-advised. When employees suggest plans that will not work, don’t
run them down, or throw them away immediately as it will affect their emotions negatively
(Tettra, 2023). Give the person positive feedback for coming up with the idea. Paradventure
the ideas is not taken, humbly encourage them not to relent in their effort to come up with
more solutions.

(c) Allow failure:

There is always a high morale if there is a resounding assurance given to the employees
that they will not be punished if an idea fails, such assurance will make entrepreneurship
environment possible. A business environment that cherish, experimentation and learning
above other things need to be builds to create entrepreneurial spirit. The culture of
innovation allows for failure. “The real test is not whether you avoid failure, because you
won’t. it’s whether you let it harden or shame you into inaction; or whether you learn from
it”.(Barack Obama,2009).

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(d) Give your employees Autonomy:
University of Birminaham, 2019 is of the view that you give the employees autonomy, that
is free hand to operate, they feel satisfied, and also feel to be integral part of the company,
with that zeal, they can come up with ideas on how to improve the company. Let them
know the result you want to achieve, but give them autonomy in deciding how to achieve it.

(e) Reward Innovation that Helps the Bottom Line:

To really get the mind of employees, make them to understand that they are part of the
company, and boost their morals with actions such as rewarding them with sharing the
company’s profit, give them bonuses as the company makes progress especially end of the
year bonuses: they will have a positive relationship with the innovative culture. (Nelson
Joyce, et al, 2023).

(f) Document your Entrepreneurial Culture Initiatives:

Teltra et al, 2023, opined that in order to make your entrepreneurial culture viable, you
need to document the goals and processes you like to use. If you allow employees to have
channels for introducing new product and service ideas to the company, you encourage
these ideas to develop: create template that employees can use for documentation, writing
brief, format, the process for something ideas. By documenting everything, you make the
process easier for employees to learn, asimilate, and practice the process and to become
perfect and take ownership.

2.1.2.2 Culture Variables

According to WF marketing, (2022). if you have set out your foot in the world of
entrepreneurship you will understand that there are many variables/factors affecting the
growth of entrepreneurship. They are the economic and non-economic factors.

2.1.2.3 Economic Variables

These are the economic variables that are important in promoting the economic stability and
growth of a state, region or country. They are variables that ensures that there is
entrepreneurship development and growth especially of southeast region.

2.1.2.4 Capital
Entrepreneurship development needs capital to grow, capital in form of land, a place where
one can start and operate as an entrepreneur. Raw materials to produce output and machines
to process such raw materials.

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2.1.2.5 Infrastructure:
Infrastructure located in south east region will facilitate rapidly entrepreneurship
development in that region. If the infrastructures are strategically located and are easily
accessible with communication tools, it will be an advantage to the entrepreneurship
development. For example, the shoe factors in Aba and cloth weaving in Abiriba all in Abia
State South east region with accessible road, can export their products to all other regions in
a record time.

2.1.2.6 Labour:
Skilled labour is a catalyst for the growth of business. Quality of labour should be
considered more than the quantity of labour. However, you must look for a good location
densly populated that will give you the labour you are looking for. As an entrepreneur, if
you are looking for manual labour, your business location should be near next to the
communities where the manual labourers resides.

2.1.2.7 Raw Materials:

Just as labour is important so also is raw material procurement. As an entrepreneur, if you
choose the location of your business near to your source of raw-material. One of the
advantages is that you will gain maximum profit at a low cost, as the entrepreneurs will
save a lot of cost on transportation of raw materials because of the location is close to the
raw material source.

2.1.2.8 Market
Market is a major economic variable as it is a place where a buyer and a seller meet. For
transactions, the size or capacity of the market plays a very big role in the growth of the
entrepreneur, if the market is big, there is every likelihood for the entrepreneur to make
profit from it. With advanced technologies such as internet facilities. E-commerce
platforms, the entrepreneur can comfortably sell his market and at the same time advertise
his product and services, thereby widening the horizon of his business. In addition, though
such online technology it reduces the cost of labour and shop rent.

2.1.2.9 Non-economic factors:

According to Wf Marketing, et al. (2023) various non-economic variables come into play in
promoting the growth of entrepreneurship development. Some of these are:

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2.1.2.10 Social Mobility
It is advisable that the entrepreneur locate his entrepreneurship development business in an
environment that is acceptable, with such acceptability, there is the likelihood that
entrepreneurship business will grow.

2.1.2.11 Education:
Education is key in entrepreneurship development and it can be in form of formal or
informal education formal education can be acquired through going to school, informal
education can be acquired through past mistakes and experiences, and through learning
from already established entrepreneurs.

2.1.2.12 Attitude of the Society

Situation might arise for changes to take place, changes like culture norms, attitude and
such change will bring about entrepreneurship development and growth.

2.1.3 Cultural Variables that Promote Entrepreneurship Growth in Southeast

Nigeria.
The cultural variables are many but few of them shall be listed and explain and they are as
follows;

a) Money orientation: Somebody who is money oriented is the person who knows the
value of money and has apatite to make m oney. He can source for money from places
that are conversant to him if he venture into entrepreneurship, he will raise more capital
as it is the case in southeast Nigeria.

b) Future Orientation: Due to the business acumen and inclination of the Southeast
region of Nigeria, they can manipulate and know the environment where business may
be viable in future which increases the chances of more entrepreneurs. It is so, because
as they follow the trend, they can easily make projections on the likelihood of changes
in prices of items, customers need, new technological ideas trending and make
adequate adjustments to accommodate them; South east entrepreneurs are future
oriented and are ready to sacrifice their today’s profit to pave way for a larger one
tomorrow.

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c) Time Consciousness: Time is precious and valuable and should be utilized well.
Entrepreneurs in the Southeast region use to time their activities and make certain
projections to know when to start their enterprise.

d) Work Ethics: This is a culture that value honesty, productive labour while frown at
laziness, boost entrepreneurship. In South east region, entrepreneurs who put honesty
and reliability as their watch word sells there products fast or are being favoured to
render their services to their customer because they have already build their trust in the
mind of their customers hence their products and services being relied upon because of
honesty.

e) Reward: Any culture that desired to develop more entrepreneurs must reward people
who work hard and try to earn money from those business establishments examples are
the vendors and peddlers. It is very common in the southeast region where vendors will
work very hard to sell the product of the entrepreneur and uses mouth to convince
potential buyers of the geniuses and quality of the product; if such people are
handsomely rewarded, there are high tendencies of them developing their mindset to
become entrepreneurs.

2.1.4 Cultural Factors that Inhibits Entrepreneurship Growth in South east Nigeria.
There are some cultural factors that inhibit entrepreneurial development out because of
time, I will discuss few of them.
a) Language: This is a barrier as, it hinders the business entrepreneurship the
opportunity to establish his business in an environment that is viable simply because
he don’t understand the language of the people in that area, as such, communication
becomes difficult. People in localities tend to identify and love people who
understand and speak their languages as it will make them to patronize the business
of the entrepreneur.

b) Religion: This is one of the strong points in limiting entrepreneurial development,

Religious belief is a key sentiment that is planted in the minds of people. South east
entrepreneurs are predominantly Christians and on Sunday’s will never open their
entrepreneurial businesses but rather prefer to go to church and worship God as it is
a holy day set aside for prayers.

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c) Personal relationship: South east entrepreneurs respect marriage a lot and like to
create time for their families as such, any business enterprise that will not give them
time for their families, they avoid it.

d) Network: Poor network inhibits new knowledge new information and opportunities.

e) Technology: Poor knowledge of technological skill especially from entrepreneurs

from the manufacturing sector, hinder growth, because personnel’s lack knowledge
on how to operate new machines, appropriate ratio mix of certain raw materials that
will give quality output.

2.1.5 Explore Ways of Improving the Cultural Factors that Inhibit Entrepreneurship
Development in South East Nigeria.
a. Working in related business to gather the necessary skills required before one start his
own business enterprise: It is good to acquire the necessary skills as at will help the
new entrepreneur to be fully incharge and technically sound too.
b. Establishing policies that ensure that entrepreneurship courses are inculcated in the
school curriculum: If such courses are taught in the school, it will make students to
develop interest early, and to acquire both the theoretical and practical knowledge that
will help them develop their businesses.
c. Upcoming and already established entrepreneurs should be encouraged to read
extensively, publications concerning entrepreneurship and entrepreneurial activities,
watch movies that centers on production of goods, visit manufacturing companies,
which will help them to choose products in demand with bright future.
d. Both aspiring and already entrepreneurs should be encourage through training to be
acquainted just with fundamental knowledge relevant information, and internet
facilities, healthy competitions to and their capabilities.
e. Aspiring entrepreneurs need to be guided properly by experts who are technically
sound in selecting raw materials and machines needed for the business.

2.1.6 Cultural Components, and Dimensions and its Effect on Marketing

Methodologies
According to Hofstede (1980) culture is a complex nonetheless. It is not disordered. He did
variouss investigations to examinations the components of culture and its effect on different
zones, he characterized the five zones of nationwide culture, power separation,
manliness/femalness, avoidance of uncertainty and long arm orientation. Hollensen, (2001)

15
describe diverse ideas of culture as language, habits and customs, innovation and material:
societies mentalities, religion, cultural norms Esthetics, Education and so on.
(a) Cultural Norms: Norms are gotten from values and characterized as an
acknowledged norms of doing things that the vast majority of individuals concur
with these can be characterized as explicit guideline that a gathering of individuals
use for choosing what is suitable and not fitting (Gillespie 2004). Entrepreneurs at
South east region being predominately Christians sees opening of business premesis
in the morning and sweeping of the environment as an acknowledged norm of doing
things before the normal day business, Kicks-off.

(b) Material Culture: IBS business school (2017) categorise it into technological
goods used by the majority of population, personal transport and the availability of
resources such as electricity, natural gas, telephone, internet one wireless
communication. All of which aid the development of entrepreneurship in South east
region, the availability of all these mention facilities, are seen as culture which aids
the smooth running of entrepreneurship.

(c) Language: The language spoken in the south east region which is (Ibo and English
language) have a direct impact on marketing brand names, the collection of
information through surveys and interviews, advertising and the conduct of business
relationships (IBS business school et al, 2017). Verbal and non-Verbal language.
Verbal language spoken is seen as culture capable of causing entrepreneurship
growth as prospective customer may be willing to understand and speak such
language. Non-verbal language in terms of habit, approach character, sends a serious
message to prospective customers. Some Entrepreneurs from South east region
possesses these qualities that attracts customers, as a result causes entrepreneurship
growth.

(d) Religion: All religious have sets of loves that influence entrepreneurship. The
preference and taste of each individual is greatly affected by the religion they follow
(Assedi, 2003) Difference in religious practice continues to affect people’s way of
life and their decisions. Entrepreneurs should evaluate people’s faith and beliefs
because customers become more drawn when any product is marketed by
connecting it to people’s religion and beliefs (Kaur and Chawla, 2016).
Entrepreneurs from South east region are predominantly Christians and do not

16
 operate on Sundays due to their faith of worshiping on Sundays, as such, business
activities are majorly paralysed on Sundays.

(e) Customs and taboos: Even culture has its own collection of taboos and customs.
Entrepreneurs need to know about these traditions and taboos to do business across
boundaries seamlessly and effortlessly to earn profit and maximize their brand
presence around the region (markus and Kitayama, 1991), for example, in South east
region, it is a taboo for a vendor or peddlers to run away with entrepreneurs money
or goods and for entrepreneurs to operate on Sunday.

2.14 The Six Dimensions of Culture

Hofstede (1991) identified dimensions of culture, the country/region score for which can
allow the comparism of countries to understand key differences between the collective
culture.
a. Power distance: High power distance is the expectation, and acceptance of unequal
power distribution in business and public bodies, by people less powerful within them
(Hofstede, 1942). In South east region, high power entrepreneurs, because of their
capabilities and financial muscles can exercise franchise and equally become the sole
importer of a particular product contrary to status quo arrangement and the young
entrepreneur will accept it in good faith because they don’t have what it takes to put up
a challenge.

b. Masculinity; High masculinity culture are motivated by wanting to be the best, versus
low masculinity (feminine) cultures, which are motivated by enjoying what you do
(Hofstede et al. 1942) Man is always the head and cannot be compared with a woman,
man sets standard for woman to follow even in entrepreneurship business.

b) Uncertainty avoidance: High uncertainty avoidance cultures feel threatened by and

try to manage the uncertainty of the future whilst low uncertainty avoidance countries
are more comfortable letting the future play out (Hofstede, et al. 1942) South east
entrepreneurs have the cultural attitudes of making future predictions of changes in
prices of goods and services and tries to manage the situation thereby standing chances
of remaining in business while few of them does it out of fear thereby allowing future
to determine the situation.

17
c) Individualism: Hofstede, et al (1942) opined that high individualism is seen in
regions/countries where people sees themselves as being independent (“I”) rather than
low individualism where they see themselves as interdependent (“we”). Imperatively
individualism differs and have categories, entrepreneurs who venture into
manufacturing and high class importers are seen as high individuals who are
independent unlike business men who come to buy from them such people are
interdependent.

d) Indulgence: In high indulgence societies individuals are less likely to keep their
desires and impulse in check whereas in low indulgence societies they are more
restricted (Hofsetede et al 1942). Because of the society they found themselves and
their social status they express their desire and impulses at will especially those that
have the financial muscles but the reverse is the case for the low indigence ones.

e) Long term orientation: According to Hofstede et al (1942) High long term orientation
is typified by societies that embrace and ready society for change (pragmatic) rather
than holding onto traditions and approach change warily (normative). Such long term
orientations and approach change warily (normative). Such long term orientation brings
about transformation rapidly, as such societies are ready to embrace and move on with
the current trends. Unlike the one that still stick to old traditions and crulling ways of
doing things.

2.2 Theoretical Framework

2.2.1 Schumpeter (Neo-growth Model) Theory
Schumpter stressed the importance of entrepreneurs as the main vehicle to move an
economy forward from static equilibrium through innovations and by inducing processed of
creative destruction, challenging existing structures and distorting economic equilibrium.
Schumpeter was also clear on the different roles between the investor, and the innovator.
“Economic leadership in particular must hence be distinguished from invention”. As long as
they are not carried into practice, inventions, are economically irrelevant. Although
entrepreneurs of course may be inventors just as they may be capitalists, they are inventors
not by nature of their function but by coincidence and vice versa. It is therefore, not
advisable, and it may be downright misleading, to stress the element of invention as much
as many writers do” (Schumpeter, 1911). That did not preclude Schumpeter forseeing

18
possible situations when the inventor role may coincide with the innovator, albeit such
situations were considered to be exceptions to the rule.

The Schumpeter distinction between inventor and entrepreneur was challenged by

Schmookler (1966) and Tecce (1968), whom based on case studies, believed that
entrepreneurs discover opportunities to do promising R & D rather than merely discovering
promising outcome of R & D that has been conducted by others. On a more aggregate level,
the merging of the inventive and innovative stages is clearly stated in the neo schumpeterian
growth models (Aghion 1992,and Howith, 1998). These models, however, shares the later
schumpeter’s (1942) view of innovation as becoming routinized where market are
dominated by a limited number of large firms.

Taking a more general view on the research field of entrepreneurship. Shane and
Venkataraman (2000) suggest that it comprises the analysis of “how, by whom and with
what effects opportunities to produce future goals and services are discovered, evaluated
and exploited”. Focusing at “whom”, a recent electric definition of the entrepreneur is
innovative, that is perceives and create an opportunities operates under uncertainty and
introduces product to the market, decides on location, and the form and use of resources,
and manages his business and competes with others for a share of the market.

2.3 Empirical Review

The empirical review was done according to the objective of the study.

2.3.1 The cultural Strategies Involved in Entrepreneurship Development in South

East, Nigeria
Mariana.(2021) in her study stated that for business strategy to foster corporate
entrepreneurship and innovation, you don’t need to be a start-up to come with innovative
ideas, or to embark on new venture with an entrepreneurial mindset. Her findings reveals
that outside the-box and disruptive thinking are powerful tools in business of all scales. At
one point, all companies need to implement innovation capabilities, frameworks and
governance to navigate current and future transformational industry shifts. And it shall be
done in a way in which this are not a trend, but become part of a business methodology.

Covin and Slevin (1989) examined 161 independently-owned, small, primary

manufacturing – related businesses. They found that environmental hostility was related to
entrepreneurial strategic posture and performance. Entrepreneurial strategic posture

19
contributed to high performance among small firms facing a hostile business environment
while a more conservative approach benefited firms in a benign environment. Recognizing
the complexity of the situation, they concluded that, “performance is presumably, a function
not only of a firm’s organizational structure and strategic posture, but also of the fit between
these variables and the firm’s business practices and competitive tactics (p. 48)”.

Mariana et al, (2021) from her study shows that customer-centric approaches adoptability,
experimentation and validation. These are some of the elements and steps that should be
present to foster innovation and entrepreneurship. Whether its decades – old corporations,
or smaller new companies with the right strategy in place, all have the potentials to
implement new ways of thinking. Even expert in the field, when open to new ideas, can
achieve unprecedented success.

2.3.2 If Cultural Variables Promotes Entrepreneurship Development in South East,

Nigeria
Madichie, Nkamnebe and Idemobi, (2008) examine the cultural determinants of
entrepreneurial emergency in a typical sub-sahara African context. The study found that
culture had a strong and positive impact on the entrepreneurial and managerial performance
of Nnewi people. The critical aspect of Nnewi cultural-traits that propel entrepreneurial zeal
and managerial performance include prudence, individualism, innovativeness, trust,
intimacy and openness in the work place, submissive apprenticeship as well as
perseverance.

Empirically, Abdullahi and Zainol, (2016) examined the impact of socio-cultural business
environment on entrepreneurial intention. The study reveals that the socio-cultural business
environment is a very vital factor in entrepreneurship and entrepreneurial intention,
especially with regard to breeding new entrepreneurs. Education, religion and family
background were also found to be instrumental elements in studying the socio-cultural
business environment, hence, the reasons for positive and significant impact on
entrepreneurial intention.

Idemobi, (2014) examined the cultural influence on entrepreneurial and managerial

activities using selected manufacturing enterprises in Nnewi. The sample consists of owner-
chief executives and two hundred and thirty six (236) top management staff of the
flourishing manufacturing firms in Nnewi. The result shows that Nnewi culture has a strong

20
and positive impact on the entrepreneurial and managerial performance of Nnewi people
that critical aspect of Nnewi cultural trait that propel entrepreneurial zeal and managerial
performance include prudence, individualism, innovativeness, trust, intimacy and openness
in the work place, submissive apprenticeship as well as perseverance.

In the Shapero and Sokol (1982) model, perceived feasibility is defined as a degree of
personal capability in starting business to success. Moghavvemi, Sallah and Abessi (2013)
elaborate that the perceived feasibility variable centers around the discernment regarding an
individual’s ability to undertake a specific task successfully. In entrepreneurship terms,
perceived feasibility relates to the degree to which entrepreneurs consider themselves able
to undertake an entrepreneurial activity (Ozaralli and Rivenburgh, 2016). Factor that
influence feasibility include availability role models, financial capacity, social support, the
level of education and general level of confidence in one’s ability to accomplish activities
(Gasse and Tremblay, 2011). Although scholars have acknowledged the significance of
factors like self-confidence in fostering perceived feasibility, self-efficacy, extensively have
been identified a critical precursor to variable feasibility discernments (Kruegers, Reilly and
Carsrud, 2000). In line with the above, a study by Hallak, Brown and Lindsay (2012) also
reviewed that efficacy is a significant predictor of entrepreneurial performance and that the
higher the individual’s self-efficacy, the higher the performance.

Happiness and Godwin (2014) examine socio-cultural environment and entrepreneurship

development in Israel. The study adopted survey research approach and structured
questionnaire design in a given point likert scale. The study used SMEs in Israel
administering the questions to the owners of SMEs. The population includes all the SMEs
owners and the population was very difficult to determine and the research used the country
to arrive at 400 as the sample size using Taro Yamane formula. The study used correlation
and the findings indicate that there is a positive association between socio-cultural
environment and entrepreneurship development in Israel.

2.1.3 If there are some Cultural Variables that Inhibits Entrepreneurship

Development in South East, Nigeria.

Mukhtar, (2015) examined the effect of culture on the development of entrepreneurs among
Hausa ethnic group in Northern Nigeria. Data was collected through interviews of 80
respondents who are established entrepreneurs in Kano metropolis from the Hausa ethnic
group as well as those that work as their aids. The study finds the Hausa have a system

21
where one serve his “master” for a long period of time as lives without any plan in place to
make the “servant” independent. This paper finds that is a sharp contrast with the Igbo
ethnic group who have a system of apprenticeship which requires that one serve his
“master” for a defined period of time. It is expected that the apprentice will learn all the
skills required within this period. After this period, the apprentice is graduated and
empowered by his “master” to become independent.

Abimbola and Adekeye, Ajayi and Idowu (2011) examine some social – cultural issues in
entrepreneurship development among some groups in Nigeria. This study was undertaken
among the three major ethnic groups in the country – the Igbo, Hausa and Yoruba – from
whom primary data were collected. Participants were drown from ethnic-based associations
in Lagos. It was found that despite spirited efforts by Nigerian government to encourage
entrepreneurship, little has been achieved. The extended family system genders were
implicated in the state of entrepreneurial activities among the study population.

Akpor-Robaro (2012) carried out a theoretical analysis of the impact of social-cultural

environments of entrepreneurial emergence in Nigerian society. This paper is based on
theoretical survey of the socio-cultural characteristics of Nigeria society and its major sub-
societies, and their roles in the emergence of entrepreneurs. The analysis of the relationship
of socio-cultural environment and its influence on entrepreneurial emergence is built on a
blend of scattered observation and some qualified reasoning about the distribution of
business ownership amongst Nigerian ethnic group, and gender. Primarily, he study reveals
that socio-cultural environment significantly impact, both negative and adverse economic
circumstance of individuals, the value system of a people is a great determinant of the desire
and capacity of people becoming entrepreneurs.

It is necessary to promote public initiatives that encourage the generation of new ventures,
therefore new jobs that enhance the economic development of society (Cantner et al, 2020;
Thornton et al, 2011; Tomine and Reberrik, 2007). Of course, political will shapes part of
the entrepreneurial culture, but the impact it have on the psyche of the general population
has not been studied in depth. However, the entrepreneurial culture of a region has always
been approached as a positive aspect that facilitate and energizes the entrepreneurial activity
found in the place (Capellerac et al, 2019; Tomine and Rebernik, 2007), but the negative
impact of its absence in the region has not been studied in depth. There is a gap in the study
of the cultural burdens that hinder the advancement of entrepreneurship. While one or two

22
factors can be addressed from different perspectives, what if culture has as a whole
compromises the development of new entrepreneurial initiatives? If the entrepreneurial sees
no help in such a sea of difficulties, will he continue with his initiatives despite everything,
or will he eventually give up any hope of continue to work on his projects? How far can the
resilience go when the whole environment is working against him?

Wennekers, (2006) examine the rate of occupational entrepreneurship at country level,

either measured by the number of business owners as a percentage of the labour force, or by
some metric of the dynamics of entrepreneurship such as “nascent entrepreneurship”. Based
upon several stands of literature, this framework is built around an occupational choice
model while linking the individual, the firm and the aggregate level, technological,
economic, demographic, cultural and institutional factors act as entrepreneurial framework
condition, feedback mechanism are elaborated. Empirical investigation carried against the
background of this framework shows that dissatisfaction; uncertainty avoidance and social
security entitlements affect the rate of entrepreneurship. In addition, either a negative or U-
shaped influence of the level of economic development is found.

Amodu, Abeh and Yakubu, (2015) assess the effect of gender bias and cultural belief on
growth of entrepreneurship in Nigeria. Gender and cultural dimensions such as a restricted
access to education, finance, ethnicity, religion and societal perceived roles of women
where investigated. The effect of these factors on women entrepreneurial activities is worth
studying because entrepreneurship is considered as an important aspect of economic
development of both developing and developing nations. The researcher adopted descriptive
survey design in a quest to obtain necessary information for the study. 380 women
entrepreneurs in three states, north central where purposively selected and investigated. The
findings of the study shows that women in Nigeria are affected by a number of cultural
factors that impede the growth and development of their entrepreneurial intentions.

2.1.4 If there are ways of Improving a Cultural Factors, that Inhibits

Entrepreneurship Development in South East, Nigeria
Kadrkhuja, Djuraxodjaevich, Boboev, (2021) in his interview result suggested that religious
belief, ethnic values and long-term orientation are cultural factors influencing loyalty
programmes. Loyalty programmes can be improved by leveraging on religious
considerations and ethnic values to win the loyalty of many customers especially in a
country with high degree of ethnicity and religious belief. According to Eastherby-smith,
23
Thorpy and Jackson, (2008), long-term orientation can be used to improve loyalty
programme strategy. Customers that live in countries scoring high in long term orientation
emphasize on short-term outcomes, so loyalty programmes are designed to propose short-
term outcome. For example, loyalty customers can enjoy additional bonus or discount on
daily or weekly bases.

The level of the entrepreneurship express as the percentage of owners/managers of

incorporated and unincorporated business relative to the labour force i.e. the rate of
entrepreneurship, differs strongly across countries. Moreover, the percentage of nascent or
young entrepreneurial differ strongly across countries, as does latent entrepreneurship, i.e.
declared preference. Grilo and Thurik (2006) provide a survey of European countries and
the United States of America. This differences are assumed to be related to levels of
economic development, in addition to demographic, cultural and institutional characteristics
(Blanchflower, 2000). Differences assumed to be dominated by economic influences
whereas cross-country variations seems to be affected by cultural and institutional
components (Wennekers, et al, 2002). In particular, there is some intriguing evidences that
the level of business ownership display a U-shape relationship when related to economic
development (Blau, 1987; Acs et al, 1984; Carree et al, 2002). The U-shape appears also in
the case of nascent entrepreneurship (Wennekers et al, 2005). The implication of such U-
shape is that, as economics develop, the rate of new business startups or that of nascent
entrepreneurship declines, but picks up again in highly developed economics. This reversal
marks the regimes switch between the managed and entrepreneurial economy (Andretsch,
2001; and Thunk, 2004).

Adebayo (2015) investigated the impact of culture and individual attributes on women and
entrepreneurial engagement in Kwara state. A cross sectional survey design of 205 women
entrepreneurs in Ilorin metropolis was undertaken by means of self-administered
questionnaires. A total of 166 copies of correctly fill questioners were analyzed using both
descriptive and influential statistics and result were summarized and presented in form of
tables and simple percentage. The findings reveal that cultural orientation and individual
attributes such as education, working experience, risk-taking ability significantly influence
women entrepreneurial decision. The findings from the study leads to the conclusion that
rich cultural background and personal development improve women entrepreneurial drive.

24
2.1.5 If there are cultural components and dimensions and its effect on marketing
methodologies
Peter and Onianwa (2017), carried out a study which examines the dimensions of culture on
entrepreneurial marketing performance. The geographic areas of this study were Oshimili
South, Uvwie, and Ethiope East Local Government Area in Delta State, with total
population of 760 SMEs. The sample objects comprised 262 small business
entrepreneurship outfit that were selected through stratified random sampling method. The
research instrument for data collection was a 30-item modified structured questionnaire on a
five point likert scale. Data obtained were analysed using correlation and multiple
regression as analytical tools. The findings revealed that low power distance, low
uncertainty avodiance, collectivism, and masculinity dimensions of culture exhibited
positive effect on small business entrepreneurial performance, while individualism has no
statistical effect on entrepreneurial performance.

The theoretical foundation of Digital Marketing Capabilities (DMCs) in SMEs marketing

performance can be explained by the resource – based views (RBV) and dynamic
capabilities theory (Khan et al, 2021). The RVB suggest that firms can develop sustainable
competitive advantage through the development of unique resources and capabilities that
are difficult for their competitors or imitate or replicate (Grant, 1991). In the case of SMEs,
DMCs can be a valuable resource that can provide them with a competitive advantage in the
digital marketing space. Dynamic capabilities theory, on the other hand suggests that
businesses must continuously adapt and develop new capabilities to remain competitive in a
changing environsment (Teece, et al, 2016).

The study involved the collection and analysis of both quantitative and qualitative data
translating into a triangulation method. Eastherby-smith, Thorpe and Jackson et al (2008)
recommends that this contribution must be taken to the complementary rather than
supplementary method. The participants (50) fifty in number on bases of convenience
sampling were chosen based on the influence they have on marketing strategies in their
respective firms. As such, the respondents of the survey were managers working in the field
from various firms working mainly in Africa and were from thirteen countries (Burkina
Faso, Cameron, Congo, Ghana, Ivory Coast, Kenya, Mali, Niger, Nigeria, Senegal, South
Africa, Togo and Egypt). A questionnaire was sent to the fifty managers to evaluate how the
most relevant cultural factors affect their marketing strategies. The result shows that
marketing strategies undertaken by international firms in Africa are influence by religious

25
belief, language, ethnic values, loyalty, inequality and hierarchy in the society, tolerance to
risk and willingness to take risk.

Figure 2.2: Cultural Dimensions

Types of cultural
manifestation

Cultural Practice

Measured through

Cultural Values

NINE CULTURAL
DIMENSIONS
Power distance
Uncertainty avoidance
Collectivism 1
Collectivism II
Gender egalitarianism
Assertiveness
Future orientation
Performance orientation
Human orientation
Source: Own elaboration from house et al, (2002)

26
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Advances and Empirical Test in 20 Countries. Advances in Experimental Social
Psychology 1. 62.

Shane, S. (1991). Cultural reference on national rates of innovation, Journal of business

venturing, 8, 1.59-73.

Urban, B. (2007). A framework for understanding entrepreneurial department of

entrepreneurship, faculty of management, University of Johannesburg.

Utorni, P. (1998). Cultural perspectives in Nigeria political economy and management.

Ibadan: Spectrum books.

Zwingina, T.C., Opusunju, M.I., and Murat, A. (2017). Socio-cultural environment and
entrepreneurship development in Nigeria. International journal of advance
strategies and management /IJA 585M ISSN Print: 2354-4236.

30
 CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction
In this chapter, we will delve into the methodology that will be employed in this study. It
will encompass the elucidation of the research design, the population and sampling strategy
that will be utilized, as well as an exploration of the data collection sources and the rationale
behind selecting the data analysis tools. Additionally, various research-related
considerations will be addressed.

3.2 Area of the Study

The proposed area of study will encompass selected Local Government Areas in five South-
Eastern states of Nigeria. These states are known for their rich cultural heritage, historical
significance, and vibrant communities. The South-Eastern region of Nigeria is known for its
diverse ethnic groups, including all the Igbo, and is historically significant as the heartland
of the Biafran struggle. The region is renowned for its cultural festivals, traditional
practices, and unique languages, such as Igbo, which is widely spoken alongside English.
The various Local Government Areas are administered by elected chairmen who oversee
the governance of their respective councils. Each area has multiple political parties, each
with its own councillors.

3.3 Research Design

The research design for this study will employ a survey approach utilizing self-
administered questionnaires. The primary objective is to assess the effect of culture on
entrepreneurship development in south east Nigeria

To conduct this exploratory case study, we will utilize a multi-faceted data collection
strategy. Questionnaire data will serve as one source of information, allowing us to gather
direct insights from participants. Additionally, data related to the performance of SMEs
will be collected from various sources, encompassing both primary and secondary data.
This approach is adopted to enhance the robustness of our findings and reduce the risk of
drawing weak conclusions. By amalgamating information from diverse sources, we aim to
obtain more accurate and comprehensive results. This comprehensive dataset will be
instrumental in establishing the effect of culture on entrepreneurship development in south
east Nigeria.

31
3.4 Population of the Study
The population of the study in this context is the 3,510 entrepreneurs who are registered
under Small and Medium Scale Enterprises (SMEs) with SMEDAN Abuja in 2019. The
breakdown is therefore as follows:

Statistical illustration of MSMEs in Nigeria and the FCT

The table below shows the distributions of Micro Small and Medium Enterprise in the 36
states of the Federation with Lagos state having the largest numbers of Micro, Small and
Medium Enterprises in Nigeria.

Table 3.1L Distribution of Micro, Small and Medium Enterprises by State

STATE Micro Medium Small
Abia 1,809,442 3,538 80
Akwa Ibom 2,639,214 1796 390
Anambra 2,446,790 3,240 234
Bauchi 1,889,006 4,078 54
Bayelsa 1,082,664 708 144
Benue 2,958,290 2,292 44
Cross River 1,842,512 2,252 336
Delta 3,072,316 2,888 64
Ebonyi 1,154,432 2,412 8
Edo 1,796,168 3,758 236
Ekiti 1,928,358 1806 252
Enugu 2,129,786 1624 198
Gombe 1,054,460 2,086 130
Imo 2,592,772 2,518 270
Jigawa 1,640,002 2,044 150
Kaduna 3,270,906 5,424 340
Kano 3,588,716 15,580 992
Katsina 2,433,208 2,512 198
Kebbi 1,384,208 1796 182
Kogi 1,934,862 1654 34
Kwara 1,435,818 328 124
Lagos 6,448,648 22,088 1238
Nasarawa 764,172 2,196 44
Niger 1,954,480 2,516 200
Ogun 2,331,696 3,380 208

32
 Ondo 2,053,540 3,610 388
Osun 2,712,348 4,494 50
Oyo 3,729,908 14,936 1038
Plateau 1,573,008 4,140 220
Rivers 3,499,822 5,962 82
Sokoto 1,400,212 1262 420
Taraba 1,027,946 1782 138
Zamfara 1,444,720 1154 32
FCT 964,730 4,488 892
Total 73,989,160 136,342 9,410

Source: 2019 Survey of SMEDAN and NBS

Of the stated distributions of SMEs, the five South Eastern states were selected and further
categorized by their various economic sectors, as presented in the table below.

Table 3.2: Distribution of Small and Medium Enterprises by Economic Sector

ECONOMIC SECTOR SMALL MEDIUM
Manufacturing 26,884 1096
Mining & Quarrying 436 66
Accommodation & Food Services 14,260 322
Agriculture 2,848 304
Wholesale/Retail 30,496 516
Construction 2552 134
Transport and Storage 1640 808
Information and Communication 896 62
Education 44,282 5,734
Administrative and Support Activities 5,912 206
Arts, 502 32
Others Services Activities 5,586 128
Waste Management and Remediation Act. 48 2
Total 136,342 9,410
Source: 2019 Survey of SMEDAN and NBS

33
Table 3.3: Distribution of Small and Medium Enterprises by Southeastern State in
Nigeria.
South Eastern State Small Medium Wholesale/Retail
Abia State 80 3,538
Anambra State 234 3,240
Ebonyi State 8 2,412
3,510
Enugu State 198 1624
Imo State 270 2,518
Total 14,122
Source: 2019 Survey of SMEDAN and NBS

3.5 Sample Size Determination

The sample size for this study comprises entrepreneurs who have established their
businesses and registered with SMEDAN within the last few year and fall under the
economic category of 'Wholesale/Retail' in the five South Eastern states. According to the
Krejcie and Morgan (1970) model, the sample for this study consists of 330 participants.

To calculate the sample size using the Krejcie and Morgan (1970) formula for a known
population size of 3,510, we use the following formula:
Sample Size (n) = [Z² * N * P * (1 - P)] / [(N - 1) * E² + Z² * P * (1 - P)]
Where:
 Z: Z-score corresponding to the desired level of confidence. For a 95%
confidence level, the Z-score is approximately 1.96.
 N: Population size (3,510 in this case).
 P: Estimated proportion of the population with the characteristic of interest (you
may need to make an assumption here, e.g., 0.5 for maximum variability).
 E: Margin of error (desired level of precision).

Assuming a 95% confidence level (Z = 1.96), and a conservative estimate of P = 0.5

(maximum variability) to get a more conservative sample size estimate. Choosing a margin
of error (E) based on our desired level of precision. A common choice is around 5% (0.05).
Sample Size (n) = [1.96² * 3,510 * 0.5 * (1 - 0.5)] / [(3,510 - 1) * 0.05² + 1.96² * 0.5 * (1 -
0.5)]. Sample Size (n) ≈ 330.42
So, based on these assumptions, a sample size of approximately 330 would be appropriate.

34
3.6 Sample Frame
There is a need to define the working universe or non-theoretical population of the study.
For the purpose of this study, the working population or sample frame is restricted to the
small and medium scale enterprises in all the five (5) southeastern states of Nigeria.

3.7 Sampling Techniques

The sampling technique that will be employed in this study is stratified random sampling.
This approach will entail categorizing the potential respondents into distinct groups based
on the Local Government Areas (LGAs) within the five South Eastern states of Nigeria.
These states include Abia, Anambra, Ebonyi, Enugu, and Imo. Within each LGA, we will
then randomly select samples from the SMEs operating in the specified economic sector,
which is Wholesale/Retail. This method will ensure a representative and systematic
selection of participants from each LGA, allowing us to obtain a diverse and
comprehensive dataset for our research.

3.9 Method of Data Collection

The respondents will be provided with copies of questionnaires to facilitate the collection
of the necessary information. Research assistants will be recruited and trained to assist in
administering the questionnaires across the various area councils in the Southeastern
states. Once the respondents have completed the questionnaires, they will be collected
immediately. However, considering the busy schedules of some respondents, it's possible
that certain questionnaires may not be retrieved promptly and will require collection
during a subsequent appointment.

3.9.1 Research Instrument

The instrument that will be designed for data collection for this study will be tagged
“Effect of culture on entrepreneurship development in south east Nigeria Questionnaire. It
will have five (5) sections with related items to each research questions stated earlier.
Some of the questions will align with the pattern Frimpong (2014) used in his study and
also that of Oghojafor, Aduloju & Olowokudejo (2009), Lechaena, Mmolawa and
Mzingwane (2009) will be adapted with modifications to suit the case study of this
research. Section A will deal with the demographic information of respondents which will
include age, qualification, age of business and nature of business. Section B will deal with
The cultural strategies involved in entrepreneurship development in South East Nigeria,
section C will deal with if cultural variables promote entrepreneurship growth in south

35
east Nigeria, section D will deal with some cultural factors that inhibit entrepreneurship
development in south east Nigeria, section E will deal with ways of improving the cultural
factors that inhibits entrepreneurship development in south east Nigeria, section F will
deal with the cultural components and dimensions and its effect on marketing
methodologies.

Likert’s table rating scale will be used in the construction of the questionnaire not only
because of its simplicity and ease of understanding by respondents but for its ability to
measure attitudes, opinions, interests, feelings and other attributes that exist with as the
respondents’ perception, (Asika, 2010). A five-point Likert scale will be used. The scores
will be coded as follows: 5 for strongly agree, 4 for agree, 3 for undecided, 2 for disagree
and 1 for strongly disagree.

3.10 Validity and Reliability of Research Instrument

3.10.1 Pilot Testing
The questionnaire will undergo a pilot test using a representative sample of 33 individuals,
which corresponds to approximately 10% of the total study sample size of 330
entrepreneurs in southeastern states of Nigeria. Particular care will be taken to ensure that
these individuals possess similar characteristics to those who will be included in the main
study. The instrument will be administered to the selected individuals with a one-week
interval between administrations. Following the first administration, the questionnaire items
will be scrutinized for wordiness and ambiguity. Subsequently, a re-administration will take
place in the following week. This process is aimed at assessing the effectiveness and
usability of the instrument, with the intention of identifying and rectifying any anomalies
that may be detected."

3.10.2 Validity of the Instrument

Validity is the extent to which an instrument can be relied upon to do what it purports to do
accurately. It is the soundness and the effectiveness of a measuring tool. It is to ascertain the
tool’s ability to measure what it claims to measure and nothing else (Aune, Welsh &
Williams, 2000). The validity of the instrument will be ascertained by effecting the
corrections made by the supervisor and copies will be given to other Lecturers in the
Department of Management Sciences, University of Nigeria Enugu campus for vetting.

36
3.10.3 Reliability of the Instrument
Reliability refers to the degree of internal consistency of a measuring instrument. According
to Falaye (2009), reliability is the consistency, accuracy, stability and trustworthiness of a
measuring instrument or scores obtained. It is to find out how far the same test would give
the same result if it were done again by the same student on different occasions, either with
or different sets of equivalent items under the same conditions. To establish the reliability
of the instrument to be used in this study, the Test-Retest method of establishing the
coefficient of stability of the instrument will be adopted. With expectations that the
coefficient will meet the 0.75 standard.

3.11 Method of Data Analysis

In this study, the method of data analysis will be percentages and charts to present the
respondents perception of the questionnaire items. The multiple regression statistical
modeling technique as applied by Frimpong (2014), Bassey and Olu (2008) as cited in
Ekpoh & Edet (2011) and by Plattner, Lechnana, Mmolawa and Mzingwane (2009),
Izedonmi and Okafor (2010) will be used in this study. The Statistical Package for Social
Sciences (SPSS 25) will be used to analyze the data collected. simple regressions will be
used to measure the relationship between the dependent variable and independent
variables as stated in the conceptual model. This method is intended to ascertain the rate
of change in the dependent variable as caused by independent variables.

3.11.1 Model Specification

Objective 1: Examine the cultural strategies involved in entrepreneurship development in
the Southeast region.

Model Specification:
- Dependent Variable (DV): Entrepreneurship Development
- Independent Variable (IV): Cultural Strategies
- Regression Equation: Entrepreneurship Development = β0 + β1 x Cultural Strategies
+ ε1
- Expected Relationship: A positive β1 coefficient indicates that an increase in Cultural
Strategies is associated with higher Entrepreneurship Development.

37
Objective 2: To ascertain if cultural variables promote entrepreneurship growth in the
Southeast region.

Model Specification:
- DV: Entrepreneurship Growth
- IV: Cultural Variables
- Regression Equation: Entrepreneurship Growth = β0 + β2 x Cultural Variables +
ε2
- Expected Relationship: A positive β2 coefficient suggests that Cultural Variables
have a promoting effect on Entrepreneurship Growth.

Objective 3: To assess if there are some cultural factors that inhibit entrepreneurship
development in the Southeast.

Model Specification:
- DV: Entrepreneurship Development
- IV: Inhibiting Cultural Factors
- Regression Equation: Entrepreneurship Development = β0 + β3 x Inhibiting
Cultural Factors + ε3
- Expected Relationship: A positive β3 coefficient indicates that Inhibiting Cultural
Factors negatively impact Entrepreneurship Development.

Objective 4: Explore ways of improving the cultural factors that inhibit entrepreneurship
development in the Southeast region.

Model Specification:
- DV: Improved Entrepreneurship Development
- IV: Efforts to Improve Cultural Factors
- Regression Equation: Improved Entrepreneurship Development = β0 + β4 x Efforts
to Improve Cultural Factors + ε4
- Expected Relationship: A positive β4 coefficient suggests that efforts to improve
Cultural Factors lead to better Entrepreneurship Development.

38
Objective 5: Examine the cultural components and their effect on marketing
methodologies.
Model Specification:
- DV: Marketing Methodologies
- IV: Cultural Components
- Regression Equation: Marketing Methodologies = β0 + β5 x Cultural Components
+ ε5
- Expected Relationship: A positive β5 coefficient implies that Cultural Components
have a positive effect on Marketing Methodologies.

39
 REFERENCES

Bassy, U.U., and Olu, D. (2008). Tertiary Entrepreneurship Education and graduate self-
employment potentials in Nigeria. Journal of world universities forum, 1(3): 131-
142.
Ekpo, U.I., and Edet, A.O. (2011). Entrepreneurship education and career intention of
tertiary education. www.ijssh.com>article>view.
Frimpong, K. (2014). The role of teaching and learning materials and interaction as a tool to
quality early childhood education in Agona East district of the central region of
Ghana.
Krejcia and Morgan, W. (1970) Model Sample size determination table uploading by Syed
Abdul Rahman.

Plattner, A., Lechnana, B.I., Mmolawa V., and Mzingwane, U. (2009). Effect of
entrepreneurship development on women graduates of the national center for women
development, Abuja.

40
 QUESTIONNAIRE
Letter of Introduction

Please Tick as Appropriate

SECTION A: RESPONDENT’S DETAILS

1. Business Name:
…………………………………………………………………………….
2. Year of Registration/Commencement: ……………………………………………….
3. Industry of Operation: ……………………………………………………………
4 Ownership Type: (A) Personal….. (B) Family:………… Partnership:………….
5. State of Location: …………………………………………………………………….
6. What is your income status based on the annual returns from your business
investment?
(a) High (More than ₦1.2m p.a.)
(b) Low (Less than ₦1.2m p.a.)

7. What is the level of your educational attainment?

(a) First School Leaving Certificate
(b) Senior Secondary School Certificate
(c) B.Sc/HND
(d) M.Sc
(e) Ph.D
(f) Others

SECTION B
(1) Examine the cultural strategies involve in entrepreneurship development in
south east region.
1. To what extent do you believe that cultural practices in the South East region
influence entrepreneurship development?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

41
2. How important is it to consider traditional values and customs in entrepreneurship
development in the South East region?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important
3. How well do cultural factors align with the goals of entrepreneurship development
in the South East region?
 Not Well
 Slightly Well
 Moderately Well
 Well
 Very Well
4. To what extent do you think cultural adaptation is crucial for the success of
entrepreneurial ventures in the South East region?
 Not At All
 Slightly
 Moderately
 Very
 Extremely
5. How receptive are local communities in the South East region to entrepreneurial
initiatives that respect their cultural norms?
 Not Receptive
 Slightly Receptive
 Moderately Receptive
 Very Receptive
 Extremely Receptive
6. Do you believe that entrepreneurship development in the South East region should
prioritize preserving and promoting cultural heritage?
 Strongly Disagree
 Disagree

42
  Neutral
 Agree
 Strongly Agree
7. How effectively are cultural traditions integrated into entrepreneurship education
and support programs in the South East region?
 Not Effectively
 Slightly Effectively
 Moderately Effectively
 Effectively
 Very Effectively
8. How do you perceive the role of cultural identity in shaping entrepreneurial
opportunities in the South East region?
 Negligible
 Minor
 Moderate
 Significant
 Highly Significant
9. To what extent are government policies supportive of entrepreneurship that aligns
with South East Nigeria's cultural values?
 Not Supportive
 Slightly Supportive
 Moderately Supportive
 Supportive
 Very Supportive
10. How likely are entrepreneurs in the South East region to adapt their business
strategies to reflect the local culture for better success?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely

43
(2) To ascertain if cultural variables promote entrepreneurship growth in
southeast region.
1. To what extent do you believe that cultural variables positively impact
entrepreneurship growth in the Southeast region?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
2. How significant is the influence of cultural practices on the growth of
entrepreneurial ventures in the Southeast region?
 Negligible
 Minor
 Moderate
 Significant
 Highly Significant
3. Do you think that cultural diversity in the Southeast region contributes to a more
vibrant and diverse entrepreneurial ecosystem?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
4. How important is it for entrepreneurs in the Southeast region to incorporate cultural
factors into their business strategies for growth?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important

44
5. How well are cultural variables integrated into entrepreneurial training and
development programs in the Southeast region?
 Not Well
 Slightly Well
 Moderately Well
 Well
 Very Well
6. To what extent do you believe that entrepreneurs who embrace and celebrate local
culture have a competitive advantage in the Southeast region?
 No Advantage
 Slight Advantage
 Moderate Advantage
 Significant Advantage
 Very Significant Advantage
7. How receptive are investors and financial institutions in the Southeast region to
businesses that incorporate cultural elements into their operations?
 Not Receptive
 Slightly Receptive
 Moderately Receptive
 Very Receptive
 Extremely Receptive
8. Do you think government policies in the Southeast region are supportive of
entrepreneurship that leverages cultural variables for growth?
 Not Supportive
 Slightly Supportive
 Moderately Supportive
 Supportive
 Very Supportive
9. How often do entrepreneurs in the Southeast region actively seek to identify and
utilize cultural variables for business growth?
 Rarely
 Occasionally

45
  Sometimes
 Often
 Always
10. How likely are cultural variables to be a driving force behind entrepreneurship
growth in the Southeast region in the coming years?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely

(3) To access if there are some cultural factors that inhibit entrepreneurship dev in
S/ east.
1. To what extent do you believe that cultural factors act as barriers to entrepreneurship
development in South Eastern Nigeria?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
2. How significant do you perceive the influence of cultural norms in discouraging
entrepreneurship in the South Eastern region?
 Negligible
 Minor
 Moderate
 Significant
 Highly Significant
3. Do you think that certain cultural beliefs and traditions in the South East hinder the
growth of entrepreneurial ventures?
 Strongly Disagree
 Disagree
 Neutral

46
  Agree
 Strongly Agree
4. How important is it to address and overcome cultural barriers to promote
entrepreneurship in South Eastern Nigeria?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important
5. How effectively are initiatives in the South East region addressing cultural factors
that inhibit entrepreneurship development?
 Not Effective
 Slightly Effective
 Moderately Effective
 Effective
 Very Effective
6. To what extent do you believe that entrepreneurs who challenge cultural norms can
succeed in the South East region?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely
7. How receptive are local communities in the South East region to changes in cultural
practices for the sake of entrepreneurship development?
 Not Receptive
 Slightly Receptive
 Moderately Receptive
 Very Receptive
 Extremely Receptive
8. Do you think government policies in the South East region address and help
overcome cultural barriers to entrepreneurship development?

47
  Not Addressed
 Slightly Addressed
 Moderately Addressed
 Addressed
 Well Addressed
9. How often do entrepreneurs in the South East region face challenges related to
cultural factors when trying to establish or grow their businesses?
 Rarely
 Occasionally
 Sometimes
 Often
 Always
10. How likely is it that efforts to mitigate cultural factors hindering entrepreneurship
development will be successful in the South East region in the future?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely
(4) Explore ways of improving the cultural factors that inhibit entrepreneurship
dev in S/east region
1. How important is it to address and improve cultural factors that hinder
entrepreneurship development in the South East region?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important
2. To what extent do you believe that fostering cultural awareness and education can
help mitigate the inhibiting factors for entrepreneurship in the South East region?
 Not Effective
 Slightly Effective

48
  Moderately Effective
 Effective
 Very Effective
3. How receptive do you think local communities in the South East region would be to
initiatives aimed at improving cultural factors for entrepreneurship development?
 Not Receptive
 Slightly Receptive
 Moderately Receptive
 Very Receptive
 Extremely Receptive
4. Do you think that entrepreneurship support programs tailored to address cultural
barriers would be successful in the South East region?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely
5. How well are government policies addressing and promoting initiatives to improve
cultural factors inhibiting entrepreneurship in the South East region?
 Not Well
 Slightly Well
 Moderately Well
 Well
 Very Well
6. To what extent do you believe that collaboration between cultural organizations and
entrepreneurship development initiatives can lead to positive change in the South
East region?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

49
7. How likely are entrepreneurs in the South East region to actively participate in
efforts to improve cultural factors that inhibit their businesses?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely
8. How effective do you think mentorship and guidance from successful entrepreneurs
who have overcome cultural barriers can be in improving entrepreneurship in the
South East region?
 Not Effective
 Slightly Effective
 Moderately Effective
 Effective
 Very Effective
9. How important is it for entrepreneurs to have access to resources and networks that
can help them address and overcome cultural obstacles?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important
10. How likely are efforts to improve cultural factors inhibiting entrepreneurship to have
a lasting and positive impact on the South East region's business landscape?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely

(5) Examine the cultural components and it's effect on marketing methodologies.
1. To what extent do you believe that cultural components significantly influence
marketing strategies and methods?

50
  Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
2. How important is it for businesses to consider cultural factors when designing
marketing campaigns in diverse regions?
 Not Important
 Slightly Important
 Moderately Important
 Important
 Very Important
3. How well do you think companies in your region currently adapt their marketing
methodologies to align with local cultures and customs?
 Not Well
 Slightly Well
 Moderately Well
 Well
 Very Well
4. To what extent do you believe that cultural sensitivity in marketing positively
impacts customer engagement and brand loyalty?
 Negligible
 Minor
 Moderate
 Significant
 Highly Significant
5. How effectively are businesses incorporating cultural elements into their marketing
messages to resonate with their target audiences?
 Not Effective
 Slightly Effective
 Moderately Effective
 Effective

51
  Very Effective
6. Do you think that businesses should actively invest in understanding and adapting to
the cultural values of the regions they operate in for marketing success?
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
7. How receptive are consumers in your region to marketing messages that reflect their
cultural identity and values?
 Not Receptive
 Slightly Receptive
 Moderately Receptive
 Very Receptive
 Extremely Receptive
8. How well are marketing professionals and teams equipped to incorporate cultural
components into their strategies?
 Not Well
 Slightly Well
 Moderately Well
 Well
 Very Well
9. How likely is it that companies that embrace cultural diversity in their marketing
methodologies outperform those that don't in your region?
 Very Unlikely
 Unlikely
 Neutral
 Likely
 Very Likely
10. How likely is the incorporation of cultural components to be a lasting and significant
trend in marketing practices in your region?
 Very Unlikely

52
 Unlikely
 Neutral
 Likely
 Very Likely

53