Nigerian Journal of Banking and Financial Issues (NJBFI)

Analysis Of Motivating Factors For Informal Entrepreneurship Activities In Nigeria

Abstract

This study appraises the motivating factors for informal entrepreneurship activities in Nigeria. Data was collected through questionnaire which served as the only source of information for this study. In order to analyze the objective, Pearson Product movement Correlation (PPMC) and descriptive statistics were employed. The study population comprises of all the informal entrepreneurs in all the 136 local governments in the six selected States in South West of Nigeria out of which 15 informal entrepreneurs were selected in each local government in three (3) senatorial districts in the six (6) States selected making a total of 540 respondents.  Also, the choice of respondents from different informal entrepreneurs was based on the needs to gauge the minds of informal entrepreneurs. The population of the study was extended to all informal entrepreneurs which included agropreneurs, artisans, transporters, as well as traders. The result indicated that positive and significant relationship exist between wealth creation and informal entrepreneurship with r=0.4544*. Similarly, government support has positive and significant relationship with informal entrepreneurship with r value of 0.4910*. Also, with r value of 0.5553* there exist positive and statistically significant relationship between informal entrepreneurship and Job security. However, r value of 0.0710, 0.0181 and 0.0729 respectively, innovation, survival and employment have statistically significant relationship with informal entrepreneurship. It is concluded that informal entrepreneurship is ignited by motivating factors such as wealth creation, government support, Job security, innovation, and employment generation. Therefore, individual, informal entrepreneurs, none governmental agencies and the government should embark on awareness campaign using the element of the motivating factors to influence more people to engage in informal entrepreneurship thereby reducing unemployment in the states and the nation as a whole.