Entrepreneurial Ecosystem and Innovativeness of Technopreneurs in Lagos State Nigeria
Abstract
This study investigates the relationship between the entrepreneurial ecosystem and the innovativeness of technopreneurs in Lagos, Nigeria. Adopting a quantitative survey research design, data were collected through a structured questionnaire administered to a sample of 120 respondents. The collected data were then presented and analyzed using SPSS27. Hypotheses were tested using ANOVA estimates (F-statistic). The findings reveal that all null hypotheses were rejected, indicating a significant positive relationship between the entrepreneurial ecosystem components and technopreneurial innovativeness. Specifically, the availability of funding opportunities, supportive government policies, and a conducive regulatory environment were found to influence technopreneurs’ innovativeness significantly. Additionally, the study found that technopreneurs in Lagos demonstrated a high level of creativity, innovation, and adaptability, leveraging the resources and opportunities provided by the entrepreneurial ecosystem. Based on these results, the study concludes that fostering a supportive entrepreneurial ecosystem is crucial for promoting technopreneurial innovation in emerging economies like Lagos. The study recommends that policymakers, industry stakeholders, and regulators collaborate to create an enabling environment for technopreneurs, including providing access to funding, supportive policies, and infrastructure. Furthermore, the study emphasizes the importance of continuous monitoring and evaluation of the entrepreneurial ecosystem to ensure its effectiveness in driving innovation and economic growth. Overall, this study contributes to the empirical understanding of the relationship between the entrepreneurial ecosystem and technopreneurial innovativeness, providing valuable insights for policymakers and industry practitioners seeking to promote entrepreneurship and innovation in emerging economies.
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CHAPTER ONE
INTRODUCTION
Background to the Study
Entrepreneurship, a global force in economic development, is drawing attention due to the growing significance of the entrepreneurial ecosystem (Beckman et al., 2022; Coron & Gilbert, 2020). In the bustling city of Lagos, Nigeria, Technopreneurs are at the forefront, seamlessly merging technology and entrepreneurship to create a vibrant hub (Giwa, 2019). This dynamic ecosystem is pivotal in shaping the innovativeness of Technopreneurs and is crucial for fostering sustainable economic growth (Thérin, 2021).
Lagos recognized as Nigeria’s economic capital, has witnessed a surge in techno-partnership, with startups and technology-driven enterprises contributing substantially to economic vitality (Aderemi et al., 2020). The entrepreneurial landscape is influenced by factors like access to funding, regulatory environment, and government support (Carree & Thurik, 2020). Aderemi et al. (2020) explore the choice and performance of women entrepreneurs in southwestern Nigeria, offering insights into the gender dimension of the entrepreneurial ecosystem. Adeyeye et al. (2021) empirically analyze the impact of technology innovation and R&D on firms’ performance, providing a broader understanding of the technological landscape.
To unravel the intricacies of the entrepreneurial ecosystem in Lagos, it’s imperative to dissect its components and their impact on the innovativeness of Technopreneurs. The availability of funding, a critical aspect, is highlighted by Akinwale et al. (2017) and Audretsch (2019). The study by Adeyeye et al. (2021) adds depth by examining the impact of technology innovation on firms, underscoring the importance of technological advancements in the ecosystem. Afolabi (2023) broadens the perspective by discussing the overall effects of entrepreneurship on economic growth, emphasizing the ecosystem’s holistic impact.
The regulatory environment, another pivotal factor, shapes the entrepreneurial landscape in Lagos. Akinwale et al. (2017) and Daramola (2012) emphasize the regulatory framework’s role in influencing the innovativeness of Technopreneurs. Daramola (2012) specifically focuses on venture capital policy, showcasing the interplay between regulations and the emergence of innovative ventures.
Government support significantly influences the entrepreneurial ecosystem and the innovativeness of Technopreneurs (Afolabi, 2023; Adeyeye et al., 2021). Aderemi et al. (2020) assess the performance of women entrepreneurs, shedding light on how government support may impact gender-specific challenges and opportunities within the entrepreneurial ecosystem.
Considering market opportunities as a significant variable is essential when exploring the relationship between the entrepreneurial ecosystem and the innovativeness of Technopreneurs. The study by Akinwale et al. (2017) examines the impact of technological innovation on SMEs’ profitability, providing insights into how technological advancements create market opportunities for enterprises. Atuahene-Gima and Amuzu (2019) present a case study on Farmcrowdy, a digital business model innovation for farming in Nigeria, highlighting how technological solutions tap into market opportunities.
The acquisition of Jobberman by One Africa Media, as reported by Asegbeloyin and Ndiomewese (2021), illustrates the changing landscape and opportunities within the entrepreneurial ecosystem in Lagos. The acquisition signifies the growth and attractiveness of technology-driven ventures, emphasizing the need to understand the factors contributing to such developments.
In essence, Lagos, Nigeria, stands as a dynamic hub for Technopreneurs, with the entrepreneurial ecosystem playing a pivotal role in shaping their innovativeness. The diverse factors within the ecosystem, including funding, regulatory environment, government support, and market opportunities, collectively influence the success and growth of Technopreneurs. Insights from various studies contribute to a nuanced understanding of the entrepreneurial dynamics in Lagos, underscoring the need for continued research and strategic policymaking to foster sustainable economic growth.
Statement of the Problem
The burgeoning entrepreneurial ecosystem in Lagos, Nigeria, has undoubtedly propelled the city into a hub for Technopreneurs, blending technology and entrepreneurship for economic vitality. However, despite the city’s rapid growth in Technopreneurship, there exist critical gaps and unresolved issues that warrant attention and further exploration.
Firstly, while there is ample evidence indicating the surge in techno-partnership in Lagos (Giwa, 2019), there is a notable dearth of comprehensive studies that delve into the nuanced gender dynamics within this ecosystem. Aderemi et al. (2020) provide insights into the choice and performance of women entrepreneurs, but a more extensive exploration is needed to understand the unique challenges and opportunities female technopreneurs face. This gap is crucial for fostering inclusivity and addressing gender disparities in the entrepreneurial landscape.
Secondly, existing research highlights the significance of funding, regulatory frameworks, and government support in shaping the entrepreneurial ecosystem in Lagos (Akinwale et al., 2017; Adeyeye et al., 2021). However, there is a lack of in-depth analysis of the interplay between these factors and their collective impact on the innovativeness of technopreneurs. Unravelling the intricate relationships among funding accessibility, regulatory environment, and government initiatives will contribute to a more comprehensive understanding of the challenges and opportunities faced by technopreneurs in Lagos.
Furthermore, despite the increasing focus on technology-driven ventures, there is limited research exploring the specific market opportunities that arise within Lagos’ entrepreneurial ecosystem. Akinwale et al. (2017) touch upon the impact of technological innovation on SMEs’ profitability, but a more extensive examination of how market opportunities are created and harnessed by technopreneurs is essential for guiding strategic initiatives and fostering sustained growth.
In addressing these gaps, this study seeks to contribute to a more holistic understanding of the entrepreneurial ecosystem in Lagos, providing valuable insights for policymakers, industry stakeholders, and aspiring entrepreneurs.
Objective of the Study
The primary aim of this study is to explore the relationship between the entrepreneurial ecosystem and the innovativeness of Technopreneurs in Lagos, Nigeria. The specific objectives are as follows:
- To analyze the key components of the entrepreneurial ecosystem in Lagos.
- To assess the level of innovativeness among Technopreneurs in Lagos.
- To determine the impact of the entrepreneurial ecosystem on the innovativeness of Technopreneurs.
Research Questions
- What are the critical components of the entrepreneurial ecosystem in Lagos that affect Technopreneurs?
- How innovative are Technopreneurs in Lagos in their approach to technology-driven solutions?
- What is the nature of the relationship between the entrepreneurial ecosystem and the innovativeness of Technopreneurs?
Hypotheses
The following hypotheses were investigated:
Null Hypotheses(H0):
- There is no positive relationship between the entrepreneurial ecosystem and the innovativeness of Technopreneurs in Lagos.
- Specific components within the entrepreneurial ecosystem do not significantly influence the innovativeness of Technopreneurs.
- The level of government support within the entrepreneurial ecosystem negatively correlates with the innovativeness of Technopreneurs.
Alternative Hypotheses(H1):
- There is a positive relationship between the entrepreneurial ecosystem and the innovativeness of Technopreneurs in Lagos.
- Specific components within the entrepreneurial ecosystem significantly influence the innovativeness of Technopreneurs.
- The level of government support within the entrepreneurial ecosystem positively correlates with the innovativeness of Technopreneurs.
Operationalisation of Research Variables
In exploring the relationship between the entrepreneurial ecosystem and the innovativeness of technopreneurs, three dependent variables (y1, y2, y3) and three independent variables (x1, x2, x3) will be considered. Let y1 represent the level of innovativeness, y2 indicate access to resources, and y3 denote market opportunities. Similarly, x1 will represent the regulatory environment, x2 the availability of funding, and x3 the level of government support. Regression equations will be formulated to quantify these relationships.
y1=β0​+β1​x1+β2​x2+β3​x3+ϵ1​
y2=β0​+β1​x1+β2​x2+β3​x3+ϵ2​
y3=β0​+β1​x1+β2​x2+β3​x3+ϵ3​
1.7 Scope of the Study
This study focuses on Technopreneurs within the geographical boundaries of Lagos State, Nigeria. It encompasses the period from the recent surge in techno-partnership to the present, providing a contemporary understanding of the entrepreneurial ecosystem’s impact on innovation.
Significance of the Study
Management
Entrepreneurs and business leaders operating within Lagos, Nigeria, will find substantial value in this study, as it offers crucial insights into the multifaceted factors influencing innovativeness among technopreneurs. Understanding the intricate dynamics of the entrepreneurial ecosystem, including aspects such as funding availability, regulatory frameworks, and government support, will empower these leaders to make informed strategic decisions.
The study’s exploration of gender dynamics within the techno-preneurial landscape also provides a nuanced perspective, offering insights into the unique challenges and opportunities faced by women entrepreneurs. For leaders seeking to foster inclusivity and diversity within their organizations, these insights can guide initiatives to create a more supportive and equitable business environment.
Academics
This study makes a significant contribution to the academic literature by providing empirical evidence that delves into the intricate relationship between the entrepreneurial ecosystem and the innovativeness of technopreneurs in Lagos, Nigeria. By adding this empirical dimension, the research contributes to fostering a deeper and more nuanced understanding of the dynamics within the techno-preneurial landscape.
The empirical evidence generated through this study serves as a valuable resource for academic researchers, scholars, and educators in entrepreneurship and business management. It enriches existing knowledge by substantiating theoretical frameworks with real-world observations and outcomes. This contribution is particularly essential in the context of Lagos, a burgeoning hub for Technopreneurship, as it allows for the generalization of findings and theories beyond mere conceptualization.
Government
The findings of this study hold substantial implications for policymakers, offering actionable insights to formulate policies that can effectively enhance the entrepreneurial ecosystem in Lagos, Nigeria. By understanding the factors influencing techno-preneurial innovativeness, policymakers can design initiatives that create a conducive environment for innovation and sustainable economic growth.
Insights from the study guide policymakers in developing targeted strategies to address specific challenges within the entrepreneurial ecosystem. For instance, recognizing the gender-specific dynamics highlighted in the research, policymakers can implement measures to promote inclusivity and equal opportunities for women in the techno-preneurial sector. Additionally, understanding the interplay between funding, regulatory frameworks, and government support enables policymakers to craft comprehensive policies that address these critical aspects collectively.
Industry Regulators
Regulatory bodies stand to gain valuable insights from this study regarding the nuanced impact of their policies on Technopreneurs in Lagos, Nigeria. The empirical evidence presented in the research provides regulatory bodies with a comprehensive understanding of how their policies influence the techno-preneurial landscape, allowing for informed adjustments that can foster a healthier and more supportive business environment.
By delving into the specific regulatory challenges and opportunities faced by technopreneurs, regulatory bodies can tailor their policies to address the unique needs of this sector better. The study sheds light on the interplay between regulations, venture capital policies, and the emergence of innovative ventures, offering regulatory bodies a nuanced perspective on fostering an environment that promotes innovation while ensuring compliance.
Society
The findings of this study hold significant potential for societal benefit, particularly in the creation of more innovative solutions that can enhance the overall quality of products and services available to the public. By uncovering the factors influencing techno-preneurial innovativeness in Lagos, the study paves the way for the development of novel solutions that address pressing societal challenges.
As Technopreneurs gain insights into the dynamics of the entrepreneurial ecosystem, they are better equipped to innovate and create solutions that cater to the needs of the broader society. The study’s emphasis on funding, regulatory frameworks, and government support provides a roadmap for technopreneurs to navigate challenges and capitalize on opportunities, resulting in the generation of products and services that can positively impact the community.
Definition of Operational Terms
Entrepreneurial Ecosystem: The interconnected set of economic, social, and environmental factors that influence the development and growth of entrepreneurs and their ventures.
Innovativeness: The ability of Technopreneurs to develop and implement novel solutions, products, or services.
Technopreneurs: Entrepreneurs who focus on technology-driven products or services.
Regulatory Environment: The legal and policy framework governing business operations.
Availability of Funding: The accessibility and abundance of financial resources for Technopreneurs.
Government Support: Assistance provided by the government in the form of policies, programs, and incentives for entrepreneurs.
Access to Resources: The availability of physical, human, and financial resources for Technopreneurs.
Market Opportunities: The potential for Technopreneurs to identify and capitalize on market needs and trends.
REFERENCES
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