Strengthening Entrepreneurial Ecosystems in North-Central Nigeria: A Pathway to Scaling SMES Amid Economic Volatility
DOI:
https://doi.org/10.54878/sdc7tw52Keywords:
Entrepreneurial ecosystems, SMEs, innovation, resilience, North-Central Nigeria, economic volatility, ecosystem development, policy coordinationAbstract
Small and Medium Enterprises (SMEs) play a critical role in employment generation, innovation, and economic development in Nigeria. However, persistent economic volatility characterized by inflation, exchange rate instability, infrastructural deficits, and policy uncertainties has constrained the growth and sustainability of many SMEs. This study examines the role of entrepreneurial ecosystems in strengthening SME resilience and scalability in North-Central Nigeria, with particular focus on Kogi State. Anchored on Isenberg’s Entrepreneurial Ecosystem Theory, the study adopts a mixed-methods research design, combining quantitative and qualitative approaches. Data were collected from 142 SME owners and managers across manufacturing, agro-processing, and digital service sectors, as well as 27 key ecosystem actors comprising incubator managers, hub coordinators, and policymakers. Quantitative data were analyzed using descriptive statistics and regression analysis, while qualitative data were subjected to thematic analysis. The findings reveal that SMEs embedded within entrepreneurial ecosystems significantly outperform isolated firms, recording average revenue growth of 38.5% compared to 20.1% among non-ecosystem SMEs, and survival rates of 87.2% versus 64.5% during economic shocks. Access to finance emerged as the most influential ecosystem factor (β = 0.42; mean = 3.92), followed by market linkages and digital support systems. Conversely, weak institutional coordination, infrastructural deficits, and fragmented policy implementation were identified as major constraints to ecosystem effectiveness. The study concludes that functional entrepreneurial ecosystems enhance SME resilience, innovation, and scalability by providing access to resources, networks, and institutional support. It recommends stronger ecosystem coordination, improved access to finance, digital capacity development, and targeted infrastructure investment. The study contributes to the growing literature on entrepreneurial ecosystems in emerging economies and provides practical insights for policymakers, development partners, and SME support institutions.
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