Entrepreneurial Motivations and Micro-Small Businesses Growth: Opportunity-Driven and Necessity-Driven Entrepreneurship Perspectives
Keywords:Entrepreneurship, Factor-Driven Economy, Improvement-driven, Necessity-Driven Entrepreneurship, Opportunity-Driven Entrepreneurship.
The productive sector in many economies depends on micro, small and medium businesses through self-employment. The decision to become entrepreneurial relies on the national entrepreneurial framework and the individual entrepreneurial motivation among others. This paper explores the impact of entrepreneurship motivation on micro and small firms’ growth in a developing economy. This study is based on Porter’s Development theory which focuses on factor-driven, efficiency-driven or innovation-driven economies which foster the form of entrepreneurial behaviour demonstrated by the citizens. Two forms of motivations were identified: necessity- driven entrepreneurship and opportunity-driven. Two research questions were raised at P<0.05 level of significance. The study employed quantitative research approach using descriptive survey method with a structured questionnaire to obtain data from 200 self-employed owners of registered micro and small firms in Minna metropolis, Nigeria. Descriptive statistics and Pearson-Moment Correlation were used for the analysis. The finding shows that more people are motivated into entrepreneurship by necessity than opportunity. It also established that there was significant positive relationship between both the necessity –driven and opportunity-driven entrepreneurship and business growth, the positive relationship is at a minimal level. Thus, this suggests that, at least in developing countries, the role of necessity-driven and opportunity-driven entrepreneurship cannot be overlooked. It therefore recommended that effort should be made by government of Nigeria to provide an enabling environment such as social infrastructure, good government policies, aids and grants to foster entrepreneurship in Nigeria.