THE IMPACTS OF CORRUPTION AND REGULATORY CONSTRAINTS ON THE GROWTH OF ENTREPRENEURIAL VENTURES IN NIGERIA
Keywords:
Impact, corruption, regulatory constraints, growth, entrepreneurial ventures.Abstract
Entrepreneurship drives economic growth and job creation, enhancing living standards and national development. In Nigeria, however, corruption and excessive regulations undermine institutions, hinder investment, and lead entrepreneurs to adopt inefficient or unethical practices, stifling innovation and competition. Challenges such as bureaucracy, high taxes, and inadequate infrastructure further obstruct business development. This study explores the effects of corruption and regulatory constraints on entrepreneurial growth in Nigeria. Three research questions guided the study. Descriptive survey research design was employed. Descriptive statistics and questionnaires, analysed with a Cronbach's alpha coefficient of (.82) was conducted across Nigeria's six geo-political zones, utilising stratified, purposive sampling to select 380 respondents from a population of approximately 237 million, adhering to Yaro Yamane's formula with a 5% margin of error. Findings indicate that corruption and strict regulations in Nigeria significantly impede entrepreneurship by undermining institutions, deterring investment, and encouraging unethical practices, which stifles innovation and fair competition. Regulatory challenges such as high taxes, bureaucracy, and inadequate infrastructure further hinder start-ups and business growth Additionally, corruption thrives due to weak institutions and poor governance, complicating law enforcement and accountability. It was concluded that it would take comprehensive reforms to eliminate the negative impacts of corruption and regulatory barriers on the growth of entrepreneurial ventures in Nigeria. It was recommended among others that government should embark on comprehensive reforms to streamline bureaucracy, enhance transparency, combat corruption, improve infrastructure and provide better financial access for entrepreneurial growth in the country.
Downloads
References
Adamaagashi, I., Awakessien, C., & Awakessien, S. (2024). Corruption and governance: Examining the impact on political stability in Nigeria. International Journal of Social Sciences and Management Research, 10(2), 1- 19.
Adekunle, T. A. (2024). Challenges Associated with Entrepreneurship, Vocational Education and Self-Employment in Nigeria. Iconic Research and Engineering Journal, 7(9), 91-105
Adepoju, V. (2025, February 13). How corporate governance reforms could facilitate combating corruption and promoting transparency in Nigeria's public and private sectors. The Social Science Research Network (SSRN). Www.papers.ssrn.com/sol3/papers.cfm?abstract_id=5349304
Alnaim, M., & Metwally, A. B. M. (2024). Institutional pressures and environmental management accounting adoption: Do environmental strategy matter? Sustainability, 16(7), 3020. https://doi.org/10.3390/su16073020
Barbar, J. (2025). Expanding the lens of institutions: A holistic approach. Frontiers in Political Science, 7:1563937. doi: 10.3389/fpos.2025.1563937
Basel Institute on Governance. (n.d.). What is corruption? www.baselgovernance.org/what-is-corruption
Berthod, O. (2018). Institutional theory of organizations. In A. Farazmand (Eds) Global Encyclopedia of Public Administration, Public Policy and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-20928-9_63
Chen, J. (2025, August 22). Corruption explained: Types, causes, and high-profile cases. Investopedia. www.investopedia.com/terms/c/corruption.asp
Corrupt Practices Investigation Bureau. (2025). Definition of corruption. www.cpib.gov.sg/about-corruption/prevention-and-education/definition-of-corruption/
David, R., Tolbert, P., & Boghossian, J. (2019, December 23). Institutional theory in organization studies. Oxford Research Encyclopedia of Business and Management. https://oxfordre.com/business/view/10.1093/acrefore/9780190224851.001.0001/acrefore-9780190224851-e-158.
Galleli, B., & Amaral, L. (2025). Bridging institutional theory and social and environmental efforts in management: A review and research agenda. Journal of Management, 0(0). https://doi.org/10.1177/01492063251322429
Graycar, A. (2022). Corrupt procurement: Rethinking the roles of principals and agents. Policy Design and Practice, 5(3), 276 29. www.researchgate.net/publication/362785344_Corrupt_procurement_rethinking_the_roles_of_principals_and_agents
Hoffman, L. K. & Hilton, T. (2025, August 25). Corruption in Nigeria. Chatham House. www.chathamhouse.org/2025/08/corruption-nigeria
International Environmental Law Research Centre. (2004). Atomic energy (radiation protection) rules, 2004. www.ielrc.org/content/e0424.pdf
Iriobe, O. (2018). Entrepreneurial ventures and its components. Researchgate. www.researchgate.net/publication/362524150_Entrepreneurial_Ventures_and_Its_Components#fullTextFileContent
Jacinta E. I. & Bayefine, O. R. (2025). Development and underdevelopment in African States: A critical evaluation of how Europe underdeveloped Africa. Top Journal of Public Policy and Administration, 12 (3), 1829. file:///C:/Users/USER/Downloads/Correction+Done+on+DEVELOPMENT+AND+UNDERDEVELOPMENT+IN+AFRICAN+STATES+1+1+3.pdf
Jamadar, D. (2017, February 16). Constraints. Scribd. www.scribd.com/document/339446593/Constraints
Khan, M. A. (2022). ESG disclosure and Firm performance: A bibliometric and meta-analysis. Research in International Business and Finance, 61. https://doi.org/10.1016/j.ribaf.2022.101668.
Masters, A. & Graycar, A. (2020). Making corruption disappear in local government. Researchgate. www.researchgate.net/publication/342435369_Public_Integrity_vol
Mistree, D. & Dibley, A. (2018). Corruption and the paradox of transparency. Working paper series. Stanford Law School. www.law.stanford.edu/wpcontent/uploads/2018/07/Mistree-Dibley-Corruption.4.18.18.pdf
Muda, P., Tornyeva, K., & MacCarthy, J. (2024). The moderating role of environmental factors between institutional isomorphic pressures and the adoption of IFRS for SMEs: application of SEM. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2330012
National Audit Office. (2024, November). An overview of regulation for the new parliament 2023-24. www.nao.org.uk/wp-content/uploads/2024/11/regulation-overview-2023-24.pdf
Nigerian Capital Development Fund {NCDF}(2025). Crisis in access to finance and regulatory bottlenecks in Nigeria’s entrepreneurial ecosystem. www.ncdfgroup.com/crisis-in-access-to-finance-and-regulatory-bottlenecks/
Nigerian Capital Development Fund {NCDF}. (2025). Crisis in access to finance and regulatory bottlenecks in Nigeria’s Entrepreneurial Ecosystem. www.ncdfgroup.com/crisisinaccess-to-finance-and-regulatory-bottlenecks/
Okwechime, N. B., & Jude, N. M. (2025). Assessing the Role of Corruption on Failure of Entrepreneurial Ventures in Asaba, Delta State, Nigeria. International Journal of Entrepreneurship, Management and Social Sciences (IJEMSS), 2(1), 310-327
Patel, R. (2024, November 14). What are legal and regulatory constraints? Challenges and implications. Upper. www.upperinc.com/glossary/routeoptimization/legalandregulatory-constraints/
Peters, B. G. (2000). Institutional theory: Problems and prospects. Former series> Working Paper Series> Institute for Advanced Studies (IHS). Political Science Series 69. www.irihs.ihs.ac.at/id/eprint/1273/1/pw_69.pdf
ProInvoice. (2025, July 22). Challenges of doing business in Nigeria (And how to overcome them). www.proinvoice.co/challengesofdoingbusinessinnigeriaandhowtoovercome-them/
Roszkowska M., M. (2023). Institutional Theory. In S. O. Idowu, R. Schmidpeter, N. Capaldi, Zu, L., M. Del Baldo, R. Abreu, (Eds). Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-031-25984-5_389
Sahin, K. & Mahan, K. M. (2023). Institutional theory in international business studies: the period of period of 1990–2018. International Journal of Organizational Analysis, 31 (5). 1957–1986. https://doi.org/10.1108/IJOA-09-2021-2945
Scrum Dictionary (n.d.). Regulatory Constraint. In scrumdictionary.com/term/regulatory-constraint/
Seth, S. (2025, April 1). Entrepreneurs and entrepreneurship: Definitions and examples. Investopedia. www.investopedia.com/articles/investing/092514/entrepreneur-vs-small-business-owner-defined.asp
Skaggs, L. (2023, August 3). Planning fundamentals refresh: Problems, opportunities, objectives, and constraints. US Army Corps of Enginners. www.planning.erdc.dren.mil/toolbox/webinars/23Aug3-PlanningFundamentals.pdf
Sustainability Directory. (2024). Regulatory Constraints. www.pollution.sustainabilitydirectory.com/area/regulatory-constraints/
Tamplin, T. (2024, January 25). Regulatory constraints. Finance strategists. www.financestrategists.com/financial-advisor/business-ethics/regulatory-constraints/
Ugwuibe, C. O., Onah, F. N., Olise, C. N. (2021). Chapter 23 – Flood disasters in Aba North Local Government area of Abia State, Nigeria: Policy options. In economic effects of natural disasters. Editor(s): Taha Chaiechi. Academic Press, PP373 380. ISBN 9780128174654. www.sciencedirect.com/science/article/pii/B9780128174654000236)
United Nations Office on Drug and Crime. (n.d.). Basic methodological aspects of corruption measurement: Lessons learned from the literature and the pilot study (1999 December). The Hungarian Gallup Institute. www.unodc.org/pdf/crime/corruption_hungary_rapid_assess.pdf
Vizologi. (2024, January 22). The 4 types of entrepreneurial ventures explained. www.vizologi.com/types-of-entrepreneurial-ventures-explained/
