Understanding the Nigerian Entrepreneurial Ecosystem for Micro, Small and Medium-sized Enterprises (MSMEs)

: An institutional theory-based model

Abstract

Scholars, practitioners and politicians are all captivated by entrepreneurial ecosystems. Although research on entrepreneurial ecosystems is expanding, knowledge remains fragmented. This thesis focuses on the Nigerian entrepreneurial ecosystems for micro and small businesses by critically analysing how the entrepreneurial ecosystem and the institutional environment influence entrepreneurs. Literature suggests that this concept has yet to be adequately explored in African entrepreneurship studies.
The objectives of this thesis are threefold: Firstly, the thesis intends to review the relevant literature on the entrepreneurial ecosystem, gain in-depth knowledge and understanding of the phenomenon, and contribute to an existing theory. Secondly, it aims to explore and understand the effect of the institutions, as well as the impact of the environment on entrepreneurship in Nigeria. Lastly, it plans to suggest policies that better target entrepreneurs with limited access to entrepreneurship support. This exploratory study has abductive elements but used orienting constructs from prior theory deductively, deriving a framework inductively based on empirical data. Qualitative data was collected via semi-structured, in-depth interviews with 20 business owners in Nigeria. Results indicated that both informal and formal institutions exist in the Nigerian entrepreneurial ecosystem, with entrepreneurs relying heavily on the informal institutions, counterbalancing the obligations of the formal institutions to increase the feasibility and legitimacy of entrepreneurial activities.
This thesis claims that entrepreneurial ecosystems in the developing market differ in relation to the Western models, as established models like the WEF’s and Isenberg’s work well in developed economies. However, they face challenges in developing markets predominantly due to weak institutions, poor infrastructure, limited financing, and policy barriers. While these models may align conceptually in developing countries such as Nigeria, these systemic issues hinder effective implementation, making entrepreneurship heavily reliant on informal networks such as family support rather than formal institutions. In other words, given the documented differences in institutional strength, regulatory capacity, and resource availability highlighted across the literature, this thesis assumes that entrepreneurial ecosystems in developing markets differ substantively from their Western counterparts and therefore require context‑specific adaptation. This thesis contributes to knowledge within the field of entrepreneurship ecosystems by developing theory in the context of six propositions and contributes to the institutional theory. In addition, this thesis presents evidence that Hofstede’s cultural instrument lacks individual‑level validity. Finally, this research contributes to the growing body of qualitative research in entrepreneurship within Africa.

Date of Award	May 2026
Original language	English
Awarding Institution	University of Brighton
Supervisor	Keith Perks (Supervisor), Nasos Poulis (Supervisor) & Julian Riano (Supervisor)