Determinants of livelihood choices and artisanal entrepreneurship in Nigeria

Abstract

Purpose The purpose of this paper is to provide fresh insights into rural artisanal activities in a developing world context. It highlights key determinants of the decision to engage in an artisanal business and the challenges that impact upon the growth of these activities. Design/methodology/approach The study adopts a mix-method research approach to explore a rural setting where most respondents (81 per cent) combine farm and non-farm livelihood activities. Quantitatively, a multi-nominal regression is used to examine the determinants of diversified artisanal livelihoods. It modelled the differences between farming livelihoods that have not diversified, compared to those also involved in the artisanal activity or wage employment and the intensity of participation. Findings The findings show that nearly half of artisanal businesses (45.4 per cent) comprise only the owners and no employee, while 54.6 per cent employ one to three workers. Also, some artisanal ventures were more gender-specific than the gender-neutral activities. Other observations were in age (most artisans were under the age of 46 years) and vocational training (most were self-trained followed by a third receiving training only in specific areas such as technical works, building and construction and general trading apprenticeships). Research limitations/implications The study is based on a relatively small sample size of 306 business owners, which makes it difficult to generalise despite the persuasiveness of the observations made. Practical implications First, the use of econometric methods enabled the development of valid data sets (and various descriptive statistical and logit regression) to analyse determinants of the decision to engage in artisanal work, and the intensity of participation. Second, the ambiguity in categorising artisanal activities is unravelled. The study characterises the local artisanal sector and examines the intensity of participation. Without these, targeted support would remain elusive for practical and policy interventions. Originality/value Artisanal activities constitute a high proportion of small businesses in the study area – with more than half (54.2 per cent) of respondents being classified as artisans, yet it is an overlooked area of entrepreneurship. Highlighted here are both types of activities and challenges regarding better conceptualising the understanding of artisans and regarding this mostly unarticulated base of practice.

The Barriers to High-Growth Enterprises: What Do Businesses in Africa Experience?

“…Indeed, the entrepreneurial ecosystem in many African countries produces micro, small and informal enterprises. Arguably, the majority of these enterprises are necessity entrepreneurship (GEM, 2014(GEM, & 2015Igwe, Madichie & Newbery, 2019) as a result of the high rate of unemployment and poverty in the region. Above all, the adverse entrepreneurial ecosystem, culture and regulations prevent those who want to become entrepreneurs and entrepreneurs who want to grow their businesses.…”

“…Although, entrepreneurship and business activities are high in African region (Goedhuys & Sleuwaegen, 2010), these activities reflect informal activities (Igwe, Newbery & Icha-Ituma, 2018) and necessity entrepreneurship (see, Igwe, Madichie & Newbery, 2019) due partly to the high unemployment rate, high poverty rates, low education, lack of adequate business support such as finance, infrastructure, unfavourable regulations, etc. Also, this article illustrates the impact of institutional arrangements, as well as the entrepreneurial ecosystem and their impact on entrepreneurship, business performance and growth.…”

“…Corruption is a major factor in this regard (Faleye 2013;Keeper 2012;Hechavarría et al 2017). Although there are two contrasting views regarding the effect of corruption on firms performance (Méndez & Sepúlveda 2006;Méon & Weill 2010;Williams & Kedir, 2016;Zoogah, 2018), the consensus is that corruption increases business transaction costs and deter some people who do not want to engage in corruption from doing business (Igwe, Madichie & Newbery, 2019;Igwe, Onjewu & Nwibo, 2018;. Other business obstacles and barriers include crime rates, access to infrastructure, high tax rates and trade regulations.…”

“…First, it is suggestive of the 'necessity versus opportunity' argument where the quality of the opportunity and corresponding value that can be extracted may be lower in the African context (African Development Bank, ADB, 2012& 2019. Second, the majority of the activities are 'necessity-driven' (Igwe, Madichie & Newbery, 2019). Consequently, African economic outlook shows that the continent is experiencing youth's jobless growth with around 60 per cent of unemployed youths (ADB, 2012).…”

Determinants of Household Income and Employment Choices in the Rural Agripreneurship Economy

“…Finally, the data are drawn from a survey of rural farmers (heads of households) from South-eastern Nigeria selected purposefully from a list of farmers registered with the State government Ministry of Agriculture. The South-eastern region of Nigeria is also known for its agricultural activities, as well as a high level of entrepreneurial and small business activities (see, Igwe et al, 2018Igwe et al, , 2019Igwe et al, and 2020.…”