Impact of Entrepreneurial Opportunity, Entrepreneurial Necessity and Demographic Factors on Entrepreneurial Participation: Towards Peace Restoration in Northeast Nigeria

The role of entrepreneurship in creating social value beyond profit motive has been widely explored, and its potential for peace restoration in post-conflict settings has gained increasing attention in recent years. This study examines the impact of entrepreneurial opportunity and participation on peace restoration in Northeast Nigeria. The study utilizes primary data collected from 3,768 respondents across nine major markets in Borno, Adamawa, and Yobe states, with 3,526 valid responses used for analysis, representing 93.6% response rate. Structural Equation Modelling (SEM) was applied for the analysis. The findings revealed that entrepreneurship has a positive and statistically significant effect on peace restoration, although the magnitude of direct effect is relatively weak. The results further show that entrepreneurial necessity, entrepreneurial opportunity, and demographic characteristics significantly influence entrepreneurial participation, with demographic factors exerting the highest direct effect (0.734). The study recommends integrated interventions that combine entrepreneurship development, peacebuilding, psychosocial support, anti-indoctrination strategies, and institutional strengthening to achieve sustainable recovery and stability in the region.

Entrepreneurship, Peace Restoration, Insurgency

1. Abubakar, T. A. & Amurtiya, M. (2023). Boko-Haram Insurgency and Rural Livelihood Dilemma: Implication for Sustainable Development in North-East Nigeria. Problem of Sustainable Development, 18(1): 216-225. DOI: 10.35784/pe.2023.1.23. [Google Scholar] [Crossref]

2. Adedeji, A.N., Sidique, S.F., Abd Rahman, A. & Law, S.H., 2016. The role of local content policy in local value creation in Nigeria’s oil industry: A structural equation modeling (SEM) approach. Resources Policy, 49, 61-73. [Google Scholar] [Crossref]

3. Adewuyi, K.A. & Michael, A. (2020). Assessment of the Impact of Boko-Haram Insurgency on Food Crop Production in Chibok Local Government Area of Borno State, Nigeria. Global Journal of Human-Social Science, 20(12): 51- 54. [Google Scholar] [Crossref]

4. Ahmed, S. (2024. Effect of Youth Entrepreneurship Empowerment on Economic Development in Maiduguri Metropolitan Area Borno State Nigeria. International Journal of Business, Economics and Entrepreneurship Development in Africa., 13(11): 56 -72. DOI: 8370-0932-13125. [Google Scholar] [Crossref]

5. Attah, A.U., Bala, B., & Othman, S. (2017). Design Influence on Squatter Trading: Case Study of Jimeta Ultra Modern Market Yola, Adamawa State Nigeria. International Journal of Environmental Studies and Safety Research, 2(1): 68 - 85. [Google Scholar] [Crossref]

6. Bello, H. S., Galadima, I. S. & Aliyu, B. I. (2018). An Assessment of the Effects of Boko-Haram Insurgency on Business Development in North-Eastern States of Nigeria. Business Ethics and Leadership, 2(1): 70 -77. [Google Scholar] [Crossref]

7. Béné, C. D., Pelloquin, R., Badaoui, O., Garba, F. & Sankima, J. W. (2024). Resilience – and collapse – of local food systems in conflict affected areas; reflections from Burkina Faso. World Development, 176, 106521. https://doi.org/10.1016/j.worlddev.2023.106521. [Google Scholar] [Crossref]

8. Boudreaux, A. (2007). Cummunity-Based natural Resources Management and Poverty Alleviation in Namibia: A Case Study. SSRN Electronic Journal. 10.2139/ssrn.1026944. [Google Scholar] [Crossref]

9. Bruton, G.D., Zahra, S.A & Cai, L. (2018). Examining Entrepreneurship Through Indigenous Lenses. Entrepreneurship Theory and Practice, 42(3), 351-361. [Google Scholar] [Crossref]

10. https://doi.org/10.1177/1042258717741129. [Google Scholar] [Crossref]

11. Bruton, G., Khavul, S., Siegel, D. & Wright, M. (2015) New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer-to-Peer Innovations. Entrepreneurship Theory and Practice, 39(1); 9-26. https://doi.org/10.1111/etap.12143. [Google Scholar] [Crossref]

12. Burnside, C. and Dollar, D. (2000). Aid, Policies, and Growth. The American Economic Review, 90(4): 847-868. [Google Scholar] [Crossref]

13. Cabrera, E. M. & Mauricio, D. (2017). Factors affecting the success of women’s entrepreneurship: a review of literature. International Journal of Gender and Entrepreneurship, 9(1): 31–65. https://doi.org/10.1108/IJGE-01-2016-0001 [Google Scholar] [Crossref]

14. Chandra, Y. (2017). Social entrepreneurship as emancipatory work. Journal of Business Venturing 32 (2017) 657–673. [Google Scholar] [Crossref]

15. Chukwu, S. A., Eketu, C. A. and Amah, E. (2022). Moderating Role of Entrepreneurial Value on Self- Efficacy and Entrepreneurial Intentions of Students in South-South, Nigeria. Scholarly Journal of Science Research and Essay, 11(1), 28-37. [Google Scholar] [Crossref]

16. Collier, P, Hoeffler, A. & Söderbom, M. (2008). Post-Conflict Risks. Journal of Peace Research, 45: 461. DOI: 10.1177/0022343308091356 [Google Scholar] [Crossref]

17. Collier, P. & Hoeffler, A. (2004). Greed and Grievance in Civil War. Oxford Economic Papers, 56(4) 563-595. [Google Scholar] [Crossref]

18. Colovic, A. & Mehrotra, S. (2020). Lifelong activism and women’s entrepreneurship: how a social movement organization improves conditions for self-employed women in India. European Business Review. 32 (5): 937–958. 10.1108/EBR-09-2019-0215 [Google Scholar] [Crossref]

19. Colovic, A. & Schruoffeneger, M. (2021). Entrepreneuring for deprived urban communities: Exploring the role of micro-entrepreneurship. European Management Review, 1-12. https://doi.org/10.1111/emre.12458. [Google Scholar] [Crossref]

20. Farag, K. A., Mohamed, M. A., Abo, Z. M., Binsaud, B.M & Jaber, A.M. (2025). The Impact of Sample Size on Exploratory and Confirmatory Factor Analysis: A Simulation Study. International Journal of Environmental Sciences, 11(6): 1691 – 1695. [Google Scholar] [Crossref]

21. Folmer, H., Dutta, S., & Oud, J.H.L. (2010). Determinants of rural industrial entrepreneurship of farmers in West Bengal: a structural equations approach. International Regional Science Review, 33(4), 367-396. DOI:10.1177/0160017610384400. [Google Scholar] [Crossref]

22. Gebrihet, H. G., & Gebresilassie, Y. H. (2025). Armed conflict and household food insecurity: impacts and coping strategies in the conflict-affected rural settings of Tigray, Ethiopia. Cogent Social Sciences, 11(1). https://doi.org/10.1080/23311886.2025.2483392 [Google Scholar] [Crossref]

23. Gorsuch, R. L. (1997). Exploratory factor analysis: Its role in item analysis. Journal of Personality Assessment, 68(3), 532–560. https://doi.org/10.1207/s15327752jpa6803_5. [Google Scholar] [Crossref]

24. Guadagnoli, E. & Velicer, W.F. (1998). Relation of Sample Size to the Stability of Component Patterns. Psychological Bulletin, 1039(2), 265-275. [Google Scholar] [Crossref]

25. Hafte G. G. & Gebresilassie, Y. H. (2025). Armed conflict and household food insecurity: impacts and coping strategies in the conflict-affected rural settings of Tigray, Ethiopia. Cogent Social Science, 11(1), 1 -21. [Google Scholar] [Crossref]

26. Hair, J.F., Babin, B.J., Ringle, C.M., Sarstedt, M. & Becker, J. (2025). Covariance based structural equation modeling (CB SEM): a SmartPLS 4 software tutorial. Journal of Marketing Analytics, https://doi.org/10.1057/s41270-025-00414-6. [Google Scholar] [Crossref]

27. Hair, J. F., Black, W. C., Babin, B. J., and Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning. [Google Scholar] [Crossref]

28. Hair, J.F., Hult, G.T.M., Ringle, C.M. & Sarstedt, M. (2017) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd Edition, Sage Publications Inc., Thousand Oaks, CA. [Google Scholar] [Crossref]

29. Hair, J. F., Ringle, C. M., and Sarstedt, M. M. (2011) PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19 (2): 139-152. [Google Scholar] [Crossref]

30. Hair, J. F., Hult, G. T. M., Ringle, C. M. & Sarstedt, M. M. (2014). A Premier on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications, Inc. 2455 Teller Road, Thousand Oaks, California 91320, United States of America. [Google Scholar] [Crossref]

31. Harrison, H. L., and P. A. Loring. (2014). Larger than life: the emergent nature of conflict in Alaska’s upper cook inlet salmon fisheries. SAGE Open 4:1–14. [Google Scholar] [Crossref]

32. Hockerts, K. (2017). Determinants of Social Entrepreneurial Intentions. Entrepreneurship Theory and Practice, 1 -46. [Google Scholar] [Crossref]

33. Hoe, S.L. (2008). Issues and Procedures in Adopting Structural Equation Modeling Technique. Journal of Applied Quantitative Method. 3(1): 76-83. [Google Scholar] [Crossref]

34. Ikpe, E. (2017). Counting the development costs of the conflict in North-Eastern Nigeria: the economic impact of the Boko Haram-led insurgency. Conflict, Security & Development, 17(5), 381–409. https://doi.org/10.1080/14678802.2017.1371987 [Google Scholar] [Crossref]

35. International Peace Institute (IPI). 2017. Entrepreneurship for Sustaining Peace. 777 United Nations Plaza, New York, NY 10017-3521, USA. [Google Scholar] [Crossref]

36. Justino, P. (2020). Entrepreneurship, conflict, and violence: A review of the literature. World Development, 135, 105–123. [Google Scholar] [Crossref]

37. Jöreskog, K. G., & Sörbom, D. (2001) LISREL 8: Structural equation modeling with the SIMPLIS command language. Scientific Software International; Lawrence Erlbaum Associates, Inc. [Google Scholar] [Crossref]

38. Lekić, J., Kostić, M., & Mijačić, D. (2021). The role of coping strategies and support mechanisms in sustaining entrepreneurial activity in crisis environments. Journal of Entrepreneurship and Public Policy, 10(3), 345–362. https://doi.org/10.1108/JEPP-2020-XXXX. [Google Scholar] [Crossref]

39. Kline, R. B. (2016) Principles and practice of structural equation modeling (4th ed.). Guilford Press. [Google Scholar] [Crossref]

40. Kishi, R., Pavlik, M., & Matfess, H. (2021). Conflict, resilience, and livelihood adaptation: Evidence from conflict-affected regions. ACLED Working Paper Series. Armed Conflict Location & Event Data Project (ACLED). [Google Scholar] [Crossref]

41. McMullen, J. S. (2015). Entrepreneurial judgment as empathic accuracy: A sequential decision-making approach to entrepreneurial action. Journal of Institutional Economics, 11(03), 651–681. [Google Scholar] [Crossref]

42. Moya, A. (2022). Violence, displacement, and entrepreneurial adaptation: Evidence from conflict-affected households. Journal of Development Economics, 158, 102925. https://doi.org/10.1016/j.jdeveco.2022.102925⁠. [Google Scholar] [Crossref]

43. Muluk, H., Sumaktoyo, N.G., & Ruth, D.M. (2013). Jihad as justification: national survey evidence of belief in violent jihad as a mediating factor for sacred violence among Muslims in Indonesia. Asian J. Soc. Psychol. 16 (2), 101–111. [Google Scholar] [Crossref]

44. Nunnally, J.C. & Bernstein, I.H. (1997) Psychometric Theory. 3rd Edition, McGraw-Hill, New York. [Google Scholar] [Crossref]

45. Omotayo V. A., Adeyinka, A. J., Ibrahim, K.K. & Vincent, A. E (2024). Impact of Entrepreneurship on Economic Development in Nigeria. Acta Universitatis Danubius. OEconomica, Danubius University of Galati, 20(4): 127-138. [Google Scholar] [Crossref]

46. Patton. M. Q. (2002). Qualitative research and evaluation methods (3rd ed.). Thousand Oaks, CA: Sage Publications. [Google Scholar] [Crossref]

47. Radosevic, S., & Yoruk, E. (2013). Entrepreneurial propensity of innovation systems: Theory, methodology and evidence. Research Policy. 42: 1015– 1038. [Google Scholar] [Crossref]

48. Rosa, P.J, Kodithuwakku, S. and Balunywa, W. (2020). Entrepreneurial Motivation In Developing Countries: What Does “Necessity” And “Opportunity” Entrepreneurship Really Mean? Frontiers of Entrepreneurship Research, 26(20), 1-14. [Google Scholar] [Crossref]

49. Sardana, D., Bamiatzi, V. & Zhu, Y. (2019). Decoding the Process of Social Value Creation by Chinese and Indian Social Entrepreneurs: Contributory Factors and Contextual Embeddedness. Management and Organization Review, 15(2), 269–306. doi: 10.1017/mor.2019.21. [Google Scholar] [Crossref]

50. Sarmin, S. & Ashrafuzzaman, M. (2017). Impact of Personality Traits and Demographic Factors on Transformation of Entrepreneurial Intention: An Exploratory Study Among the University Students of Dhaka City. European Journal of Business and Management, 9(5), 61 -72. [Google Scholar] [Crossref]

51. Sekliuckienea, J. & Kisielius, E. (2015). Development of social entrepreneurship initiatives: a theoretical framework. Paper presented at the20th International Scientific Conference Economics and Management - 2015 (ICEM-2015) and published by Procedia - Social and Behavioral Sciences 213, 1015 – 1019. doi: 10.1016/j.sbspro.2015.11.519. [Google Scholar] [Crossref]

52. Shepherd, D. A., & Williams, T A. (2018). Spontaneous venturing: an entrepreneurial approach to alleviating suffering in the aftermath of a disaster. The MIT Press Cambridge, Massachusetts, London, England. [Google Scholar] [Crossref]

53. Soper, D. (2021). A-Priori Sample Size for Structural Equation Models. Free Statistics Calculators. https://www.danielsoper.com/statcalc/calculator.aspx?id=89. [Google Scholar] [Crossref]

54. Tang, J., Folmer, H., & Xue, J. (2013). Estimation of Awareness and Perception of Water Scarcity among Farmers in the Guanzhong Plain, China, by means of a Structural Equation Model. Journal of Environmental Management, 126: 55 – 62. [Google Scholar] [Crossref]

55. Tilman B., Naudé, W. & Verwimp, P. (2011). Small Business, Entrepreneurship and Violent Conflict in Developing Countries, Journal of Small Business & Entrepreneurship, 24:2, 161-178, DOI: 10.1080/08276331.2011.10593532 [Google Scholar] [Crossref]

56. UNDP. 2023. Journey to Extremism in Africa. https://www.undp.org/sites/g/files/zskgke326/files/2023-02/UNDP JourneyToEx tremism report 2023 english_1.pdf. [Google Scholar] [Crossref]

57. Westland, J. C., (2010). Lower Bounds on Sample Size in Structural Equation Modeling. Electronic Commerce Research and Applications, 9: 476–487. [Google Scholar] [Crossref]

58. Wennekers, S., & Thurik, R. (1999). Linking Entrepreneurship and Economic Growth. Small Business Economics, 13: 27–55. [Google Scholar] [Crossref]

59. World Bank. 2023 State of Food Insecurity and Nutrition in the World report. [Google Scholar] [Crossref]

• Impact of Foreign Direct Investment in India
• Issues Involved in Digitalisation Special Reference to Indian Tourism Growth
• Relationship Marketing and Customer Loyalty in the Fast-Moving Consumer Goods (FMCG) Industry in Nairobi County
• Financial Literacy or Financial Inclusion? Which is Which, What is What—To Achieve Uganda’s 10-Fold Economic Growth By 2040
• Harnessing Natural Gas for Economic Transformation: Overcoming the Regulatory and Infrastructural Bottlenecks in Nigeria