INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

Assessing Challenges and Opportunities Facing Entrepreneurship in

Developing Economies

Wilson Effiong Akpan

Business Administration Department Exeed College in partnership with Woolf University Malta

DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000609

Received: 28 October 2025; Accepted: 04 November 2025; Published: 19 November 2025

ABSTRACT

The nuanced nature of the changes in the contemporary business environment has introduced new waves of

challenges and opportunities for entrepreneurship. This can be in the form of expanding globalisations, emerging

market trends, proliferation of artificial intelligence and digital technologies as well as social, economic and

political dynamics of nations. This study assessed the challenges and opportunities of entrepreneurship in

developing economies using Nigeria as a case study. The study employed qualitative research approach using

interviews from 20 participants selected using purposive sampling procedure. The study was conducted through

exploratory research design with primary data collected through semi-structured interview and analysis was

through themes and premises. The findings showed that the challenges of entrepreneurship are situated within

the context of financial, infrastructural, institutional and socio-cultural. Also, the study demonstrated that

entrepreneurs have immense opportunities before them in developing economies in Nigeria because of

population growth, untapped market, digital penetrations and advancements as well as urbanisation. The study

concluded that the challenges and opportunities of entrepreneurship in Nigeria is based on the delicate balance

between localisation and globalisation. It was recommended from this study that there should be increased

development of entrepreneurship ecosystem through combined effort of actors such as government, non-

government organisations, private sector and academics. It was also suggested that accessibility to finance,

strengthening institutions and developing infrastructure would pave the way to more profitable and sustainable

enterprises in developing economies.

Keywords: Challenges, Economic Growth, Entrepreneur, Entrepreneurship, Opportunities

INTRODUCTION

The increasing importance of attaining sustainable development goal 9 in terms of enhancing innovation,

infrastructure and industry, places significance on the role of entrepreneurship as a global socio-economic driver

(Assylbekkyzy & Turmanov, 2024). Modern entrepreneurship has contributed in substantial ways to developed

and developing economies from diverse perspectives (Gherghina, Botezatu, Hosszu & Simionescu, 2020;

Assylbekkyzy & Turmanov, 2024). Entrepreneurship has continued to emerge as a panacea for driving economic

activities and growth by creating jobs, initiating employment opportunities, opening up markets and sectors as

well as introducing and establishing innovations (Ratten, 2023; Solomon & Emmanuel, 2025). In emerging

economies, entrepreneurship is particularly impactful in addressing poverty, unemployment, inequality, and

social development (Marcotte, 2014; Meyer & De-Jongh, 2018; Estrin, Mickiewicz, Stephan, & Wright, 2019;

Gunawan, 2024). As a result of the emerging developments and trends such as globalisation, industrialisation,

climate change and sustainability, artificial intelligence and advancing technologies, entrepreneurship can be

said to be faced with new paradigms of challenges and opportunities that have required more and continuous

research. Hence this study comes as an avenue to make a point in entrepreneurship research and provide future

directions on how entrepreneurs can manage challenges and harness opportunities in the volatile, uncertain,

complex and ambiguous (VUCA) business environment.

Entrepreneurs and the process of entrepreneurship can be described as veritable aspects of contemporary global

economies. It involves individuals who create, organize, coordinate and manage business enterprises, often

taking on operational, financial and market risks tin pursuit of opportunities and attain profitable venture as well

Page 7482

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

as success (Porfírio, Carrilho & Mónico, 2016; Prince, Chapman & Cassey, 2021). Because of the unique features

of entrepreneurship and the nuanced nature of its key elements such as ability to develop new ideas by creative

thinking, willingness to embark on calculated risks to attain business outcomes, proactiveness in taking

initiatives, thinking ahead and resilience. It is continuously important for scholars and researchers as well as

entrepreneurs to be aware of the challenges, barriers and hinderances as well as opportunities, potentials and

prospects (Giossi, Anastasiadou, Gamanis & Gamanis, 2019; Gherghina, Botezatu, Hosszu & Simionescu, 2020;

Onwuka, Nwachuya, Okaforocha, Imoagwu & Ezeife, 2025).

Zafar, Khan, Khan, Parachi and Saleem (2022) argued that challenges and opportunities influencing

entrepreneurship capabilities in Pakistan are based on the complexities that emanate from the emerging nature

of the economy. In developing and emerging economies such as Nigeria, entrepreneurship has emerged as a

central pillar but with incidents of high unemployment, fluctuating economic circumstances, weak institutions

and formal sectors, as well as large informal markets, Nigerian entrepreneurs are faced with challenges and

opportunities in rapidly growing consumer demand, digitalization, and urbanization (Onwuzulike, Ononiwu &

Shitu, 2024). This study is focused on assessing the dynamics of entrepreneurship in Nigeria by evaluating the

barriers in entrepreneurship and the prospects of entrepreneurship. By comprehending the entrepreneurial

process and characteristics of successful entrepreneurs, individuals can better navigate the challenges and

opportunities of starting and growing a business.

This study is significant because it delves into the nuances of challenges and opportunities of entrepreneurship

in the context of emerging economies such as Nigeria. This study seeks to provide insights on how resolve

intrinsic and extrinsic challenges in entrepreneurship in emerging economies such as systemic, infrastructural,

institutional, financial, cultural, and educational (Adekunle, 2024; Chukwuka & Dibie, 2024). More so the

findings from this study would generate insights that can assist policymakers and regulators in addressing

institutional and infrastructural hinderances to entrepreneurship. In addition, this study is significant in

contributing to knowledge about entrepreneurship challenges and opportunities, thereby advancing literature and

subject matter for scholars, researchers, educators and students by offering grounded evidence and theoretical

insights.

The purpose of this study is to identify and assess the key challenges and opportunities for entrepreneurs in

emerging economies, exploring the theoretical underpinnings of Schumpeter Theory of Entrepreneurship and

the Push versus Pull theory as well as recommend measures to support entrepreneurship ecosystems. In light of

the purpose of this study the key research questions to be answered from this investigation are:

-

What are the key challenges facing Nigerian entrepreneurs in the entrepreneurial process?

To what extent are the opportunities available for Nigerian entrepreneurs in the entrepreneurship process?

What recommendations can be proposed as solutions and drivers of Entrepreneurship in Nigeria?

LITERATURE REVIEW

Concept of Entrepreneurship

Entrepreneurship is the process of initiating, managing and running a business venture that involves

identification of opportunities in terms of market needs or problems, developing products or services as solutions

to meet that need, taking risks and efforts in business as well as managing and expanding the venture to attain

success (Giossi, Anastasiadou, Gamanis & Gamanis, 2019; Prince, Chapman & Cassey, 2021). Entrepreneurship

has been argued to be vital to societies and economies through a rewarding and challenging journey harnessing

opportunities (Giossi et al., 2019; Khuan, 2024). Entrepreneurship has been defined by Drucker (1985) as the

practice of systematic creation of ideas and innovation that involves the purposeful search for opportunities and

changes which present for economic benefit and social innovation (Alexandre, 2021; Assylbekkyzy &

Turmanov, 2024). It was emphasised that successful entrepreneurship is more than just a matter of innate talent

or chance but requires a disciplined, intentional, strategic, tactful and results-oriented approaches to identifying

and exploiting on opportunities (Drucker & Maciariello, 2014; Prelipcean & Ungureanu, 2023).

Page 7483

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

Entrepreneurship is viewed as a practice of orderly inventing, innovating and creating enterprises that search for,

respond to, and exploit diverse opportunities into profitable ventures.

Drucker (1985) as cited in Kurzynski (2012) expressed distinction between entrepreneurship and management,

observing that entrepreneurs allocate resources to opportunities, while managers allocate them to solve problems.

Wadhwani et al (2020) posited that entrepreneurship has undergone various dimensions of historical evolution,

developments in terms context, time, and change. There have been variations of entrepreneurship to meet with

emerging trends, times and context such as social entrepreneurship, serial entrepreneurship, corporate

entrepreneurship, sustainable entrepreneurship, green entrepreneurship, female entrepreneurship, techno-

preneurship and digital entrepreneurship just to mention a few (Wadhwani et al., 2020; Adom & Anambane,

2020; Abdulla & Ahmad, 2023). These nuanced expressions of entrepreneurship reflect the evolving and

progressing nature of enterprises and the economy, representing multifaceted opportunities for individuals,

groups and societies to pursue passions, prosperities and create successful ventures.

Thompson, Verduijn and Gartner (2020) described entrepreneurship-as-practice from the perspective of

grounding contemporary theories of practice into entrepreneurship studies. The authors argued that

entrepreneurship-as-practice is focused on comprehending what entrepreneurs do through their daily activities,

processes, routines, procedures interactions, engagements and decision-making instead of just their results and

outcomes. This brings a more granular insight to the concept of entrepreneurship that relates to this study based

on the challenges and opportunities of entrepreneurship in emerging economies. The paradigm shift towards

entrepreneurship-as-practice offers significant perspective for moving from entrepreneurship as a trait or event

of launching a business) to a continuous, socially embedded process of acting, doing, evolving and becoming

(Thompson et al., 2020). Hence, entrepreneurship can be said to exist within a social and cultural context, it is

not just about entrepreneur genius but about interacting with others, navigating institutions, and utilising

available resources, tools and patterns.

According to Igwe, Odunukan, Rahman, Rugara and Ochinanwata (2020) entrepreneurship form the context of

emerging economies such as Nigeria, is based on the dynamic process of identifying and exploiting economic

opportunities while navigating challenging socio-economic dynamics to create value, generate income, and

contribute to national development. Entrepreneurship in Nigeria is shaped by necessity, driven by innovation,

semi-informal and increasingly supported by digital technology tools and evolving ecosystems (Igwe et al.,

2020). Since the COVID-19 pandemic, entrepreneurship has risen in Nigeria, with a large and growing youth

population that are tech-savvy leveraging digital technology platforms to launch startups in diverse sectors such

as fintech, e-commerce, agritech, entertainment and edutech (Aladejebi, 2020; Avelar et al., 2024).

Challenges of Entrepreneurship in Emerging Economies.

The complexities facing entrepreneurs and entrepreneurship in terms of challenges, barriers and hinderances are

diverse and have been researched in nuanced perspectives. Authors, research and scholars such as Estrin et al

(2019), Zafar et al (2022), Harrison, (2022), Ratten (2023), Abdulla and Ahmad (2023) as well as Abreu et (2025)

have pointed out the necessity behind understanding the challenges of entrepreneurship in emerging economies

such as India, Brazil, Pakistan, Nigeria, Malaysia, South Africa and Mexico. This is because small and medium

enterprises (SMEs) hold unique characteristics that makes them prone and sensitive to pressures. Aclear mapping

and identification of contemporary challenges that entrepreneurs face provides an avenue for decisive actions to

ensure effective entrepreneurship processes (Harrison, 2022).

Firstly, entrepreneurship is challenged by lack of resources which can be financial and non-financial. Oaya and

Mambula (2017) argued that SMEs financing challenges stems from variables such as inadequate capital, lack

of collateral and credibility to take formal funding. It has been stated that financial resources are limiting factors

for small businesses in emerging economies this is because of their accessibility to financing options

(Ohachosim, Onwuchekwa & Ifeanyi, 2017; Okoye & Mensah, 2025). Financial resource constraints are

difficulties in accessing and raising capital such as credit markets, venture capital, angel investing. In essence,

entrepreneurs have been known to often struggle with a lack of access to funding, high interest rates, and complex

loan application processes, inefficiency in financial management and accountability, thereby making it difficult

to start and grow their businesses. From the point of view of non-financial resources, entrepreneurship faces

Page 7484

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

limitations in the areas of skilled manpower, appropriate infrastructure and technology systems (Vorley &

Williams, 2017; Gherghina, Botezatu, Hosszu & Simionescu, 2020).

In the view of Palimąka (2021) from a study done in Poland, the challenge of entrepreneurship emanates from

financial and non-financial aspects. This is evident in the way start-ups struggle to raise initial capital because

of lack of collateral or credit history, risk aversion from potential investors, banks and other financial institutions

banks (Palimąka, 2021). Moreover, SMEs have had issues in effective financial planning and cashflow

management in terms of difficulty of balancing income and expenses that can lead to delays in relevant payments

or inability to pay suppliers/employees (Abdulla & Ahmad, 2023). The non-financial resource challenges are

centred on entrepreneurs lacking the necessary business management, marketing, or technical expertise. In

addition, lack of physical resources such as land, materials, networks, equipment and machinery can be

problematic for entrepreneurship processes (Palimąka, 2021). Consequently, Atiase, Mahmood, Wang and

Botchie (2018) opined that the underdeveloped venture capital ecosystems in developing countries in Africa

hinders entrepreneurship effectiveness because of critical resource challenges.

Another area of challenge is with respect to inadequate market infrastructure raising issues with supply chain,

information and communication technology, transportation, and security issues. Entrepreneurship in developed

economies has been known to grasp with conduciveness of business environment and conditions in terms of

infrastructure (Adekunle, 2024). Infrastructural challenges can be seen from inside and outside the enterprise,

causing mixed limitations to operations and activities of entrepreneurs. Internal infrastructural challenges of

entrepreneurship are lack of technical know-how, innovation and structural configurations. Some enterprises

struggle with having the necessary tools, devices and instruments to run effectively and efficiently, this can be

because of limited funds to invest in capacity. More so, external infrastructural challenges of entrepreneurship

are deficiencies in transport systems, reliable electricity, internet connectivity and industry essentials for business

operations (Al-Shaikh, 2013; Audretsch, Heger & Veith, 2015; Agrawal, Samadhiya, Banaitis & Kumar, 2025).

The hinderances emanating from infrastructural context have complicated entrepreneurship in developed

economies such as Nigeria, as it has caused increasing cost of business operations. For instance, frequent power

outages and erratic electricity supply compels many entrepreneurs to be dependent on costly alternatives such

as diesel generators, solar or renewable energy thereby reducing profit margins. Also, inadequacy public facilities

further compound the operational difficulties of SMEs, especially in sectors such as food processing, agriculture

and healthcare (Gumel & Bardai, 2023; Adekunle, 2024).

Furthermore, institutional and regulatory constraints bare significant challenges for entrepreneurship in

developing economies (Abdulla & Ahmad, 2023; Okoye & Mensah, 2025). This is necessary because enabling

institutional framework is crucial for advancing entrepreneurship as seen in developed economies (Alexandre,

2021). However, several developing economies are described by regulatory bureaucracy, institutional

inefficiencies, weak legal structures and systems as well as complex business procedures. These have overly

burdened SMEs, increasing operational costs and time-consuming. Furthermore, weakness in regulatory

protocols, enforcement of contracts and intellectual property rights undermines trust and discourages innovation,

particularly in high-tech and creative industries (Adekunle, 2024). This means that rregulatory instability and

frameworks cause red tape, corruptions and political instability that create substantial barriers and increase

business uncertainties for SMEs in Nigeria (Wale-Oshinowo & Majekodunmi, 2024).

In congruence, SMEs in developing countries are challenged with limited support for innovation and

collaborations for startups. There are not enough research institutions, startup incubators, and accelerators in

many developing economies such as Nigeria (Udegbunam, Udeoba, Ndu-Anunobi & Abasili, 2024). This is

evident also in limited investment in research and development (R&D), hindering the creation of novel goods

and services. The weak collaboration between academia, research and industry additionally decreases

opportunities for entrepreneurship knowledge transfer and innovation. As a result, entrepreneurship is facing

challenges in different areas like; support, collaboration and innovation incubators that restricted scaling and

competing in both local and international markets (Udegbunam et al., 2024).

Finally, emerging and developing economies pose challenges of social and cultural context for SMEs. Foo, Vissa

and Wu (2020) argued that entrepreneurs need to navigate diverse cultural norms, patterns and address social

inequalities in the process of entrepreneurship. The authors posited that socio-cultural incidents such as conflict,

Page 7485

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

religious biases and social friction as well as hostility from communities, tend to cause limitations for successful

entrepreneurship and might sabotage of business operations. From the perspective of Rusu, Isac, Cureteanu and

Csorba (2012) as well as Ratten (2023) SMEs in many developing economies often depend heavily on informal

networks and relationships in terms of social capital rather than formal institutions, challenges in the areas of

trust and connections may determine access to resources more than merit or innovation. Most developing

economies are plagued with tribal and ethnic conflicts that exacerbate the challenges of entrepreneurship in a

nuanced perspective causing new dimensions in which entrepreneurs have to salvage social capital.

Overall, this study seeks to investigate the interplay of the above-mentioned challenges towards entrepreneurship

and identify the one that is most significant in influencing entrepreneurship processes and outcomes. Hence the

study seeks to prove how financial and non-financial resource challenges, network of institutions, culture,

finance, infrastructure, regulation and support systems enable or inhibit entrepreneurship.

Opportunities of Entrepreneurship in Emerging Economies.

Notwithstanding the immense challenges entrepreneurs and entrepreneurship is poised to face in the

contemporary VUCA business environment, there are plethora of opportunities that can be identified, harnessed

and exploited. Foo et al (2020) stated that emerging economies hold growth potentials and prospects that

entrepreneurship can exploit market gaps and needs. The arguments of Hamdan, Ghura, Alareeni and Hamdan

(2021) indicated that emerging economies have a varied extension of opportunities as regarding their

geographical locations, stage of economic development, dynamics of institutional, cultural, and societal contexts.

The authors further posited that opportunities in entrepreneurship are expounded because of the growing levels

of globalisation and the rapid rise of entrepreneurs in the global economy. Entrepreneurship in developing

economies offers a wide context of opportunities, driven by rapid population growth that provides markets for

goods and services, localised business potentials, and gaps in technological advancements (Hamdan et al., 2021).

This underscores that the opportunities for entrepreneurship in developing economies emanate for the

interrelationships and interdependencies of localisation and globalisation.

From the perspective of Al-Shaikh (2013) which is similar to Alfaiza et al (2025), the opportunities for

entrepreneurship in developing economies are increasingly formed by the nuanced interplay between prospects

in terms of unique cultural, social, economic contexts and constraints in terms of limited infrastructure, informal

markets, and unmet basic needs. However, Alfaiza et al (2025) the opportunities for entrepreneurs arising from

the balancing act of localisation and globalisation puts some negative pressures on entrepreneurship because

larger firms dominate the activities in the global market.

In the view of Stoica, Roman and Rusu (2020) opportunities of entrepreneurship in developing economies

showcase in emerging economic growth. This is especially seen in how selected European countries grew their

economies by virtue of different types of entrepreneurships. The authors found that opportunity-driven

entrepreneurship and early-stage entrepreneurship are drivers in stimulating economic growth. From the

perspective of Nigeria as a developing economy, entrepreneurship has immense opportunities that is observed

in the growing youth population, openness to international markets, transnational flows of knowledge,

innovation and technology as well as investment flows. Entrepreneurs in Nigeria are leveraging indigenous and

global opportunities to create context-specific solutions that business enterprises can address (Onwuzulike,

Ononiwu & Shitu, 2024). Furthermore, the developing economies hold significant opportunities in term of large

untapped markets in meeting the needs of growing middle class, the presence of frugal innovation for resource

constrained countries such as Nigeria (Onwuzulike et al., 2024). Hence, developed economies have resource

constraints and distinct challenges that provide strong demand for market offerings and solutions that are

innovative, accessible, affordable and applicable (Stoica et al 2021; Onwuzulike et al., 2024).

Another prospect in developing markets for entrepreneurship, is the possibilities for market diversification due

to high degree of heterogeneity, with substantial differences in income levels, cultural practices, and consumer

peculiarities across regions. This diversity permits enterprises to segment markets and target specific niches with

tailored offerings (Onwuzulike et al., 2024). In comparison, Soluk, Kammerlander and Darwin (2021) identified

digital entrepreneurship as a plethora of opportunities found in developing countries based on the expansive

digital revolution. The accelerated advancements in internet access, adoptions of mobile technology and digital

Page 7486

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

channels is transforming the way and manner businesses operate in developing economies regions. As such

digitalization is enabling entrepreneurs to tap into market opportunities for reaching consumers more efficiently,

reducing operational costs, and innovating processes (Soluk et al., 2021)

Finally, emergence of diversity, equity and inclusion (DEI) philosophies has prompted opportunities in

entrepreneurship in the form of social entrepreneurship, female/women entrepreneurship and ethical

entrepreneurship. Foo et al (2020) and Gan (2025) opined that DEI ideologies and requirements have had

considerable influence in the entrepreneurship landscape, specifically in developing economies. Entrepreneurs

are having opportunities in fostering more inclusive, equitable and socially responsive forms of enterprise.

Chouhan and Vaishnav (2025) asserted that women entrepreneurship has arisen from the paradigm shift in DEI

in terms of moving from profit-driven models toward redressing structural inequalities and enhancing social

justice. The increase in recognizing the degree of marginalization of women in economic context in many

developing countries has led more women to launch and scale their own businesses, often with a focus on

community development and family well-being (Foo et al., 2020). Onwuzulike et al., 2024; Gan, 2025). In

essence, the above discussions on the aspects and facets of opportunities for entrepreneurship present the need

for more research on how entrepreneurs can harness identified opportunities in developing economies.

Underpinning Theories

The comprehension of the challenges and opportunities of entrepreneurship in developing economies can be

underpinned by theories such as Schumpeter Theory of Entrepreneurship, Push and pull theory.

Schumpeter’s Theory of Entrepreneurship

The theory of entrepreneurship by Schumpeter (1934) highlights the function of entrepreneurs as agents of

transformation, change and growth in economies. According to Schumpeter, entrepreneurs drive innovation,

which distort, disrupts and dismantles existing markets by creating new opportunities. This process is called

“creative destruction” where entrepreneurship alters markets, modifies industries and transforms economies

(Mehmood, Alzoubi & Ahmed, 2019). The creative destruction process from entrepreneurship is a key aspect of

Schumpeter's theory, whereby challenges and opportunities serves as avenues for new innovations to replace old

ones, leading to economic outcomes.

This theory resonates with this study because entrepreneurs navigate challenges and opportunities as economic

revolutionaries who introduce, invent and innovate new products, services, or processes that interfere with

current markets and initiate new ones. Schumpeter theory of entrepreneurship asserts that entrepreneurs drive

economic growth through innovation, which creates new opportunities and increases productivity (Mehmood et

al., 2019; Estrin, Korosteleva & Mickiewicz, 2020).

One of the criticisms of the Schumpeter’s theory of entrepreneurship is that it overemphasis and stresses the

influence of individual entrepreneurs neglecting the role of collective efforts and institutions in driving

innovation and economic growth. Despite the above, the theory by Schumpeter frames entrepreneurship as a

catalyst for structural and cultural transformation in developed economies, supporting the nuanced ways

entrepreneurs manage challenges and harness opportunities in resource constrained environments.

Push and Pull Theory

The push and pull theory in relation to the concept in entrepreneurship was initially developed by Shapero and

Sokol (1982) based on the assumption about the distinction between necessity-driven entrepreneurship and

opportunity-based entrepreneurship. Kirkwood (2009) as well as Gódány et al (2021) argued that push and pull

theory of entrepreneurship presents a dual hypothesis on the motivations and driving forces behind

entrepreneurial activity, specifically in the context of developing economies. This theory is relevant in the study

of challenges and opportunities of entrepreneurship because it distinguishes push factors as conditions that

compel individuals into entrepreneurship due to necessity such as barriers, constraints and limitations while pull

factors represents opportunities which attract and draw individuals toward entrepreneurship

Page 7487

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

Gódány et al (2021) posited that entrepreneurship in the 21st century can be theorized by pull and push factors

in many developing economies. The push factors can be challenges such as high unemployment rates, job

insecurity, low-income levels, and political, socio-economic instability, thereby making entrepreneurship

necessity based. In comparison, pull factors represent the opportunities that drive entrepreneurship, where

individuals are motivated by the desire to have financial freedom and independence, market prospects,

innovations and social impact.

This theory is relevant in underpinning this study by exerting the dual nature of entrepreneurship in developing

regions such as Nigeria, underscoring both the systemic challenges that force entrepreneurial activities out of

necessity, and the opportunities created by market gaps, technological changes, and evolving social contexts that

draw entrepreneurial activities (Kirkwood, 2009; Serazul, 2012; Gódány et al ., 2021).

The push and pull theory of entrepreneurship is often criticised for its potential oversimplification in the

distinction between “push” (challenges) and “pull” (opportunities) factors. This can sometimes be mixed up as

individuals can be motivated by a combination of both. Furthermore, the theory was deemed not to fully consider

other crucial factors, such as the business conditions, individual capabilities and institutional support.

Irrespective of this, the push and pull theory of entrepreneurship is veritable for comprehending the dynamics of

the challenges and opportunities of entrepreneurship in developing economies.

Theoretical Framework

By incorporating these two theories, this study captures the dual perspectives of the realities of entrepreneurship

in developing economies. This study uses the Schumpeter Theory of Entrepreneurship as well as the Push and

pull theory as lenses to enable a more nuanced comprehension of how entrepreneurship operates in transforming

societies and economies.

METHODOLOGY

The method adopted in carrying out an investigation into a phenomenon is influenced by the kind problem and

questions to be asked as well as answered (Creswell & Creswell, 2018). This study seeks to explore and access

challenges and opportunities of entrepreneurship in the context of developed countries such as Nigeria. The use

of qualitative research approach by means of interviews was considered suitable for this study to explore deeper

issues on how entrepreneurs navigate challenges and opportunities in developing economies. According to

Saunders, Lewis and Thornhill (2019) qualitative research methods are justifiable for use in research that requires

an in-depth understanding of the experiences, opinions and perspectives of individuals with knowledge or

expertise about a phenomenon.

This study collected primary data from a sample of 20 interviewees which are selected through purposive

sampling technique. The interviewees were identified as business owners, entrepreneurs and managers in Lagos

state that is known as a commercial hub for thriving entrepreneurial activities. The use of primary data in this

study allowed for sourcing information about the research context directly from the source and gives credence

to the originality of the data collated. In addition, the qualitative data was analysed using themes and premises

that address the key research questions. Consequently, this study used qualitative insights for gathering and

capturing in-depth explorations on how individual entrepreneurship experiences interpret challenges and

opportunities in specific environments. In summary, qualitative research may hold limitations of subjective

interpretations but it holds significance for investigating multifaceted, contextually and embedded,

entrepreneurship challenges and opportunities in developing economies.

In terms of ethical considerations, this study ensured that issues such as consent, anonymity data privacy and

protection were addressed. This was done by using participants that were above 18 years and gave their consent

before entering the study and were assured of anonymity. Furthermore, this research received ethical approval

from Woolf University in Malta and the data collected were stored in a protected database.

Page 7488

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

DATA ANALYSIS, RESULTS AND DISCUSSION OF FINDINGS

The thematic analysis from the interview responses provided well-rounded insights for this study on the

challenges and opportunities facing entrepreneurship in Nigeria. Firstly, the findings from this study showcase

key challenges facing Nigerian entrepreneurs in terms of accessibility to suitable finance and financing options,

inadequacies in infrastructure, limited institutional frameworks and instability in socio-economic dynamics. This

was in line with the narratives in the study of Adekunle (2024) based on the expression that entrepreneurship in

developing economies is limited in accessing necessary resources, platforms and configurations. The

interviewees had similar responses in stating that many aspiring entrepreneurs in Nigeria are lacking access to

reliable enterprise resources, inaccurate consumer data, struggle in financing because of high collateral and

interest rates, as well as ineffective government funding schemes that are often bureaucratic, poorly monitored,

or politicized. Nigerian entrepreneurs face inadequate infrastructure that hinders operational efficiency, the

participants mentioned that epileptic power supply, unreliable transportation and logistics channels as well as

limited internet access and digital tools. The findings from this study supported the position of Ikeije and Onuba

(2015) as well as Igwe et al (2020) indicating that challenges of entrepreneurship are financial, technical and

material. Overall, the challenges in entrepreneurship are varied and pulsative based on the stages of

entrepreneurship life cycle. Regardless of these challenges, Nigerian entrepreneurs show features of high

resilience, agility, adaptability and innovative, often designing and developing unique solutions to indigenous

problems. This study points out that the main challenges of entrepreneurship in developing economies such as

Nigeria are intrinsic to social, cultural, economical and political incidences. This is reflected in entrepreneurship

being limited in attaining it potential and fully contributing to economic growth and development. This finding

was in line with the argument of Zwan et al (2016).

Secondly, the study findings showed the opportunities available for Nigerian entrepreneurs in the

entrepreneurship process. The interviewees expressed positive opinions on the increasing potentials and

prospects in Nigeria such as growing demand from rising population, developing urbanizations, changing

consumer preferences and penetration of digital technologies. It was further elaborated from the interview

responses that the numerous unsolved problems in Nigeria in the areas of agriculture, electricity, healthcare,

education, logistics, financial inclusion, logistics, and housing serve as opportunities dynamics. Nigerian

entrepreneurs are easily spotting problems that need solving with innovative ideas. The findings agreed with

Marcotte (2014) and Khuan (2024) with respect to growing introduction of incubators and accelerators tapping

into the opportunities of emerging economies through problem identification and resolutions. There are

reasonably available opportunities in the Nigerian space especially in terms of tech-startups and urban-based

entrepreneurs, cross-border expansion prospects as well as growing digital economy. In addition, the participants

expressed that Nigeria has in recent times prevalence of entrepreneurial hubs, meetups, and mentorship programs

in major commercial cities such as Lagos, Port Harcourt and Abuja. The interviewees agreed that there are

institutional opportunities by virtue of the Nigerian government increasing investment and policy commitments

for startups, entrepreneurs and businesses. There are government reforms aimed at enhancing the ease of doing

business for entrepreneurship in Nigeria.

The final theme from the responses of the interviewees was in terms of recommendations that are proposed as

solutions and drivers of entrepreneurship in Nigeria. The interviewees gave responses on the need for advancing

institutional quality, reducing corruption, better regulations, contract enforcements and support for

entrepreneurs. The participants stated that infrastructure investment by public and private stakeholders in

physical infrastructure, ICT infrastructure, power, roads, internet. In addition, it was suggested that expanding

the access to finance for entrepreneurs through microfinance, venture capital ecosystems, crowdfunding,

government grants and subsidies. There were also recommendations in the areas of developing educational and

training programs, vocational exercise, mentorship, incubators. These would strength expertise, skills and

competencies of entrepreneurs to be effective in their navigation of challenges and opportunities. Finally, the

participants recommended that shift in cultural opinions, encouraging risk-taking and supportive social norms

as well as developing ecosystem by combining the efforts of actors such as government, non-government

organisations, private sector and academia.

Page 7489

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

CONCLUSION AND IMPLICATIONS OF THE STUDY

This study delved into challenges and opportunities of entrepreneurship in contemporary settings of developing

economies using Nigeria as a context. It was concluded that the entrepreneurship is a vibrant source of economic

activities but faces inherent challenges of financing access, weak infrastructures, inadequate institutions,

economic difficulties and socio-cultural irregularities in Nigeria. However, there are immense opportunities

arising from the growth potential of developing economies with untapped markets, growing populations,

increasing digital penetration and adoption, increasing urbanization as well as global expansion.

This study has implication for theories by showing how well Schumpeter’s theory and Push‑Pull theory explain

entrepreneurship in Nigeria. This study provides insights on the relevance of the push and pull theory that reflects

how entrepreneurs can view challenges as a push towards enterprising ventures and opportunities as a pull that

draws them to take advantage of opportunities. Through the knowledge and understanding of contemporary

challenges and opportunities of entrepreneurship in this study it can be said that entrepreneurs can know how

best to maneuver future directions in the entrepreneurship process because developing economies hold

transformative outcomes that can serve as profitable and sustainable enterprises. This study also contributes to

broader literature about entrepreneurship in emerging economies. This study has implications for policymakers,

educational institutions, entrepreneurs, and institutional support agencies in terms of guiding them with an array

of up-to-date information from the practical perspectives of entrepreneurs.

Limitations Of The Study And Suggestions For Future Research.

This study can be said to be limited in terms of context and methodology based on the use of Nigeria as case

context of developing economies and adopting qualitative research. Hence further studies can consider a wide

range of developing economies context while others can view the challenges and opportunities of

entrepreneurship from quantitative research using survey or experimentation to give more empirical evidence to

the phenomenon. The suggestions for future studies also include the use of longitudinal studies to capture

dynamics over time.

REFERENCES

1. Abdulla, F. S. & Ahmad, A. (2023). Challenges faced by women entrepreneurs of 21st Century: Literature

review. Journal of Management and Science, 21(1), 16-16.

2. Abreu, W. K., Sigahi, T. F., Rampasso, I. S., Moraes, G. H. S. M. D., Ávila, L. V., Serafim, M. P., &

Anholon, R. (2025). Understanding the challenges of entrepreneurship in emerging economies: a grey

systems-based study with entrepreneurs in Brazil. Journal of Modelling in Management, 20(2), 564-584.

3. Adekunle, D. T. A. (2024). Challenges associated with entrepreneurship, vocational education and self-

employment in Nigeria”. Iconic Research and Engineering Journals, 7(9). 91 -106

4. Adelekan, S. A., & Tijani, A. A. (2017). Effect of support for entrepreneurship development on economic

growth and development in Nigeria. European Scientific Journal, ESJ, 13(13)1-15.

5. Agrawal, R., Samadhiya, A., Banaitis, A., & Kumar, A. (2025). Entrepreneurial barriers in achieving

sustainable business and cultivation of innovation: a resource-based view theory perspective.

Management Decision, 63(4), 1207-1228.

6. Aladejebi, A. (2020). Managing small businesses in Nigeria during Covid-19 Crisis: Impact and survival

strategies. IOSR Journal of Business and Management (IOSR-JBM), 22(8), 24-34

7. Alexandre, L. (2021). Entrepreneurship. In: The Palgrave Encyclopedia of the Possible. Palgrave

Macmillan, Cham. https://doi.org/10.1007/978-3-319-98390-5_201-1

8. Alfaiza, S. A., Hassan, H. B., Riyadh, H. A., Beshr, B. A. H., Taha, T. A., & Zangnaa, M. G. (2025).

Navigating dynamic market challenges to enhancing sustainable entrepreneurship in SMEs through

opportunities and disadvantages. Journal of Innovation and Entrepreneurship, 14(1), 43.

9. Al-Shaikh, F. N. (2013). Opportunities and challenges of entrepreneurship in developing countries: the

case of Jordan. Journal for International Business and Entrepreneurship Development, 7(2), 163-178

10. Assylbekkyzy, F. & Turmanov, O. (2024). Modern entrepreneurship approaches: A Review. International

Journal of Business and Management Research, 12(2), 40-43.

Page 7490

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

11. Atiase, V. Y., Mahmood, S., Wang, Y., & Botchie, D. (2018). Developing entrepreneurship in Africa:

investigating critical resource challenges. Journal of Small Business and Enterprise Development, 25(4),

644-666.

12. Audretsch, D. B., Heger, D., & Veith, T. (2015). Infrastructure and entrepreneurship. Small Business

Economics, 44(2), 219-230.

13. Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable

entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170, 114346.

14. Chouhan, K. & Vaishnav, B. (2025). Women entrepreneurs in emerging economies: Barriers, enablers,

and policy perspectives. International Journal for Multidisciplinary Research. 7(5)

15. Chukwuka, E. J. & Dibie E. K. (2024). Contemporary Entrepreneurship: An international

entrepreneurship perspective for economic development of Nigeria. World, 2579, 0544.

16. Creswell, J. W. & Creswell, J. D. (2018). Research Design: Qualitative, quantitative, and mixed methods

approach. Sage, Los Angeles.

17. Drucker, P., & Maciariello, J. (2014). Innovation and entrepreneurship. Routledge

18. Estrin, S., Mickiewicz, T., Stephan, U., & Wright, M. (2019). Entrepreneurship in emerging markets. The

Oxford handbook of management in emerging markets, 457.

19. Foo, M. D., Vissa, B., & Wu, B. (2020). Entrepreneurship in emerging economies. Strategic

Entrepreneurship Journal, 14(3), 289-301.

20. Gao, Y. (2025). Looking for the Impact of Entrepreneurship on Regional Economic Resilience in China.

Sustainability, 17(4), 1397. https://doi.org/10.3390/su17041397

21. Gan, S. (2025). Analysis and Research on Entrepreneurship opportunities under the Development of

Economics and. In Proceedings of the 2024 2nd International Conference on Economic Management,

Financial Innovation and Public Service (EMFIPS 2024) (Vol. 327, p. 382). Springer Nature.

22. Giossi, S., Anastasiadou, S., Gamanis, A. & Gamanis, G. G. (2019). Tracing the concept of

entrepreneurship and the role of an entrepreneur: A critical review. International Journal of

Entrepreneurship and Innovative Competitiveness, 1(1), 1-14.

23. Gódány, Z., Machová, R., Mura, L. & Zsigmond, T. (2021). Entrepreneurship motivation in the 21^st

Century in terms of pull and push factors. TEM Journal.10(1), 334‐342

24. Gomes, S., & Ferreira, P. (2022). Entrepreneurial activity and economic growth: A dynamic data panel

analysis of European countries. Entrepreneurial Business and Economics Review, 10(2), 7-20.

25. Gumel, B. I. & Bardai, B. B. (2023). Critical success factors (CSFs) of SMEs in Nigeria and the mediating

impact of SMEDAN initiative between the CSFs and SMEs' Success. International Journal of Business

and Economics Research.

26. Hamdan, A., Ghura, H., Alareeni, B., & Hamdan, R. K. (2021). Entrepreneurship growth in emerging

economies: New insights and approaches. Journal of Sustainable Finance & Investment, 12(1), 1–12.

https://doi.org/10.1080/20430795.2021.1944750

27. Harrison, C. (2022). Challenges faced by entrepreneurs in Nigeria: A study of the retail pharmacy sector.

In The African Context of Business and Society (pp. 189-213). Emerald Publishing Limited.

28. Igwe, P. A., Odunukan, K., Rahman, M., Rugara, D. G., & Ochinanwata, C. (2020). How

entrepreneurship ecosystem influences the development of frugal innovation and informal

entrepreneurship. Thunderbird International Business Review, 62(5), 475-488.

29. Ikeije, U. U., and Onuba, C. O. (2015). Contributions and challenges of entrepreneurship in Nigeria: A

sociological analysis. European Journal of Business and Innovation Research, 3(3), 1-9.

30. Iwu, C. G., Sibanda, L., & Makwara, T. (2025). African entrepreneurial ecosystem resource constraints:

A COVID-19 perspective. Journal of Entrepreneurship and Innovation in Emerging Economies,

23939575251361581.

31. Khuan, H. (2024). The role of entrepreneurship in economic resilience. Economics Studies and Banking

Journal (DEMAND), 1(2), 110-129. https://doi.org/10.62207/5rcdcs18.

32. Kirkwood, J. (2009). Motivational factors in a push‐pull theory of entrepreneurship, Gender in

Management: An International Journal, 24(5),346-364.

33. Kurzynski, M. (2012). Peter Drucker: modern day Aristotle for the business community. Journal of

Management History, 18(1), 6-23.

Page 7491

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

34. Marcotte, C. (2014). Entrepreneurship and innovation in emerging economies: Conceptual,

methodological and contextual issues. International Journal of Entrepreneurial Behavior &

Research, 20(1), 42-65.

35. Mehmood, T., Alzoubi, H. M. & Ahmed, G. (2019). Schumpeterian entrepreneurship theory: Evolution

and relevance. Academy of Entrepreneurship Journal, 25(4).

36. Meyer, N., & De-Jongh, J. (2018). The importance of entrepreneurship as a contributing factor to

economic growth and development: The case of selected European countries. Journal of Economics and

Behavioral Studies, 10(4), 287-299.

37. Nwajiuba, C. A., Igwe, P. A., Binuomote, M. O., Nwajiuba, A. O., and Nwekpa, K. C. (2020). The barriers

to high-growth enterprises: What do businesses in Africa experience? European Journal of Sustainable

Development, 9(1), 317-317.

38. Oaya, Z. C. T. & Mambula I. C. J. (2017). The impact of SMEs financing on business growth in Nigeria:

A Study of Keffi and Mararaba Metropolis. International Journal of Innovation and Economic

Development. 2 (3),44-55.

39. Okoye, C. F. & Mensah, K. E. (2025). Challenges and prospects of technology adoption by small and

medium enterprises in Rivers state, Nigeria. Ayden Energies Journal, 13(2), 1-15.

40. Olaore, G. O., Adejare, B. O. & Udofia, E. E. (2020). Prospects and challenges of entrepreneurship

internationalization on the competitiveness of SMEs. Asia Pacific Journal of Innovation and

Entrepreneurship, 14(3), 303-315.

41. Onwuzulike, O. C., Ononiwu, M. I. & Shitu, K. (2024). Strategic management in emerging markets:

Challenges and opportunities. World Journal of Advanced Research and Reviews, 23(03), 309–322

42. Palimąka, K. (2021). Financial and non-financial aspects of entrepreneurship: The Polish perspective.

Financial Internet Quarterly, 17(4), 105-119.

43. Porfírio, J. A., Carrilho, T., and Mónico, L. S. (2016). Entrepreneurship in different contexts in cultural

and creative industries. Journal of Business Research, 69(11), 5117-5123.

44. Prelipcean, G., & Ungureanu, A. (2023). Entrepreneurship in Emerging Economies: The Role of

Innovation and Institutions. IntechOpen. doi: 10.5772/intechopen.109893.

45. Prince, S., Chapman, S. and Cassey, P. (2021). The definition of entrepreneurship: is it less complex than

we think? International Journal of Entrepreneurial Behaviour and Research, 27(9), 26-47.

https://doi.org/10.1108/IJEBR-11-2019-0634 .

46. Ratten, V. (2023). Entrepreneurship: Definitions, opportunities, challenges, and future directions. Global

Business and Organizational Excellence, 42(5), 79-90.

47. Rusu, S., Isac, F., Cureteanu, R. & Csorba, L. (2012). Entrepreneurship and entrepreneur: A review of

literature concepts. African Journal of Business Management, 6(10), 3570.

48. Saunders, M.N.K., Lewis, P. & Thornhill, A. (2019) Research methods for business students. 8th Edition,

Pearson, New York.

49. Schmitz, A., Urbano, D., Dandolini, G. A., de Souza, J. A., and Guerrero, M. (2017). Innovation and

entrepreneurship in the academic setting: a systematic literature review. International Entrepreneurship

and Management Journal, 13, 369-395.

50. Serazul, I. (2012). Pull and push factors towards small entrepreneurship development in Bangladesh.

Journal of Research in International Business Management.2(3), 065-072.

51. Solomon, T. & Emmanuel, A. O. (2025). Entrepreneurship Development Programs as a Catalyst for Job

Creation: Evaluating Business Training Initiatives in Nigeria International Journal of Academic

Management Science Research, 9 (5) 43-51

52. Soluk, J., Kammerlander, N., & Darwin, S. (2021). Digital entrepreneurship in developing countries: The

role of institutional voids. Technological Forecasting and Social Change, 170, 120876.

53. Stoica, O., Roman, A. & Rusu, V. D. (2020). The Nexus between Entrepreneurship and Economic

Growth: A Comparative Analysis on Groups of Countries. Sustainability. 12(3), 1186.

54. Thompson, N. A., Verduijn, K., & Gartner, W. B. (2020). Entrepreneurship-as-practice: Grounding

contemporary theories of practice into entrepreneurship studies. Entrepreneurship & Regional

Development, 32(3-4), 247-256.

55. Udegbunam, I. P., Udeoba, C. E., Ndu-Anunobi, G. U., & Abasili, K. N. (2024). Talent acquisition for

small and medium-sized enterprises (SMES) in Nigeria: Analysis of challenges and potential solutions.

International Journal of Social Science and Management Studies, 3(1), 70-83.

Page 7492

ww w .rsisinternational.org

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

56. Vorley, T. & Williams, N. (2017). Fostering entrepreneurship and economic growth: Pathways to

economic resilience in Kosovo. World Review of Entrepreneurship, Management and Sustainable

Development, 13(2-3), 159-177.

57. Wadhwani, R. D., Kirsch, D., Welter, F., Gartner, W. B., & Jones, G. G. (2020). Context, time, and

change: Historical approaches to entrepreneurship research. Strategic Entrepreneurship Journal, 14(1),

3-19.

58. Wale-Oshinowo, B. A. & Majekodunmi, S. A. (2024). Workforce attrition and sustainable retention

strategies in micro, small and medium-sized enterprises: trends and insights from the literature. Journal

of the Management Sciences, 61(9), 177-194.

59. Zafar, D., Khan, S., Khan, M. I., Parachi, S., and Saleem, A. (2022). Factors influencing entrepreneurship

capabilities in Pakistan. International Journal of Social Science and Entrepreneurship, 2(2), 47-71.

60. Zwan, P., Roy Thurik, R., Verheul, I. and Hessels, J. (2016). Factors influencing the entrepreneurial

engagement of opportunity and necessity entrepreneurs. Eurasian Business Review. 6:273–295.

Page 7493

ww w .rsisinternational.org