Ease of Doing Business and Entrepreneurial Growth in the Face of Global Economic Policy Uncertainty
Linus, Justin Ogbonna
Department of Business Administration, Southwestern University, Nigeria.
Faith Chidimma Lawal *
Department of Business Education, Kogi State College of Education, Ankpa, Nigeria.
Sunday O. Okafor
Teesside University International Business School, Middlesbrough, England.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the impact of ease of doing business on entrepreneurial growth in Nigeria from 2010 to 2023, particularly in the context of global economic policy uncertainty. Using data from the Global Entrepreneurship Monitor and the World Development Indicator, the study applies an Autoregressive Distributed Lag (ARDL) model to analyze the relationship between ease of doing business factors, such as access to credit, contract enforcement, and regulation, and entrepreneurial activity. The findings show that while improvements in the business environment significantly foster entrepreneurship, economic uncertainty hampers its growth. The study recommends that Nigeria should enhance its business environment and create safety nets to mitigate the adverse effects of global economic uncertainties. These insights are valuable for policymakers aiming to promote entrepreneurship and economic resilience in developing countries.
Keywords: Access to credit, enforcement of contracts, entrepreneurship growth, global economic policy uncertainty