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Influence of Power Distance and Uncertainty Avoidance Cultural Configuration on Entrepreneurship Development: The Moderating Effect of Government Entrepreneurial Policies in Benue State, Nigeria

Author

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  • ABRAHAM, Michael Ogbleba

    (Department of Business Administration and Management Studies, Benue State Polytechnic Ugbokolo)

  • Prof. Onyeaghala Obioma Hyginus

    (Department of Business Administration, Federal University Wukari)

Abstract

Entrepreneurship holds increasing significance for young people in Nigeria as they navigate the dynamic economy. Nigeria is home to a substantial youth population and they are increasingly exploring entrepreneurial opportunities. However, the rate of entrepreneurship development in Benue State Nigeria is not encouraging despite government support programmes and initiatives. The state has so many ethnic groups with different cultural orientations feared to affect entrepreneurship activities. Against this backdrop, this study explored the influence of power distance and uncertainty avoidance cultural configuration on entrepreneurship development; the moderating effect of government entrepreneurial policies. The study employed a survey research design to generate and collect primary data from operators of SMEs using structured questionnaires. A sample size of 301 respondents were selected for the study and distributed with the questionnaire. However, only 296 distributed questionnaires were validly retrieved representing 98 % of the study’s sample size. Statistical and econometrics techniques such as; frequency distribution, simple percentages, tables and hierarchical multiple regression were used for the presentation and analysis of the study. The result of the hierarchical multiple regressions revealed that; power distance and uncertainty avoidance indicated positive and significant effect on entrepreneurship development as 1% increase in power distance and uncertainty avoidance increased entrepreneurship development in Benue state by 74% and 28% respectively. The estimated hierarchical multiple regressions further revealed that, the moderating effect of government entrepreneurial policies on the relationship between cultural configuration (power distance and uncertainty avoidance) and entrepreneurship development is negative and insignificant as it decreased the effect of power distance and uncertainty avoidance on entrepreneurship development in the study area by 1%. Base on these findings, it is recommended among others that, entrepreneurs in Benue State Nigeria should always adjust their communication pattern and behaviour to align with the expectations of the environment, they should be willing to take risks and embrace uncertainty of the future and government at all levels should provide policies that support the establishment of business venture in the state.

Suggested Citation

  • ABRAHAM, Michael Ogbleba & Prof. Onyeaghala Obioma Hyginus, 2024. "Influence of Power Distance and Uncertainty Avoidance Cultural Configuration on Entrepreneurship Development: The Moderating Effect of Government Entrepreneurial Policies in Benue State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 3015-3029, July.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:3015-3029
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    References listed on IDEAS

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    1. Yuwan Dai & Hao Li & Wenting Xie & Tianyi Deng, 2022. "Power Distance Belief and Workplace Communication: The Mediating Role of Fear of Authority," IJERPH, MDPI, vol. 19(5), pages 1-14, March.
    2. Victoria B. Nakku & Frank W. Agbola & Morgan P. Miles & Amir Mahmood, 2020. "The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(1), pages 2-31, January.
    3. Donald F. Kuratko & Greg Fisher & David B. Audretsch, 2021. "Unraveling the entrepreneurial mindset," Small Business Economics, Springer, vol. 57(4), pages 1681-1691, December.
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