Insecurity and Its Implications for Entrepreneurship Growth: A Case Study of Enterprises in Anambra State

Abstract

This study investigates the impact of insecurity on entrepreneurship growth in Anambra State, Nigeria, focusing on the relationship between rising insecurity and the establishment and growth of new business ventures. The research adopts a survey research design. The study utilised primary data collected from 105 managers of SMEs in Awka, Onitsha and Nnewi. The data were obtained using a structured questionnaire. The Pearson Product Moment Correlation (PPMC) was used to test the hypothesis. The PPMC revealed a significant negative correlation between insecurity and the rate of new venture creation, with heightened insecurity serving as a major deterrent for entrepreneurs. The study concludes that security is essential for the sustainability and growth of entrepreneurial ventures. The study underscores the sensitivity of entrepreneurial activities to the security environment, demonstrating that insecurity not only reduces the likelihood of new business establishment but also stunts the growth of existing enterprises and increases the risk of business failure. Based on the results, the study recommended the need for business operators to carefully assess security risks before investing, for the state government to prioritize the protection of lives and properties, and for enhanced security measures in commercial areas to support ongoing business activities.