Exploring transformational entrepreneurship in an emerging economy: the role of entrepreneurial ecosystem and small business skills

Abstract

This research aims to investigate the role of entrepreneurial skills (ES) and ecosystem (EE) in supporting the development of small and medium-sized enterprises (SMEs) to achieve transformational entrepreneurship (TE) in an emerging economy. It is apparent that many SMEs are not entrepreneurial and growth oriented due to various factors even though they contribute to economic development. Thus, if more of them were entrepreneurial and growth orientated, this would be beneficial for developing economies. Using a 3-model hierarchical regression analysis, the study examined 576 valid responses from Nigerian SMEs. Harman's single-factor test was conducted to assess common method bias (CMB), and the results indicated it was not a concern. ES were assessed using six constructs: business ethics, management, strategy, financial management, marketing and opportunity identification. The EE was evaluated based on access to funding, markets and resources, as well as the policy/regulatory environment. Gender and business age were included as control variables. A shortage of essential ES and inadequate EE to effectively support TE outcomes. The study introduces a validated framework demonstrating how ES and EE contribute to TE outcomes. These insights offer policymakers and practitioners a valuable guide, highlighting the critical need to strengthen both ES and EE to support TE outcomes. This research advances and empirically tests a theoretical framework demonstrating the correlation between ES and EE in achieving TE outcomes among small businesses. It offers valuable implications for other Global South economies with similar developmental contexts. It helps address the existing gap by proposing a more holistic approach to SME support for achieving TE.