An evaluation of influencing factors of opportunity identification and performance of nascent entrepreneurs in Agricultural business in southwest Nigeria

An evaluation of influencing factors of opportunity identification and performance of nascent entrepreneurs in Agricultural business in southwest Nigeria

Opportunity identification and performance among nascent agricultural entrepreneurs in southwest Nigeria are influenced by various factors that are not well understood. This limits the effectiveness of interventions aimed at supporting entrepreneurship in the region, highlighting the need to evaluate these key factors to improve success and sustainability. The study sought to examine the role of entrepreneurs’ digital inclusion, prior knowledge, and social networks in influencing the opportunity identification and performance of nascent agricultural business entrepreneurs in the southwest region of Nigeria. The study adopted mixed methods convergent design utilizing quantitative and qualitative approaches.

Questionnaires were used in quantitative data collection, while qualitative data were collected using in-depth interviews. A total of 636 participants completed an online survey, while eighteen (18) participants participated in a Key Informant Interview (KII). Six hypotheses were tested based on quantitative data, while thematic analysis was carried out on the qualitative data. Findings from hypotheses testing revealed that digital inclusion significantly predicts opportunity identification (β = .418, t = 16.442, p < .001). Also, prior knowledge significantly predicts opportunity identification (β = .154, t = 5.422, p <.001), while social networks significantly predict opportunity identification (β = .445, t = 15.430, p <.001). Furthermore, digital inclusion did not significantly predict business performance (β = -.007, t = -.180, p >.05). However, prior knowledge significantly predicts business performance (β = .478, t = 11.288, p < .001), while social networks did not significantly predict business performance (β = .057, t = 1.328, p > .05). Thematic analysis revealed six major themes across digital inclusion, prior knowledge, and social networks in relation to business performance, and opportunity identification. Some of the themes include use of digital tools for learning and problem-solving; education and identification of opportunity, social and professional networks; formal education and business performance; and social connections and business growth. In conclusion, the study demonstrated that digital inclusion, prior knowledge, and social networks play significant roles in opportunity identification among nascent entrepreneurs, with all three factors indicating strong influence. However, while digital inclusion did not significantly predict business performance, prior knowledge emerged as a key driver of business performance. Social networks, although important for opportunity identification, did not significantly predict business performance. These findings emphasize the critical role of prior knowledge in entrepreneurial success and highlight the need for a strategic combination of digital tools and social networks to foster opportunity identification. The study recommends measures to enhance digital literacy, offer industry-specific training, encourage active networking, and improve financial access. These steps are crucial for establishing a more inclusive and sustainable entrepreneurship ecosystem in Southwest Nigeria. Regarding policy, the study recommends that policies should support networking events, conferences, and workshops to foster collaboration and idea exchange among nascent entrepreneurs, and industry experts.