Entrepreneurial potential self-assessment in times of COVID-19

Assessing readiness, engagement, motivations and limitations among young adults in Nigeria

Abstract

Background: The literature on youth entrepreneurship indicates that young people, especially those from developing countries, typically face numerous challenges in their bid to start a business. Such obstacles are most often exacerbated in times of emergencies   like  COVID-19 thus, posing a serious threat to youthful innovation. Equally, how young potential entrepreneurs evaluate their role in times of COVID-19 is largely unknown. 
Objective: The primary objective of the study was to examine how young Nigerian potential entrepreneurs assess their readiness, engagement, motivations and limitations with regards to building a business during COVID-19.
Methodology: We used a web-based survey design to elicit data from a total of 1,067 young adults aged 18-35 years.
Results: Findings revealed that although young adults in our sample showed impressive entrepreneurial readiness and motivations, they did not actually engage in entrepreneurial activities during the COVID-19 pandemic. Gender and prior entrepreneurial experience have significant positive effect on young adults’ perceived entrepreneurial readiness during COVID-19. Perception of the effects of the COVID-19 pandemic on businesses was found to have mediated the influence of young adults’ demographic variables on entrepreneurial engagement. While certain socio-cultural as well as institutional variables were found to have prevented young adults’ from engaging in productive businesses, their educational level and age category provided interesting insights into basic entrepreneurial outcomes in times of COVID-19.
Unique contribution: The study provides pathways for improving entrepreneurial recovery processes during and after the pandemic. The study specifically contributes to inclusive entrepreneurship policy programmes that can be adopted by developing economies.   Conclusion: Based on these findings, we have reasons to believe that young adults are losing confidence in the capacity of the business environment to protect their interests especially during public health emergencies like COVID-19.