Institutional Environments and Youths Entrepreneurial Orientation: Evidence from Nigeria

Entrepreneurial activities and venture creation among youths represent one of the key drivers of job creation and economic growth (OECD, 2016; Acs, 2006). What influences individual entrepreneur to business start-up remains an enduring issue of interest in academic research on entrepreneurship. Recent studies suggest that the institutional context plays a key role in influencing individual behaviour, as well as in facilitating entrepreneurial climate for new ventures. Consequently, this study draws on institutional theory as a valuable lens to investigate the extent to which the regulative, normative and cultural-cognitive environments affect individual entrepreneurial orientation (IEO) and self-employment among Nigerian youths. The study adopts a quantitative research approach, allowing for primary data collection conducted through survey questionnaire and administered to a sample of 482 student respondents. A three-stage hierarchical regression analysis was used to test the hypotheses and to investigate the predictability impact of the model. The result revealed that all three predictor variables (Institutional environments) made a statistical unique contribution to the model. However, the regulative and cognitive model made a statistically significant unique contribution to impacting the individual entrepreneurial orientation among the university educated Nigerian youths.