IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 11 2024
DOI: 10.56201/ijebm.v10.no11.2024.pg102.126

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Entrepreneurial Environmental Uncertainty and Investment Decision-Making in Nigeria's Plastic Manufacturing Sector

Nwabuatu, Emmanuel Nnajiubah Ph.D.

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Abstract

This study investigates the impact of environmental uncertainty on investment decision-making among entrepreneurs in Nigeria's plastic manufacturing sector, a vital component of the nation's economy. The research addresses three core questions: the primary sources of environmental uncertainty faced by entrepreneurs, the implications of these uncertainties on investment strategies, and the risk management strategies employed to mitigate their effects. Environmental uncertainty encompasses various factors, including volatile economic conditions, regulatory changes, fluctuating raw material prices, and technological disruptions. These uncertainties complicate the investment landscape, often leading entrepreneurs to adopt more conservative strategies to minimize risks. Through a comprehensive literature review and analysis of current practices, the study identifies key dimensions of environmental uncertainty, such as state, effect, and response uncertainty, which significantly influence entrepreneurs' decision-making processes. The findings reveal that many entrepreneurs prioritize short-term gains over long-term investments due to heightened risk perceptions in an unpredictable environment. Additionally, the study highlights the critical role of innovation and resilience as essential components for navigating these challenges. To enhance sustainability and growth within the sector, the research offers recommendations, including the establishment of supportive networks, improved access to reliable information, and the promotion of adaptive strategies. By fostering an environment conducive to innovation and collaboration, stakeholders can help entrepreneurs better manage environmental uncertainties, ultimately strengthening the plastic manufacturing industry's contribution to Nigeria's economic development. This study aims to contribute to the broader understanding of entrepreneurial dynamics in uncertain environments, offering ins

keywords:

Entrepreneurial Uncertainty, Investment Decision-Making, lastic Manufacturing

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