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Effect of Foreign Portfolio Investments on Entrepreneurship Development in Anambra State Nigeria

Oraegbunam, Patrick Osita and Prof. G. C. Mgbemena

Abstract

The main objective of this study is to investigate the effect of foreign portfolio investments on entrepreneurship development in Anambra State Nigeria.The specific objectives are to determine the effect of foreign portfolio inflows, bond investment and equity investment on entrepreneurship development in Anambra State. Relevant literature was reviewed. The study was anchored on Modern Portfolio Theory and Endogenous Growth Theory. The study adopted descriptive survey design. This study was carried out in Anambra State, Nigeria. The data for the study was principally from primary and secondary source of data. The population of the study comprised 1504 register entrepreneurship business located in Anambra State of Nigeria. A sample size of 386 Entrepreneurship business in Anambra State, was obtained using statistical formula devised by Ball and Gall. The instrument was both face and content validated. The reliability of the instrument was achieved through the application of test re-rest method and Cronbachs Alph coefficient. The data generated in the study were analyzed using simple percentage for the research questions. Linear regression analysis was conducted to test the hypotheses. The result of the analysis revealed that foreign portfolio inflows had a significant positive effect on entrepreneurship development in Anambra State, Nigerian. (t= 11.203, B=741, p= .000). Bond investment had a significant positive effect on entrepreneurship development in Anambra State, Nigeria. (t= 4.526, B=.693, p=.000). Equity investment had a significant positive influence on entrepreneurship development in Anambra State, Nigeria (t= 3.148, B=.754, p=.001). The study concluded that foreign portfolio investment had a significant positive effect on entrepreneurship development in Anambra State, Nigeria. The study recommended that diversify investment portfolios: Encourage investors to diversify across different asset classes, including equity, bonds, and money market instruments, to manage risk and enhance returns. Educate investors about the benefits of diversification and provide accessible investment options

Keywords

Foreign Portfolio InflowsBond investmentEquity Investment and Entrepreneurship Development

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