Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Effect of Business Networks on Entrepreneurial Success in Mubi Metropolis Adamawa State Nigeria

Hyella Jonah, Abubakar Barkindo, Yunusa Jaoru Umaru

Abstract

This study examines entrepreneurial success in Mubi Metropolis, Adamawa State, Nigeria, a post- conflict borderland economy that has experienced significant disruption from the Boko Haram insurgency between 2012 and 2015 and beyond. Despite high failure rates, a minority of entrepreneurs achieve sustained success. The problem is that existing entrepreneurial success models, developed in stable institutional environments, fail to explain success in Mubi's volatile context of weak infrastructure, informal finance, multiple taxation, and cross-border dynamics. The aim of this study is to investigate the determinants, challenges, and strategies associated with entrepreneurial success in Mubi. Specific objectives include examining the concept and dimensions of entrepreneurial success, identifying determinants, analyzing challenges, documenting sustainability strategies, and proposing a context-specific model. The study adopts a mixed-methods design involving a quantitative survey of 384 entrepreneurs and qualitative semi- structured interviews with 25 successful entrepreneurs. Findings reveal that entrepreneurial success in Mubi is driven primarily by social capital, adaptive capacity, and cross-border trade with Cameroon. Major challenges include multiple taxation, poor electricity, lingering security concerns, and limited access to formal credit. Successful entrepreneurs employ strategies such as informal savings rotation, ethnic trust-based credit, cross-border customer diversification, and political patronage. The study concludes that conventional entrepreneurial success models require modification for post-conflict borderland contexts. Recommendations include formalizing trade association roles in credit delivery, creating a single tax window for SMEs in Mubi, supporting cross-border trade facilitation with Cameroon, and integrating informal savings groups into microfinance bank operations.

Keywords

Entrepreneurial successMubi MetropolisAdamawa Statepost-conflict entrepreneurshipcross-border tradesocial capitalresilience.

References

Adebayo, A. A., & Nassar, M. L. (2016). Taxation and small business development in Nigeria. Journal of African Business, 17(2), 189–205. Akim, A. (2017). Cross-border trade and economic development in Adamawa State. Nigerian Journal of Borderland Studies, 4(1), 45–62. Adamawa State Enterprise Development Agency. (2022). Small business survey report: Mubi North and Mubi South LGAs. Yola: ASEDA Press. Adamawa State Government. (2018). Adamawa State economic development strategy 2018–2025. Yola: Government Printer. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. Baron, R. A., & Markman, G. D. (2000). Beyond social capital: How social skills can enhance entrepreneurs' success. Academy of Management Executive, 14(1), 106–116. Boso, N., Adeleye, I., Donbesuur, F., & Gyensare, M. (2019). Do entrepreneurs always benefit from business resilience? Journal of Business Research, 101, 411–420. Brüderl, J., Preisendörfer, P., & Ziegler, R. (1992). Survival chances of newly founded business organizations. American Sociological Review, 57(2), 227–242. Bruton, G. D., Ketchen, D. J., & Ireland, R. D. (2013). Entrepreneurship as a solution to poverty. Journal of Business Venturing, 28(6), 683–689. Bruton, G. D., Sutter, C., & Lenz, A. K. (2021). Economic development and entrepreneurship. Strategic Entrepreneurship Journal, 15(3), 334–358. Cantillon, R. (1931). Essai sur la nature du commerce en général. London: Macmillan. (Original work published 1755) Carland, J. W., Hoy, F., Boulton, W. R., & Carland, J. A. C. (1984). Differentiating entrepreneurs from small business owners. Academy of Management Review, 9(2), 354–359. Chandler, G. N., & Hanks, S. H. (1993). Measuring the performance of emerging businesses. Journal of Business Venturing, 8(5), 391–408. Davidsson, P., Achtenhagen, L., & Naldi, L. (2010). Small firm growth. Foundations and Trends in Entrepreneurship, 6(2), 69–166. Doeffinger, T., & Hall, S. (2021). Conflict and entrepreneurship in northeast Nigeria. World Development, 145, 105523. Effiong, C. (2018). Credit constraints and small business performance in Nigeria. African Journal of Economic and Management Studies, 9(3), 345–361. Federal Ministry of Budget and National Planning. (2017). Economic Recovery and Growth Plan 2017–2020. Abuja: Government Printer. Federal Ministry of Industry, Trade and Investment. (2020). Evaluation of MSME support programmes in conflict-affected states. Abuja: FMITI. Hassan, I. (2018). Boko Haram and the destruction of formal banking in northeastern Nigeria. African Security Review, 27(2), 123–141. Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship (10th ed.). New York: McGraw-Hill. Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systematics, 4(1), 1–23. International Alert. (2020). Livelihoods and security in Adamawa State. London: International Alert. International Crisis Group. (2016). Nigeria: The challenge of military reform in the northeast. Brussels: ICG. Jennings, J. E., & McDougald, M. S. (2007). Work-family interface experiences and coping strategies. Journal of Management, 33(5), 747–770. Johnson, S. (2004). Savings groups and enterprise development in sub-Saharan Africa. Journal of International Development, 16(7), 975–990. Klepper, S. (2001). Employee startups in high-tech industries. Industrial and Corporate Change, 10(3), 639–674. Maiyaki, A. A. (2020). Small business survival strategies in conflict zones: A study of Mubi. African Journal of Business and Economic Research, 15(3), 87–106. Mair, J., & Marti, I. (2009). Entrepreneurship in and around institutional voids. Journal of Business Venturing, 24(5), 419–435. Marshall, A. (1890). Principles of economics. London: Macmillan. Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15–23. Mustapha, A. R. (2014). Religious and ethnic pluralism in northeastern Nigeria. Oxford: Oxford University Press. National Bureau of Statistics. (2022). Labour force statistics: Unemployment and underemployment report. Abuja: NBS. National Population Commission. (2006). National population census report. Abuja: NPC. North, D. C. (1990). Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press. Ogbu, O. (2019). Business development services in Nigeria's northeastern states. Journal of African Business Education, 3(2), 78–95. Ogundele, O. J. K., Akinbode, J. O., & Falola, A. (2014). Infrastructure and entrepreneurial development in Nigeria. Journal of Entrepreneurship and Small Business, 21(4), 401–418. Okoli, A. C., & Okpaleke, F. N. (2014). Boko Haram insurgency and the crisis of internal displacement in Nigeria. Mediterranean Journal of Social Sciences, 5(20), 185–193. Rauch, A., & Frese, M. (2007). Let's put the person back into entrepreneurship research. European Journal of Work and Organizational Psychology, 16(4), 353–385. Say, J. B. (1964). A treatise on political economy. New York: Kelley. (Original work published 1803) Schumpeter, J. A. (1934). The theory of economic development. Cambridge: Harvard University Press. Simpson, M., Tuck, N., & Bellamy, S. (2004). Small business success factors. Journal of Small Business and Enterprise Development, 11(3), 345–355. Small and Medium Enterprises Development Agency of Nigeria. (2021). National MSME survey report. Abuja: SMEDAN. Sutter, C., Bruton, G. D., & Chen, J. (2019). Entrepreneurship as a solution to extreme poverty. Journal of Business Venturing, 34(3), 592–607. Ucbasaran, D., Westhead, P., & Wright, M. (2008). Opportunity identification and pursuit. Journal of Business Venturing, 23(2), 181–207. Van der Sluis, J., Van Praag, M., & Vijverberg, W. (2008). Education and entrepreneurship selection and performance. Review of Economics and Statistics, 90(2), 315–330. Wach, D., Stephan, U., & Gorgievski, M. J. (2016). More than money: Defining and measuring entrepreneurial success. Journal of Business Venturing Insights, 5, 1–6. Walker, E., & Brown, A. (2004). What success factors are important to small business owners? International Small Business Journal, 22(6), 577–594. Webb, J. W., Bruton, G. D., Tihanyi, L., & Ireland, R. D. (2013). Informal entrepreneurship in emerging economies. Entrepreneurship Theory and Practice, 37(1), 47–67.