Obstacles and success factors for entrepreneurship: a comparative analysis between Egypt and Nigeria

Abstract

This study investigates the obstacles and success for entrepreneurship at Africa The study also provides a framework for determinants of entrepreneurship that includes three groups of factors: (1) obstacle factors, which include financial and non-financial obstacles; (2) success factors, which include gaining an understanding of the economic environment, determining market gaps, ensuring capital adequacy, and creating a stable cash flow; and (3) business model characteristics, which include benefits for clients, suppliers, founders, investors, and other stakeholders. The study hypothesizes hat there is a relationship between the second and third groups, which creating a new value chain (tangible or intangible) to the society with support from stakeholders. A questionnaire survey was conducted with founders, investors, corporate managers, financial analysts, academics, and graduates who seek new projects from Egypt and Nigeria, and 395 questionnaires were received in the second half of 2018. The study found a difference in entrepreneurship nonbanking and non-financial obstacles between Egypt and Nigeria. This can be explained by differences in the level of efficiency of the stock exchanges and non-banking services, in addition to the differences in legal environments and levels of corruption between Egypt and Nigeria. Moreover, future directions of entrepreneurship are similar across countries, but age has an impact on these directions.