Working Capital Financing and Entrepreneurship Growth in Nigeria: An Empirical Investigation

Abstract

This study investigated the effect of working capital financing on entrepreneurship growth in Nigeria by employing ex-post facto research design using panel data analyses of financial information extracted from financial statements for the years 2012 to 2016 of 10 companies listed under “consumer goods” NSE. Descriptive and inferential statistics including multiple regression analysis were employed. This study established that there is a significant positive relationship between working capital financing (as proxied by inventory management, receivable management payable management and cash management) and entrepreneurship growth in Nigeria (proxied with log of changes in total assets and log of changes in sales volume) resulting R2 =.399, Adjusted R2 = .327, F= 2.797319. the study, therefore concluded that effective working capital financing aids entrepreneurship growth in Nigeria. This study recommended that entrepreneurs and stakeholders should manage working capital components for effective business growth.