Assessment of Entrepreneurial Ecosystems and SMEs’ Growth in Ilorin Metropolis, Kwara State

Abstract

SMEs often face resource constraints, ranging from financial capital to human resources and market access. Understanding how entrepreneurial ecosystems facilitate resource allocation and address these constraints is crucial for enabling sustainable growth. This study therefore investigated the impact of entrepreneurial ecosystems on firms’ growth, with a focus on SMEs operating in Ilorin metropolis, Kwara State. A cross-sectional survey research design and a quantitative data gathering method were used in this study. Three hundred and forty-three (343) SMEs make up the study's sample size, which was chosen to represent the 3124 SMEs that are registered with the Kwara State Board of Internal Revenue and pay taxes totaling one hundred thousand naira or more. Standard multiple linear regression analysis was employed to analyze the data obtained from the administration of a structured survey questionnaire. Findings of the study revealed that entrepreneurial ecosystems through access to capital, entrepreneurial support infrastructure and talent and knowledge exchange have significant impact on SMEs growth. The study concluded that entrepreneurial ecosystems constitute the bedrock upon which SMEs thrive and catalyze economic growth. By providing startups with the necessary resources to invest, innovate, and expand, access to finance plays a pivotal role in fueling entrepreneurial activity, job creation, and economic growth. The study recommended among others that, programs and initiatives aimed at improving financial literacy among entrepreneurs, empowering them to make informed decisions about financing options and investment opportunities should be invested on and implement policies and initiatives that promote diversity and inclusion within the financial ecosystem, ensuring equitable access to finance for women, minority entrepreneurs, and underserved communities.