CORRUPTION AND ITS IMPACT ON ENTREPRENEURSHIP IN NIGERIA

Abstract

Emerging empirical literatures on corruption advocates that its impact on overall national economic performance and micro-level firm performance is inconclusive. As such corruption is said to either ‘grease’ or ‘sand’ in the wheels of entrepreneurship, affecting firm performance (at the micro-level) and, ultimately, economic growth (at the macro-level). This study examines this issue using unique and exceptionally rich indexes of Corruption Perception Index (CPI) and Global Entrepreneurship Index (GEI).The aim of the research paper is to present the two relevant indexes – Corruption Perception Index and Global Entrepreneurship Index and to analyze the connection between corruption and entrepreneurship through comparing these important indexes.

Using statistic methods like covariance method and the regression method, it was demonstrated an intense and a direct connection between the two indexes. More accurate, the less corruption there is, the healthier will be the entrepreneurship ecosystem.

In conclusion, this study finds evidence that corruption sand the wheels of entrepreneurship for Nigeria’s entrepreneurs, due to the improved business ecosystem.