FISCAL POLICY AND ENTREPRENEURSHIP GROWTH IN NIGERIA

Godwin Emmanuel OYEDOKUN, Adefisayo AWOGBADE, Tolani Agboola HASSAN,

Abstract


This study investigated the influence of fiscal policy on entrepreneurial growth in Nigeria with the adoption of survey research design which is based on the use of primary source of data involving the use of questionnaires of selected four hundred (400) entrepreneurs in the Lagos state of Nigeria derived from Yaro Yamani's sample size formula. This study employed multiple regression analysis and it was established that fiscal policy ensured the growth of entrepreneurship in Nigeria. This is evidenced in the regression result, R square=.116, which
stipulates that about 12% variation in the entrepreneurial growth in Nigeria can be attributed to the combined effect of all the exogenous variables used in this study, while the remaining 88.4% can be attributed to other factors not covered in the study's model.Though this low explanatory power but the result of the regression estimates of model indicated that the coefficient of all the endogenous variables shows both positive and negative evidence from multiple regression analysis, which shows that taxation and public debt has a positive effect on entrepreneurial growth in Nigeria while tax incentives and public/government expenditure has a negative effect on the entrepreneurial growth in Nigeria. This study recommends that tax incentives should be used with care by the government as though may motivate people to create
new businesses and to have taxes holidays until such a time when they will be buoyant to do so but reduces government revenue in the short-run. Governments at all levels are also advised to consider taxation which is one of the major tools of fiscal policy, as a veritable tool for financing government expenditure which will in turn aid entrepreneurship growth in Nigeria.


Keywords


Economic Growth, Entrepreneurship, Fiscal Policy, Taxation, Public Expenditure

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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