The Role of Entrepreneurial Ecosystems in Supporting Startups in Benin City, Edo State

Abstract

This study investigates the role of entrepreneurial ecosystems in supporting startups to ensure their survival and growth. Using a sample of 150 startups across various business types in Benin City, purposively selected, and a structured questionnaire as the research instrument, the findings reveal that access to finance, supportive government policies, education, and business support services are key factors influencing entrepreneurship development. Additionally, challenges such as resource gaps, regulatory barriers, and cultural constraints hinder startup growth. The study employed standard multiple regression analysis to evaluate the predictive capabilities of the predictor variables concerning the criterion variable. The hypotheses were tested with a p-value derived from the regression results on SPSS version 23.  According to the decision rule, null hypotheses (H₀) are not rejected if the p-value is greater than or equal to 0.05, while they are rejected if the p-value is less than 0.05. The four null hypotheses tested were rejected, indicating that the elements of the ecosystem significantly affect the growth and sustainability of startups in Benin City. The study recommends enhancing the existing ecosystem in the Benin City metropolis to provide more opportunities for startups to access needed facilities, collaborate, grow, and contribute to the region's overall economic development.

Keywords: entrepreneurial ecosystem, startups, government policy, finance, business support services

DOI: 10.7176/EJBM/17-4-10

Publication date: May 30^th 2025