IMPACT OF INSECURITY ON THE NIGERIAN ENTREPRENEURIAL ENVIRONMENT

Abstract

This conceptual paper examines the multifaceted relationship between insecurity and the entrepreneurial environment in Nigeria, a context characterized by diverse security challenges including terrorism, banditry, kidnapping, and militancy. Drawing on a comprehensive review of empirical and theoretical literature spanning 2015-2025, we develop an integrated conceptual framework that explicates the mechanisms through which insecurity undermines entrepreneurial activities, business sustainability, and economic development. The paper identifies five primary pathways of impact: (1) direct destruction of physical and human capital, (2) disruption of business operations and market access, (3) erosion of investor confidence and capital flight, (4) increased operational costs and resource diversion, and (5) psychological impacts on entrepreneurial behavior. We synthesize theoretical perspectives from structural violence theory, frustration-aggression theory, and entrepreneurial ecosystem theory to explain these relationships. The framework reveals that insecurity creates a vicious cycle where business failures exacerbate unemployment and poverty, potentially fueling further insecurity. We propose a dynamic conceptual model that accounts for regional variations, sectoral differences, and the moderating role of entrepreneurial resilience strategies. The paper contributes to entrepreneurship theory by extending understanding of extreme environmental constraints and offers practical implications for policymakers, entrepreneurs, and development practitioners seeking to foster entrepreneurial development in conflict-affected contexts. Our analysis underscores the critical need for integrated security and economic development policies to break the insecurity-poverty cycle and create enabling environments for entrepreneurship in Nigeria.