Foreign Direct Investments and Entrepreneurship Development in Anambra State, Nigeria

Abstract

This study investigated foreign direct investments and entrepreneurship development in Anambra State, Nigeria. The study examined the effect of foreign technology, foreign capital inflow, and foreign portfolio investment on entrepreneurship development in Anambra State, Nigeria. The study reviewed relevant literature. The study was anchored on neo liberal theory and Internalization Theory. Descriptive research design was adopted. The population of the study comprised 5,394 entrepreneurship firms in Anambra State. The sample size for the study is 1052 entrepreneurs’ across the Anambra States of Nigeria using Borg and Gall (1973) formula. The instrument was both face and content validated. The hypotheses were tested with ordinary least squares (OLS) multiple regression analysis. The result indicated that adoption of foreign technology had a significant positive effect on entrepreneurship development. Foreign capital inflows had a significant positive influence on entrepreneurship development. Foreign portfolio investment has a significant positive effect on entrepreneurship development. The study concluded that foreign direct investments had a significant positive effect on entrepreneurship development. The study recommended that competitive policie should be enacted by the government that will excuit proper functioning of foreign technology necessary to attract well targeted foreign investors in Nigeria. Government should ignite a police that will stop the inflow of managerial and marketing expertise by investing in human capital, infrastructure development; financial market development, institution quality, and trade openness that will positively develop entrepreneurship. The nation should adopt more trade openness and create enabling investment climate to reduce political risk, restrictions on capital flows, and removing any restrictions on imports in order to attract foreign portfolio investment and accelerate entrepreneurial development.