Effect of Start-Up Capital on the Sustainable Growth of Igbo Businesses in Anambra State, Nigeria

Abstract

In this study, a start-up capital is referred to as a fund given to an apprentice by a mentor (Oga) during “settlement”, and it was acclaimed by many to be the nucleus of Igbo business model. It has also proved to be one of the pillars that aided the pervasiveness and growth of Igbo businesses across Nigeria, and equally contributed to the robust economic and even development of Igbo nation. This idea is fast waning due to the unwillingness of some mentors denying or offering an apprentice that diligently served him with little or no start-up capital after graduation, This attitude by some Igbo businessmen has engendered the awakened interest for empirical investigation to probe and ascertain the effect of start-up capital on the sustainable growth of Igbo businesses in Anambra state, Nigeria. Related conceptual, theoretical and empirical literatures were reviewed. The study was built on Resource based theory. The questionnaire was used for data collection on a sample size of 327 respondents drawn from commercial cities in Anambra, Nigeria State using Borg and Gall sampling technique. Data collected were analyzed using descriptive and inferential statistics. Findings revealed that seed capital has a significant positive influence on the sustainable growth of Igbo businesses in Anambra state, Nigeria. The study recommend that, government should support Igbo businesses in raising capital by giving them low or interest free loans and business advice that will aid their survival.