Venture Creation and Startup Ecosystems in the Global South: A Cross-country Comparative Study of Nigeria and India

Abstract

This study presents a comparative analysis of the Nigerian and Indian entrepreneurial ecosystems with a view to examining venture creation, access to capital, and the effects of the broader ecosystem on startup development. The secondary comparison of India and Nigeria highlights the relevance of policy constraints to entrepreneurial activities in both countries, including regulatory and funding constraints and inadequate infrastructure. Nevertheless, despite these barriers, Nigerian and Indian entrepreneurs have been successful in developing business models suited to local contexts and implementing novel strategies to overcome these barriers. Entrepreneurial Ecosystem Theory was adopted as the theoretical framework for this study, providing a comprehensive means of examining external factors such as access to capital, mentorship, and policies affecting startup growth. The study adopted a qualitative research design based on secondary sources. Findings were drawn from research published in peer-reviewed journals, governmental reports, and empirical studies published between 2019 and 2024. Thematic content analysis was used to develop a comprehensive thematic profile of the Nigerian and Indian ecosystems, identifying recurrent themes relating to governmental policies, funding, and mentorship in both countries. The comparison revealed both similarities and differences, indicating that, although Nigeria is currently strengthening its entrepreneurial ecosystem, India presently has a highly developed entrepreneurial ecosystem that offers greater access to capital through venture capital and angel investor schemes. Both countries, however, need to address issues of equity and inclusiveness affecting vulnerable groups and rural entrepreneurs. The study identifies access to capital as a key factor in startup development in both countries. It therefore recommends improvements to the regulatory framework in Nigeria, increased access to venture creation funding and entrepreneurial networks in Nigeria, and a focus in India on reducing the rural-urban disparity in access to capital.