Business Mentoring and Domestic Entrepreneurship in Nigeria’s Manufacturing Sub-sector: The place of Foreign Direct investment Inflows

Abstract

Although there is a fairly extensive literature on the theory of foreign direct investment, not much of it is useful in providing insights into its effect on domestic entrepreneurship in Nigeria. This paper looks at the theoretical basis for business mentoring, examines the influence of foreign direct investment (FDI) inflow on domestic entrepreneurship in Nigeria’s manufacturing sub-sector from 1973 to 2010 while employing OLS technique. Results identified a positive and highly significant effects of each of human capital and infrastructural development on activities on Nigeria’s manufacturing sub-sector while each of manufacturing FDI, market size and anti-FDI policies has a negative and highly significant effect on activities in Nigeria’s manufacturing sub-sector. This paper therefore recommends that policies on investment should be geared towards wooing foreign investors into the manufacturing sub-sector while giving the diversification of the country’s productive base a top priority.

Keywords: Domestic entrepreneurship, Foreign Direct Investment, Spill-over