Impact of Eco-Entrepreneurship as Climate Change M...

Impact of Eco-Entrepreneurship as Climate Change Mitigation Strategy of SMES on Environmental Sustainability in Nigeria

Abstract

This study investigated the impact of eco-entrepreneurship on environmental sustainability in Nigeria. Three purposes and three null hypotheses were stated for the study. Related literatures were reviewed. Descriptive survey design was adopted. It was conducted in Six-geopolitical zones of Nigeria. Population of the study consisted of 7,800,000 SMEs operators while the sample was 400 SMEs operators determined using Taro Yamane formula. 15-item, researchers-constructed questionnaire was used for data collection. It was face-validated by five experts. Reliability coefficient of the instrument was 0.81 using Cronbach Alpha formula. 392 SMEs operators returned their questionnaires. Z-test was used to test hypotheses at 0.05 significance level. Findings showed no significant difference on the impact of eco-friendly product development practice of SMEs on environmental sustainability in Nigeria; no significant difference on the impact of sustainable supply chain adoption practice of SMEs on environmental sustainability in Nigeria; and no significant difference on the impact of green marketing and consumer education practice of SMEs and environmental sustainability in Nigeria. It was recommended that eco-friendly product development strategy and sustainable supply chain adoption strategies of SMEs should be modified to impact environmental sustainability in Nigeria while, green marketing and consumer education strategy of SMEs should be maintained to impact environmental sustainability in Nigeria.

Introduction

Africa’s most populous nation is Nigeria, which has over 200 million people, and most of the country’s economy is bedeviled by substantial environmental sustainability issues that create both urgent needs for attention and eco-entrepreneurial opportunities to be leveraged. Eco-entrepreneurship practices for ecological sustainability in Nigeria, particularly amongst Small and Medium-sized Enterprises (SMEs), are pivotal as they play a crucial role in Nigeria's economy. Organization for Economic Co-operation and Development (OECD, 2019) asserted that as pivotal drivers of job creation and economic development, SMEs have a unique opportunity to embrace eco-entrepreneurial innovations that contribute significantly to environmental sustainability. This study explored multifaceted impact of some strategies employed by SMEs to address environmental sustainability so as to provide insights that could inform policy and ecoentrepreneurial practices aimed at enhancing environmental stewardship. SMEs are increasingly acknowledging the significance of implementing eco-entrepreneurship practices, which contribute to environmental sustainability and improve their market standings (Adelekan et al., 2018). The push for sustainable supply chains is beginning to minimize waste and enhance resource efficiency in industry clusters (Abubakar & Sadiq, 2020). Despite challenges, the growing sensitization and demand for green products and services among consumers suggest a positive trend towards sustainability in the consumption pattern of the people. In all, while hurdles are yet to be surmounted, the potential for SMEs to lead Nigeria towards greater environmental sustainability through the instrumentality of ecoentrepreneurship is promising and could result in both ecological and economic benefits. Eco-entrepreneurship is the pursuit of entrepreneurial opportunities that create social, environmental, and economic value around sustainable products or services while minimizing negative impact on the environment [Global Green Growth Institute (GGGI), 2025]. Solutions to environmental problems can be addressed through eco-entrepreneurial practices. These practices encompass several significant areas, including sustainable supply chains, green marketing and consumer education, and ecofriendly product development (Porter & Kramer, 2011). Such innovations collectively promote environmental sustainability and economic growth.