A Survey of Innovation Practices in the Informal Sector in Nigeria: Implications for inclusiveness

Abstract

Innovativenes is critical to the success of any business venture. The current study examined the innovative practices adopted by some informal businesses across three sectors in the Nigerian economy: manufacturing, agriculture and services.  Primary data were obtained from business owners and managers in the informal business sector in Nigeria. Simple random sampling technique was used to select 778 respondents in three (3) out of six (6) geopolitical zones in Nigeria. Data collection were done with the aid of Google form.  The overall aim of the survey was to provide information on the innovation activities of enterprises in the informal business sector. The retrieved data were analyzed using frequency counts and percentage distribution. Findings revealed that majority (76.5%) of the respondents attested that their customers were satisfied with current products, and were willing to pay for and interested in new products. This was closely followed by respondents (66.5%) who introduced environment-friendly products or services. About 60.8% of the respondents changed/upgraded technology (tools & equipment), looked for and used new sources for supply of raw materials and tools that were cheaper and/or better than old sources of supply. The study indicated that frequent changes in policies and government as well as civil unrest and crises are some of the factors hindering innovation activities in informal businesses. Cost of acquiring modern technologies and funding was ranked highest among economic factors that hindered innovation.

Suggested citation

Ololade Adewole, Festa Okrigwe, Kehinde Omotoso, Jacob Opele (2024). A Survey of Innovation Practices in the Informal Sector in Nigeria: Implications for inclusivenessKoozakar Proceedings, 2(1). https://doi.org/10.69798/30789153

Metric