Entrepreneurial Challenges and Productivity of Sand Dredgers in South-East Nigeria

Abstract

This study examined the influence of identified entrepreneurial challenges of capital, technology, infrastructure, regulations and environment; on productivity of sand dredgers in South-east, Nigeria. The study adopted a mixed-method approach of combining quantitative survey data and qualitative interviews. Using purposive and snowball sampling techniques, questionnaires validated by experts and pre-tested for reliability (with all constructs above the 0.7 Cronbach’s alpha values threshold) were personally administered to about 25 sand dredgers drawn from each of the 5 South-East states of Abia, Anambra, Ebonyi, Enugu and Imo. Data analysis was carried out on a total population of 120 sand dredgers using descriptive statistics, correlation analysis, and Ordinary Least Squares regression models. The information collected via structured interview was analysed using thematic content analysis. It was found that sand dredging which is an informal sub-sector in the extractive entrepreneurship has become a major entrepreneurial initiative due to increasing demand for construction materials driven by rapid urbanization, population growth, and infrastructure development. Despite its economic importance, the sector faces numerous operational challenges defined by small-scale operations, low capital investment, and high exposure to environmental risks; which affect productivity, defined as the efficiency with which resources are transformed into sand volumes. Specifically, the study finds that access to capital (β = 0.452, p < 0.01), infrastructure (β = 0.412, p < 0.01), and technology (β = 0.381, p < 0.01) have positive and significant influence on productivity, while regulatory bottlenecks (β = -0.294, p < 0.05) and environmental degradation (β = -0.331, p < 0.05) negatively impact productivity. The study concludes that structural and institutional barriers remain critical impediments to efficiency in the dredging sector and advocated the following policy recommendations to improve productivity and sustainability: expanded access to finance, simplified regulatory reforms, increased investment in modern dredging technologies, improved infrastructural facilities and adoption of sustainable environmental practices. Acknowledging limitations in terms of sample size and bias associated with self-reported data, among others; the study contributed to entrepreneurship literature by providing sector-specific evidence from an under-researched extractive SME subsector while advocating for more studies. P-ISSN 2695-186X

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