IMPACT OF SHADOW ECONOMY ON PRACTICAL ENTREPRENEURS IN ONDO STATE

Abstract

This study investigates the influence of the shadow economy on practical entrepreneurs in
Ondo State, Nigeria. The target population comprised 291 shadow economy entrepreneurs,
from which a sample size of 169 participants was selected using purposive sampling based
on specific criteria related to active entrepreneurial engagement. A descriptive survey
design was adopted, and quantitative data were collected through a structured
questionnaire. Multiple Linear Regression Analysis was employed to examine the
relationships between the independent variables (market share, growth, and welfare) and
the dependent variable (performance of practical entrepreneurs). The findings reveal that
market share, growth, and welfare each have a positive and statistically significant
influence on practical entrepreneurs operating within the shadow economy. Specifically,
growth and welfare were found to significantly impact entrepreneurial success, contrary to
initial null hypotheses. Based on these findings, the study recommends strategic efforts to
enhance entrepreneurs' market share, promote sustainable growth practices, and improve
stakeholder welfare. Furthermore, policy interventions aimed at formalizing shadow
economy activities, providing skills development opportunities, and facilitating access to
financial resources are imperative to support the long-term success of practical
entrepreneurs.