Learning and innovation in youth-owned small businesses

Abstract

Purpose The birth and survival rate of youth-owned businesses has been a major concern for policymakers, industry and academics alike. Learning and innovation play important roles and more critical is the mediating factors and how it impacts the enterprise competitiveness of youth-owned businesses and hence worth studying. Therefore, this study aims to examine the impact of mediating factors such as government support, informal network society and external knowledge infrastructure on learning and innovation in youth-owned small businesses in Lagos, Nigeria, from a cross-sectional perspective. Design/methodology/approach Leveraging the sectoral system of innovation theory, we use a primary research method and data obtained from a structured questionnaire administered among a sample of 1,000 registered youth-owned small businesses in Lagos, while 30 in-depth interviews were also conducted. The exploratory factor analysis was used for data examination. Findings The findings show that even though government support, informal network society and external knowledge all have a positive relationship with learning and innovation in youth-owned small businesses, government support has the most impactful impact. The informal network society via a trade association, professional network and social media are also critical in knowledge transfer in youth-owned businesses. Originality/value The significance of learning and innovation is more important as many small businesses do not have the privilege of standard human resource management (HRM) systems. This paper looks at the mediating factors affecting the introduction of innovative practices in youth-owned and managed small businesses and how productivity is enabled in a developing county context.