The intense pressure on the Nigerian economy given the recent economic downturn has driven many Nigerians including entrepreneurs into multilevel marketing (MLM) schemes. Network marketing firms have in turn taken advantage of the economic situation to increase their activities in the Nation. Yet implication of this developed is yet to be explored in research. As such this study sought assess the relationship between financial factors (compensation and entry fees) in MLM strategy and motivation of Nigerian network entrepreneurs and determine the extent to which financial variants in MLM strategy affect growth of new NMOs in Nigeria The study was a survey of 202 MLM entrepreneurs of Swissgolden, AIM Global and Longrich using googleforms online survey. Data obtained were analysed using descriptive (mean and standard deviation) and inferential statistics (correlation and regression analysis). The study revealed low success rate among entrepreneurs participating in MLM in Nigeria. The study found significant relationship between the financial variants and motivation to join MLM (r=0.328, P<0.05). Findings show that the reward system as a motivation to join MLM accounted for 36.2% variations in the growth potential of MLM while the entry fees accounted for 25.6%. The study recommended that entrepreneurs take due care in selecting MLM they sign up with. Companies using MLM to promote their products should also design suitable compensation plans as well as incentivize entrepreneurs for actual sale of products rather than recruitment.
Purpose The purpose of this study is to explore the strength and value-relevance of social capital in an entrepreneurial ecosystem. Entrepreneurial ecosystem (EE) provides a new perspective to explaining the configurations and interactions that shape entrepreneurial outcomes in regions. Research on the nature of interactions in EEs is still an ongoing debate. The authors draw from “organisational fields” studies to critically examine the interactions among actors in a non-transparent EE using the case of the Lagos region. Design/methodology/approach The methodology is based on a qualitative study of 40 semi-structured interviews with various ecosystem actors in the Lagos region, including financiers, government officials, universities, founders and venture capitalists. Additionally, data from the semi-structured interviews were triangulated with data obtained from a two-day focus group discussion Summit where Lagos’ EE issues were raised. This study analysed both data using thematic analysis. Findings This study suggests that in a non-transparent EE, four types of interactions are apparent: collaborative, stratified, clustered and unleveraged. Authors argue that in a non-transparent EE, there are blockages and distortions in the flow of resources to entrepreneurs and a higher proportion of entrepreneurs are unable to plug into the ecosystem to extract value for their businesses without a strong social capital. Practical implications The authors argue that entrepreneurs require deliberate effort to improve structural and relational social capital to plug into their ecosystem to extract value for their businesses. Originality/value The focus on interaction in a non-transparent EE is a novel approach to studying interactions within EEs. In addition, the study is an early attempt to explore entrepreneurial interactions within the Lagos region.
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