Mediating the Effect of Working Capital on the Relationship between Entrepreneurship Education and Small Business Management in Gombe State

Abstract

This study is embarked upon to examine the effect of entrepreneurship education on small business management mediated by the size of working capital available to the small businesses in Gombe metropolitan city in Gombe state, Nigeria. The study aimed at examining whether size of working capital of small businesses will mediate the relationship between entrepreneurship education and small business management. This study is important because researches conducted indicated that entrepreneurship education alone did not influence small business management in Gombe state but by introduction of working capiatal as a mediator a very significant influence resulted of entrepreneurship education on small business management. Two hundred and sixteen (216) questionnaires were administered to fifty (50) small businesses managers in Gombe so as to ascertain their perception in this regard. The study applied simple random sampling. Data were interpreted and analysed using Multiple Regression technique. The major findings of the study showed that there is a strong relationship between entrepreneurship education and small business management and that working capital serves as a good mediator between the dependent and independent variables of this study (i.e. the higher the size working capital available to small business managers the higher the effect of entrepreneurship education on small business management success and vice-vasa). The study further availed that entrepreneurs in Gombe State does not have adequate access to working capital at their disposal which will pave ways for exploiting their business opportnities The paper recommended that federal and state government should gear more efforts in providing access to soft loans to increase chances to small businesses to enable them increase working capital for successful business management, economic growth and development. Finally, the study pointed out areas to consider for future research.