Economic and Psychosocial Dimensions of Governance-Induced Stress among Entrepreneurs in Urban Nigeria: A Predictive Modelling Approach

Abstract

This study examines the economic and psychosocial dimensions of governance-induced stress among entrepreneurs. It assesses the relationship between governance quality (including business registration procedures, tax incentives, public infrastructure, regulatory policies, and government credit facilities) and stress levels among entrepreneurs in Shomolu Local Government Area (LGA), Lagos State, Nigeria. In environments marked by policy inconsistency and instability despite well-intended government support programs, poor infrastructure, and limited access to government support, entrepreneurs face significant financial, interpersonal, and physical stress. A cross-sectional survey design was employed, using 340 entrepreneurs drawn across enumeration areas in Shomolu LGA, Lagos State. A structured questionnaire captured perceptions to scrutinise the predictive impact of governance quality on financial, interpersonal, and physical stress. A two-stage sampling technique was used to ensure representativeness and data were analysed using descriptive statistics, Pearson correlation and simple regression techniques via SPSS. Findings reveal a weak but statistically significant positive relationship between business governance and various dimensions of entrepreneurial stress. Specifically, governance significantly predicts financial stress (β = 0.242; p = 0.001), interpersonal stress (β = 0.243; p = 0.001) and physical stress (β = 0.272; p < 0.001). Additionally, analysis of variance shows that stress levels differ significantly based on business structure, with sole proprietors reporting the highest stress levels. The study concludes that inadequate governance structures contribute meaningfully to the stress burden among entrepreneurs in Shomolu LGA, Lagos State, Nigeria. It therefore recommends policy refinement, better execution frameworks and targeted support systems to enhance entrepreneurial resilience.