Spillover Effects of Multinational Enterprise Presence on Indigenous Entrepreneurship in Nigeria’s South South Zone

This study empirically analyses the spillover effects of multinational enterprise presence on the development of indigenous entrepreneurship in Nigeria's South South geopolitical zone, examining whether and how the activity of MNEs in the oil, gas, and professional services sectors creates knowledge, skills, market, and supply chain opportunities that stimulate local entrepreneurial activity. MNE spillover effects on local enterprise development are widely studied in the foreign direct investment and entrepreneurship literature, but the South South Nigerian context, characterised by a highly concentrated enclave economy driven by petroleum extraction, offers a distinctive case for testing spillover dynamics. The study employs a comparative cross-sectional design, contrasting entrepreneurship activity levels and characteristics between two high-MNE-concentration communities and two low-concentration communities in Rivers and Delta States. Survey data from 240 indigenous entrepreneurs and employment records from three MNE suppliers supplement archival local business registration data. Panel regression analysis examines the relationship between MNE presence and enterprise development indicators over a five-year period. Findings reveal positive but spatially concentrated spillover effects, with the highest entrepreneurial activity concentrated in geographic proximity to MNE operations. MNE workforce alumni, former employees who have left to start businesses, constitute the most entrepreneurially dynamic sub-group, showing significantly higher venture performance than non-MNE alumni entrepreneurs. Supply chain spillovers are constrained by high MNE procurement standards that most local enterprises cannot meet. Keywords: MNE spillovers, indigenous entrepreneurship, South South Nigeria, FDI, local enterprise development.