Background of the Study
Start-ups are critical drivers of economic growth, job creation, and innovation. However, financial constraints remain one of the biggest challenges faced by young entrepreneurs, limiting their ability to launch, sustain, and scale their ventures (Okoro & Ibrahim, 2024). In Yobe State, where economic opportunities are often constrained by high unemployment and limited access to funding, overcoming financial challenges is vital for the success of start-ups.
Young entrepreneurs in Yobe State frequently face difficulties securing capital due to a lack of collateral, high-interest rates, and limited financial literacy. These challenges necessitate the development of innovative financial strategies, such as leveraging alternative funding sources, forming partnerships, and adopting cost-efficient business models (Abdullahi & Suleiman, 2025). This study seeks to explore effective strategies for overcoming financial constraints, providing actionable insights for young entrepreneurs in Yobe State.
Statement of the Problem
Financial constraints are a major barrier to the success of start-ups in Yobe State. Many young entrepreneurs struggle to access traditional financing options due to strict eligibility criteria and high costs. Additionally, poor financial planning and management often exacerbate these challenges, leading to business failure (Yusuf & Bello, 2023).
Despite the critical importance of financial strategies for start-up success, limited research exists on effective approaches tailored to the unique challenges faced by young entrepreneurs in Yobe State. This study aims to address this gap by exploring strategies for overcoming financial constraints in start-ups.
Objectives of the Study
To identify the financial constraints faced by young entrepreneurs in Yobe State.
To evaluate existing strategies used to overcome financial challenges in start-ups.
To propose practical solutions for addressing financial constraints in start-ups.
Research Questions
What financial constraints do young entrepreneurs in Yobe State face?
What strategies are currently used to overcome these financial challenges?
What practical solutions can enhance financial sustainability for start-ups?
Research Hypotheses
Financial constraints significantly hinder the growth of start-ups.
Access to alternative funding sources reduces financial challenges for start-ups.
Effective financial planning and management enhance the sustainability of start-ups.
Scope and Limitations of the Study
This study focuses on young entrepreneurs in Yobe State, examining their financial challenges and strategies for overcoming them. Limitations include the variability of start-up industries and the generalizability of findings to other states.
Definitions of Terms
Financial Constraints: Limitations in accessing financial resources needed to start or grow a business.
Start-Ups: Newly established businesses in the early stages of operation.
Young Entrepreneurs: Individuals aged 18–35 who are engaged in entrepreneurial activities.