Abstract
Despite increasing effort by policy makers aimed at promoting rural entrepreneurship development through various intervention programs and initiatives in some developing countries, its expected benefits or gains have remained illusionary in light of growing rate of poverty, unemployment and declining rate of SMEs performance, thereby questioning the acclaimed transformative potency of entrepreneurship by experts. This study, explores the connection between rural entrepreneurship development and the institutional dimension of the context with the aim of identifying critical challenges facing rural entrepreneurship development. This is done by applying institutional theory and analysing the impact of institutions on entrepreneurial behaviour, specifically focusing on rural entrepreneurs in deprived rurality context of the Niger Delta region. The study adopts a qualitative approach involving the use of interview for data collection. A total of 27 unites of analyses were purposefully selected across the Niger Delta states and interviewed and thematic analyses used to analyse gleaned data. Findings shows that institutional dimension of context exact adverse negative impact on rural entrepreneurship development and that the normative dimension poses the worst barrier. Hence study recommends that programs aimed at entrepreneurship development should emphasise more on value cognitive creation on the part of participants rather than what they would gain (materialism). Policy makers, especially government, by repeatedly placing emphasis on starter pack that participants stand to benefit in programs aimed at entrepreneurship development, a mindset of entitlement is being formed which is negatively shaping entrepreneurial behaviour in the region. This study will contribute potentially to emerging rural entrepreneurship literature and acts as constructive response to the growing call for contextual diversity and inclusivity in entrepreneurship research. By profiling and investigating the dynamics of institutional environment within the Niger Delta region a nuanced understanding would be provided on the major Barriers impeding entrepreneurial practices in the region which in turn provide strategic direction as a guide for effective policy development.