Pentecostal Ethics and Economic Development: Entrepreneurship Dynamics inEnugu, Nigeria

Abstract

This study examined the relationship between Pentecostal ethical orientation and enterprise performance among Christian-owned micro, small, and medium enterprises (MSMEs) in Enugu State, Nigeria. Drawing on Weberian religious-economic theory, social cognitive theory, and social capital theory, the study disaggregated Pentecostal ethics into four constructs — ascetic work ethic, ethical trust and integrity norms, congregational social capital, and prosperity orientation — and tested their differential associations with enterprise performance. A cross-sectional survey design was employed. Using multistage sampling across six local government areas, 480 structured questionnaires were distributed and 397 usable responses were retained (82.7%), exceeding both the Cochran (1977) minimum of 385 and the G*Power requirement of 259. Confirmatory factor analysis supported a six-factor measurement model, χ²(545) = 1012.47, χ²/df = 1.86, CFI = .943, TLI = .937, RMSEA = .047, SRMR = .046, with composite reliability from .88 to .93 and average variance extracted from .55 to .69. Hierarchical regression showed that the religious ethics block explained significant incremental variance in enterprise performance, ΔR² = .277, F(4, 387) = 43.50, p < .001, f² = 0.45. Ascetic work ethic (β = .31), ethical trust norms (β = .19), and congregational social capital (β = .18) were significant positive predictors; prosperity orientation was not (β = −.06, p = .166). Entrepreneurial self-efficacy partially mediated the work ethic–performance relationship (indirect effect = 0.26, 95% BCa CI [0.185, 0.353], 40.6% mediated). Prosperity orientation significantly attenuated the work ethic–performance slope, ΔR² = .018, f² = 0.03. Findings suggest that the developmental value of Pentecostalism in Enugu resides in its disciplinary and relational content rather than in its prosperity rhetoric.