Chapter One — 1.1 Background to the Study

In recent years, Innovation Capability has emerged as a critical factor shaping business growth of youth entrepreneurs across organizations operating in and around Selected Deposit Money Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how innovation capability relates to business growth of youth entrepreneurs has become an important area of both scholarly and practical concern.

Selected Deposit Money Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While innovation capability is widely discussed in policy and industry circles, empirical evidence on its actual effect on business growth of youth entrepreneurs within Selected Deposit Money Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to innovation capability are helping or hindering business growth of youth entrepreneurs — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Innovation Capability on business growth of youth entrepreneurs in Selected Deposit Money Banks in Nigeria.
2. To assess the extent to which innovation capability influences business growth of youth entrepreneurs within the study area.
3. To identify the challenges associated with innovation capability in relation to business growth of youth entrepreneurs.
4. To recommend strategies for optimizing innovation capability in order to improve business growth of youth entrepreneurs.

1.4 Research Questions

1. What is the effect of innovation capability on business growth of youth entrepreneurs in Selected Deposit Money Banks in Nigeria?
2. To what extent does innovation capability influence business growth of youth entrepreneurs within the study area?
3. What challenges are associated with innovation capability in relation to business growth of youth entrepreneurs?
4. What strategies can be adopted to optimize innovation capability in order to improve business growth of youth entrepreneurs?

1.5 Significance of the Study

Beyond its academic contribution to the field of entrepreneurship, this study has practical value for management teams within Selected Deposit Money Banks in Nigeria seeking to understand how innovation capability translates into measurable outcomes around business growth of youth entrepreneurs. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Innovation Capability and its relationship with business growth of youth entrepreneurs within the context of Selected Deposit Money Banks in Nigeria. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.