Innovative Business Idea Generation in Higher Education: The Interplay between Entrepreneurship Centres and Economic Conditions

<ns3:p> Background Understanding how entrepreneurship centres in developing economies shape students’ entrepreneurial capabilities, especially under difficult economic conditions, remains a key concern in higher education research. This study examines the role of entrepreneurship centres in Nigerian universities in fostering innovative business idea generation among undergraduates. Guided by Ecological Systems Theory, entrepreneurship centres are viewed as part of students’ immediate (microsystem) environment, while broader economic challenges such as inflation, insecurity, power instability, and high interest rates form the exosystem context. Methods A cross-sectional design was adopted, with data collected from 269 final-year students across selected Nigerian universities using a structured questionnaire. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied to assess both direct effects and the moderating influence of economic conditions. Results The results show that active engagement with entrepreneurship centres significantly boosts students’ ability to generate innovative business ideas. However, adverse economic conditions not only influence idea generation on their own but also weaken the positive impact of entreprenuership centre engagement. The model demonstrated moderate explanatory power (R <ns3:sup>2</ns3:sup> = 0.416) and strong predictive relevance (Q <ns3:sup>2</ns3:sup> = 0.466), supported by robust reliability and validity metrics. Conclusions This study highlights the need for universities and policymakers to build more resilient entrepreneurship support systems capable of nurturing innovation despite economic headwinds. The findings point to the value of sustained investment in entrepreneurship centres and call for broader research across different contexts to enhance generalisability. </ns3:p>