The Effect Of Managerial Skills In The Promotion Of Entrepreneurial Activities In The Private Sector (A Case Study Of Intels Nigeria Limited, Onne Port-Harcourt)

Project and Seminar Material for Business Administration and Management BAM

The Effect Of Managerial Skills In The Promotion Of Entrepreneurial Activities In The Private Sector (A Case Study Of Intels Nigeria Limited, Onne Port-Harcourt)


This project research looked at effort of managerial skills in the promotion of Entrepreneurial activities in private sector P (a case study of Intels Nigeria Limited Onne Port Harcourt). The problem of the study are absent of managerial competence in the enterprises which is believed to caused the height degree of business mortality, in accessibility to fund which has neglect through laissez-faire attitude one of the objective of this study is to determine when there is lack of managerial skills can lead to business mortality. Hypothesis were used and tested; the population is 80 while the sample size is 75. The method of data collection used is primary secondary data. The primary data which constitutes, interview methods, observation and questionnaire while secondary data constituted of textbooks, journals, newspapers the analysis of the data used is percentage frequency table and chi-square (x2) after testing the hypothesis, it was found out that lack of managerial skills in small business can lead to business mortality and also reduce their access to find which bring the business to a stand still. It can be recommended that entrepreneurs in their task employment should as well look out for those that posses managerial, know-how which will be relevant to the position they have occupy.

Chapter One

1.0 Introduction

1.1 Background of the Study

The Entrepreneur is a factor in Micro economics ad the study of Entrepreneurship dates back to the work of Ruchard cotillion and Adam Smith in the late 17th and early 18th centuries, but was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics in the lack 40 years.

In the 20th century, the understanding of Entrepreneurship owes much to the work of economist Joseph Schum Peter in the 1930s and able to convert a new idea or innovation into a successful innovation.

Entrepreneurship employs what Schum Peter called the gate of creative destruction to replace In whole or in part inferior innovation across and industries, simultaneously creating new products new business models (Okenwo, 1999). In this way creative destruction is largely responsible for the dynamism of industrial and long-run economic growth (Wikipedia,org/wiki/Entrepreneurship).

Many think that managerial skill and knowledge is unnecessary for Entrepreneurial activities such people assume that with enough capital any person can start and run a successful business without difficulties and this is a wrong assumption. This notion leads to practice which accounts for the high rate mortality Entrepreneurial activities in our environment. As observed by Agu (8299s:80) fundamental of small business management and Entrepreneurship development.

Shortage of managerial skills one of the factor limiting economic progress in our country.

No matter how small a business might be and much money invested, managerial know-how is very essential for effective business operation.

The success of a business depends o the amount of the money invested but more on planning, organizing, directing and controlling functions carried out by managers and Entrepreneurs using the organizational resources to achieve objectives.

Nwosu and Agu (1997:68) of are the opinion Entrepreneurs in general have contributed much to our economy.
We need their innovative and risk taking ability to create wealth and generate employment and full the economy.

Despite their valuable contribution, it is also fair to say that they could be more successful If they recognize the point where good managerial skill and knowledge should take over the lead role of directing the activities of their organization.

By their very nature, Entrepreneurs are not good managers. The skills they possess, so critical to which an enterprise are not same skill needed for the long run business success.

All new business reaches a stage where experienced managers need to take over the continued growth of the economic. A set of skill is important particularly in the category of people management.

Ogbaegbe (2008:53) states start Entrepreneurs have little in the motivation and management of people. This is critical issued for all management.

Increasing competition and accelerating change in consumer taste and employee demands and expectation pose a content challenge to all organizational leaders success of any organization lies in the commitment and height productivity by all employees. Obi (2011:231) says achievement of goals and objectives in the long term depends on the performance of all employees of achieve success in an organization.

Therefore requires an understanding of motivation and other skills necessary to create working environment where all employees can willingly work to the best of their abilities. It is the management that is between employees that increased commitment, supervisor product quality excellence in customers services and productivity.

Competent management is crucial to the success of all new enterprises. It is therefore, behavior Entrepreneurs to fact or into their business plans the appropriate time to stop back and bring in experienced, management for it is better to have a small piece of a large piece.

1.2 Statement of the Problem

In the competitive/harsh business environment Entrepreneurs are faced with many problems which makes it difficult for some of them to survive or grow.

  1. Some Entrepreneurs lack managerial competence whereas they believe in their ability rather than gaining the needed knowledge and managerial skills even when it is obvious they needed more managerial training. These affects their business mortality and sometimes affects identification of opportunities and ideas as well as their implementation.
  2. Lack of managerial skills, good managerial skills will actually help Entrepreneurs to source finance from investors and banks, where there is insufficient capital hence no assist Intel Nigeria Limited Port Harcourt cut their insufficient capital needs
  3. Some Entrepreneur have laissez-faire attitude which in the current business environment can bring the business to a stand still. If it stand still, productivity will drop, making it to lose its competitiveness and be threatened with bankruptcy through neglect of the business.
  4. Some Entrepreneurs who have failed in their business with a number of people. Customers, employees bankers, professionals have suffered good communication skills. While there is inability to communicate their ideas simple and well, will bring the business to stand still.

1.3 Objectives of the Study

Consequent upon the afore-stated problems above, the researchers objective of the study are therefore as follows:

  1. To ascertain whether lack of managerial competence can lead to business mortality.
  2. To determine whether laissez-faire attitude in business environment can bring the business to a stand still.
  3. To determine the extent managerial skills can promote enterprise practice kin business organization.

1.4 Research Question

In order to draw a conclusion on effect of managerial skills on the promotion of Entrepreneurial activities.

  1. How does lack of managerial skills lead to business mortality?
  2. To what extent can laissez-fair attitude in business environment bring the business productivity?
  3. To what extent can managerial skills promote enterprise practice in business organization?

1.5 Significance of the Study

Briefly, stated the essence of this study is to highlight the effect of managerial skill has in promoting entrepreneurial competence and its proper implementation in order to reduce high mortality rate suffered by enterprise.

The research also believes that this study will have an impact in the assessment of the organization performance if taken into consideration.

1.6 Scope of the Study

In carrying out this research, the researcher was compelled to narrow down the geographical coverage of the study to only one town.

Onne metropolis and only one firm gave its opinions concerning the study which is Intel Nigeria Limited Onne Port Harcourt.

1.7 Limitations of the Study

The limitations of the study is mainly time constraint and lack of extensive openness in the part of Intel’s Management to give the researcher all the information that is needed due to the fear of exposing their business strategy to their competitors but the researcher was able to gather all necessary information needed for his research work.

Lack of adequate finding was also a limitations to the lack of transport facilities was also a limitation to the researcher in the process of conducting the research work successfully.

Profile of the Company of Case Study

Intel’s Nigeria limited was establish over twenty seven years ago with vision to develop an integrated logistic solution offering a complete package of facilities and services to the oil and gas industry in Nigeria.

Initially, operating under the name Nicotics services limited the company’s, name was changed in 1995 to Intel’s (Integrated Logistics services) limited and now operates under the name of Intel’s Nigeria Limited.

In 1982 the foreign contractors building the Onne Port complex of the Federal Light Terminal (FLT) The Federal Ocean Terminal (For and the internal Terminal (ITT) abandoned the construction due to non-payment of fees by the federal government of fees by Federal government of the time. The Nigeria Ports Authority (NPA) then invited the private sector to operate at FLT, which was the only partially completed section of Onne Port development available at this time, Fot lying underdeveloped for a further decade.

After a detailed analysis of the logistics needs of the oil and gas industry, we (Nictes/Intel’s) took up the challenge of developing a unique concept of establishing handing which would further enhance savings.

To enable the implementation of this efficient and cost saving mobility of operation in 1984 we applied for an were awarded a five years lease of NPA facilities of Onne complex, warri Old port complex and calabar new port. These three ports were hitter to udnerlisted but were strategically located for creation of integrated transmits and supply base ultimately oil service centre.

Intel’s Nigeria limited, working in conjunction with Intel’s west Africa Limited has become established as a leading supplier of oil and gas logistic support service throughout west Africa and particularly in Nigeria.

Firstly in Nigeria, the later In other countries, intel’s has pioneered the concept of an integrated “One stop-stop” oil service centre.

Bringing together terminal operations, logistics, transmit and supply base service which in turn has led to significant savings for oil and gas industry in terms of money, time and requires resources which has been a great benefit to all of the oil producing companies (OPC) and for both major and start up companies integrated transmit/supply base with the boundaries of the port complex in Onne, Warri and calabar.

The result let to nationalizing of the logistics requirement of the import and supply of equipment and materials control as well as fro customs and immigration. Obviously, a rationalized and integrated approach to the logistics needs of off shore exploration and production and a major cost saving effect for all parties involved in Nigeria’s oil and gas industry.

The introduction and subsequent acceptance of the shared facilities and service concept by all the major oil producing services and various related oil and gas construction companies have drastically reduced operational cost to NNPC and it partners and the rationalized and integrated approach and an even higher costs saving effect when deep offshore exploration and production activities started in Nigeria.

1.7 Definition of Terms


This is a set of activities including planning decision making organizing directing, controlling, leading, directed at an organizational resources such as human, financial, physical and information with the aim of achieving organizational goals in efficient and effective manners.

Managerial Skills:

A managerial skill is therefore related to performances not necessary in born and it falls with two main groups, hence a skill is an ability proficiency in performing a particular task.

Conceptual Skill:

It is the ability to analyze complex situation.


Is seen as any social structure or system consisting of two or more; people who are inter-dependent and who work together in a coordinate manner to attain common goals.


This is all profit directed economic and commercial activities that provide goods and services necessary to a nations standard of living.


This is the process of change that affects people’s lives. It may involve an improvement in the quality of life a perceived by people undergoing change.

Mortality Rate:

Is a measure of the number of death (in general, or due to a specific cause) ;in a population, and business scaled to the size of that populated per unit time.

Private Sector:

This is sector which is run by private individuals or groups usually is a means of enterprise for profit and is not controlled by the state.

Technical Skill:

It is the ability to use specialized knowledge required at work.

Managerial Role:

Is an organized set of behavior that may be divided into categories of interpersonal informational and decisional roles.


The willingness and ability of Entrepreneurs to identify business opportunity established and run a successful enterprise based on the identified opportunity within the environment.


These are men and women who are courageous alert visionary and engaged in the network of exchanged to stimulate and promote the economy.

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendations

This chapter summarizes the result of the studies carried out and attempt to interpret the result, recommendations can be made to strengthen the findings and draw to conclusion and recommendations.

This project research work is carried out to know if the absence of managerial skill and competence has led to the height mortality rate of small business enterprise in Nigeria especially in the private sectors. It also seek to find out whether the absence of managerial competence has led to the Entrepreneurship not having access to external funding from financial institution and it the laissez-fair attitude in business environment can bring the business to a half.

5.2 Conclusion

Having examined the effect of managerial skills in organization with regard to the researcher’s findings in the research work, the researcher therefore conclusion that business operators (Entrepreneurs) requires a good knowledge of management to succeed in business. The practice of managerial skills in the organization.

5.3 Recommendation

The researcher therefore recommends that Entrepreneurs in their task of employing workings should be as well look out for such employees well pose managerial know how which will be relevant. I the position and leach which he may occupy. Training and development of the entries staff should be encouraged so as to change the out dated skills and communicate the essence of good managerial skills, and discard wrong assumptions. Above all placing an individual or manager in position where in he is competent enough to manage with the above stated, taken care of the researcher is sure that the rate of business mortality in Nigerian will drastically reduced.

5.4 Suggestion for Further Research

The researcher believe that this research work is not advise that further research be carried out in the following areas:

  1. That the case study intel Nigerian Limited Onne Port Harcourt does not represent all business enterprise that may be need managerial skills.
  2. That further research be made in order sectors and not on the oil and gas industry alone.
  3. That extensive data be collected in this area of the study using more sophisticated and activities funded data collection method.
  4. Finally, that further research on this work should be made out of the city Port Harcourt to get a more comprehensive view of the topic.

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