Effect Of Startup Business In Entrepreneurial Development In Nigeria

Project and Seminar Material for Entrepreneurship

Effect Of Startup Business In Entrepreneurial Development In Nigeria


Abstract


This study was carried out to examine the effect of startup business in entrepreneurial development in Nigeria, using 20 selected event management centres in Abuja as case study. Specifically, the study examined various areas startup business has affected entrepreneurial development in Nigeria. The study employed the survey descriptive research design. A total of 62 responses were validated from the survey. Hypotheses were analysed using chi-square statistical tool. From the responses obtained and analysed, the findings revealed that Job creation and increase in national income are the contributions of startup business in Nigeria and that lack of strong patent law and lack of knowledge of entrepreneurship in the basic science and technology constitute the challenges to startup business in entrepreneurial development. The extent of entrepreneurial development in Nigeria is high. The study however, recommends that there is need to change the mind set of young people to embrace self-employed job rather than waiting for non-existing government job and there is need for government to set up workshops where young and old entrepreneurs can come and acquire new skills needed for their businesses.


Table of Content


Preliminary Page(s)

  • Title Page
  • Certification
  • Declaration
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research Questions
  • 1.5 Research hypotheses
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms

Chapter Two:

Review of Literature

  • 2.1 Review of concepts
  • 2.2 Review of related literature
  • 2.3 Review of Empirical studies
  • 2.4 Theoretical Framework
  • 2.5 Chapter Summary

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the study
  • 3.3 Sample size determination
  • 3.4 Sample size selection technique and procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of data collection
  • 3.7 Method of data analysis
  • 3.8 Validity and Reliability of the study

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Answering Research Questions
  • 4.3 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • Appendix

Chapter One


Introduction

1.1 Background to the Study

Nigeria is naturally endowed with entrepreneurship opportunities; however the realization of the full potential of these opportunities has been dampened by the adoption of inappropriate industrialization policies at different times. Several policy interventions that were aimed at stimulating entrepreneurship development via small and medium scale enterprises promotion, based on technology transfer strategy, have failed to achieve the desired goals as it led to the most indigenous entrepreneurs becoming distribution agents of imported products as opposed to building in-country entrepreneurial capacity for manufacturing, mechanized agriculture and expert services (Thaddeus, 2012).

With the collapse of the last vestiges of the socialist economic system in 1991, virtually the whole world has embraced free enterprise economic system. Entrepreneurship is the cornerstone and at the heart of the free enterprise economy (Popoola, 2014). Entrepreneurship is defined as the willingness and ability of a person to seek and identify investment opportunities, establish and run a successful enterprise Solomon (2007). It is also viewed as the act of arranging business ideas, taking the associated risk and starting a Business, with a view to profit making.

According to Paul, (2005); and Ossai (2012) entrepreneurship is essentially about taking a risk; it entails the creating of new venture which previously did not exist. Previously exist; it is the concerted effort and practice of starting new Business organization, especially new business; it leads to the creation of new wealth through the implementation of innovative ideas.

For any existing business to have been existing to its current stage, it most have first pass through the beginning stage which is known as startup stage.

According to EDC (2013) start up is the early stage in the life cycle of an enterprise consisting of when the entrepreneur converts the idea, to securing finance, outlining the basic structure of the business, and start operations or trading. The effect of new startup businesses are enormous as they create employment opportunities, create customer value in terms of providing new and improved products and services, create training and skill acquisition opportunities for the youths and impact on the general living standard of the people and the economy.

Moreover, studies by UNIDO-Nigeria, 2012 show that Micro, Small and Medium Enterprises (MSMEs) has the propensity to drive the Nigerian Economy, and data reveal that there are currently over 17 million MSMEs employing over 31 million Nigerians. MSMEs account for over 80% of enterprises that employ about 75 % of the Nigeria’s total workforce, and therefore formulating and effectively implementing MSMEs friendly policies represents innovative ways of building the capacity to engage in entrepreneurial activities and creating job opportunities thus, playing a central and invaluable role in helping Nigeria realize its quantity advantage.
In addition, the 2012 Global Entrepreneurship Monitor (GEM) has empirically identified Nigeria as one of the most entrepreneurial countries in the world. The study showed that 35 out of every 100 Nigerians (over a third) are engaged in some kind of entrepreneurial activity or the other. It is therefore imperative at this point in time to critically evaluate not just the principles of entrepreneurship but the practice and its crucial role in fostering economic growth and development in a developing economy like Nigeria.

The hypothesis that entrepreneurship is linked to economic growth finds its most immediate foundation in simple intuition, common sense and pure economic observation: activities to convert ideas into economic opportunities lie at the very heart of entrepreneurship. Entrepreneurship is a source of innovation and change, and as such spurs improvements in productivity and economic competitiveness (UNCTAD, 2004).

Entrepreneurship is not synonymous with small business. Certainly, small firms are an out- standing vehicle for individuals to channel their entrepreneurial ambitions. The small firm is an extension of the individual in charge (Lumpkin and Dess 1996). However, entrepreneurship is not restricted to persons starting or operating an (innovative) small firm. Enterprising individuals in large firms, the so-called ‘intrapreneurs’ or ‘corporate entrepreneurs’, undertake entre- preneurial actions as well.

Nigeria’s GDP growth rate of between 6 – 8 percent in the last ten years shows the country is one of the fastest growing economies in the world. The implication is that any good business established is capable of generating unusual and above average returns. It is one of the few countries with the highest returns on investment anywhere in the world- money, market, capital market, mutual funds, real estate and property, entrepreneurship, etc (Popoola, 2014).

Furthermore, for entrepreneurs to play an appropriate role, the role of the state remains important; if not more so than before. Strong states, as regulators and gatekeepers, play a particularly vital role. In the absence of appropriate ‘rules of the game’, entrepreneurship may result in undesirable social outcomes, including corruption, crime, speculation and financial crises, and may worsen the vulnerabilities of people during natural disasters (UN Report, 2011).

What we know about entrepreneurship suggests a drastic or revolutionary change, but does it promote wealth creation, job opportunities. Although there is quite a lot of researches and studies on the link between entrepreneurship and economic growth and development, there is still the need to assess the case of the Nigerian economy. The real question is what is the contribution of micro, small and medium enterprises (MSMEs) to the nation’s Gross Domestic Product or more importantly how has the multiplicity of MSMEs bettered the living standard of the over 170 million Nigerians. Against this background, the main objective of this study The research therefore seeks to investigate the Effect of startup business in entrepreneurial development in Nigeria. A case study of event management.


1.2 Statement of the Problem

According to Paul, (2005); and Ossai (2012) entrepreneurship is essentially about taking a risk; it entails the creating of new venture which previously did not exist. Previously exist; it is the concerted effort and practice of starting new Business organization, especially new business. According to EDC (2013) start up is the early stage in the life cycle of an enterprise consisting of when the entrepreneur converts the idea, to securing finance, outlining the basic structure of the business, and start operations or trading. The effect of new startup businesses are enormous as they create employment opportunities, create customer value in terms of providing new and improved products and services, create training and skill acquisition opportunities for the youths and impact on the general living standard of the people and the economy.

However, a number challenges which poses as impediment to successful start of business include the inability of people to exercise creative ideas and convert them into business enterprises. A good number of graduates from technical schools are not willing to take the part of starting a business instead they scout for government jobs. Also the risk factor and inability to raise fund also poses as challenges. Many people are not ready to neither take the risk of starting a new business nor raise the necessary fund to meet the requirement for the business.

However, this study aim to carry out an investigation on the effect of startup business in entrepreneurial development in Nigeria using event management as a case study.


1.3 Objectives of the Study

The overall objective of this study is to investigate the effect of startup business in entrepreneurial development in Nigeria using event management as a case study.

Other objectives includes:

  1. Have a vivid understanding of startup business in entrepreneurial development.
  2. Examine the benefits of startup businesses in Nigeria.
  3. Examine the challenges of starting businesses in Nigeria.
  4. Ascertain the extents to which startup business contribute to employment generation in Nigeria.

1.4 Research Questions

  1. What is startup business in entrepreneurial development?
  2. What are the benefits of startup businesses in Nigeria?
  3. What are the challenges of starting businesses in Nigeria?
  4. To what extents has startup businesses contribute to employment generation in Nigeria?

1.5 Research Hypothesis

The study developed for testing the following null hypothesis:

  • H01: There is no significant positive relationship between startup businesses and employment generation in Nigeria.
  • H02: The effect of startup business in entrepreneurial development in Nigeria is not significant.

1.6 Significance of the Study

The study seeks to project the growing significance of successful startup Businesses and its overall impact on the economy.

It shall also serve as a vital source of information to students, graduates, investors and management expert.

This work will be of immense benefit and use to the future researches as reference document and will provide a base for other research works that might be carried out on effect of startup business in entrepreneurial development in Nigeria.


1.7 Scope of the Study

The study focuses on assessing the effect of startup business in entrepreneurial development in Nigeria using event management as a case study.


1.8 Limitations of the Study

The study was confronted by some constraints including logistics and geographical factors.

Availability of materials were part of the constraints to this work. The researcher found it hard in obtaining relevant literatures while conducting this research. Nevertheless, the researcher was able to surmount the above hurdles and at the end put up a research work whose output is reliable, testable and verifiable at any standard.


1.9 Definition of Terms

Entrepreneur:

The individual who initiate the idea of a new business. He brings the overall change through innovation for the attainment of the maximum social economic benefit of the people and of the entire economy.

Entrepreneurship:

The willingness and ability of a person to seek and identify investment opportunities, establish and run a successful enterprise.

Startup Business:

The early stage in the life cycle of an enterprise consisting of when the entrepreneur converts the idea, to securing finance, outlining the basic structure of the business, and start operations or trading.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

This study was undertaken to examine the effect of startup business in entrepreneurial development in Nigeria using 20 selected event management centres in Abuja as a case study. This study is reported in five chapters. In the first chapter, we defined the statement of the problem, the study’s objectives and the significance of the study to the research audience. In the second chapter, we carried out a review of literatures. A conceptual approach was adopted as various concepts relating to organizational culture were defined and explained. A theoretical review was carried out as well as a review of empirical studies.

In the third chapter, we described the research process adopted and employed to gather data and interpret the findings. We highlighted that the study adopted the survey research design. Being a quantitative study, 20 event management centres were selected. The researcher enrolled participants in the study after observing ethical processes. A total of 52 responses from the participants were certified valid for the analysis. Their responses were analyzed using simple percentage, while the hypotheses test were conducted using chi-square.


5.2 Conclusion of Findings

Startup level of a business is a very crucial stage in entrepreneurial development in Nigeria. Whether it is formally pronounced or informally recognized, the fact remains that it has a significant effect in Nigerian entrepreneurial development.

In this study, we have examined the effect startup business in entrepreneurial development in Nigeria. The results of our findings shows that:

  • Startup business has significant effect in entrepreneurial development.
  • Startup business has helped in creating job opportunities in Nigeria.

5.3 Recommendation

Based on the findings revealed in the study, the researcher recommend that government of Nigeria should assist individuals with business ideas with fund to startup businesses since it has proven to create jobs in the country.

The government should draft a proper policy coordination and stability, provision of necessary infrastructure, and reforms in the educational curriculum to orientate people to be self-reliant. When the country has flourishing micro SMEs or startups, gainful employment will be created, wealth created will be distributed evenly, the economy will have developed and gradually will move out of her economic crisis.

The study however, recommends that there is need to change the mind set of young people to embrace self-employed job rather than waiting for non-existing government job and there is need for government to set up workshops where young and old entrepreneurs can come and acquire new skills needed for their businesses.


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