Effects Of Entrepreneurship Development On Employment Generation

Project and Seminar Material for Entrepreneurship

Abstract

This study investigates the effects of entrepreneurship development on employment generation. The research focused on youths of five selected and student of Lafia Local Government Nasarawa state, Nigeria. Data were collected using questionnaire from an infinite population of the selected Local Government. Samples of 133 youths were drawn from the population of the local government. A total of 200 youths and students were sample for the study.

Chapter One

Introduction

1.1 Background to Study

There is no country in the modern world where an improvement in the material level of living is not regarded as a desirable goal by rulers and citizens alike. The growing acceptance of the need to do something for the poor, can be noticed in the numerous poverty alleviation programmes in Nigeria, the average Nigerian still lives subsist below the absolute poverty line. Amongst the challenges that confront Nigeria, a major contributory factor was the style and expectations of the development strategy that was pursued and faced with this failure; the need for a meaningful national development is not only necessary but also imperative. To this end, a lot of economic reform programmes or strategies have evolved but recently special emphasis is being made on self-reliance via entrepreneur and its numerous small and medium enterprises. The economic success of the countries of south east, Asia, and America is traceable to the contributions made by self-reliant individuals (entrepreneurs), through their numerous small medium development depend on the entrepreneur who makes a living by creating new business new jobs and new ideas.

Entrepreneur means different things to different people. In other to appreciate this study more, some concepts that are associated with this study will be explained.According to Oxford advanced Learner’s dictionary it defines entrepreneur as a person who starts or organizes a commercial enterprises, especially one involving financial risk. To an economist, entrepreneur is one who brings resources, labour, materials and other assets into combination that make their value greater than before and who introduce changes, innovations and a new order. Entrepreneurs are the risk takers who create businesses; they assemble all the factors of production in an effort to start and operate a business and to make a profit. For Schumpeter “the whole process of economic change hung ultimately on the person who makes it happen–the entrepreneurs”. Entrepreneurship involves combining to initiate changes in production hence it is essentially the promotion of economic change, it is a process involving the entrepreneur and an entrepreneurial career. Hirsch and Peters in their text entitled entrepreneurship: describes this process as one of creating something difficult with value by devoting the necessary time and assuming the accompanying financial, psychic and social risks and receiving the resulting, the rewards of monetary and personal satisfaction.

In Nigeria, many policies are constantly being implemented to ensure their survival which will in turn enable them contribute maximally to economic development but there challenges were intensified more by the perennial energy crisis, weak infrastructure, poor import and export policies, tariff structure among others, which have prevailed in the country for some time now. These have, inevitably led to the near collapse and failure of the small scale enterprises. The government of this country should look into the modalities of solving these challenges. It is therefore against this background that this work sets out to evaluate entrepreneurship development in Lafia Metropolis, NassarawaState, considering some small scale enterprises.

1.2 Statement of the Problem

It has been observed that some of the problems associated with entrepreneurship development and job creation in Nassarawa state include but not limited to:

Incompetence of Management:

The major hazard of an entrepreneurship business is the incompetence of management. A small business owner may know all the management principles and theories; his management practice may jeopardize his business. He may not possess the leadership qualities, be unwilling to delegate authority, lack of appropriate human relations ability and may not possess the appropriate skills of management; such a business operated by this business owner is likely to fail.

Inadequacy of Infrastructural Facilities:

Water, electricity, accessible roads, and other means of communication are sine quanon to the efficient performance of entrepreneurship enterprise. Their absence or inadequacy affects negatively the efficient performance of entrepreneurial businesses.

Disaster:

There are certain circumstances over which small scale business owner may have little or no control. Natural disaster such as thunder, product or accident or sudden death of the owner may adversely affect the operation of the small scale business enterprise.

High Rate of Loan Diversion and Defaults:

Loans obtained from government, banks and individual persons are used to promote personal aggrandizement instead of the corporate objective of the business and hence failure to repay the loan plus interest affects the business.

Inadequate Credit Control:

A common problem facing entrepreneurial business owner is whether or not to extend credit. Some small scale business enterprise possesses credit granting practices, credits extended to friends and relations are often times too hard to collect in times of need. This therefore, increases the financial predicament of the business owner.

Inadequate Planning:

Planning a business begins with gathering and evaluating data on resources requirements, operating costs, potential markets and sales, competition, supplies, relevant government regulations, etc. Unfortunately, however, many eager business owners push ahead impulsively, without paining attention to planning, and thus business failure sets in. Lack of the use of modern method of gathering and analysing data constituted a weak point in the small business strategies planning effort.

Poor Business Accountability:

The financial problem of small scale enterprises is rarely only financial. Often it is only a symptom, the diagnosis of which reveals other weaknesses. Business finance and stress are mixed up with personal finance and stacks required for personal needs cash and slacks are taken at will for personal use whenever the need arises without accounting for such withdrawals. This makes is difficult to assess the operating results of the business and at times starves the forms of its liquid resources.

Hence, the need for this study on the effect of entrepreneurship development on employment generation in Lafia Metropolis, Nassarawa State.

1.3 Objectives of the Study

The aim of this topic is to recall the pivotal role, which entrepreneurs and the small medium enterprises are expected to play in modern economics. Therefore the study will make every effort to reveal the various ways to encourage entrepreneurship development geared towards employment generation in Lafia Metropolis, Nassarawa State. The specific objectives of this study are as follows;

To identify the constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome.
To determine the level of awareness of people towards entrepreneurship development as a tool for employment generation in Lafia Metropolis.
To examine various ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development.
By extension and implication, the study shall provide how the government both state and national and also the society will influence positively on entrepreneurship and its development.

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: there are no constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome
H1: there are constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome
H02: there are no ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development
H2: there are ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development

1.5 Significance of the Study

The research work will be of great significance to students, prospective and practicing entrepreneurs, co-operators, chief executives and other practicing managers of business and non–business organizations. The research work will serve as a background and catalyst to any future researchers and scholars who may wish to venture into the areas of promoting employment creation and entrepreneurship development in Lafia Metropolis.

Again the outcome of the research could be significance to the people with different occupations and professions. The conclusion which this research may expose, could lead to improvement and efficiency in Lafia Metropolis, Nassarawa as regard to entrepreneurship. The confidence level on embarking on entrepreneurship development in Nigeria will improve, and more people or the general public will agree to venture in that business.

1.6 Scope and Limitation of the Study

The study focuses on the effects of entrepreneurship development on employment generation in Lafia Metropolis; a case study of small scale enterprises. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definitions of Terms

Entrepreneur:

Stone and freeman (1992:156) defined it as either the originator of a new business venture or a manager who tries to improve an organizational unit by initiating productive changes. In other words, it is an individual or group of individuals, who sees environmental change as an opportunity and uses the factors of production to produce new goods and service.

Entrepreneurship:

Hisrich, (1995:17) Defines Entrepreneurship as a process of creating something different with the value by devoting the necessary time and effort assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction.

Small Scale Enterprise:

Onuoha (1994:322), citing Osaze (1996), sees small business as one which is owned, managed and controlled by one or two persons, is family influenced in decision makings, has a differentiated organizational structure has a relatively small share of the market and employs less than 50 people.

Entrepreneurship Development:

This is the coming into existence in society of the class of individuals, who are not limited to pace odds.

Employment Generation:

This refers simply to creation of job opportunities either through entrepreneurial ventures or government empowerment schemes etc.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain the effect of entrepreneurship development on employment generation.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the effect of entrepreneurship development on employment generation

5.2 Summary

This study was on the effect of entrepreneurship development on employment generation. Four objectives were raised which included: To identify the constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome, to determine the level of awareness of people towards entrepreneurship development as a tool for employment generation in Lafia Metropolis, to examine various ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development, by extension and implication, the study shall provide how the government both state and national and also the society will influence positively on entrepreneurship and its development.

5.3 Conclusion

Entrepreneurship can become a solution to unemployment in Africa but everyone taking that route must be fully equipped. There is a huge need in different fields that can be filled by innovative young graduates: there is a huge need for social entrepreneurs; a huge need for agriculture based businesses and a huge need for technology related businesses just to name a few. If graduates decide to seek jobs but to no avail, they can just look for a need in their community that they can fill and make a business out of it. If done right with the necessary support, being self-employed is more rewarding than working for someone. Instead of blaming the government for unemployment, young people should be encouraged go out there and find solutions for themselves and their peers through entrepreneurial education. What will be seen happening will be a group of young people who are operating successful businesses and creating employment and this may reduce the rate of unemployment? Africa is mostly dependent on natural resources. If individuals are well equipped with entrepreneurial skills, young people can stay focused and do their best to build successful and sustainable businesses. This will end up contributing massively to the economy of their countries. It is evident that there are many brilliant young people in Africa especially in Nigeria with amazing ideas. What is needed is for them to be empowered; for them to be encouraged to take all those ideas and turn them into reality; for them to be encouraged to stop depending too much on the government and start fending for themselves. Unemployment is a serious problem but entrepreneurship is one solution that young people can consider. It is increasingly being appreciated today that small businesses offer the best prospects for the expansion of employment opportunities in this country. This is because avenues for wage employment (job) in the formal sector are dwindling. It is important that local entrepreneurial potentials are developed; otherwise, there would be little prospects for solving the high unemployment rate problem confronting the nation Nigeria. There is therefore the need to give orientation, information and requisite training and support to channel the creative and innovative ideas of young people into starting their own businesses in order to be employed and also be employers of labour.

5.4 Recommendation

One of the ways to ensure employability of graduates is to include, ‘enterprise skills’ as a fundamental component of academic provision at all levels. This clearly makes sense as a strong case can be made of the need for all students and graduates to have access to opportunities that will enhance their employability. It is also possible to identify methods by which such an objective can be achieved: for example, through work placements, student projects with employers and career development related activities. (This is already in practice in the polytechnics and for some courses in the universities). This is buttressed that Entrepreneurship education as general education across all levels of education should be made a policy issue. Entrepreneurship will be important to more students, and it is essential that for those students, appropriate opportunities and support is made available when they need it: for example, the provision of modules and workshops supporting entrepreneurial activity. It may be that because of the nature, some courses may feel it would be beneficial to embed opportunities for their students to engage with this type of skill development. But this will not apply to all courses and as such it would not be appropriate to recommend that entrepreneurship development activities be embedded in such courses. It would be important for ‘Teaching and Learning’ strategies to recognize that some staff will be less experienced and knowledgeable about adopting such approaches to the delivery of their curriculum. Therefore appropriate training opportunities need to be available together with ongoing support in order to maximize the success of this approach. Rae [2005] agrees that in order to implement such a strategy effectively, university staff will need leadership, encouragement, inspiration and updating on current practices. Therefore, practicing teachers at all levels of education should undergo professional training through seminars, workshops and other in-service training to acquire knowledge and skills in the adoption of entrepreneurship – driven instructional methodology. Dimensions of entrepreneurship should be a component of teacher preparation curricular. Federal and State Ministries of Education should build resource centers and networks for exchange of good educational practices. School administrators should establish linkages with entrepreneurs. Another key response in promoting employability through entrepreneurship development is the adoption of some form of employability/enterprise/entrepreneurship award. There are essentially two approaches to this response. The government can either identify modules, elements of programs and /or curricular experiences with employability, ‘enterprise skills’ or entrepreneurship activities. These can then be ‘badged’ as suitable for contributing towards the final award which is an integral part of the degree program. Alternatively additional modules, workshops and co-curricular activities can be accredited in such a way that they contribute towards a separate additional award over and above the degree program

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