Entrepreneurial Development And It’s Impact On Our Economy

Project and Seminar Material for Entrepreneurship

Entrepreneurial Development And It’s Impact On Our Economy


Abstract


This research work has the title. ‘Entrepreneurial Development and its impact in our economy’ this study was embarked upon in order to know the problems militating against entrepreneurship, its source of finance and the roles entrepreneurs play in Enugu state as a test case. The total population for the study is 200 staff of selected SME in Enugu local government, Enugu state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies


Table Of Contents


Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Research Hypotheses
  • 1.5 Significance of the study
  • 1.6 Scope and limitation of the study
  • 1.7 Definition of terms
  • 1.8 Organization of the study

Chapter Two

2.0 Literature Review


Chapter Three

3.0 Research Methodology

  • 3.1 sources of data collection
  • 3.3 Population of the study
  • 3.4 Sampling and sampling distribution
  • 3.5 Validation of research instrument
  • 3.6 Method of data analysis

Chapter Four

Data Presentation, Analysis and Interpretation

  • 4.1 Introductions
  • 4.2 Data analysis

Chapter Five

Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • Appendix

Chapter One


Introduction

1.1 Background Of The Study

The worldwide economic depression of the early 80’s caused a rapid deterioration of the Nigeria economy. The output shrank to an all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country. Therefore, by the end of 1985, the unemployment situation in Nigeria had increased its proportions and as such most Nigeria graduates were faced with hardship due to unemployment in the country. This situation therefore calls for entrepreneurship in Nigeria economy which also leads to entrepreneurial development in the higher institution.

However, at this juncture a brief history of entrepreneurship in Nigeria will give more insight on the study. Statistics have it that Africa is the poorest and less developed continent in world. Many state-owned enterprise in Africa were created when it was believed that the fastest route to development occurred when the state took on the role of entrepreneur.

Although Nigeria was at one time characterized by such inefficiency, but has recently pursued entrepreneurship encouragement policies. And the initial indications suggest that the policies have been successful. In Nigeria, the state-owned enterprises traditionally clogged business opportunities and restructure private entrepreneurs from entering the market. However, in the mid 1980’s Nigeria abolished it’s marketing board, which prevented entry into certain industries and it’s market to competition from domestic entrepreneurs.

Although Nigeria is still ploughed by many development problems preliminary evidence suggest a favourable response by the private sector to the new entrepreneurial opportunities. Although there is only limited consensus about the characteristics of entrepreneurship, the concept is almost as old as the formal discipline of economics itself. Early 18th century French economist named Richard Canadian first introduced the term entrepreneur. In his writings he formally described the entrepreneur as the agent who buys the means of production at certain prices in order to combine them into new product. (Schumpeter,1951) short after that the French economist J. B. added to the Castilian definition by including the idea that entrepreneurs has to be leaders. That an entrepreneur is one who build a single product organism. (Schumpeter, 1951)

The necessity of entrepreneurship for productivity was formally recognized by Alfred Marshall in 1990. In his famous practice principle of economics, Marshall ascertains that there are four factors of production; Land, Labour Capital and organization. These factors are properly utilized by an entrepreneur. Thus entrepreneur creates new commodities or improve the plan of producing an old commodity. (Marshall1994).

Hence early entrepreneurs were characterized with production and manufacturing. In this case, the producers most often started with small capital. Early entrepreneurship started with trade by barter even before the advent of money. However, modern entrepreneurship in Nigeria started with the coming of the colonial masters, who brought in their wears and made Nigerians their Middlemen. In this way modern entrepreneurs was conceived. Most of the modern entrepreneurs were engaged in retail trade or sole proprietorship.


1.2 Statement Of Problem

When comparing entrepreneurship development in Nigeria with other countries like America,Japan, China etc, we realize that these countries started on the same platform as Nigeria started with trade by barter and then advanced to their present state of economic growth. In fact they are faster in their development of entrepreneurship than Nigeria. Why this differences? This research work will find out to this effect the following:-

  1. The general problem encountered by entrepreneurs in Nigeria in establishing business.
  2. To find out the basic orientation that should be given to Nigerian entrepreneurs.
  3. To discover the rate of employment and find out the various business opportunities that will be of help to the Nigerian economy through entreprenurship.
  4. To also find how government program has been of help to various entrepreneurs in the country.

1.3 Objective Of Study

The objectives of the study are;

  1. To ascertain the major constraint between access to finance and managerial capacity in the development and growth of SMEs in the country
  2. To ascertain the influence of management/managerial capacity in the development and growth of SMEs in Nigeria.
  3. To ascertain the relationship between entrepreneurial development and Nigeria economy

1.4 Research Hypotheses

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

  1. H0: there is no relationship between entrepreneurial development and Nigeria economy
    H1: there is relationship between entrepreneurial development and Nigeria economy
  2. H02: there is no influence of management/managerial capacity in the development and growth of SMEs in Nigeria.
    H2: there is influence of management/managerial capacity in the development and growth of SMEs in Nigeria

1.5 Significance Of The Study

The importance of the study cannot be over-emphasized, since it is expected to affect our economy and also increase the creation of job opportunities in the country especially in Enugu state. However, this project when completed will be of immense benefits to the following: –

  • The Nigerian economy in general
  • The small-scale industries
  • The general public
  • Creation of job opportunities in the country.
  • Also there will be increase in the managerial skills.

1.6 Scope And Limitation Of The Study

The scope of the study covers entrepreneurial development and its impact on our economy. 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 Definition Of Terms

Entrepreneur:

Entrepreneur is an American magazine and website that carries news stories about entrepreneurship, small business management, and business

Development:

The process of developing or being developed.

Economy:

An economy is an area of the production, distribution, or trade, and consumption of goods and services by different agents


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 on entrepreneurial development and its impact on our economy. 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 challenges of entrepreneurial development and its impact on our economy


5.2 Summary

This study was on entrepreneurial development and its impact on our economy. Three objectives were raised which included: To ascertain the major constraint between access to finance and managerial capacity in the development and growth of SMEs in the country, to ascertain the influence of management/managerial capacity in the development and growth of SMEs in Nigeria, to ascertain the relationship between entrepreneurial development and Nigeria economy. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected SME in Enugu local government, Enugu state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies


5.3 Conclusion

Contrary to the generally believed notion or assumption, this research found out that access to finance or capital is not the greatest problem facing SMEs in Nigeria. The greatest or worst problem confronting SMEs in Nigeria is managerial capacity. Access to capital or finance is necessary but not a sufficient condition for successful entrepreneurial development. If one has the entire funds in the world and does not have the capacity to manage that fund and does not have the necessary information as to what he/she should do, the money would go down the drain. The top ten key problem areas facing SMEs generally in Nigeria in descending order of intensity include management problems, access to finance/capital, infrastructure, government policy inconsistency and bureaucracy, environmental factors related problems, multiple taxes and levies, access to modern technology, unfair competition, marketing problems and the non-availability of raw materials locally.

The mortality rate among SMEs in Nigeria is very high within their first five years of existence. The reasons for the high mortality rate include the following among others: Many prospective entrepreneurs do not have a clear vision and mission of what they intend to do. Many of the SMEs are not business specific and hence have no focus and are easily blown away by the wind. With the dismantling of trade barriers as part of globalisation, SMEs in developing countries are facing intense competition from industries of other countries, which have enabling environment for production, distribution and marketing.

The environment in which SMEs in Europe, South East Asia and America operate provides stable power and water supply, standard road and rail network, efficient water and air transport system, advanced technology, modern communication facilities, efficient and responsive financial system and above all good governance. Unless Nigeria puts its policies right, many SMEs may not survive this global competitive drive. There are however some opportunity windows which discerning Nigerian SME promoters can leverage on and take advantage of to grow. The liberalization of trade through WTO Agreements has provided awareness through which SMEs could access international markets. Another opportunity is the African Growth Opportunity Act (AGOA), which favours exports from African countries to the United States of America. Currently many SMEs in Nigeria are yet to tap into this opportunity.


5.4 Recommendation

We recommend that policy makers should recognize the essence of entrepreneurship to economic development. Entrepreneurship deserves equal emphasis as is being placed on science and technology; it is the entrepreneur that translates the innovation in science and technology into wealth. Thus, entrepreneurship should be recognized as an important factor of production just as land (raw materials), labor and capital (liquid and physical), since it is only the entrepreneur that can combine all the other factors to produce wealth. Therefore, as the nation exerts efforts to exploit our natural resources, educate the citizenry and provide human &physical capital, sufficient emphasis should be made to promote entrepreneurship in order to create enterprises, wealth and employment and thus promote positive economic development. However, it is important to first of all provide way for proper policy coordination and policy stability. There have been several government interventions and programmes aimed at promoting entrepreneurship and fostering micro, small and medium enterprises and yet no significantly impacted on Nigeria’s economic development. A pragmatic and strategic plan on gainfully engaging Nigerian youths is another indispensable solution.

The primary focus of this piece is the youth who are correctly regarded as the future of every nation. Several governments are handling entrepreneurship education given its crucial nature. Some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational option, especially at the tertiary level. Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary school and encouraging them to be future entrepreneurs when they are of age. A more sustainable approach to poverty reduction if not elimination is through encouraging youths, particularly those with identified entrepreneurial skills to go into private business particularly in science and technology because these have natural potentials for business development.

As a result, there is need for reforms in the educational curriculum to prepare students for self-reliance. Fixing Nigeria’s basic infrastructure can do the magic in reviving entrepreneurship development in Nigeria and promoting the micro, small and medium enterprises sector to facilitate economic growth and development. If the government of the day will face square the daunting problem of epileptic power supply, entrepreneurs would survive and their businesses sustained. The resultant effect on the economy would be immense because jobs will abound and wealth created in abundant


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