Entrepreneurship And Growth Of The Textile Industry In Rivers State

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Entrepreneurship And Growth Of The Textile Industry In Rivers State


Abstract


This study investigates entrepreneurship and growth of the textile industry in Rivers State Entrepreneurship has been described as an incubator and energiser of market innovation, product and technological growth as well as a means of revitalising the economy and reducing unemployment. This study focused on assessing the entrepreneurship inclination among Clothing and Textile undergraduates and their attitude towards government entrepreneurial programmes. The study was carried out in selected tertiary institutions (Colleges of Education, Polytechnics and Universities) in South-South Nigeria. A Multistage sampling was used with a combination of stratified and proportionate sampling to select four hundred and fifty (450) final year students from the selected tertiary institutions in South-South Nigeria. Data were collected with the aid of questionnaire and were analysed using descriptive and inferential statistical tools. Results showed that most of the respondents were female (55.3%) while (44.7%) were male with a mean age of 22 years. More than half (54%) of the respondents were from Colleges of Education, 23.7% were from Universities and 22.2% were from Polytechnics. The findings further revealed that 30.4%, 24%, 19.6% and 14.2% were studying Home Economics, Creative arts, Fine arts and Clothing and Textiles respectively. The percentage of response on the students’ attitude towards entrepreneurship was 87.3%. The results of the chi-square showed that only the educational status of the respondents (χ 2=14.65, p< 0.05 level of significance. The study concluded that respondents in the study area have positive attitude towards government entrepreneurship programme. Consequently, the respondents are entrepreneurial inclined and government entrepreneurship programme is effective to reduce unemployment in the country and in promoting job creation.


Table of Content


  • Title Page
  • Certification
  • 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 Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

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 of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses
  • 4.5 Discussion of Findings

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

Unemployment both of educated and the uneducated manpower has been one of the most topical issues in Nigeria. National Bureau of Statistics (2012) reports that Nigeria is one of the highest level of youth unemployment in the world (60 – 65%) and this are mostly young adult that have graduated from Universities, Polytechnics, Colleges of Education and other higher institutions. The National Bureau of Statistics (2012) and Central Bank of Nigeria Survey (2007) indicate that the unemployment trends in Nigeria, from 2010 – 2016 are as follows: in 2010; 21.1%, 2011; 23.9%, 2012; 24.3%, 2013; 28.5% 2014; 30%, 2015; 31.1%and 2016; 37.5%

Unemployment is a global phenomenon whereby eligible workforce of a nation is denied employment or disengaged in the service of the nation (Abiodun, 2010). It is not only a serious economic issue but has social implications that affect almost all countries and all people either directly or indirectly. Alanana (2003) observes that, it causes social disquiet and is the harbinger of the spate of crimes, perennial youth unrest and unstable socio-economic structure that has bedevilled several nations. Aladekomo (2004) observes that, unemployment is the grease that promotes and propagates not only the incidence of poverty but also crime and insecurity such as terrorism, kidnapping, armed robbery and bombings currently confronting Nigeria. Consequently, the problem of this study is the alarming unprecedented increase in the number of unemployed graduates from tertiary institutions in Nigeria and these demands for diversifying the economy and encouraging practical acquisition of skills through inculcating the spirit of entrepreneurship in students of all higher institutions in Nigeria.

Industrialization is the engine of growth in any economy because it plays an important role in the provision of employment, foreign exchange earnings and general well-being of a society. The textile and garments industry are one of the largest in the world, Abimbola (2010). As one learns about the various aspects of textiles and garment production, it is apparent that it plays a major role in the economy of a country Adam (1992). Textiles and clothing contribute to employment in developed countries, particularly in regions where alternative jobs may be difficult to find and in the European Union, for example, the sector is dominated by small and medium-sized enterprises concentrated in a number of regions that are highly dependent on this sector. Textiles and clothing are also said to be among the sectors where developing countries have the most to gain from multilateral trade liberalization. The garment industry is one of the largest and fastgrowing industries Adisa (2013), the clothing industry is labor-intensive and it offers entry-level jobs for unskilled labor in developed as well as developing countries and job creation in the sector has been particularly strong for women in poor countries, who previously had no income opportunities other than the household or the informal sector. Moreover, it is a sector where relatively modern technology can be adopted even in poor countries at relatively low investment costs. These technological features of the industry have made it suitable as the first rank on the industrialization ladder in poor countries, some of which have experienced a very high output growth rate in the sector (e.g. Bangladesh, Sri Lanka, Viet Nam and Mauritius). It has become an economic


1.2 Statement of the Problem

African countries have been growing at a relatively fast rate since the beginning of the new millennium, which in turn has led to improvements in several areas such as trade, mobilization of government revenue, infrastructure development, and the provision of social services and vice versa (Economic Development in Africa Report, 2012). Statistics further show that Africa was among the fastest growing regions in the world economy from 2001–2008 (McKinsey Global Institute, 2010). However, there are concerns that the current pattern of growth and development in Nigeria is neither inclusive nor sustainable, mainly because the country is heavily dependent on natural resources as drivers of economic growth, and these are limited (Van der Merwe et al. 2016). Nigerian economy relies primarily on crude oil and other natural resources such as; fossil fuels, metallic and non-metallic minerals that are non-renewable and “are being consumed at an alarming rate with negative consequences for future growth andsustainability” (Van der Merwe et al. 2016). In addition, these raw materials are extracted locally and exported to other countries, who in turn process and sell it back at higher prices. The dependence on resource-based growth is also of concern to policymakers because commodity prices are highly volatile and subject to the caprices of global demand. The resulting instability in prices has negative consequences for investment and makes macroeconomic planning for development challenging (Van der Merwe et al. 2016). The African Development Bank Group (2019) stated that due to a fall in oil prices in 2015, Nigeria could no longer depend solely on oil to bring in the amount of money it did in the past.In order to shift its focus from the oil dependency dynamic, create employment and stimulate sustainable economic growth there is an urgent need for the Nigerian economy to begin harnessing and cultivate their underutilized resources and industries such as the fashion industry. Even though Nigeria has made some progress in diversifying into some of its other creative industries such as the film industry (Laboto, 2010); there are other promising industries that are yet to be harnessed, one of which is the ever-growing fashion industry.

The fashion industry can bring about diversity in the economic base in Nigeria and attract tourism and investment, create employment and improve trade, among other benefits.While the fashion industry has developed to a very large extent in developed countries, a review of the existing literature on the fashion industry in Nigeria shows a lack of research focus on the subject matter. This is natural as the fashion industry, and the larger textile and clothing industry, is still emerging in Nigeria. Further, this study could not identify an empirical study that has investigated the role that the institutions play in promoting entrepreneurship in the Nigerian fashion industry.


1.3 Objective of the Study

The main objective of the study is to investigate entrepreneurship and growth of the textile industry IN Rivers State.

Specific objectives include to:

  1. Describe the demographic characteristics of Clothing and Textile undergraduates in the study area.
  2. Assess the attitudes of undergraduates towards government empowerment programmes in the study area.
  3. Determine the effect of government entrepreneurial programme on the menace of unemployment

1.4 Research Questions

  1. What isthe demographic characteristics of Clothing and Textile undergraduates in the study area.?
  2. What arethe attitudes of undergraduates towards government empowerment programmes in the study area?
  3. What is the effect of government entrepreneurial programme on the menace of unemployment?

1.5 Research Hypothesis

Null Hypotheses(H0):
  1. There is no significant relationship between demographics characteristics of theundergraduate students and entrepreneurial skills inclination of undergraduate student in the study area.
  2. There is no Significant Attitude of Undergraduates towards government empowerment programmes in the study area.
  3. Government empowerment programme has no significant influence on entrepreneurial skills inclination of undergraduate student in the study area.
Alternative Hypotheses(H1):
  1. There is a significant relationship between demographics characteristics of the undergraduate students and entrepreneurial skills inclination of undergraduate student in the study area.
  2. There is a Significant Attitude of Undergraduates towards government empowerment programmes in the study area.
  3. Government empowerment programme has a significant influence on entrepreneurial skills inclination of undergraduate student in the study area.

1.6 Significance of the Study

The findings of this study are significant because they contribute to literature on the role of institutions in promoting entrepreneurship within the fashion industry and advances knowledge of an emergent industry in Nigeria. More importantly, the study aims to make an academic contribution to highlighting the uncertainties and challenges that entrepreneurs face while trying to start or run a viable business within the Nigerian fashion industry. On a policy level, this study contributes towards sustainability by exploring entrepreneurship as a tool that can be used to achieve some of the UN’s Sustainable Development Goals such as employment creation, economic diversification, trade improvement and poverty alleviation, gender equality. The study is also significant to entrepreneurs as well as other stakeholders within the fashion industry as it identifies the uncertainties and challenges that entrepreneurs face while trying to start or run a viable business within the Nigerian fashion industry. This study also analyses the complexity of processes, government jobs, financing issues, laws and policies governing entrepreneurship, and further explores how the existing institutions can be used or changed to effectively foster entrepreneurship in the Nigerian fashion industry. The growing interest in African fashion also motivates this study. High-profile European retailers are increasingly looking to East African countries, in particular Ethiopia, for garment manufacturing. Nigeria is organizing more and more fashion shows like the famous Lagos fashion and design week that happens annually. Studies carried out on entrepreneurship in the Nigerian fashion industry has shown that the country can indeed benefit from entrepreneurship as a means of economic growth and development (Aziz, 2019; Onyijen, 2019).


1.7 Scope of the Study

This study focused on entrepreneurship and growth of the textile industry in Rivers State. Other areas covered in this study include: relationship between demographics characteristics of the undergraduate students and entrepreneurial skills inclination of undergraduate student in the study area, the Attitude of Undergraduates towards government empowerment programmes in the study area as well as the effect of government entrepreneurial prgrammes on the menace of unemployment.


1.8 Limitation of the Study

This study was constrained by some factors. Firstly, the time frame allocated for the completion of this study was not enough for the researcher to extensively carry out research based on the theme of this research work. On the other hand, the research participants were not willing to participate in responding to the administered questionnaire of this study. Also, the required materials like journals and articles needed for the proper completion of this study were not readily available online and offline. All these constraint put together, ultimately determined the extent to which the researcher was able to go in this study.


1.9 Definition of Terms

Entrepreneur:

An individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards.[4]The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often similar to a small business, or as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit.”[5] The people who create these businesses are often referred to as entrepreneurs.[6][7] While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to “lack of funding, bad business decisions, government policies, an economic crisis, lack of market demand, or a combination of all of these.”[8]

Entrepreneurship:

The creation or extraction of economic value.[1][2][3] With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.

Unemployment:

According to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed).

Intentions:

Mental states in which the agent commits themselves to a course of action. Having the plan to visit the zoo tomorrow is an example of an intention. The action plan is the content of the intention while the commitment is the attitude towards this content. Other mental states can have action plans as their content, as when one admires a plan, but differ from intentions since they do not involve a practical commitment to realizing this plan. Successful intentions bring about the intended course of action while unsuccessful intentions fail to do so. Intentions, like many other mental states, have intentionality: they represent possible states of affairs.

Employment:

A relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work.[1] Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties.

Workplace:

A location where someone works, for their employer or themselves, a place of employment. Such a place can range from a home office to a large office building or factory. For industrialized societies, the workplace is one of the most important social spaces other than the home, constituting “a central concept for several entities: the worker and [their] family, the employing organization, the customers of the organization, and the society as a whole”.The development of new communication technologies has led to the development of the virtual workplace and remote work.

Business:

The practice of making one’s living or making money by producing or buying and selling products (such as goods and services). It is also “any activity or enterprise entered into for profit.”

Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner’s personal possessions.[6] A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.


1.10 Organisations of the Study

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

  1. Chapter one is concern with the introduction, which consist of the (overview, of the study), background to the study, statement of problem, objectives of the study, research questions, significance of the study, scope and limitation of the study, definition of terms.
  2. Chapter two encompasses the conceptual review theoretical review and empirical reviews on which the study is based.
  3. Chapter three deals on the research design and methodology adopted in the study.
  4. Chapter four concentrate on the data collection and analysis and presentation of finding.
  5. Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary of Findings

Results show that 44.7% of responders were men and 55.3% were women. This finding demonstrates that both sexes do pursue higher education at South-Western Nigerian institutes of clothing and textiles. Reynaldo and Joanna (2012) found that both men and women enrol in courses in clothes and textiles in Nigerian higher education institutions in order to gain the skills necessary to become entrepreneurs in the clothing sector, which lends credence to this claim. The majority of respondents (60.9%) were aged 21 to 25. The students were 22 years old on average.

This suggests that the responders were primarily young. Young individuals are incredibly inventive and are more likely than older ones to be inclined toward entrepreneurship. Oluremie et al(2011) .’s observation that young people are more enterprising than senior people supports this finding. Almost no respondents (24.2%) were from public universities. 21.3% of public polytechnics and 54.4% of education colleges were represented. This data demonstrates that all types of higher education institutions in Nigeria provide courses in clothing and textiles with the goal of preparing students with the skills needed in the clothing and textile industries (Osuala, 2009).The findings further reveals the various Departments through which entrepreneurial skills in Clothing and Textile were taught. These include Fine Arts (19.6%), Home Economics (30.4%), Home Science (14.2%), Industrial Design (8.9%) and Creative Arts (24.0%). The findings also contain information on parents’ occupations. Some of the parents (40.0%) are civil servants, 31.8% work in private organisations. (26.9%) are pettytraders while 1.3% are artisans.

This research shows that parents work multiple jobs to support their family’s necessities and pay for their children’s education. The results also show how ethnically diverse the respondents were. The majority of respondents (52.9%) were Yoruba, with 1.6% being Igbo or Hausa. The study was conducted in South-Western Nigeria, which may have contributed to the study’s preponderance of respondents who identified as Yoruba. Chenedu, Saidu, Omumu, and Omoyesan (2011) discovered that the majority of students in South-Western Nigerian colleges were Yorubas, supporting this finding. The majority of respondents (51.3%) are Christians, with the remaining respondents either being Muslims or practising traditional religions.

This finding implies that all religion in the study area support acquisition of skills that can promote or enhance Clothing and Textile industries. findings reveal the attitudes of the undergraduates for each statement. For instance, statement No 1 reveals that 50.4% (ᵡ = 3.3) of the students agreed that they will participate in government organised employment training programme if given opportunity. This could be due to realisation that there are limited availability of white collar jobs in the country (Adedokun, 2016).

Participation in such programme may spur them to be creative and self-reliant. In statement No 9, some (41.8%) of the respondents also agreed (ᵡ = 2.9) to be resource persons for government entrepreneurial programme if allowed, this could be due to the fact that they were well trained in their respective institutions and were ready to pass skills or knowledge acquired to other colleagues. This finding is in line with the position of Adams (1999), who agreed that the attitudes of undergraduate students towards government empowerment programme has improved and this could be as a result of the fact that, most of the undergraduates want to be selfemployed instead of seeking white collar jobs which is not readily available or easy to get.

Findings show a positive attitude from 393 respondents (87.3%) towards government programme while 57 respondents (12.7%) showed a negative attitude. This implies that government programmes are promoting entrepreneurship inclination among youths, which could be due to the fact that the programmes were relatively able to provide training and inputs to few participants. Table 4 shows that 42.4% (ᵡ = 3.1) of the respondents agreed that the National Directorate of Employment (NDE) has succeeded in promoting entrepreneurship among youths. The National Directorate of employment is responsible for training unemployed youths in all aspects of entrepreneurship activities. The programme supply inputs needed to the beneficiaries (trainees) to put the skill acquired into practice. Thus, the establishment of entrepreneurial education is seen as a possible measure to promote skills acquisition (Burger, O’Neil and Mahadea, 2005). Some of the respondents (31.1%, ᵡ = 2.4) also disagreed that Government entrepreneurial programme through the NDE has successfully reduced unemployment among the youth. The reason for this was that some youths have not availed themselves of this opportunity. Many of the respondents (34.9%, ᵡ = 2.7) agreed that participation in the programme does not require collateral for business loan. This encouraged free participation of members. On the other hand, some of the respondents (33.3%, ᵡ = 2.4) also disagreed that government programmes have been able to reduce restiveness and unemployment among youths. This could be due to the fact that not all youths have been able to benefit from the programme. Government therefore, needs to expand the programme to accommodate more youth for meaningful national development findings show that government entrepreneurial programmes in solving unemployment rate yielded well result (188 respondents, 41.8%), fair result (196 respondents, 43.5%) and poor result (66 respondents, 14.7%). This indicates that the government had been able to play a vital role in solving unemployment rate.

Table 6 depicts divergent opinions of the respondents on their entrepreneurial inclination. Most (52.4%, ᵡ = 3.3) of the respondents agreed to consider entrepreneurship as a desirable career option. While 4.0% respondents disagreed, they posited that they had never thought of becoming an entrepreneur. Some (20.4%, ᵡ = 2.4) disagreed that they will not start a business because of the risk involved or fear of failure. Some respondents also agreed (32.2%, ᵡ =2.9) indicating their interest in entrepreneurial activities was motivated by the training received. The table shows that most of the respondents have high level of entrepreneurial inclination.

This could be because of the fact that most of the skills were well mastered by the students as they were taught by the Lecturers/Tutors. This in line with Chenedu, Saidu, Omumu and Omoyesan (2011) on their research in studying Entrepreneurial Inclination of University students in Delta state where they observed that (51.3%) of the students had high entrepreneurial inclination. This suggests that the respondents are interested in their courses of study and have the intention of equipping themselves for future use in their businesses. Olatunji (2010), posited that the aim of introducing Entrepreneurship Education is for tertiary institutions to produce a crop of graduates with the appropriate entrepreneurship skills and attitudes for creativity, innovation and enterprise and this will enable graduates to create rather than seek for jobs, thereby stemming the wave of graduates’ unemployment in the country.


5.2 Conclusion

The finding of the study revealed that majority of the students have moderate entrepreneurial inclination and no significant difference were found in the entrepreneurial inclination based on the demographic characteristics except Educational status. The results showed that the students have favourable attitude towards government empowerment programme because of their exposure to Entrepreneurship Education. Therefore, Nigeria Universities should continue to inculcate sound and qualitative entrepreneurship education in their students. This would lead to development of favourable attitude, and when students have favourable attitude towards Entrepreneurship Education, they tend to develop and sustain intention to start businesses and this may lead to actual venturing into business activities. And this will also lead to reduction in unemployment of undergraduates.


5.3 Recommendation

The researcher made some recommendations which include:

  1. Tertiary institutions should make entrepreneurship a compulsory general course for all students to sharpen their cognitive thinking so as to see the necessity of entrepreneurship in job creation; regulatory bodies (National Universities Commission, National Business and.
  2. Technical Examination Board; and National Commission for Colleges of Education) should encourage periodical review of entrepreneurship curricular and training in tertiary institutions so that it will fall in line with growing trend of modernisation in the world and thus promoting job creation; and the informal sector of the economy like fashion designing should be supported by the government, Non-Governmental Organisations and other stake holders because they cannot operate effectively without the support of key players.

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