The Impact Of Foreign Capital On Entrepreneurship Development In Nigeria (A Case Study Of Delta State)

Project and Seminar Material for Business Administration and Management (BAM)

Project and Seminar Material for Business Administration and Management (BAM)


This study is set to examine the impact of foreign capital in entrepreneurship Development, the Nature of Entrepreneurship Development in Delta State, the institutional arrangement for enhancing entrepreneurship development, the roles of foreign capital entrepreneurship development in Delta State.

This treats how entrepreneurship development provides self employment opportunities for millions of unemployment persons in Delta state. Also challenges that faces entrepreneurship development in Delta State.

Table Of Content

Preliminary Page(s)

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Question
  • 1.5 Significance of the Study
  • 1.6 Scope of the Study
  • 1.7 Limitations of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Review of Related Literature

  • 2.1 Definition and Concept of Entrepreneurship
  • 2.3 Nature of Entrepreneurship Development in Delta State
  • 2.4 Institutional Arrangement for Enhancing entrepreneurship Development in Nigeria.
  • 2.5 Challenges of Entrepreneurship Development in Nigeria.
  • 2.6 International Organization and Entrepreneurship Development.
  • 2.7 The role of Foreign Capital In Entrepreneurship
  • Development in Nigeria.
  • References

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Research Design
  • 3.2 Area of the Study
  • 3.3 Population of the Study
  • 3.4 Sample Size
  • 3.5 Sample and Sampling Procedures and Techniques
  • 3.6 Method of Data Collection
  • 3.7 Validity of Instrument
  • 3.8 Reliability of Instrument
  • 3.9 Method of Data analysis

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Presentation and Analysis of Data
  • 4.2 Discussion of Finding
  • 4.3 Implication of the Study

Chapter Five

5.0 Discussion of Results and Findings, Conclusion and Recommendations

  • 5.1 Discussion of Results and Findings
  • 5.2 Conclusion
  • 5.4 Recommendations
  • 5.5 Suggestions for Further Research
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

In this chapter the research introduced the topic impact of foreign capital in entrepreneurship development in Nigeria (A case study of Delta State). The chapter is broken down into sub-headings.

Background of the study, statement of problem, purpose of the study, scope of the study, research questions, significance of the study, definition of terms and references. The sub-heading are discussed below.

1.1 Background Of The Study

The current emphasis on entrepreneurship development is informed by the protracted economic downtown which has not Only retarded economic growth but aggravated unemployment situation in the country (Ugbaja,2001:22). Hitherto, everyone looked at the government as the provider of employment opportunities.

Many Nigerians did not think of self determination as an attempt to government employment but the worsening unemployment situation currently playing the country has changed this thinking, shot of alternatives, many graduates and school leavers as well as other Nigerians are now moving in quest of self determination by launching themselves into various business venture.(Eze, 2007).

In recognition of the need of foreign capital to enhance entrepreneurship development in Nigeria, the federal government has introduced a series of policy that are designed to attract foreign investment in Nigeria. In an attempt to diversify the economy and stimulate foreign private enterprise development government agencies and private institutions are liaising with international organizations to enhance the letters participation in different entrepreneurship development activities in Nigeria (Onyishi, 2001:19).

There are international organizations such as the international Labour organization (ILO) involved in promoting small business entrepreneurship in different part of the world (Afolabi; 2001:22). In addition to providing foreign capital, these international organizations also provide technical assistance for African countries. It is against this background that this study is set to examine the impact of foreign capital in entrepreneurship development in Nigeria.

1.2 Statement Of The Problems

Entrepreneurship development is at providing self employment opportunities for millions of unemployed Nigerians. However, this has not been effectively achieved in Nigeria because of the following inadequate financing from local financial institutions.

The lack of foreign investment in the economy is low and cannot adequately provide foreign capital to supplement the available domestic capital for entrepreneurship development.

The presence of international organization through which foreign capital can be channeled into the economy is low. All these are the constraint to the rapid growth of entrepreneurship development in Nigeria.

1.3 Objectives Of The Study

The purpose of this research study is:

  1. To examine the nature of entrepreneurship development in Delta State.
  2. To examine the institution arrangements in the development of entrepreneurship in Nigeria.
  3. To determine the roles of foreign capital in entrepreneurship development.
  4. To determine the extent of foreigners participation in entrepreneurship activities.
  5. To examine the challenges of entrepreneurship development in Delta State.

1.4 Research Questions

  1. What is the nature of entrepreneurship development in Delta State?
  2. What are the institutional arrangement for entrepreneurship development?
  3. What are the roles of foreign capital in entrepreneurship development?
  4. To what extent do foreigners participates in entrepreneurship activities.
  5. What are the challenges and prospects of entrepreneurship development in Delta State?

1.5 Significance Of The Study

This study will be useful as it will serve various purposes. Firstly, graduates and school leavers will be encouraged by this study to take the existing opportunities to entrepreneurship development to be self determinant. In this way, they can stop wasting time for non existent jobs in the public sector. Secondly, the study will enable all potential entrepreneurship and how they can be overcome.

Thirdly, private institutions and government agencies and Nigeria business men with international connections will also benefit from this study. They will understand from this study, the need for them to attract or bring foreigners into Nigeria to form participation.

This will be a very significant way of making foreign capital to flow into the country for the purpose of entrepreneurial activities. Foreign capital will enable the local entrepreneurs to acquire or procure adequate equipments and infrastructures required for small business or entrepreneurial operations.

Fourthly, the government will also benefit from the study. The role of foreign capital in entrepreneurial development can not be over emphasized. The government will see in this study the need to enter into agreement with government of Western and Eastern Europe as well as the far East and America on the funding of entrepreneurial programmes in Nigeria. Not only foreign government should be involved, but national organizations. Fifthly, all well meaning Nigerians will also benefit from the study.

This is because it will make them understand the need for increased emphasis and explanation into entrepreneurial ventures and how sustained entrepreneurship activities will enhance industrial purposes. It will provide useful data and information for all those who will carryout related studies in the future. Besides, the research findings can provide for further studies.

1.6 Scope Of The Study

The scope of this study covers the nature of entrepreneurship development and the impact of foreign capital, in this regard; however the study is concentrated in Delta State.

1.7 Limitation Of The Study

The major limitation of this research study is:

Financial Constraints:

Inability to raise some enough money posed a major threat to the success of this project.

Time Constraint:

Adequate time was not available to carry out this project work as there are other imminent problems asking for serious attention.

Lack Of Initial Cooperation From Respondents:

A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.

1.9 Definition Of The Terms


This refers to any individual who creates new business and manages it until it succeeds.


This is the process of creating a new business and managing it until it succeeds.

Business Environment:

This includes all the physical facilities, regulation, opportunities and risk there in.

Venture Capital:

This is the funds which investment institutions loan not for investment purpose.

Business-Up Capital:

This is the capital needed for initial take off of business.

Business Opportunities:

This is a potentially profitable event.


This is the development of a new product from an old one.


An entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk. Meredith et al (2001) looks at an entrepreneur as an individual who has the ability to see and evaluate business opportunities, gather the necessary resources to take advantage of them and initiates appropriate action to ensure success and he is a risk taker.

Entrepreneurship Development:

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

Small Scale Business:

Ejiofor (2009) defines small scale business as those enterprises that have relatively little capital investment.

Capital Investment:

That produces in small quantities and as a result controls a small share of market that employ not more than fifty workers (50) and in which management marketing and entrepreneurship functions are used in the proprietor.

Chapter Five

5.0 Discussion Of Result And Findings Conclusion And Recommendtions.

This chapter companies of the following sub-headings, discussion of result and findings, conclusion, implication, recommendations, suggestions for further research and bibliography.

5.1 Discussion Of Result And Findings

Entrepreneurship development in Nigeria has been mainly financed by indigenous organization as the National Directorate of Employment (NDE) National Economic Recovery Fund (NERFIJND), National Association of small and medium enterprise, Nigeria Bank for credit and commerce (NBCI), etc. provide staff loans for small and medium enterprises development in Nigeria. In an earlier, Ogbodo (2009) observed that these organization had as one of their objectives the promotion of entrepreneurship in order to provide employment

Opportunities for Nigerians. According to him, these organizations source their funds internally. It is also funded that some of these organizations have access to foreign capital. This finding is supported by Omoniyi (2008). In his work on World Bank and financing of entrepreneurship development in developing countries. According to him, they obtain foreign capital through multilateral organizations which include the world bank, international labour organization, international monetary fund, foreign non-government organizations however, he notes that the amount of foreign capital that coples in the country for the purpose of entrepreneurship development is not substantiated. This remark agree with that of Onyishi (2000:11) who expressed that entrepreneurship development in Nigeria is substantially funded by local financial and non-financial institutions. It is also discovered that foreign capital contributes to entrepreneurship development. Supporting this finding Nwalu (2007) state that foreign capital increases loan able funds for entrepreneurship ventures, entrepreneurship training in management as well as for importation of foreign machinery and equipment. He notes that the costliness and exorbitance of foreign equipment makes it difficult for entrepreneurs to obtain and as alternative they resort to cheap and less efficient locally fabricated equipment. Nevertheless, the provision of foreign capital by foreign organization helps in alleviating this difficulty. Earlier, Ugbaja (2001:42) had expressed that foreign private investment and multinational companies made foreign capital available for entrepreneurship development in Nigeria. Finally, it is found that Nigeria investors can raise foreign capital from international capital market. In his own work Ugwu Anyi (2007) expresses that international capital market located in Europe, America and the east have been providing foreign capital for entrepreneurs who make investment in foreign bonds and securities traded in such market according to him, such capital is also used for local investment in entrepreneurial ventures.

5.2 Conclusion

Based on the above going the following conclusion can be drawn.

  1. Foreign Capital is made available for entrepreneurship development in Nigeria by multilateral organization, private investors by multilateral organization, private investors, foreign government and foreign NGO’s.
  2. Foreign capital contribution to enterprenereurship development in Nigeria by supplementing that available foreign reserves and increasing loan able funds to Nigeria investors, providing funds for entrepreneurship training in management and for importation of foreign machinery and equipments.
  3. Foreign investors and multinational organizations also contribute foreign capital to some extent for entrepreneurship development in Delta.

5.3 Recommendation

The following are suggested for implementation in the belief that they will make foreign capital available for entrepreneurship development in Nigeria.

  1. The federal government should re-open its negotiations with international capital markets and financial instructions such as the Paris club, World Bank, ILO etc. to funds. The funds could then be loaned out to potential entrepreneurs to low sinterest rates.
  2. The multilateral organization or foreign private interest can be loaned into the country to form partnership with the local entrepreneurs. This will not provide only foreign capital but also technical assistance for such entrepreneur ventures.
  3. Indigenous NGO’s can form partnership with their foreign counterparts and open up funds for entrepreneurship funding in Nigeria which is the case in many south east Asian countries. This is a significant way of providing foreign capital in these countries.
  4. Many private investors who provide foreign capital in Nigeria have cased their activities because of corrupt practices of Nigeria who dupe them. To this effect, a new orientation of character of Nigeria and bring them back to business their capital.
  5. Finally, the ruling government should ensure political stability and create an enabling business environment with its economic policies. This will attract foreigners with their capital for entrepreneurship activities.

5.4 Suggestions For Further Research

In the right of the findings of this study further studies of this kind are suggested in the following areas.

  1. Prospect of enhancing entrepreneurship development through foreign private investment.
  2. Multinational companies and enterpreneurship development in Nigeria.
  3. International financial institutions and financing of small and medium enterprises in Nigeria.
  4. Multinational, agencies and promoting of small business in Nigeria.

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