Sociology And Entrepreneurship; Contributions And Challenges To The Socio-Economic Development Of Nigeria

Project and Seminar Material for Sociology

Abstract

The topic of this research paper sociology and entrepreneurship, contribution and challenges to the socioeconomic development of Nigeria has been effectively researched. The study involved the random sampling of three (3) indigenous contractors involved in the importation of computer for the Nigeria market. Data was obtained from the administrated questionnaire and personal interviews of the sampled entrepreneurs. The research has established clearly that there exist certain problem affecting the practice of entrepreneurship in Nigeria.

Nonetheless, the research has establish that inexperience on the part of entrepreneurs has great effect on business failure while the prevalence of poor finding for entrepreneurial activities affects overall level of growth and development. Indeed, this references recommends strongly that the desired impact on entrepreneurial growth and development can be achieved through effective training and development of employee skill, aptitudes and commitment. Government must also put in place the enabling environment for effective promotion of entrepreneurial activities. This is indeed the way forward if the fortunes of the Nigeria public is to be achieved.

Chapter One

Introduction

1.1 Background of the Study

There are six distinct factors of production; land, labour, capital, materials, technology and entrepreneurship. In management, they are 6m’s of management – man, money, materials, machines, methods and management. These factors of production are resources necessary in the production of goods and services. These resources cannot achieve the desired goals by themselves unless they are properly harnessed, mobilized and combined in the most efficient and appropriate manner. Somebody must be responsible in the carrying out of these functions in the economy (Zoltan, David, Pontus, Braunerhjelm & Bo Carlsson,2006). Both the management and the entrepreneur mentioned above are the human element that brings these other factors of production together for production to take place. In today socio-economic status, the need to create more jobs cannot be over-emphasized and the job-creating power of entrepreneurs is very important for the survival of any country, with Nigeria as our focus.
According to Ubong, (2013), entrepreneurship is one of the economic variables that attract the attention of governments and researchers both in the developed and developing countries in the last two decades. Several efforts and initiatives are being made by governments and Non-Governmental Organizations (NGOs) to promote entrepreneurship and contribute to the overall economic growth and development. Interests in the entrepreneurial development continue to be in the forefront of policy debates in the developing countries, especially Nigeria. Recently, private sector has dominated the entrepreneurial development policies globally (Ubong, 2013).

In recent time, the subject matter of entrepreneurship has generated (and is still generating) increased interest in Nigeria. This increased interest is partly due to the belief that entrepreneurship will help in combating unemployment, poverty and under-development and partly due to the belief that entrepreneurship will engender economic development (Thornton, 1999). This perception has gained momentum to the extent that researchers and academics from various fields and policy makers are devoting attention to understand the driving forces or determining factors behind entrepreneurship. The quest for these driving forces or determining factors cuts across political considerations, economic realities, psychological factors (personality traits), environmental and socio-cultural factors. Thus, no one field or idea holds absolute answer or explanation to the question of entrepreneurial development, rather available information presents a fragmented view of the subject matter.

Baig (2007) opine that the private sector can contribute to economic growth, job creation, and national income and hence to national prosperity and competitiveness. According to her, the private sector contributes substantially to the Gross Domestic Product (GDP), and thus unleashing domestic resources (financial and entrepreneurial) is likely to create a more stable and sustainable pattern of growth. However, the major component of private sector, Small and Medium Enterprises (SMEs) is generally considered as the engines of economic growth, cornerstones for creativity and innovation, and seedbeds of entrepreneurship (Baig, 2007; Charles, 2011). SMEs according to the World Bank refer to those businesses with maximum of 300 employees and annual revenue of $15 (Davidson, & Honing, 2003). Central Bank of Nigeria (CBN) sees SMEs as those businesses with less than 50 employees (medium scale businesses less than 100). Essentially, SMEs are business entities that are independently owned and operated, and meets employment or sales standard, whose investment in machinery and equipment does not exceed six hundred thousand naira.

Thus, SMEs has been considered as main sustenance of the economy because of their capacity in enhancing the economy productivity and enhancing standard of living (Akpata, 2016). Moreover, Sunusi (2003) states that SMEs are critical components of economic development as they account for more than 50 percent of GDP of developing economies. According to him, SMEs are the main source of entrepreneurship and enterprise, and the main source of innovation and technological development; they provide the required human capital and raw materials to larger businesses.

However, one of the fields of study (just like other fields) which has become interested in the subject matter of entrepreneurship in recent times is Sociology. This interest has even led to a coinage of what is known today as Sociology of Entrepreneurship. As an emerging area, sociology of entrepreneurship main subject matter concerns the relationships between group characteristics and the development of business activity. One of the basic aspects of these is the interaction between the economic and social environments of the entrepreneur. Put differently, factors within the social environment determine the focus and locus of business interest or venture pursuit. Group characteristics such as ethnicity, race, teams, social networks, cultures among others are issues that sociologists are interested in the explanation of the phenomenon of entrepreneurship (Akpata, 2016).

1.2 Statement of the Problem

According to Alexander (2014), different commentators and critics have held contrary views about the contribution of entrepreneurship toward economic development. Some see it as a worthless project that should not be ventured into some as a drain of pipe, a problem to economic developments because it is characterized by problems of small capital, lack of government support, internal control etc. yet, some others see it as the engine for economic growth and development. Because of these alivergent views, it becomes logically reasonable to really examine the contributions of these entrepreneurs in economic development of Nigeria which will help all concerned to understand clearly that through small scale enterprises in inherent with many problems, yet its contributions to the nations economic development cannot be equaled (Alexander 2014).

1.3 Objectives of the Study

The main objectives of this study is to examine sociology and entrepreneurship: contributions and challenges to the socio-economic development of Nigeria.

Specifically, this study seeks to:

Determine whether entrepreneurship contributes to the creation of jobs in Nigeria.
Determine whether entrepreneurship contributes to the economic growth of Nigeria.
Examine the challenges of entrepreneurship to the socio-economic development of Nigeria.

1.4 Research Questions

The following questions will be answered in this study:

Does entrepreneurship contribute to the creation of jobs in Nigeria?
Does entrepreneurship contribute to the economic growth of Nigeria?
What are the challenges of entrepreneurship to the socio-economic development of Nigeria?

1.5 Significance of the Study

This study will help to smell governments efforts to boost the participation of entrepreneurs in economic activities. The government has been encouraging people to start their own business, especially now that the ban on importation of basic products is still in force and there is need to produce these things we used to import, locally in Abia State, but because Abia State are not fully aware of the important roles industries pay in the society (especially small scale enterprises) and the advantages that can be derived from establishing them, people tend to ignore the call of government to establish industries in the state as a way of helping to revamp our battered economy, however, with the help of this study people will become more aware of the advantages of establishing these industries (especially small-scale ones) there by leading to an increase in the member of industries in Abia State in particular.
This study will help to increase public patronage of small scale industries by creating public patronage of small scale industries by creating an awareness about the high quality products they produce and the need to patronize our local industries but with the help of this study, Abia people will have the confidence to patronize their industries and it will also help them to realize the fact that if they patronize or support their local industries they are paying the way of the future economic advancement of Abia State in particular
This study will also help the government and people of Abia State to realize the problems of small scale prizes in the state (especially these located in Abia state) and offer suggestions are regards how to tackled these problems

1.6 Scope of the Study

This study is focused on sociology and entrepreneurship: contributions and challenges to the socio-economic development of Nigeria. Specifically, this study is focused on determining whether entrepreneurship contributes to the creation of jobs in Nigeria, determining whether entrepreneurship contributes to the economic growth of Nigeria and examining the challenges of entrepreneurship to the socio-economic development of Nigeria.
Sampled entrepreneurs from Aba in Abia state will be the respondents of this study.

1.7 Limitations of the Study

This study is limited to sociology and entrepreneurship: contributions and challenges to the socio-economic development of Nigeria. Specifically, this study is limited to determining whether entrepreneurship contributes to the creation of jobs in Nigeria, determining whether entrepreneurship contributes to the economic growth of Nigeria and examining the challenges of entrepreneurship to the socio-economic development of Nigeria.
Sampled entrepreneurs from Aba in Abia state will be the respondents of this study thus further research is needed before this study is used anywhere else.

1.8 Definition of Terms

Economic Development:

Involves improving the state of our cities, ways of thinking, methods of production etc. it also involves improving our general standard of living.

Entrepreneurship:

Entrepreneurship is the creation or extraction of economic value. 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.

Sociology:

Sociology is a social science that focuses on society, human social behavior, patterns of social relationships, social interaction, and aspects of culture associated with everyday life.

Chapter Five

Summary Conclusion and Recommendation

5.1 Summary

This chapter of the study is set aside to summarized the descriptive analysis done in the precious chapters. It also gives the conclusion and makes some recommendation.

In the summary the purpose of this study was to examinesociology and entrepreneurship: contributions and challenges to the socio-economic development of nigeria. Specifically the study focused on determining whether entrepreneurship contributes to the creation of jobs in Nigeria, determining whether entrepreneurship contributes to the economic growth of Nigeria, and, examining the challenges of entrepreneurship to the socio-economic development of Nigeria.

In order to carry out this study research questions formulated to guard the investigation. A total of259 sampled entrepreneurs in Aba Local Government Area, Abia State were randomly selected as enrolled participants for the survey. The study was anchored on the classical theory and the modern theory, meaningful learning theory and the Self-Efficacy theory.

5.2 Conclusion

In the conclusion the study is beyond doubt and abundantly clear that entrepreneurs and entrepreneurship is essential for all economies both established and growing. From results obtained and analyzed, the study reveals that:

Entrepreneurship contribute to the creation of jobs in Nigeria,
Entrepreneurship contribute to the economic growth of Nigeria.
The challenges of entrepreneurship to the socio-economic development of Nigeria include lack of start-up capital, lack of land and good locations, poor government policies, insecurity of lives and properties and psychological factors.

5.3 Recommendation

Recommendation on the basis of findings.The researcher made the following recommendation with the belief that when studied and applied, would help to increase the performance of small scale enterprises. The researcher recommends that:

Adequate financing, easy access to loans, government funding should be made available to entrepreneurs.
There is the need for the Nigerian government to put in place new policy guidelines aimed at making the acquisition of funds easier for the entrepreneurs of small scale businesses.
The entrepreneurs of must endeavour to establish more businesses in both the rural and urban centres to provide more goods and services for the teeming population of Nigeria.
Entrepreneurs should aim as giving some basic skills training to the unskilled and semi- skilled people engaged to work for them so that they can contribute more positively to the work of the enterprise.

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