ENTREPRENEURIAL SKILLS NEEDED BY SECONDARY SCHOOL GRADUATES FOR EMPLOYMENT IN SMALL BUSINESSES IN ENUGU STATE OF NIGERIA

Abstract

The major purpose of this study was to determine the entrepreneurial skills needed by secondary school graduates for employment in small businesses in Enugu state.  Four research questions were answered and four null hypotheses were tested at 0.05 level of significance. The target population for the study was 85,608. These comprise 3240 supervisors of registered small and medium scale enterprises with the corporate affairs commission, Enugu, Enugu State, plus 82368 secondary school graduates in the state, bringing the total population to 85608. The sample for the study was 712 comprising of 313 supervisors of small scale enterprises and 399 secondary school graduates.  Structured questionnaire was used to generate data for the study.  The instrument was face validated by three experts: two from Vocational and Technical Education and one from Science Education Department, all from University of Nigeria, Nsukka.  The Instrument was trial tested on 30 respondents comprising of 10 supervisors of small business enterprises in Anambra state and 20 secondary school graduates in Anambra state outside the study area.  Cronbach Alpha reliability method was used to determine the internal consistency of the instrument and this yielded a reliability coefficient of 0.84.  Data were analysed using mean statistic for the research questions and t-test was used to test the null hypotheses at 0.05 level of significance. Secondary school graduates were influenced by the ability to set appropriate business goals.  Based on the findings, it was concluded that, many of such skills were found as management, accounting, marketing and communication skills.  The graduates are therefore required to undergo training to enable them grow and develop their own enterprises.  The establishing of the enterprise will reduce unemployment and create job for the youths and other people in the society. It was recommended that, federal government and non-government organization (NGO) should join in the campaign for the relevance of entrepreneurial skills to secondary school graduates for employment in small scale business; principals of secondary schools in Enugu state should embark on entrepreneurship capacity building of the teachers to ensure better understanding of entrepreneurial skills and the operations in business. The curriculum planners should fully integrate entrepreneurship education into secondary schools curriculum.

CHAPTER ONE

INTRODUCTION

Background of the Study

Business in Nigeria has been classified as small, medium and large. In the developed and developing countries, the government is turning to small scale enterprises as a means of solving economic problems. It is also the bedrock of innovation, inventions and employment. According to Kochadai (2012), small scale business is a type of business that is independently owned, operated and organized for profit, and is not dominant in its field with a small number of employees and a relatively low volume of sale. Ayozie and Jacob (2013) defined small scale business as a manufacturing establishment employing less than ten people, or whose investment in machinery and equipment does not exceed two hundred thousand naira. They further stated that small scale business represents a statistically significant proportion of the world economy.In Nigeria to day, small scale business assists in promoting the growth of the country’s economy. Small scale businesses are sources for economic growth and development for every nation, because as they grow, their economy grows too (Olowu & Aliyu, 2015). Since the development index of nations are measured basically on their achievement in terms of provision of welfare to their populace, small scale businesses play, a role as employment providers in a way that ensures equitable income distribution (Kuratko, 2005). Thus, Ayanda and Laraba (2011) described small businesses as “mighty minors”, that functionalize market economics and remove or minimize imperfection factors that impede adaptation to change. Small scale business is generally believed to be the most appropriate scale of business for developing economics like Nigeria. Small scale business helps to diversify economics and at the same time create employment (Abuka, 2014). Abuka further stated that for a small scale business to survive in an increasingly competitive environment like Nigeria, a skilled entrepreneur is required.

An entrepreneur is a person that is involved in the management of all activities in business. Sunday (2012) defined an entrepreneur as an enterprising individual who bulds capital through risk and for initiative. Entrepreneur, according to Binuomote and Okoli (2015), is a person who creates and manages  business undertaking, bearing the risk for the sake of profit. In the view of Etuke (2004), an entrepreneur is the person who holds the key to entrepreneurship, he is the visioner who must have a clear conception of what he has envisaged and who must be in a position to translate it into a workable project. Agomuo (2002) submitted that entrepreneurship is a process of brining together creative and innovative ideas, combining them with management and organization skills in order to combine people, money and resources to meet an identified need and thereby create wealth. It is the willingness and ability of an individual to seek out investment opportunities, establish and run a business successfully. Entrepreneurship is thus, the process of learning the skills needed to assume the risk of establishing a business.

Skill is a person’s ability in performing a given task well as a result of training and practice. Obi (2005) defined skill as manual dexterity acquired through repetitive performance of operations. Osinem and Nwaoji (2005) stated that skill is the proficiency displayed by someone in the performance of a given task.

According to Sethi and Saxena (2008), skills referred to the ability of a person to perform an act expertly. Continuing, the authors stated that, it is therefore expertness, practiced ability or proficiency displayed in the performance of the task. In the context of this study, skills are those abilities that are required by secondary school graduates for employment in small business.

Secondary school graduates are those who have successfully completed six years in secondary school education. Elizabeth (2008) defined secondary school graduates as those who have completed their secondary education and are trying to gain admission into higher institutions. This is in line with Abuka (2014) who stated that the broad goal of secondary education is to prepare students for useful living and also to gain admission into higher institutions after graduation. In the context of this study, secondary school graduates are those students who have passed through three years of junior secondary school and three years of senior secondary school, and have sat for the required qualifying examination (West African Examination Council and National Examination). These graduates are expected to possess necessary entrepreneurial skills for employment in small business. Akpotowoh and Amali (2006) posited that these graduates need to be equipped with requisite entrepreneurial skills to establish and run small businesses of their own.

Entrepreneurial skill is the ability to choose appropriate business to raise their economic status and enhance success in business. According to Ademiluyi (2007), entrepreneurial skills are simply business skills which individuals acquire to enable them effectively function in the turbulent business environment as an entrepreneur or self employed. Erhurum (2007) noted that most entrepreneurial skills come by learning and practicing. Entrepreneurial skills enable individuals to exploit an idea and create an enterprise not only for personal gain but also for social and development gains (Oko, 2012). The author further stated that secondary school graduates need entrepreneurial skills for them to be successfully employed in small business. These entrepreneurial skills are needed in the area of management, marketing, Accounting and Communication.

Managerial skills are needed for effective management of small scale business. According to Olaleye (2007), managerial skills are the type of skills required by individual entrepreneur to formulate and execute policies of an enterprise which constitute management. Nwachukwu (2008) described management as the coordination of all resources of an organization through the process of planning, organizing, directing and controlling in order to attaining organization objectives. Secondary school graduates need management skills for planning, organizing, supervising, directing, controlling and coordinating the business enterprise. This is in line with Ile (2001) who noted that students need these skills in order to be successful in business. He posited that these skills help to check and monitor performance against set goals and plan while harmonizing individuals and group efforts to achieve business goals.

Another essential skill require by the graduates for employment as entrepreneurs is the marketing skills. Marketing skill are the skills required to market goods and services produced by an enterprise. Osinem (2008) explained marketing skills as the skills which an individual acquires and which enables him keep a job. Marketing skills involves identifying relevant markets accurately, communicate effectively with potential customers, users, or donors, and maintaining a sensitively to the marketing place. Osuala (1990) in Agada (2014) identified some marketing skills to include: Being familiar with various aspects of sales and sale techniques, determining the cost of advertisement, determining the storage facilities, and determining the extent of the market. These marketing skills will enable secondary school graduates to run successful enterprises.

Similarly, secondary graduates needs accounting skills to be successful entrepreneurs. Accounting skill promote good financial management, which is aimed at ensuring that there is adequate cash on hand to meet the necessary current and capital expenditures as well as to assist in maximizing growth and profits. Accounting is the systematic recording of financial transactions (Ezeani, 2008). It is a service activity, the function of which is identifying, measuring, recording and communication quantitative information, primarily financial in nature, about economic entities. These accounting skills, according to Akinola (2001), enable one to understand the financial matter of an organization. It involves where to find capital, how to secure it, hold to plan cash flow, how to keep effective financial and how to foresee future financial needs.

Furthermore, the possession of communication skill will help the production to excel as entrepreneurs. Communication skills are the knowledge and ability required by individuals to transfer information from one place to another. These skills involve written, oral, visual and non verbal communication. According to Longman (2005), communication skills are ways and abilities for expressing oneself well so that others can understand communication skills enable one to create sound awareness about the products of an enterprise (Agada, 2014). Good communication skills, in terms of oral and written are essential for successful business. Communication skills are very important for secondary school graduate for employment in small business in Enugu State to enable them communicate in business transaction fluently with their customers.

If secondary school graduates in Enugu State are therefore equipped with the appropriate entrepreneurial skills, they will excel in their businesses and also contribute meaningfully to society in which they live. Unfortunately, in Nigeria and especially in Enugu state, the owners of small scale business complain that most secondary school graduates have not been able to perform satisfactorily (Chukwunta, 2015). Chukwunta further stated that these students are graduating from secondary schools without the necessary skills and entrepreneurial competencies. Furthermore many of these students do not posses entrepreneurial skills that will enable them establish and manage a small business enterprise so as to become self-employed and self reliant on graduation (Okoli, 2008).

Similarly, the high rate of unemployment among secondary school students has been attributed to lack of skills required in the world of work. Ifedi (2009) in his reaction agreed that one of the main causes of unemployment among college students is lack of employable skills. Thus, we are faced with the burdens of surplus unemployed manpower as a result of the wide gap created by absence of entrepreneurial skills by secondary school students. This calls for the acquisition of entrepreneurial skills which is a prerequisite for employment in small business. Therefore, this study seeks to determine the entrepreneurial skills needed by  secondary school graduates for employment in small business in Enugu State.

Statement of the Problem

Between 1960 and 1970 Nigerian secondary schools provided training for secondary school graduates to enter into high rewarding white-collar jobs. As economic activities later become more differentiated, new and distinct occupations emerged. Hence, the need arose for people with various entrepreneurial skills to carry out different tasks in government, industrial and business enterprises. Entrepreneurship skills enable the people to recognize business opportunities, (Ezeani, 2012). The acquisition of entrepreneurial skills will enable secondary school students to establish and manage a small business enterprises so as to become self-employed and self-reliant on graduation.

The researcher observed that the ability of secondary school graduate to secure paid employment or to be self-employed appears to be in doubt as many of them remain unemployed. No wonder, Abuka (2014) noted that about 69% of secondary school graduates who have not got admission into higher institutions of learning are unemployed consequently, these unemployed graduates were found loitering the streets and causing social nuisance like pilfering, house breaking and menial hooliganism in their communities.  Against this backdrop, it becomes expedient to undertake an empirical research in order to determine the entrepreneurial skills needed by secondary school graduates for employment in small business in Enugu State.

Purpose of the Study

          The major purpose of this study was to determine the entrepreneurial skills needed by secondary school graduates for employment in small business in Enugu state. Specifically, the study sought to:

1. determine the management skills needed by secondary school graduates for employment in small business in Enugu state.
2. determine the marketing skills needed by secondary school graduates for employment in small business in Enugu state.
3. find out the accounting skills needed by secondary school graduates for employment in small business in Enugu state.
4. examine the communication skills needed by secondary school graduates for employment in small business in Enugu state.

Significance of the Study

The findings of this study would be of great benefit to students and secondary school graduates. It will also be beneficial to teachers, managers and owners of small scale businesses. The findings of this study will also be useful to school administrators, government, curriculum planners and future researchers.

The study will help students and graduates to be better informed on the relevant entrepreneurial skills they need to acquire. They will also know the level of skills they currently posses and seek to fill any gap/vacuum created. The findings of the study will help students to learn how to reason logically on issues brought by their employees on how best to improve their products and other matters, to exhibit patience and empathy in the face of provocation, carry out assigned duties effectively and correctly. It will prepare students for employment after graduation.

The findings of this study will also benefit secondary school graduates. The identified entrepreneurial skills would be used to train the graduates at skills acquisition centres. The graduates will be equipped with entrepreneurial skills for employment in small scale business and earn living.

Teachers will find the study useful. The findings of the study will enable the teachers understand entrepreneurial skills the graduates need. They will have first hand information on entrepreneurial skills the graduates are required to acquire in order to face the challenges of knowledge update through seminars, workshops and conferences.  The knowledge of the findings will help the teachers to teach the students the entrepreneurial skills they need. Also, this will help to further equip them for better service delivery in teaching and coordinating the conduct of the students during teaching and learning process.

Managers and owners of small scale business will also benefit from the result of this study. The findings will update their knowledge as regards to entrepreneurial skills needed for effective management of small scale business. It will also help them to plan business activities such as marketing and management of time, resources, finance and accounting to the growth of the business.

The findings that will emanate from the study will provide wealth of information needed by curriculum planners for curriculum review. It will help curriculum planners to be more comprehensive in scope that will give participatory opportunities for more learners’ achievement. The knowledge of the findings of the study will immensely assist the curriculum planners to update the curriculum with regards to entrepreneurial skills.

Parents will also benefit from the findings of the study if implemented. The students will graduate with adequate entrepreneurial skills for employment. These students will set up their own small enterprises and earn money to cater for their parents and society at large.

Finally, the study will serve as source of literature for educational researchers conducting studies in the related areas. It will serve as a good starting point for any further meaningful research in this area of study. The literature review of this research work will help researchers to formulate specific purpose and research questions to their own studies.

Research Questions

The following research questions guided the study:

1. What are the management skills needed by secondary school graduates for employment in small business in Enugu State?
2. What are the marketing skills needed by secondary school graduates for employment in small business in Enugu state?
3. What are the accounting skills needed by secondary school graduates for employment in small business in Enugu state?
4. What are the communication skills needed by secondary school gradates for employment in small business in Enugu State?

Hypotheses

The following null hypotheses formulated for the study were tested at 0.05 level of significance:

H0₁:   There is no significant difference between the mean responses of secondary school graduates and supervisors of small scale business on the management skills needed by the graduates.

H0₂:   There is no significant difference between the mean responses of supervisors and the employed secondary school graduates on the marketing skills needed by secondary school graduates for employment in small business in Enugu State.

H0₃:   There is no significant difference between the mean ratings of supervisors and the employed secondary school graduates on the accounting skills needed for employment in small business in Enugu state.

H0₄:   There is no significant difference between the mean responses of supervisors and employed secondary school graduates on the communication skills needed by the graduates for employment in small business in Enugu.

Scope of the Study

This study focused on entrepreneurial skills needed by secondary school graduates for employment in small business in Enugu state. The study was delimited in scope to cover management skills, marketing skills, accounting skills and communication skills. Only secondary school graduates and supervisors in registered small business organizations by the Enugu Chambers of Commerce, Industry, Mines and Agriculture Enugu would participate in the study

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