ABSTRACT
The research work is all about entrepreneurship development in Enugu state, issues and challenges. A sample size of 240 respondents from small scale industrialists were drawn from the six selected arm of Enugu metropolis, Abakpa Nike, Achara layout, coal camp, Uwani, Emene area and Business administration students of IMT and ESUT were also used. The data collected were analyzed using frequency tables, percentages and simple tabulation method were used from the study, it was discovered that the effect of inadequate startup capital constitutes a major problem or constraints to development of entrepreneurship in Enugu state, lack of venturing spirit is one of the major constraints to the growth of entrepreneurship in Enugu state and lack of adequate knowledge and training background of entrepreneur is one major constraints that hinder the growth of entrepreneurship in Enugu state. It is recommended that strong educational background is highly recommended to potential entrepreneurs to ensure successful business venture, government should endeavor to provide adequate infrastructural facilities and provision of training of entrepreneurs and also formulate fiscal, monetary and regulating policies conducive to the growth and development of the economy.
CHAPTER ONE INTRODUCTION
1.1 Background of the Study
There is no country in the modern world where an improvement in the material level of living is not regarded as a desirable goal by rulers and citizens alike. The growing acceptance of the need to do something for the poor, can be noticed in the numerous poverty alleviation programmes in Nigeria, the average Nigerian still lives subsist below the absolute poverty line. Amongst the challenges that confront Nigeria, a major contributory factor was the style and expectations of the development strategy that was pursued and faced with this failure; the need for a meaningful national development is not only necessary but also imperative. To this end, a lot of economic reform programmes or strategies have evolved but recently special emphasis is being made on self-reliance via entrepreneur and its numerous small and medium enterprises. The economic success of the countries of south east, Asia, and America is traceable to the contributions made by self-reliant individuals (entrepreneurs), through their numerous small medium development depend on the entrepreneur who makes a living by creating new business new jobs and new ideas.
Entrepreneur means different things to different people. In other to appreciate this study more, some concepts that are associated with this study will be explained.
According to Oxford advanced Learner’s dictionary it defines entrepreneur as a person who starts or organizes a commercial enterprises, especially one involving financial risk. To an economist, entrepreneur is one who brings resources, Labour, materials and other assets into combination that make their value greater than before and who introduce changes, innovations and a new order. Entrepreneurs are the risk takers who create businesses; they assemble all the factors of production in an effort to start and operate a business and to make a profit. For Schumpeter “the whole process of economic change hung ultimately on the person who makes it happen–the entrepreneurs”. Entrepreneurship involves combining to initiate changes in production hence it is essentially the promotion of economic change, it is a process involving the entrepreneur and an entrepreneurial career. Hirsch and Peters in their text entitled entrepreneurship: describes this process as one of creating something difficult with value by devoting the necessary time and assuming the accompanying financial, psychic and social risks and receiving the resulting, the rewards of monetary and personal satisfaction.
In Nigeria, many policies are constantly being implemented to ensure their survival which will in turn enable them contribute maximally to economic development but there challenges were intensified more by the perennial energy crisis, weak infrastructure, poor import and export policies, tariff structure among others, which have prevailed in the country for sometime now. These have, inevitably led to the near collapse and failure of the small medium enterprises. The government of this country should look into the modalities of solving these challenges. It is therefore against this background that this work sets out to evaluate entrepreneurship development in Enugu state: issues and challenges.
1.2 Statement of The Problem
It has been observed that some of the problems associated with entrepreneurship development in Enugu state include but not limited to:
In Competence of Management: The major hazard of an entrepreneurship business is the incompetence of management. A small business owner may know will may know all the management principles and theories, his management practice may Jeopardize his business. He may not possess the leaderships qualities, be unwilling to delegate authority, lack of appropriate human relations ability and may not possess the appropriate skills of management, such a business operated by this business owner is likely to fail.
Inadequacy of Infrastructural Facilities: Water, electricity, accessible roads, and other means of communication is are sine quanon to the efficient performance of entrepreneurship enterprise. Their absence or inadequacy affects negatively the efficient performance of entrepreneurial businesses.
Disaster: There are certain circumstances over which small scale business owner may have little or no control. Natural disaster such as thunder, product or accident or sudden death of the owner may adversely affect the operation of the small scale business enterprise.
High Rate of Loan Diversion and Defaults: Both loans obtained from government, banks and individual persons are used to promote personal aggrandizement instead of the corporate objective of the business and hence failure to repay the loan plus interest affect the business.
Inadequate Credit Control: A common problem facing entrepreneurial business owner is whether or not to extend credit. Some small scale business enterprise possesses credit granting practices, credits extended to friends and relations are often times too hard to collect in times of need. This therefore, increases the financial predicament of the business owner.
Inadequate Planning: Planning a business begins with gathering and evaluating data on resources requirements, operating costs, potential
markets and sales, competition, supplies, relevant government regulations, etc. Unfortunately, however, many eager business owners push ahead impulsively, without paining attention to planning, and thus business failure sets in. Lack of the use of modern method of gathering and analyzing data constituted a weak point in the small business strategies planning effort.
Poor Business Accountability: The financial problem of small scale enterprises is rarely only financial. Often it is only a symptom, the diagnosis of which reveals other weaknesses. Business finance and stress are mixed up with personal finance and stacks required for personal needs cash and slacks are taken at will for personal use whenever the need arises with out accounting for such withdrawals. This makes is difficult to assess the operating results of the business and at times starves the forms of its liquid resources.
1.3 The Objectives of The Study
The aim of this topic is to recall the pivotal role, which entrepreneurs and the small medium enterprises are expected to play in modern economics. Therefore the study will make every effort to reveal the various ways to encourage entrepreneurship development in Enugu state.
The expectations can be achieved by the following:
(1) To identify the constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcomes.
(2) To determine the level of awareness of people towards entrepreneurship developments in Enugu state.
(3) To examine various ways that will be employed to develop entrepreneurship in order to get the desired result.
(4) By extension and implication, the study shall provide how the government both state and national and also the society will influence positively on entrepreneurship
1.4 Research Questions
Having established the appropriate framework within which this research study is being conducted, it becomes necessary to raise some pertinent questions which are considered to be at the care of the subject matter of this research effort.
1) What are the major constraints inhibiting entrepreneurs in Enugu state from carrying out their roles as catalysts of economic growth and how these challenges can be overcomed?
2) In what practical ways can the government and educators via education assist in entrepreneurship development?
3) What identifiable and specific roles (Financial, economic, social, motivational, psychological) do entrepreneurs in Enugu state play in order to get the desired result (advancement of the nations economy).
4) In what ways can both the government (state and national via their policies and programmes and also society influence entrepreneurship development?
1.5 Significance of The Study
The research work will be of great significance to students, prospective and practicing entrepreneurs, co-operators, chief executives and other practicing managers of business and non–business organizations. The research work will serve as a background and catalyst to any future researchers and scholars who may wish to venture into the areas of promoting entrepreneurship development in Enugu state. Again the outcome of the research could be significance to the people with different occupations and professions. The conclusion which this research may expose, could lead to improvement and efficiency in Enugu state as regard to entrepreneurship. The confidence level on embarking on entrepreneurship development in Nigeria will improve, and more people or the general public will agree to venture in that business. To researcher,
the topic is a partial fulfillment for the award of post graduate master in management (MBA).
1.6 Scope of The Study
The study extends its interest on entrepreneurship development in Enugu state, issues and challenges, Osaze (1996).
1.7 Limitations of The Study
The researcher however, encountered series of challenges in the course of carrying out this study, such challenges include:
Time constraints: The research was faced with time intensive activities which she was unable to under taken in combination with load of family issue, office work and academic course works. Accessibility to adequate and reliable data for analysis was one of the limitations of this study. An- in depth study and analysis of the subject would not be possible since the study was restricted to just one state (Enugu state). Lastly, some of the materials (literature) required for the sourcing of secondary data relevant to the study were not handy even though a concerted effort was made to secure from a valuable sources. Inspite of all these challenges or hindrances the researcher did her best.
1.8 Definitions of Terms
1) Entrepreneur: Stone and freeman (1992:156) defined it as either the originator of a new business venture or a manager who tries to improve an organizational unit by initiating productive changes. In other words, it is an individual or group of individuals, who sees environmental change as an opportunity and uses the factors of production to produce new goods and service.
2) Entrepreneurship: Hisrich, (1995:17) Defines Entrepreneurship as a process of creating something different with the value by devoting the necessary time and effort assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction.
3) Small Business: Onuoha (1994:322), citing Osaze (1996), sees small business as one which is owned, managed and controlled by one or two persons, is family influenced in decision makings, has a differentiated organizational structure has a relatively small share of the market and employs less than 50 people.
4) Entrepreneurship Development: This is the coming into existence in society of the class of individuals, who are not limited to pace odds.
This material content is developed to serve as a GUIDE for students to conduct academic research
ENTREPRENEURSHIP DEVELOPMENT IN ENUGU STATE ISSUES AND CHALLENGES
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