ABSTRACT
The research project “Entrepreneurship Development in Nigeria: an assessment” was carried out to ascertain the level of entrepreneurship development, the problems militating against entrepreneurship development and its prospects in Nigeria.
The ultimate aim here is to review the policy itself and all the policy programmes put in place to assist in stimulating entrepreneurship and actualizing its dream with a view of rating the performance of each of the programmes. The research went further to identify factors militating against mutual corporations between the SSES and assistance agencies as well as lack of progress observed among the small-scale firms. One of the problems the research observed was that of policy inconsistence and practices, which in effect directly nullify avowed policy aimed for this sub-sector. In line with this review, the contributions of financial institutions to the development of entrepreneurship were examined and formed and found to have fallen short of expectation over time in spite of the fact that there was a broadening of the country’s financial system with the same period.
An attempt was made to validate the findings of the application of the empirical research. Essentially therefore, interviews and questionnaires were used simultaneously to obtain vital information from entrepreneurs and some bank leaders in Enugu state. The questionnaire was analyzed using simple tables. This analysis proved inconsistencies of
the policies and the negative attitude of financial institutions to entrepreneurs especially in granting of loans. As a result, there was a glaring inadequacy of fund t SSES to initiate or expand their scope of operations.
In expectation at least, the industrial policy and the institution agencies be review and streamlined in ameliorate the magnitude or deluge the problems besetting the development of entrepreneurship in Nigeria. It is also suggested that a credit guarantee/insurance scheme be established by the government to restore confidence of the banking sector to small-scale industries especially in granting of loans and other assistance.
Above all, it recommend that it is best to develop and deliver to small-scale enterprises activities at site, the requisite tailor –made package of assistance e.g. technical, management and economic collectivity, assistance supervised credit, beneficial regulations by government, industrial states with common service facilities under a revitalized and re-organized industrial extension service scheme.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In a free enterprise economy, the problem of national economic development and growth sustenance is usually the joint responsibility of the public and the private sectors of the economy. While the public sector contents with adverse challenges to development and creates an enabling environment for effective private sector participation in developing the private sector responds to the favourable environment by increasing its investment in the economy which is the necessary catalyst for economic development.
Entrepreneurship plays a vital role in the economic development of nations. According to Onuoha (1994:16) entrepreneurship leads to the transformation of traditional industry; creates employment opportunities; has linkages effects. That is, it helps to link up the various factors of the economy: makes more efficient use of resources; (raw materials, capital and labor); generates income (locally and externally), contributes to regional activity and cooperation; helps to promote change in a gradual and peaceful manner;
and provides training and learning ground for people at all levels and functions.
In recognition of the important roles of entrepreneurs in economic development, there has been a global shift of various nations’ reliance on a large corporations, and government for economic development. Various nations of the world have discovered the dynamism in small business, and are now focusing on entrepreneur development.
According to Drucker (1998:7), the United States for instance has shifted from a ‘managerial’ to an entrepreneurial economy. Small companies which were hitherto diminished during the rapid industrialization era have made a great come back. Big corporation rose to ascendancy during the period in fields where economics of scale were critical to success. Among these industries were railroads steel, automobiles, chemicals, and communications. The swift pace of technology change and fragmentation of markets are eroding the traditional economics of scale. The reaction is that these changes are erasing many of the costly entry barriers that protected these corporations from small ventures. Nigeria is not left
out in this global shift. In an effort to bring about rapid industrialization, the federal government introduced various incentives to encourage the establishment of private industries.
According to Sule (1999:13), the industrialization strategy was based mainly on large scale industries, and these industries relied heavily on the important of capital equipment and technical manpower. The objective of government in setting up these industries achievement on high level local added technology did not materialize. Thus in response to the weaknesses of large scale manufacturing, government sought to promote small scale industries as a strategy for self-reliant industrialization.
The vital roles of small and medium scale industries have long been recognized, but the first service policy to encourage their development came in 1970. The first towards this was the establishment of small-scale industries division of federal ministry of industries, as well as the establishment of industrial development (IDPS) in the same year. The former idea was to initiate, and implement policy, on the promotion of small scale industries in Nigeria, while
the later was to provide technical support, and manpower training facilities for industries, (Faleye,1985).
Later, the Federal Government promulgated a decree known as the Nigerian Enterprise promotion decree in 1972 (Amended in 1977 and 1989). The aim of the decree was to encourage more Nigerian in the ownership, control and management of certain enterprises (Onuoha, 1994:208). To further bring about rapid industrialization by encouraging the growth and development of entrepreneurship, the government introduced private sector mobilization agencies like small scale industries corporation (SSIC), Nigerian Bank for Commerce and Industries (MBCI), Nigerian Industrial Development Bank (NIDB), National Economic Reconstructions Found (NERFUND), Peoples Banks, Family Economic Adjustment Programme (FEAP), National Directorate of Employment (NDE) etc. One of the programmes articulated by NDE was the small-scale industries and graduate employment of potential entrepreneurs who are equipped to start and successfully manage small and medium scale industries (NDE,
1989:112).
Furthermore, Enugu state government in recognition of the very important role, small and medium, scale enterprise have played in the rapid development of other countries, particularly in the far East, has resolve to create an enabling environment for industrial development of the state, which the private investors/entrepreneurs, with their expert capabilities and profitable management style are expected to lead. Consequently, the state government is arranging the transfer of some of its interest in some government-owned industrial projects, to businessmen, and women, either by outright sale or by the sale of part of its equity in other establishments (Okafor 1995:4).
Over the years, there has been a remarkable increase in the number of ventures and the range of businesses have grown more complex. Developments through private institutions are considered to be dynamic, innovative, result-oriented, risk taking and forward looking. Entrepreneurships are essential to the maintenance of free competition in the economy. The common identity of management and ownership in entrepreneurships creates a motivational drive, and willingness to take risks which are
the characteristics requirement for innovation. Despite the increase on the number of small/medium sized businesses, most of them are yet to stand the test of time. According to Aja. (1991:1), the environment in which this sector operates is both challenging, and rewarding. It is challenging, because it is fraught with the dangers of risks arising from having in the first place, to invest money in entrepreneurship, and the problems of managing it in the country’s recessed economy. Moreover, there is also the challenge of government regulatory activities which may affect the performances of small and medium scale industries adversely.
The success of a company’s operation is affected by the attitude of its owner(s) towards both products/service, and consumer. The entrepreneur; when starting a business should take into consideration, such factors like problem in the market, corresponding business opportunities, as well as efficiently co-ordinate the available resources, and modernizing its own products and services.
1.2 Statement of the Problem
A survey will be considered by the researcher with the aim at making a divulgence of causes of non-performance of many private enterprises in Nigeria with particular reference to Enugu State.The problem that will be study is assessing the impact of entrepreneurship in Nigeria. Specifically, the numerous objectives for which the researcher will intend to achieve will also be examined.
1.3 Objectives of the Study
The following objectives of this research will be carried out:
a. To test the management potential of Nigerian entrepreneurs
b. To examine the effectiveness of Nigerian entrepreneurs c. To access the development of entrepreneurship in
Nigeria
d. To examine the nature of problems of entrepreneurship development in Nigeria
e. To determine the level of assistance to Nigerian entrepreneurs by government
f. To verify the willingness and ability of Nigerians to become entrepreneurs.
To test the potentials in terms of technology of Nigerian entrepreneurs and;
1.4 Research question
(1) How can the management potential of Nigerians entrepreneurs be tested?
(2) What is the effectiveness of Nigerian entrepreneurs? (3) What are the processes to access the development of
entrepreneurship in Nigeria?
(4) What are the major problems militating against the development of entrepreneurship in Nigeria?
(5) To what extent has the Nigerian government assisted the development of entrepreneurship in Nigeria?
(6) What are the means to verify the willingness and ability of
Nigerians to become entrepreneurs?
(7) What is the Nigerian entrepreneurs’ ability in terms of new trend of technology?
1.5 Research hypothesis HO: Nigerian entrepreneurs have management potentials. Hi: Nigeria entrepreneurs have no management potentials.
HO: There are effective performances in Nigerian entrepreneurs. Hi: There are no effective performances in Nigeria entrepreneurs
HO: We can access the development of entrepreneurship in Nigeria. Hi: We cannot access the development of entrepreneurship in Nigeria.
HO: There are problems militating against entrepreneurship development in Nigeria.
Hi: Three are no problems militating against entrepreneurship development in Nigeria.
HO: There are means to examine the willingness and ability of Nigerian entrepreneurs.
Hi: There are no means to examine the willingness and ability of Nigerian entrepreneurs.
HO: Nigerian entrepreneurs has the ability in terms of new trend of technology
Hi: Nigerian entrepreneurs have no ability in terms of new trend of technology
1.6 Significance of Study
Entrepreneurship create room for people to go into self-employment, thereby giving them the opportunity of making the best use of their potentials and the chance of showing highest devotions and diligence. This study is therefore, significance because it serves as an eye opener to lots of Nigerians who hitherto allow their entrepreneurship potentials to waste away
Secondly, this study will serve as learning to the government and individuals to see the role of entrepreneurship and its contribution to the economy. It will go a long way to appraising government rationale and serve as a hint to the Nigerian government on her responsibility in the development of entrepreneurship in Nigeria.
In addition, entrepreneurs will benefit from this research work; the research project will suggest solutions to most of the management problems.
Finally, for further researchers, it will serve as stepping stone for further research that need to be carried out on this field.
1.7 SCOPE OF THE STUDY
This study is about entrepreneurship development in Nigeria. It acts across various governmental policies towards a self-reliant and self-employed country. This study gives an overview of small business. References are also made on the role of entrepreneurship in economic development of some developed countries of the world. The research is made to be all encompassing for the purpose of clarity.
1.8 Limitations of the Study
This study examined the entrepreneurship development in Nigeria. But it cannot cover the whole entrepreneurs in Nigeria, because of the time and money constraints placed on the researcher, and the distance involved. Therefore a sample of various entrepreneurs was
selected from the various industries. Every research project suffers from scarcity of resources. Financial resources imposed their own frustration, and limitations. Other types of resources include textbook, journals etc are also in short supply. Within this context, this study claims no exception.
1.9 Definition of Terms
In order to ensure common understanding of some essential terms, which have unique use in this study and are subjected to several interpretations by the different readers, it is necessary to examining some terms as the values of the research may be lost through misinterpretation. It includes entrepreneur, entrepreneurship, innovation, development.
Entrepreneur
An entrepreneur is one who assumes the risk of organizing and managing his own business with the hope of making profit.
Entrepreneurship
Entrepreneurship represents the role or function of the entrepreneur. He provides operational expression to new
idea, new structure, new products and new advice to an environment.
Innovation
Innovation is the successful exploitation of new ideas,
| new technology etc | ||||
| Development Development is the process | of | changing | and | becoming |
| larger, stronger or advance. | ||||
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