THE CHALLENGES OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF ELENS KONSULT)

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ABSTRACT

 

The study examined the critically the challenges entrepreneurship development is facing in Nigeria using Elens Consult as a study. The study adopted survey design using primary source of data with questionnaire as instrument of data collection. A total of 55questionnaires were administered to the staff within Elens consult out of which 50 were duly filled and returned. Chi-square statistical method was used to verify the degree of significance of entrepreneurship development. The result of the findings shows that market men and women lack access to constant power supply. It was also noted that local traders do not have access to fund to support their businesses. More so, in terms of factors that encourage entrepreneurship development, it was discovered that skill acquisition is vital for entrepreneurial development and that membership in co-operatives is essential for entrepreneurial development. Based on the findings the study recommends, that the government should prioritize giving of loans to the small businesses in Nigeria as well as allow them to enjoy some tax concessions, Informed government policy, education and international participation are crucial for development of entrepreneurship in Nigeria, Interest rate on loans should be reduced to allow for easy access to fund by small business owners, there should also be adequate infrastructural development in terms of constant electricity power supply, good roads, appropriate loan facilities and good communication network for reduced cost and smooth running of small scale businesses in Nigeria.

 

 

 

 

TABLE OF CONTENTS

                                                                                                                                       PAGES

Title page                                                                                                                                i

Certification                                                                                                                            ii

Dedication                                                                                                                              iii

Acknowledgements                                                                                                                iv

Table of Contents                                                                                                                   v

Abstract                                                                                                                                  vii

CHAPTER ONE: INTRODUCTION

1.1                  Background to the Study                                                                                          1

1.2                  Statement of the Problem                                                                                         2

1.3       Aim and Objectives of the Study                                                                               3

1.4       Research Questions/Hypothesis                                                                                 3

1.5       Research Hypotheses                                                                                                  4

1.6      Significance of the Study                                                                                           4

1.7        Scope of the Study                                                                                                    4

1.8       Definitions of Terms                                                                                                   4

References                                                                                                                  6

 

CHAPTER TWO: LITERATURE REVIEW

2.1       Preamble                                                                                                                     7

2.2       Theoretical Framework of the study                                                                           7

2.3       Empirical Review of Previous work in the area of studies                                         17

References                                                                                                                  19

 

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Preamble                                                                                                                     22

3.2       Research Design                                                                                                         22

3.3       Population of the Study                                                                                              22

3.4      Sampling, Procedure and Sample Size                                                                       23

3.5       Data Collection Instrument and Validation                                                                23

3.6       Method of Data Analysis                                                                                           24

3.8       Limitation of the Methodology                                                                                  24

References                                                                                                                  25

 

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1       Preamble                                                                                                                     26

4.1       Frequency Distribution of Bio Data of Respondents                                                 27

4.2       Frequency Distribution of Respondents Opinion According to Research Questions            27

4.3       Test of Hypothesis                                                                                                      30

 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

 

5.1       Summary of Findings                                                                                                 36

5.2       Conclusions                                                                                                                 37

                                                                                                                                                                                                                                                                                               

5.3       Recommendations                                                                                                      38

5.4       Suggestions for Further Study                                                                                    38

 Bibliography                                                                                                              40

Appendix                                                                                                                    45


 

CHAPTER ONE

INTRODUCTION

1.3                  Background to the Study

It is our utmost desire as a Nation to stimulate growth in the various sub-sectors of the economy. Folaranmi (2007) observed that it is only when this is achieved that we can begin to record significant improvement in the living standard of Nigerians .No doubts about it, man can achieve anything he imagines through the actualization of his imaginative faculty. Creative ideas are the beginning point of all fortunes. The last hundred years in the history of man has witnessed a tremendous and mind bogging innovations during which man has harnessed nature’s resources. Notable among these is the indomitable conquering of the air, land and sea .through the aid of his- imagination. As reflected by Napoleon (1966), man's only limitation, within reason, being his development and use of his imagination. He has not yet reached the apex of development in" the use of his imaginative faculty. In essence, imagination is the ultimate missing link in many business failures, and a vital ingredient for success. Candler provided this link when supplied the -requisite imagination which turned the formula for coca-cola into a fortune. 'Ihus, behind many fortunes there is somebody who had the creative idea.

 

According to Adebayo (2008), it is believed that satanic scrounge of unemployment in the country today can be brought to a very low level if proper information and the knowledge of entrepreneurship is fully disseminated and understood by everyone. Entrepreneurship is also known all over the world as the main engine (Power house) that propels the economic prosperity of a nation. It was in an attempt to revive the battered economy that successive government in Nigeria had come up with different rolling plans, such as the austerity measures of the Muritala/Obasanjo's Administration (19761979). And the Structural Adjustment programme of Babangida's regime (1985-1993), the deregulated and the Abdulsalam Abubakar's administration (1998-1999) respectively.

Nevertheless, all these national policies fail to encourage the expected economic and industrial growth, rather the economy witnessed significant decline in its Gross Domestic Product (GDP) hyper-inflation and a significant increase in our external portfolio. It is imperative to note that majority of these policies suffer from one reason to the other, ranging from policy contradictions, policy somersault, non-continuity to lack of purpose and vision said Afolaranmi (2003), it is on this backdrop, that the Obasanjo's regime (1999-2007) made the restructuring of the Nigerian economy, their policy focus. Thus, his economic reforms were primarily centered on market orientation, private sector led, self-employment, self-reliance and technology driven (Adesoto, Akesinro and Oladejo, 2013).

To this end, one of the instruments that the Obasanjo's regime used was the promotion of the small and medium scale enterprises (SME) and the development of the creative and entrepreneurial ability of its citizenry.

 

1.4                  Statement of the Problem

Nearly all developing countries including Nigeria are experiencing one form of crisis or the other. The crises range from hunger, unemployment, poor infrastructures, and high cost of living to low per capital income. Nigeria as one of the developing nations has adopted various policy measures to address the stated problems of proliferation of business ventures at the stated problems but without the desired results, the problem of proliferation of business ventures at the level of small and medium scale enterprises is often blamed on persons in Nigeria. As a result, when people see a business outfit that is profitable or seems to be profitable, there is a mad rush to replicate that business until it is over-saturated and becomes unprofitable. There are obvious issues hindering the development of entrepreneurship include but not limited to the following: epileptic power supply, foreign exchange problems to mention but a few.

1.3     Aim and Objectives of the Study

The broad objective of this study is to critically evaluate the challenges entrepreneurship development is facing in Nigeria while the specific objectives while the specific objectives are to:

i)                 identify factors that are responsible for lack of entrepreneurship culture in Nigeria.

ii)                  identify if entrepreneurship has upgraded the status of self-employment as  a career alternative in the society

iii)                identify  if entrepreneurship  has  actually  facilitated  and  accommodated the  various components vital for enterprises culture

iv)                examine the impact of small and medium scale businesses on profitable employment.

1.4       Research Questions/Hypothesis

The principal question of this research is how entrepreneurial development has in the face of challenges within Nigeria. This research will also try to provide answers to the following sub-questions in the course of this study:

i)                                   What factors are responsible for lack of entrepreneurship culture in Nigeria?

ii)                                Has entrepreneurship upgraded the status of self-employment as a career alternative in the society?

iii)                             Has entrepreneurship facilitated and accommodated the various components vital for enterprise culture?

iv)             What is the impact of small and medium scale businesses on profitable employment?

1.5       Research Hypotheses

In order to do a suitable research the following Null hypothesis will be tested

Hypothesis 1

H0:       Entrepreneurial   development   has   not     faced   any   significant challenges

Hypothesis 2

Ho:      Small and Medium scale businesses establishment have not significantly improved the employment rate in Nigeria.

1.6      Significance of the Study

The importance of this study will include but not limited to the following:

i)                    It will throw light on the relevance of entrepreneurship in serving as a lasting solution to profitable employment,

ii)                  It will also promote an understanding on how a profitable employment can be attained by creativity and innovation of entrepreneur,

iii)                It will also impart on the students generally, positively by eliciting thoughts of self-reliance.

 

1.7        Scope of the Study

The scope of this study covers the challenges entrepreneurship development in Nigeria is facing. The study will take into consideration all micro, small and medium business owners within the Elens Consult. By choosing this class of entrepreneurs, the study will be able to ascertain the challenges entrepreneurial development is facing in Nigeria.

1.8     Definitions of Terms

Entrepreneur: a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.

Creativity: is the act of turning new and imaginative ideas into reality. Creativity is characterized by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions.

Entrepreneurship: has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a start-up company, offering a product, process or service for sale or hire.

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