ENTREPRENEURSHIP DEVELOPMENT AS A STRATEGY FOR ECONOMIC DEVELOPMENT A CASE STUDY OF UMUSUKAY GLOBAL CONCEPT, WARRI

CHAPTER ONE

1.0 INTRODUCTION

In our Nigeria economy today, there is so much cry of unemployment and under development thereby leading to comparison of our economy to that of the developed countries. But it is also imperative for us to come to the knowledge that the development of any country, depends immensely on the citizens who go enterprising with reference to personalities like Bill Gate, Thomas Edison and so many others in the developed countries. These are great entrepreneurs who stood as catalyst for economic change and development in the developed countries in terms of technology and innovation.

The history of any country’s development pays tribute to the contributions of entrepreneurs so we must come to that awareness. For many decades now, entrepreneurship has been recognized as a critical element in the development process of a Nation. It has the ability to raise productivity through various forms of innovations, To create job through the formation of new enterprises especially small and medium scale enterprise; To eradicate unemployment, crime rate and low standard of living, To facilitate transfer of technology or the adoption of technology. To reinvigorate large scale enterprise and also public enterprises, To harness resources that might otherwise be latent and to stimulate growth in these sectors which supply it with input. Entrepreneurship sustains and encourages economic development and dynamism that enables a country to adjust successfully in a rapidly changing global economy. The first step is to develop our human and natural resources thus increasing our per capital income.

1.1 BACKGROUND OF THE STUDY

Before launching into the main focus of this study: Entrepreneurship development as a strategy for economic development, we shall take a look at the development of entrepreneur (i.e. its origin and trend). But first of all,

What is entrepreneur?

Entrepreneur has been defined by so many different scholars in so many ways according to the perspective in which they view it from.

Some have defined it from the angle of power (Joseph, A. Schumpeter), knowledge (Lasson), Religion (David McClelland) etc. But in this research work, we are going to take a look at two school of thought: “Ambition” and “Vision”.

Ambition

An entrepreneur to Kirzner, is someone who is alert to profitable opportunities for exchange. He/she is able to identify suppliers and customers and act as an intermediary. The entrepreneur here, has some additional knowledge which is not possessed by others and so, he takes advantage of it and establishes a venture.

Vision

Everett Hagen sees an entrepreneur as a reactive problem solver, interested in solving practical problems in most cases, through the application of creative technologies. In his book “the theory of social change” argues that creative personality in an individual is characterized by a high need for achievement, law, order, autonomy and problem solving. Economic development to him, is basically a process of ecological change brought about by the technological activity of individual “concerned”. At times entrepreneurs are motivated by some internal forces as a duty to do something unique before they die.

From the above definitions, we can say that an entrepreneur is one who sees opportunities in every circumstances and turns it into a business venture which usually brings about profiting monetarily. He sees a business opportunity in line with his dream and applies himself rigorously in order to achieve his life’s ambition or mission. He achieves this through creative thinking and this creative thinking, erupts or is put to play, as a result of the desire to fulfil purpose (vision) or ambition. It could also be as a result of the crave for power and social or political reasons as the case may be.

But whichever way, the most important thing and which is common amongst all the definitions, is that a going concern business must be established and managed to a success irrespective of the challenges.

Origin/ History of Entrepreneur in Nigeria

The word entrepreneur originated from the French language meaning “one who takes between” And it was first used to describe people engaged in military expeditions. Since 1700, the word entrepreneur was frequently applied by the French to contractors handling Government projects like roads, bridges, harbor and fortification contracts.

And by 1755, the term entrepreneur was applied to business for the first time by Richard Cantillion an Irish man living in France.

Historically, entrepreneurship started from the ingenuity of man when people produced more products than they needed and because of the need for other products and services, they had to exchange their surpluses with others who also wants to dispose off their surpluses and acquire other items they need too and through this exchange of products, entrepreneurship started. But as at this time, it was known as trade by barter.

A typical Nigerian entrepreneur is a self made man who might be said to have strong will to succeed. For this reason, they were always willing to start small. He might engage the services of others like friends, mates, in-laws etc to help him in his work or production. Through this way, Nigerians in the older days were engaged in entrepreneurship and our occupation was primarily peasant farming. The initial entrepreneurial endeavours made by Nigerians therefore, started when the Europeans colonized us and started palm oil/ kernel and timbre trade. When the colonial masters made the country a colony of the British empire, they saw the need for extending their trading area to the hinter lands of the country and started the construction of railways. Privileged by their trading activities and the construction of railways, structural network, some Nigerians were made trading agents and others were engaged in the construction work for which they had opportunities to acquire some skills. These Nigerians subsequently, decided to have their own business forms. With the advent of modern entrepreneur (20^th – 21^st century), these people have now adapted to the extent that some of the entrepreneurs have dabbled into import – export, shipping, warehousing, financial services, banking, packaging, canning, outsourcing, haulage, logistics, assembling, manufacturing and international entrepreneurship with one of them Alhaji – Aliko Dangote, displacing Oprah Winfrey (a U.S. syndicated T.V. Host) to become the richest black man in the world, with Mike Adenuga trailing behind – All Nigerians. By Nnamdi Ebo 15.12.12.

The arrival of Shell Petroleum Development Company (S.P.D.C) and other foreign firms to explore mineral oil in the Niger Delta in 1950’s, also gave Nigerians the impetus to stand out as contractors to these companies and these made a great impact in the economy in terms of development.

Historical Background of Entrepreneurship Development

Because of the development experienced in the Nigeria economy during the colonial reign, entrepreneurship development was highly encouraged after the colonial masters left the country in 1960. Foreign Nationals like the Sierra- Leonians, Greeks, Ghanaians and others that dominated the business scene even at the grassroot level during the colonial era, were dislodged in order to give Nigerians the full opportunity in participating and shaping their country economic future.

The federal government introduced indigenization and enterprise promotion dance of 1972 and its revision in 1977. The objective was to foster economic self reliance and maximize external intervention.

Also in 1985/1986, the alarming proportion of unemployed school leavers and graduates in the country, with effect to the expansion of educational programmes that sprang up as a result of the oil boom of 1970’s without a corresponding increase in job opportunities, worsened by the mass retrenchment of workers brought about by the contraction of the civil service necessitated by the recession in the oil market, made the federal government to launch entrepreneurship development programmes.

And since then, there has been the encouragement of entrepreneurship in Nigeria  through various ways in all the arms: our educational institutions, organizational trainings and even government schemes and policies and allocations too.

1.2 STATEMENT OF THE PROBLEM

Entrepreneurship development which forms the bedrock of all business evolutions and economic miracles of the nation has its peculiar problems in Delta State. And the statement of the problems of this research work are:

1. There is so much complaints of youth about lack of governmental efforts in solving the problem of unemployment, low standard of living and crimes.

2. The youths in Delta State are still ignorant of the fact, that entrepreneurship is the driver of development to any nation and therefore their attitude towards it is very poor.

3. People still lack the sound technological know-how of entrepreneurship development. (Still ignorant of how to put their potentials to work).

4. Entrepreneurs and entrepreneurship development facilitators in Delta State are faced with numerous challenges.

1.3 OBJECTIVE OF  THE STUDY

The need to develop entrepreneurship in the Nigeria economy cannot be over emphasized because there, lies our hope of National growth and development. The objective therefore, of this research work includes the following:

1. To discuss the efforts of government on entrepreneurship development as a strategy to eradicating unemployment, low standard of living and crime rate. And also, pinpoint areas where assistance are lacking.

2. To create awareness of the importance and benefits of entrepreneurship development in any economy. This is to encourage entrepreneurship in Delta State.

3. To bring awareness or dwell on the technological know-how of starting and running a specialized or mastered field of trade. (i.e. the technological knowhow of entrepreneurship development).

4. To discuss the challenges faced by entrepreneurs and entrepreneurship development facilitators, and proffer solution.

1.4 RESEARCH QUESTIONS

In order to achieve a focus for the study, the following research questions were formulated.

1. Is government putting efforts to solving the problem of unemployment, crime and low standing of living?

2. Are the youth still ignorant of the fact that entrepreneurship development is the driver of the economy of the developed countries?

3. Do people still lack the technological know how of entrepreneurship development?

Are entrepreneurs and entrepreneurship development facilitators faced with numerous challenges?

1.5 STATEMENT OF HYPOTHESIS

Hypothesis are often statements about population parameters like: expected value, and variance. It is an assumption or a guess which we make about a population parameters.

In science, a hypothesis is an idea or explanation that will need to be tested through study and experimentation. We can also say that it is the statement created by researchers when they speculate upon an outcome.

According to Osuala, a hypothesis is a conjectural statement of the relationship between two or more variables and always in a declarative sentence form. In order for a hypothesis to be adjudged worthy in effectiveness of addressing a particular problem, it must:

a. Be based on existing data and possibly expected to predict previously unknown data.

b. Be falsifiable for it’s acceptance as true science.

c. Be testable taking into account current knowledge and techniques and be realistic.

d. Explaining existing data in simpler terms than any competing hypothesis.

e. Be derived from the problem stated.

f. Be able to exhaust the problem under investigation.

g. Permit the development of a research design capable of providing the data necessary for testing its validity.

h. Needs to be logical.

i. Must use precise language.

Types of Hypothesis

Basically we have two types of hypothesis:

1. The null hypothesis and

2. The alternative hypothesis

The null hypothesis represented by Ho (usually a negative statement) is a statement or theory put forward either because it is believed to be true or because it is to be used as a basis for argument but has not been proved and it is to be tested.

It is null because the underlying assumption is that there is no difference between the true parameter and the hypothesis value.

The alternative hypothesis denoted by H₁, (usually a positive statement) is a statement of what a statistical hypothesis is setup to establish, and it is a statement the researcher or tester is interested in. Hypothesis are formulated such that Ho and H₁ are opposites (when one is true, the other is false).

Hypothesis  Research Statement

Hypothesis I

H₁: Government is putting efforts to solving the problem of unemployment, crime and low standard of living.

Ho: Government is not putting effort to solving the problem of unemployment, crime and low standard of living.

Hypothesis II

Ho: Youths are still ignorant of the fact that entrepreneurship development is the driver of the developed countries economy.

H₁: Youths are no more ignorant of the fact that entrepreneurship development is the driver of the developed countries economy.

Hypothesis III

Ho: People still lack the technological know-how of entrepreneurship.

H₁: People no more lack the technological know-how of entrepreneurship development.

Hypothesis IV

Ho: Entrepreneurs and entrepreneurship development facilitators are faced with numerous challenges.

H₁: Entrepreneurs and entrepreneurship development facilitators are not faced with numerous challenges.

.

1.6 SIGNIFICANCE OF THE STUDY

This research work will serve as  a guide to researchers who may wish to conduct research on related topics with this study in the future.

It will help intending and existing entrepreneurs on the technological know-how of entrepreneurship for a successful business.

It will help beginners and existing entrepreneurs in business, to know where and how to go about the issue of fund raising in business.

It will guide the entrepreneurs in making credit demands that are in compliance with government monetary policy. Policy makers will equally benefit tremendously from this study as suggestions and recommendations to be made in this study will avail them of the necessary tools for training and policy formation, to maintain the growth and development of entrepreneurship in Nigeria.

This research work will give information on the possible areas for improvement. The work will be of great benefit to students of business administration and management and other scholars.

It will also provide necessary tools or strategies for entrepreneurship development.

It will help beginners in business to prepare and guide against the challenges ahead.

In addition, it is expected that the findings will help to bridge the gap that may exist or may have existed and to make entrepreneurship business more effective and efficient in the cause of carrying out business activities.

It will also serve as a lecture material for entrepreneurship development facilitators.

1.7 SCOPE OF THE STUDY

The scope of this study is within the operations performed and also contributed by entrepreneurs in Delta State to the development of our Nigeria economy. And the main focus which is the case study of this work, is Umusukay Global concept Warri, Delta State.

The emphasis of this study is on how entrepreneurial development could be enhanced to foster economic development.

1.8 LIMITATION OF THE STUDY

This research work on entrepreneurship development as a strategy for economic development in Delta State, is not an exception to the usual constraints associated with research work. The constraints are:

1. Time: Time has been a major constraint that has militated against the realization of the objectives of the research, especially as the researcher had to carry it out in the midst of academic pressure.

2. Finance: Being the life wire of any business and any research work, has posed a major barrier that has immensely militated against the realization of the researchers objectives. The researcher faced inadequate finance for the acquisition of the necessary stationeries for the work.

3. Negative Attitude of Some Persons interviewed: Some of the people interviewed were not ready to give out the required information needed. Therefore, the survey or study, is restricted to Umusukay Global Concept Warri, one of the growing empowerment and event management organization in Delta State.

4. Textbooks

1.9 DEFINITION OF TERMS

1. Strategy: It can be defined as a means to an end. It can also be seen as a procedural pattern or design/technique in which a manager adopts to carry out his job functions in order to achieve organizational goals.

2. Entrepreneurship: It is the pursuit of creative and innovative ideas to meet an identifiable need and create wealth in the process through managerial skills such as planning, organizing, directing and controlling of available resources e.g man, machine, money and material.

3. Development: The gradual growth of something so that it becomes more advance and stronger.

4. Scholar: Someone who studies an academic subject and knows a lot about it.

5. Economy: The state of a country or areas in terms of the production.

6. Government: The system by which a state or country is governed.

7. Programme: A list of training and development courses including seminar, workshop and conferences provided to enhance people. Better still, to empower people.

8. Citizen: An inhabitant of a town or city.

9. Tremendously: Great or huge contribution.

10. Output: The amount of something produced by a person or machine.

11. Society: The aggregate of people living together in a more or less ordered community.

12. Administration: The organization and running of a business or system.

13. Community: A small area or town and the people who lives in it.

14. Entrepreneur: Is one who has the ability to see opportunities in every situation and turns it into a money making venture by gathering the necessary resources to nurture it to success. He is a risk taker.

15. Technology: Ability to create something new or unique.

16. Innovation: Creating new ideas.

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