ABSTRACT
This research work examined the effects
of entrepreneurial skill on product portfolio development of medium scale
enterprise in Lagos. It is important for business owners (be it a small medium
scale enterprises operator or large scale enterprise), who aspire for optimum
success in their endeavour to take cognisance of the essential entrepreneurial
skills which will aid the effective achievement of their organization goal and
objective. The research design adopted for the study is survey research design.
The main instrument used was self administered questionnaires. The data
obtained from the questionnaires were analysed using mean, median mode and
standard deviation. Two hypotheses were tested using Z-test at 0.05% level
of significance. The analysis done
reveal that there is significant relationship between entrepreneurship skills
and product portfolio development. Also, co-operation between small medium
scale entrepreneurs and research institutes, for exploitation of research
findings of these institutes should be encouraged in order to achieve
development in general was recommended.
TABLE
OF CONTENT
Pages
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content
vi
CHAPTER
ONE
INTRODUCTION
1.1
Background of the study 1
1.2 Statement of the problem 6
1.3
Objectives of the study 7
1.4 Research of the questions 7
1.5 Statements of research hypotheses 8
1.6 Significance of the study 8
1.7 Limitations of the study 9
1.8 Definition of terms 9
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Introduction 11
2.2
Theoretical frame work 12
2.3
Conceptual framework 20
2.4
Extant literature review on the efficacy
of
entrepreneurial
skill on organization performance 28
2.5
Factors that predispose firms to ensure
healthy
product
portfolio 36
2.6
Hindrance to entrepreneurial skill
development 55
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.0 Introduction 61
3.1
Population of the study 62
3.2 Characteristics of population of the study 62
3.3 Sampling size/sampling techniques 62
3.4 Re statement of research questions 63
3.5
Re-statement of research hypotheses 63
3.6 Test of reliability/ test of validity 64
3.7 Research design 64
3.8 Data analysis tool 66
CHAPTER
FOUR
DATA
ANALYSES OF THE RESEARCH QUESTIONS AND HYPOTHESES
4.1
Introduction 67
4.2
Analysis of part 1 68
4.3
Analysis of responses to part two of the
questionnaire 70
4.4 Data
analysis and presentation of analysis hypotheses 87
4.5
Discussion of hypotheses 90
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1
Introduction 91
5.2
Summary of findings 91
5.3
Conclusion: 93
5.4
Recommendations 94
5.5
Limitation of the study 95
5.6
Suggestion for future research 95 Questionnaire 96
Bibliography 100
Chapter one
introduction
1.1
background of the study:
The success or
failure, of any organization product offering(s), be it goods or services,
depends immensely on the strategies and technologies used in developing,
maintaining and sustaining such products or services in the target market. The
extent to which these responsibilities/duties/tasks are successfully carried
out is
as a result of the unusual skills, experience and ability possessed by the
owner (entrepreneur), of the said business organization; to effectively
co-ordinate the human and material resources in that organization, in order to
achieve the stated organisation objectives either to make profit or community
service rendering.
The said
responsibility of the ‘entrepreneur’ can be emphasized in the definition given
by Edward P. Lazear. According to him, an ‘entrepreneur’ is a generalist who
put together terms of people and assembles resources and capital. To do this
effectively, they must have a general set of skills.
Although an
individual maybe endowed with a set of skills but endowment can be augmented by
investment in human capital. Therefore, responsibility of assembling, coordinating,
etc. of these said resources cannot be carried out effectively by a mere
business owner whether it is a small organization or a large firm.
These said
skills, possessed by ‘entrepreneur’, enables them provide products ( in form of
goods or services), of great additives, which is second to none in the market
of industry; is referred to as the quality that must be possess by an
individual to be a successful entrepreneur, and it’s called ‘entrepreneurial
skills’.
The term,
‘entrepreneurial’, is an adjective concept that is used to describe the degree
of entrepreneurial trait, that an individual possess or exhibit or the pattern
of entrepreneurial behaviour, present in an individual activities. Therefore,
it can be said that a person who displays some characteristics or habits,
typical of an entrepreneur, is said to be ‘entrepreneurial’.
It is possible,
that entrepreneurial skills are embodied in the networks with customers,
suppliers and other market participants that enhance the outcomes of entrepreneurs.
It’s also possible that it is the greater ability to identify markets, set
strategy and correctly analyse the various business problems and also enables
organization develop their product portfolio.
In enhancing
the outcomes of an entrepreneur, a sequential process or procedures must be
followed. This is termed as ‘entrepreneurship’.
According to
Kuratko and Hodgetts (2001), entrepreneurship is the dynamic process of
creating incremental wealth. This wealth is to be created by individuals who
assume major risks in terms of equity, time and career commitment of providing
value inform of some products or services, which may not be new or unique, but
the entrepreneur must place value by securing and allocating the necessary
skills and resources.
The focus of
this study, is on skills which will also encompass the ability to successfully
allocate resources (human and material), for the achievement of the objective.
A skill, can
be said to be an organized and coordinated pattern of mental and or physical activity
in relation to an object or other display of information usually involving both
the receptor and effect or process. It involves having enough ability knowledge
and experience to be able to do something well.
Hence, for a
person to be regarded as an entrepreneur he/she must possess some certain
unusual and personal attributes, behaviour, values and skills or
characteristics that allows them to successfully develop, setup, grow, render
and maintain a product of great addictive which consumers within the industry
sees as second to none. They are referred to as the agent of effective economic
changes, an enterprising individual, job creator, the goal getters, etc.
The various
skills of entrepreneurs have been classified into three (3), (Linus Osuagwu,
2006). They are ‘technical skills’, ‘business management skills’ and ‘personal
entrepreneurial skills’. Technical skills are said to involve such things as
writing, listening, oral presentation & communication, monitoring
environment, ability to organize, etc. on the other hand, management skills
includes those areas involved in starting, developing and managing any
enterprise i.e. skills in decision making, marketing, general
management/administration, financing, accounting, production, controlling and
negotiating which are essential in launching and growing a new business
venture.
While personal
skills are some skills that differentiate an entrepreneur from a manager i.e.
inner control/discipline, risk taking, being innovative, being change-oriented,
being persistent, visionary leader, etc.
All these
entrepreneurial skills are undoubtedly needed in every facet or an organization
product development or product life cycle (development, growth, maturity and
decline stages), to ensure the sustainability of the various products to a
state of economic stability and growth in order to maximize profit.
For a setup to
be referred to as organization, it must have a product offering i.e. goods or
services which it is to render to consumer in exchange for profit. An
organization product(s) offering, is the set goods or services rendered by the
said organization to satisfy the needs and wants of its target market, for the
purpose of achieving it stated goals and objective. And if the said product
offering is well coordinated, it will lead to high demand and continuous
existence of the product and it will automatically bring about the need for the
said organization to expand its scope or area of production either by
diversifying, integrating, among other option available to the organization.
Hence, the need to develop or design a product portfolio arises.
A portfolio is
referred to be a set of investment. In other words, an organization product
portfolio can be referred to as a set or list of the organization product
offering (their investment).
When an
entrepreneur owns only a single enterprise, he is referred to as a novice
owner/entrepreneur. Habitual-serial owners/entrepreneurs are those that start
more than one business consecutively and habitual-portfolio
owners/entrepreneurs are those who start more than one business concurrently.
As documented by extant relevant literature on small business ownership
(Carter, 1999).
‘Portfolio
entrepreneurship’ is concerned with the ownership of multiple businesses by a
single entrepreneur and it is viewed as a means of reducing or spreading
business risk.
The need for
entrepreneurial skills for product portfolio development evolved as a result of
the strong gaps or lack of qualification often faced by small, medium scale
enterprises (SMEs) owners, which leads to some set back such as liquidation,
low profit, product offering reaching the decline stage within a short period,
etc.
Also, there
are certain commonalities that exist between small, medium enterprises and entrepreneurship
that allows ‘entrepreneurs’ venture in to the medium scale enterprises and
making it their habitat. It has gotten to the point that it has become a common
practice or tradition to discuss entrepreneurship in relation to small, medium
enterprises. For instance, SMEs requires low capital setup which will encourage
‘entrepreneurs’ who have what it take but low capital to setup a business, they
can both be a sole proprietorship business or partnership i.e. joint venture,
merger, etc.
Hence, SMEs and
entrepreneurship needs to be dealt with or handled hand in hand for development
to take place in an organization because most SMEs owners lack the required
skills and ability to manage a business to a state of stability and sustainable
growth and help build their business activities in to an empire and
reduce/minimize the setbacks mostly faced by SMEs.
With the small enterprise inventions,
adaption’s and general technological development are possible (Kilby (1965),
and Mothweit & Zegveld (1981). Also, Steel and Takasi (1982), note that
small enterprises have potentials for absorbing labour while maintaining
output. And this objective can be greatly achieved with the help of
entrepreneur intervention in SMEs industry through the application of the
various entrepreneurial skills.
In other word, if all
the necessary entrepreneurial skills are also use and maintain in SMEs it will
help greatly in developing their product portfolio. Also due to entrepreneurs
ability to perceive new business opportunities in the environment they will be
able to expand the business horizon in SMEs and thus develop the organization
product portfolio by increasing the set of number of product produced by such
organization; if well-coordinated hence product portfolio development.
With all the above
explanation of who an entrepreneur is and the skills and abilities they
possess, including the weakness of SMEs, one will see that there is need to
develop entrepreneurial skill for product portfolio of an organization to be
developed mostly in small medium enterprises, which will lead to economic
development in general ( at a speedy rate).
1.2:
STATEMENT OF THE PROBLEM
There are thousands of
people who have nursed the aspiration to setup their own business(s). for most
the prospect remains just a wishful thought, for others, something happens in
their live which presents an opportunity, which they perceived or make use of,
perhaps an un-expected inheritance; or an event which forces or bring about a
change in direction. But having the capital available to start a business is
not enough. Even in the case of the trade men who is made redundant and
possesses both the technical skills needed to work and the redundancy pay out
to start his, surviving in business requires some unique or unusual skills. The
problems lies firstly in identifying which specific skills are mostly relevant
to the business proposal, and secondly in determining objectively whether or
not they are available in the person (entrepreneur to be). In the event that
the required skills are not currently available, then those deficient skills
must either be developed or imported i.e. by employing an intrepreneur
(imported skilled personnel), or going for training (developed skills).
1.3
OBJECTIVES OF THE STUDY
The aim of this study
is to examine the effects of entrepreneurial skill on the development of
organizations product portfolio. The specific objectives are to:
1.
Identify the various entrepreneurial
skills useful for product portfolio development.
2.
Identify the strength and weakness of
entrepreneur(s) in dealing with the challenges of product portfolio
development.
3.
Establish a relevant model for establishing
and implementing an effective skill development for small business enterprises.
4.
Make appropriate recommendations for
enhancing the development of new skill on product portfolio.
1.4
RESEARCH QUESTIONS:
For the purpose of this
research work, the following question will enable one to find answer to the
patient problem of entrepreneurial skills on product portfolio development.
They are:
1.
Do entrepreneurial skills promote
product portfolio development?
2.
Does entrepreneurial skill development
give room for business innovations?
3.
What effects does lack of skill of
entrepreneur has on product portfolio development?
4.
Are entrepreneurial skills curbed
dependencies on foreign goods?
1.5
STATEMENTS OF RESEARCH HYPOTHESES:
1. Ho:
there is significant relationship between entrepreneurial skills and product
portfolio development.
Hi:
there is no significant relationship between entrepreneurial skills and product
portfolio development.
2.
Ho:
that lack of skill of entrepreneur(s) does have significant relationship on the
product quality.
HI:
that lack of skill of entrepreneur(s) does have significant relationship on the
product quality.
1.6:
SIGNIFICANCE OF THE STUDY:
The study considers the
effects of entrepreneurial skills on product portfolio development. This will
guide owners of businesses, managers, researcher and students in the area of
skill development. The study will provide basic understanding of the impact of
entrepreneurial skills development in Lagos and Nigeria in general. It will
also contribute knowledge as to how business in Nigeria could create and refine
their capacity to establish and implement an effective product portfolio for
the sustainability of organizations in the future.
1.7
LIMITATIONS OF THE STUDY:
The scope of this study
is limited or shall be restricted to forty (40) small-medium scale enterprises
in Lagos state, specifically in Ojo and Lagos island local government area.
Also problems such as funds, sources for appropriate materials and time were
encountered.
1.8 DEFINITION OF
TERMS:
Entrepreneur:
He
is a risk taker, who buys at a certain price and sells at an uncertain price.
He brings all factors of production and resources of both man and materials
needed for effective production together.
Skills:
Any work-related to learning or training or personal ability that results in
enhanced knowledge and aptitude to perform a job.
Products:
A product offering of an organization is the goods or services that is provided
by the organization to satisfy its consumers’ needs and wants for profit making
purpose or community service rendering.
Product
development: It is the process of creating new
products or enhancing old products to serve the needs and wants of customers
who are ready to buy the product or is already purchasing the product.
Market:
It is referred to as the group of consumers or organization that is interested
in the product offering of the organization, has the resources (fund) to
purchase the product and is permitted by law and other regulatory bodies to
acquire the product. A potential market or target market is the total population
who has interest in acquiring the product. While the penetrated markets are
those in the target market who actually purchased the product.
Product
portfolio: This is the list of the set or range of
products which is being offered by the firm to its market.
Entrepreneurial:
Is an adjective concept that is used to describe the degree of entrepreneurial
trait that an individual possess or exhibit.
Business:
Business
is any purposeful activity engaged in by an individual or groups of individual
in other to satisfy their customers’ needs and wants in exchange for profit.
Development:
It is a state of growth where by a particular individual, community, country,
etc. becomes larger, more nature or more advanced.
Small
medium enterprises: Are business enterprises that are setup
with low capital and less management team.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment