research work was carried out to show the importance of Entrepreneurship as a
tool for sustainable job creation, a key factor needed to grow every country’s
economy especially in sub-Saharan Africa or third world countries. This study analyses entrepreneurship and how
it has grown over the years in Nigeria.
It also helps to examine factors that can affect entrepreneurship in a
country. One hundred and seven (107)
questionnaires were administered to gather responses to be analyzed, which is
used in testing the hypotheses utilized.
With almost a 100 percent response rate, simple percentage method was
used for the analysis, chi-square statistical tool was employed to test the
hypothesis. Both personal and
environmental factors were seen to be important to enhance the entrepreneurial
activities in an economy. The study
revealed some key issues. The major
findings of this research were that; the availability of this factors mention
previously; which are personal factors (such as leadership style, educational
qualification, self-efficacy, technical factors) and environmental factors such
as (legal structure, stable economic growth, technology, political stability)
will promote entrepreneurship, and help eradicate poverty as well as
unemployment. The realization of
entrepreneurship as a tool for sustainable job creation is the prime
responsibility of both the government and individual (entrepreneur). It is of utmost importance that the
government provides a conducive environment, and that individuals
(entrepreneurs) are prepared to face any hurdle to in order to succeed.
1.0 Background of Study
1.1 Statement of the Problem
1.2 Purpose of Study
1.3 Relevant Research Questions
1.4 Significance of Study
1.5 Research Hypothesis
1.6 Scope of Study
1.7 Limitation of Study
REVIEW OF RELATED LITERATURE
2.1 Theoretical Framework
2.2 The Concept of Entrepreneurship
2.3 Entrepreneurship in Nigeria
2.3.1 Types of entrepreneur
2.4 Empirical framework
2.4.1 Leverage technology as an enabler
2.4.2 Driving force for Entrepreneurship
2.5 Conceptual framework
2.6 The role of entrepreneurship in national development
2.6.1 The conclusion at a glance: committee on
sustainable enterprise, international
Labors Congress 2007.
22.214.171.124 Conditions for a conducive environment for
126.96.36.199 Role of government in the promotion of
188.8.131.52 Enterprise-level principles of sustainable
184.108.40.206 Role of the social partners in the promotion of
2.6.2 Government’s past entrepreneurial and SMEs
2.7 Constraints to entrepreneurship in Nigeria
3.1 Research design
3.2 Population and sample size
3.3 Sampling techniques
3.4 Research instrument
3.5 Sources of data
3.6 Questionnaire design
3.7 Validity and reliability of the research instrument
3.8 Procedure for processing and analyzing data
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation and analysis
4.2 Administration and research question
4.3 Socio-demographic characteristics of respondents
4.4 Test of hypothesis
4.5 Discussion of Findings
SUMMARY, RECOMMENDATIONS AND CONCLUSIONS
5.3 Summary of findings
1.0 BACKGROUND OF STUDY
Entrepreneurship has never been more
important than it is today in this time of financial crisis. At the same time, society faces massive
global challenges that extend well beyond the economy. Innovation and entreneurship provide a way
forward for solving the global challenges of the 21st century,
building sustainable development, creating jobs, generating renewed economic
growth and advancing human welfare. When
we speak about entrepreneurship, we are defining it in the broadcast terms and
in all forms – entrepreneurial people in large companies, in the public sector,
in academia and, of course, those who launch and grow new companies. Now more than ever, we need innovation, new
solutions, creative approaches and new ways of operating. We are in uncharted
territory and need people in all sectors and at all ages who can “think out of
the box” to identify and pursue opportunities in new and paradigm changing
Entrepreneurship can be a societal
change agent, a great enabler in all sectors.
Not everyone needs to become an entrepreneur to benefit from
entrepreneurship but all members of society need to be more
entrepreneurial. The public sector,
private sector, academia and non-profit sectors all have roles to play in
facilitating the development of effective ecosystems that encourage and support
the creation of innovative new ventures.
We need to create the types of environments that are conducive to
encouraging entrepreneurial ways of thinking and behaving.
Much has been written about the
impact of entrepreneurship on economic growth.
If we are to attain the Millennium Development Goals of reducing
poverty, we must develop human capital in all countries and societies, in
remote regions as well as major cities, and world. While the contexts around the world vary
dramatically, entrepreneurship, in its various forms, can equip people to
proactively pursue those opportunities available to them based on their local
environments and cultures. We have seen
a number of “waves” in entrepreneurship education, starting a century ago, developing
in phases and now expanding exponentially.
By making entrepreneurship education available to young people and
adults alike, we are preparing the next wave of entrepreneurs to enable them to
lead and shape our institutions, businesses and local communities and create an
enabling environment for sustainable employment.
Entrepreneurship is a sure way to
bringing fulfillment to the aspiration of an individual, and a major weapon to
curbing unemployment, poverty and underdevelopment problems in any
country. Consequently, its importance to
the economic wellbeing of an individual and family cannot be over-emphasized.
Entrepreneurship is first and foremost a mindset of human beings, focused
towards the generation or profitable ideas.
Entrepreneurs are visionary, goal-driven, innovative individuals or
teams that are oriented to developing a new business and making it a profitable
one (Hisrich and Lagan-fox, 2005).
Nigerian economy is an emerging one that is characterized by a large
influx of entrepreneurs and small and medium enterprises. The emergence of this category of people
makes it somewhat important and necessary for researchers to understand and
mange them effectively.
Entrepreneurs play an important role
in any given economy and are the prime movers of economic development. Entrepreneur is derived from the French verb
“entrependre” which means to undertake, to attempt, to try in hand, to contract
for, or to adventure (Girad, 1962).
Entrepreneurship is the process of wealth creation and individuals
referred to as entrepreneurs create this wealth by being innovative. The traditional perspective described
entrepreneurship in purely economic terms.
For example, Cantillon (1755), describes the entrepreneur as any individual
who is self-employed, thereby actively taking the risk of economic
uncertainty. The entrepreneur in the
context of this paper is the originator or creator of a profit seeking organ of
the society or economic organization established for the purpose of providing
goods and services for the consumption of the society, in which such
organizations located. The entrepreneur
is often referred to as the agent of economic, technological and social systems
(Ogundele and Olayemi, 2004).
Small businesses are generally
regarded as the driving force of economic growth, job creation and poverty
reduction in developing countries. They have been the means through which
accelerated economic growth and rapid industrialization have been achieved. While the contributions of small businesses
to development are generally acknowledged, entrepreneurs face many obstacles
that limit their long-term survival and development. Research on small-business development has
shown the rate of failure in developing countries is higher than in developed
world. (Arinaitwe, 2002). Scholars have been indicated that starting a
business is a risky venture and warn that the chances of small-business owners
making it past the five-year mark are very slim. Theyshould develop both long-term and short-term
strategies to guard against failure (Sauser, 2005; Monk, 2000). In Nigeria, Arowomole, (200) asserted that
every successvie government continue to emphasis on entrepreneurship emergence. This is probably to find a better way of
nurturing the emergence of entrepreneurship by looking for those determinants
that could effectively and positively affect the entrepreneurship emergence as
well as the performance.
With reference to above, many past
studies have documented the significant impact of entrepreneurial factors such
as individual determinants, external factors and firm characteristics on
entrepreneurial performance. For
instance, Mohd (2005); Blackman (2003); Ogundele (2007); Colin et al., (2005)
and Lawal (2005) argued that individual determinant which is also called
entrepreneurial characteristics significantly and positively affect both
entrepreneurial emergence and entrepreneurial performance. Similarly, Van de ven (1993); Mohd (2005);
Arowomole (2000); Kuratko et al., (2004) and (Radiah, Mohd and Ab, 2009) have
asserted that external factors predict and significantly affect entrepreneurial
performance as well as the emergence of entrepreneurship of any country. With respect of this, Van de van (1993) has
further argued that any study within the field of entrepreneurship development
without the consideration of external factors which he nicknamed external
environment should be considered incomplete and invalid. Accordingly, Johan et al., (2005); Mohd
(2005); Lin (2006) and Dean et al., (2000) argued that firm characteristics
such as firm size, nature of firm etc affect the performance of the firm. From the above, there is no doubt that past
studies have really given attention to the impact of individual determinants,
external factors and firm characteristics on firm performance (Rebecca, 2009;
William, 2009; Zhang et al., 2008; Okpara et al., 2007; Ogundele, 2007). However, despite this attention extended to
these factors, Man, Lau and Chan, (2002) have argued that all these factors
reference in this study still deserve further attention in the study of
entrepreneurship and small business.
While different factors such as
individual determinants, external factors and firm characteristics have been
found to influence entrepreneurial performance to different extents, the
results are often inconsistent (Man et al., 2002, Yanfeng and Si, 2008,
Kisfalvi, 2002; Dean et al., 2000; Pelham, 1999; (Chandler and Hanks, 1994;
Cooper, 1993). In order to tackle this
problem, past studies have suggested contingency relationships on different
conditions and interactions (Fanga, Evans and Zou, 2005; man et al., 2002).
This research attempts to ascertain,
empirically, the determinants of entrepreneurial emergence and performance as a
tool for sustainable employment, as perceived by indigenous entrepreneurs in
Nigeria. The assumptions being tested
are that entrepreneurial emergence and performance though affected by several
sets of factors if properly tackled can serve as a means or tool for sustainable
employment for the Nigerian populace.
1.1 STATEMENT OF THE PROBLEM
The financial and economic crisis has
added to the pre-existing economic, social and political challenges in
Nigeria. Thus, there is an urgent
challenge to develop policies and strategies to generate decent and productive
jobs through the promotion of sustainable micro-, small- and medium-sized
enterprises in Nigeria. Recognizing the
role of the entrepreneurship for growth, employment creation and poverty
reduction, countries in the West African region are encouraged to engage in a
process of sound economic reform, particularly tackling the promotion of an
enabling business environment and the adequacy of the education system, which
the labour market needs.
Nigeria facesmany problems. The challenges faced by entrepreneurs in
developing countries are monumental and quite similar.
1. There is massive unemployment, partly
as a result of retrenchment in government and organizations. Due to the economic situation of the country,
more “entrepreneurs” are emerging. This
is as a result of the unavailability of jobs (i.e. more supply of labor, less
demand for it) in the market, and the need or search for survival.
2. Another challenge is the unstable and
highly bureaucratic business environment.
The laws governing private enterprise, especially business registration
and taxation systems, are believed to be overly and difficult to
understand. Contract and private
property laws are often poorly designed and/or enforced. As suggested by Kiggundu(2002), Pope (2001),
and Stevenson (1998) the unfavorable institutional/regulatory environment is
often accompanied by the added expenses of corruption and bribery. Other problems encountered by entrepreneurs
in transition economics include poor macroeconomic policies, limited access to
short-term and long term financial capital, and a lack of managerial
experience. Nigerian entrepreneurs
reported that they were frequently harassed by government officials who
extorted money from their businesses.
3. Poor infrastructure including bad
roads, water shortage, erratic electric supply, and poor telecommunication
system represent additional challenges faced by small business owners (Mambula,
4. Difficulty in gaining access to bank
credits and other financial institutions proved to be a major obstacle
hindering the process of Nigerian entrepreneurship emergence.
5. The most serious and damaging problem
threatening the state of entrepreneurship in Nigeria is a lack of government
interest in and support for MSEs (Ariyo, 2005).
This poor attitude toward for private sector explains why there explains
why there has never been any real attempt on the part of government to develop
any programs or lasting policies to support small businesses.
This research project studies the
critical importance of sustainable enterprises through entrepreneurship in
achieving social development goals, economic diversification, income generation
and poverty reduction in Nigeria. It
also highlights a number of challenges facing the crucial development of
entrepreneurship. Some of the challenges
are structural; others are the result of the ongoing financial and economic
crisis. A conducive business environment
with an efficient legal and regulatory framework is primordial for entrepreneurship
as a tool for sustainable job creation.
1.2 PURPOSE OF THE STUDY
The underlying principle of this
study is to examine the importance on entrepreneurship as a tool for
sustainable employment. The study is
also geared towards achieving the following objectives:
examine the viability of entrepreneurship as a tool for sustainable employment.
raise awareness of the importance of entrepreneurship as a tool for sustainable
existing knowledge and good practices in entrepreneurship around the world to
enable the development of innovative new tools and approaches.
recommendations to governments, academia, the private sector and other actors
on the development and delivery of effective entrepreneurship.
1.3 RELEVANT RESEARCH
The following questions were designed
to probe into the viability of entrepreneurship as a tool for sustainable
entrepreneurship really a tool for sustainable employment?
impact does entrepreneurship have on sustainable employment?
challenges does entrepreneurship face in creating sustainable employment?
there other benefits of entrepreneurship apart from creating sustainable
entrepreneurship guarantee sustainable employment?
1.4 SIGNIFICANCE OF THE STUDY
The study is expected to make
contribution to knowledge in the following areas:
information about entrepreneurship in relation to sustainable employment in the
essential material for scholarly discourse in management science relating to
in providing information on the viability of entrepreneurship as a tool for
sustainable employment in the Nigerian economy.
information on the challenges of entrepreneurship in Nigerian.
information for future research works on entrepreneurship/
1.5 RESEARCH HYPOTHESIS
1. H0: Entrepreneurship is not a tool for sustainable employment.
H1: Entrepreneurship is a tool for
2. H0: Environmental and Personal factors affect entrepreneurship as
a tool for sustainable employment.
H1: Environmental and Personal factors do not
affect entrepreneurship as a tool for sustainable employment.
1.6 SCOPE OF STUDY
The study focuses on the viability of
entrepreneurship as a tool for sustainable employment in the Nigerian
economy. It systematically analyses the
steps involved in becoming an entrepreneur and creating sustainable employment.
1.7 LIMITATION OF STUDY
The study is limited in scope to
finding out how entrepreneurship can serve as tool for sustainable
employment. However, the selection of
few small and medium scale business owners in Lagos remains a limitation of the
study, as a result of inability to consider the total population of small and
medium scale business owners in Lagos.
Time, cost and instruments are also part of the limitation of
study. Hence, the generalization of the
finding is restricted as a result of time and cost constraint.