THE EFFECTS OF ENTREPRENEURIAL SKILL ON PRODUCT PORTFOLIO DEVELOPMENT (A STUDY OF MEDIUM SCALE ENTERPRISES IN LAGOS)
Title page i
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
2.1 Introduction 11
Theoretical frame work 12
Conceptual framework 20
Extant literature review on the efficacy
skill on organization performance 28
Factors that predispose firms to ensure
Hindrance to entrepreneurial skill
3.0 Introduction 61
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
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
ANALYSES OF THE RESEARCH QUESTIONS AND HYPOTHESES
Analysis of part 1 68
Analysis of responses to part two of the
analysis and presentation of analysis hypotheses 87
Discussion of hypotheses 90
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of findings 91
Limitation of the study 95
Suggestion for future research 95 Questionnaire 96
background of the study:
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
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
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.
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.
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
‘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’.
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.
the outcomes of an entrepreneur, a sequential process or procedures must be
followed. This is termed as ‘entrepreneurship’.
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.
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
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.
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.
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).
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
entrepreneurship’ is concerned with the ownership of multiple businesses by a
single entrepreneur and it is viewed as a means of reducing or spreading
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,
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,
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).
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).
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:
Identify the various entrepreneurial
skills useful for product portfolio development.
Identify the strength and weakness of
entrepreneur(s) in dealing with the challenges of product portfolio
Establish a relevant model for establishing
and implementing an effective skill development for small business enterprises.
Make appropriate recommendations for
enhancing the development of new skill on product portfolio.
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.
Do entrepreneurial skills promote
product portfolio development?
Does entrepreneurial skill development
give room for business innovations?
What effects does lack of skill of
entrepreneur has on product portfolio development?
Are entrepreneurial skills curbed
dependencies on foreign goods?
STATEMENTS OF RESEARCH HYPOTHESES:
there is significant relationship between entrepreneurial skills and product
there is no significant relationship between entrepreneurial skills and product
that lack of skill of entrepreneur(s) does have significant relationship on the
that lack of skill of entrepreneur(s) does have significant relationship on the
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.
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.
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.
Any work-related to learning or training or personal ability that results in
enhanced knowledge and aptitude to perform a job.
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.
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.
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.
portfolio: This is the list of the set or range
of products which is being offered by the firm to its market.
Is an adjective concept that is used to describe the degree of entrepreneurial
trait that an individual possess or exhibit.
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.
It is a state of growth where by a particular individual, community, country,
etc. becomes larger, more nature or more advanced.
medium enterprises: Are business enterprises that are
setup with low capital and less management team.