Entrepreneurship plays a significant role in the
growth and development of a nation’s economy. Entrepreneurship is seen as the
engine of economic growth and a driving force of economic restructuring and
movement in the direction of market economy. The study aimed at looking at how
entrepreneurial activities has developed Nigeria in the area market value,
being gainfully self employed and how it would solve the unemployment problem
we are facing in the country. Descriptive research method was used and
secondary data were used in the discussion and analysis. The study made useful
policy recommendations which government and entrepreneurs will find beneficial
if faithfully employed.
1.1 Background to
role of entrepreneurship in the growth and development of our dear nation
cannot be overlooked and as a result of the consistent rise in the level of
unemployment and the upward increase in the level of poverty in Nigeria, it has
become crucial for Nigerians to quit searching for white collar jobs that are
not available and start creating employment for themselves. The forces of
entrepreneur are strong in Nigeria because most people see entrepreneurial
activities as what is primarily based on essential due to the poor economic
situation. We do not seem to realise the fact that entrepreneurship development
is the base of all economic evolution of any nation. The current Nigerian economy is largely dominated by the oil industry.
The labour force is radically growing, as is the unemployment rate currently at
20%, with millions of workers underemployed. Nigeria is endowed with the
largest domestic market in Africa a wide range of natural resources coupled
with a diversely skilled labour pool. Given these economic realities, the
country must constantly create new jobs, and diversify the industrial and
commercial sector to take advantage of human and natural resources.
The activities of entrepreneurs have been found to be
capable of making impact on the economy of a nation and quality of life of the
people through economic growth; employment generation and empowerment of the
disadvantaged segment of the population, which include women and the poor. Small
and Medium Enterprises (SMEs) is perceived as a pride of basically every
country or state. Because of SMEs’ significant roles in the development and
growth of various economies, they have appropriately been termed as the engine
of growth and catalysts for socio-economic transformation of any country. SMEs
are perceived as a real instrument for the achievement of national economic
objectives of employment generation and poverty reduction at low investment
cost. Other central benefits of vibrant SMEs are the access to the infrastructural facilities the
stimulation of economic activities such as providers of various items and
distributive trades for items produced and needed by the SMEs, stemming from
rural urban migration, enhancement of standard of living of the employees of
the SMEs and their dependents as well as those who are directly or indirectly
associated with them.
Various government of
the nation have begun to find solutions on how to involve the private sector in
the developmental process of their country’s economy which is one of the
responses to the challenges of development of entrepreneurial in developing
countries. Nigeria had even taken a bold step by including entrepreneurial
studies in the academic curriculum of her education system and with the
introduction of National Directorate of Employment (NDE) scheme. The belief of
such policy makers is that such decision will inculcate entrepreneurial spirit
in the mind of people so as to prepare them for wealth creation through
entrepreneurship (Fasua, 2006). Entrepreneurship is very crucial to the development
of a country’s economy, especially countries like Nigeria. Entrepreneurship is
sine qua non to national development poverty eradication and employment
generation it is the bed rock of any nation’s industrialization.
The essential of
entrepreneurship for productivity was originally credited to Alfred
Marshall in 1990. In his famous book; Practice Principle of Economics, Marshall
ascertained that there are four factors of production; Land, Labour Capital and
organization. These factors are properly utilized by an entrepreneur. Thus
entrepreneur creates new commodities or improves the plan of producing an old
commodity. (Marshall, 1994). Therefore, early entrepreneurs were characterized
with production and manufacturing. In a situation like this, the producers
often started with small capital. Early entrepreneurship began with trade by
barter even before the advent of money. Therefore most of the modern
entrepreneurs were engaged in retail trade and also sole proprietorship.
1.2 Statement of
current challenges in the global economy, new and innovative strategies are
emerging in the bid to stimulate and sustain growth in national economies.
Entrepreneurship is one model that is deemed critical to the formulation and
implementation of these strategies. According to
a research by The Global
Entrepreneurship and Development Institute, it was found that USA is a world leader when it comes to
supporting its entrepreneurs in respect to business formation, expansion, and
growth. They also finance new businesses through venture capital. This type of
financial capital is provided to early-stage, high-potential and riskier
start-up companies. Countries like Australia and Sweden came second and third
respectively according to the 2014
Some of these countries’ economies are ranking very high because they
understand the effects entrepreneurs play in the growth of their economy. Their
GDP are always on the increase thereby increase in their economy.
spite of this, little is known about the profile of the Nigerian entrepreneur
and how they engage with the constantly evolving policy context. This study
therefore aimed at better understanding their characteristics the impact and
role of entrepreneurship on the Nigeria economic growth.
The following are
some of the questions which this study intends to answer:
what is the
prevalence of entrepreneurship on the Nigeria economic growth?
what are the contributions of entrepreneurs
to the economic development in Nigeria?
what are the factors that influence entrepreneurs to
economic development the Nigerian economic development?
of the Study
The objective of the study is critically study the role and
impact of entrepreneurship on the development of the Nigerian economy. However,
the specific objectives are to:
to investigate the prevalence
of entrepreneurship on the Nigeria economic growth
to assess out the contributions of entrepreneurs
to the economic development in Nigeria
to inquire are the factors that influence entrepreneurs to
economic development the Nigerian economic development
The research hypotheses to be tested include:
there is a
significant relationship between entrepreneurship and economic growth of Nigeria
activities does not have any significant correlation with economic growth in
1.6 Significance of the Study
Findings from the study will be of immeasurable importance to the
Nigerian government all and aspiring entrepreneurs in Nigeria. It will serve as
a manual that will guide them on how to about using entrepreneurship to
economically develop the country and raise their standard of living. It will as
well help to bridge the gap that might have existed in the entrepreneurial
1.7 Scope of the Study
This study investigated the roles and
impacts entrepreneurship has on the economic growth and how economic growth
will be improved through entrepreneurship. Evaluating entrepreneurship as a
tool in the growth and development of Nigerian economy seems too broad for the
time frame of this research work therefore, the scope of this work was confined
towards the contribution of small and medium scale enterprise to the
development of Nigerian economy.
1.8 Limitation of
This research worked on the impact
and role of entrepreneurship on the Nigeria economic growth was not an
exception to the usual problems associated with research in Nigeria. The
researcher was faced with the problem of finance as the researcher did not have
enough funds to get the required stationery for the work. Also, the timeframe
for the work to be carried out was too short.
1.9 Definitions of Terms
The following terms were used
in the course of this study:
Growth: This is when the real
per capital income of a country increases over time.
Entrepreneur: This is a person who starts or organizes a business
that has a financial risk.
N.D.E. National Directorate of Employment
Adetola Adekoya, (2016).
Problems and Prospects of Entrepreneurship in Nigeria.
Retrieved from https://www.infoguidenigeria.com on the 19th
of July, 2017.
Entrepreneurship and Development Index (GEDI) 2014
K. O. (2006): Entrepreneurship Theory,
Strategy and Practice. Abuja, Bee Printing &
Publishing Company Lagos, Akolaz
Francis Nwokike, (2015). Impact of Entrepreneurship on the Economy of a
Country. Retrieved from
Nicholas Okoye & Peter Adigwe, (2015). Entrepreneurship Development in Nigeria.
Retrieved from https://www.guardian.ng on the 19th of July,
Peter Osalor, (2016). Why Nigeria
needs to focus on entrepreneurial development.
Retrieved from http://www.vanguardngr.com on the 18th of July, 2017.