BACKGROUND OF THE STUDY
The worldwide economic depression of the early 80’s caused a rapid
deterioration of theNigeriaeconomy. The output shrank to an all time
local and commercial activities, which were consequently reduced,
leading to the loss of employment opportunities in the country.
Therefore, by the end of 1985, the unemployment situation inNigeriahad
increased its proportions and as such mostNigeriagraduates were faced
with hardship due to unemployment in the country. This situation
therefore calls for entrepreneurship inNigeriaeconomy which also leads
to entrepreneurial development in the higher institution.
However, at this juncture a brief history of entrepreneurship
inNigeriawill give more insight on the study. Statistics have it
thatAfricais the poorest and less developed continent in world. Many
state-owned enterprise in Africawere created when it was believed that
the fastest route to development occurred when the state took on the
role of entrepreneur.
AlthoughNigeriawas at one time characterized by such inefficiency,
but has recently pursued entrepreneurship encouragement policies. And
the initial indications suggest that the policies have been successful.
InNigeria, the state-owned enterprises traditionally clogged business
opportunities and restructure private entrepreneurs from entering the
market. However, in the mid 1980’sNigeriaabolished it’s marketing board,
which prevented entry into certain industries and it’s market to
competition from domestic entrepreneurs.
Although Nigeriais still ploughed by many development problems
preliminary evidence suggest a favourable response by the private sector
to the new entrepreneurial opportunities. Although there is only
limited consensus about the characteristics of entrepreneurship, the
concept is almost as old as the formal discipline of economics itself.
Early 18thcentury French economist named Richard Canadian first
introduced the term entrepreneur. In his writings he formally described
the entrepreneur as the agent who buys the means of production at
certain prices in order to combine them into new product.
(Schumpeter,1951) short after that the French economist J. B. added to
the Castilian definition by including the idea that entrepreneurs has to
be leaders. That an entrepreneur is one who build a single product
organism. (Schumpeter, 1951)
The necessity of entrepreneurship for productivity was formally
recognized by Alfred Marshall in 1990. In his famous practice
principle of economics,Marshallascertains 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 improve the plan of producing an old commodity.
Hence early entrepreneurs were characterized with production and
manufacturing. In this case, the producers most often started with small
capital. Early entrepreneurship started with trade by barter even
before the advent of money. However, modern entrepreneurship
inNigeriastarted with the coming of the colonial masters, who brought in
their wears and made Nigerians their Middlemen. In this way modern
entrepreneurs was conceived. Most of the modern entrepreneurs were
engaged in retail trade or sole proprietorship.
1.2 STATEMENT OF PROBLEM
When comparing entrepreneurship development inNigeriawith other
countries likeAmerica,Japan, China etc, we realize that these countries
started on the same platform asNigeriastarted with trade by barter and
then advanced to their present state of economic growth. In fact they
are faster in their development of entrepreneurship thanNigeria. Why
this differences? This research work will find out to this effect the
1) The general problem encountered by entrepreneurs inNigeriain establishing business.
2) To find out the basic orientation that should be given to Nigerian entrepreneurs.
3) To discover the rate of employment and find out the various
business opportunities that will be of help to the Nigerian economy
4) To also find how government program has been of help to various entrepreneurs in the country.
1.3 PURPOSE OF STUDY.
From all that has been mentioned above, it is the aim of the study to
find out the or know entrepreneurial benefits on the following:-
- Small scale business
- To various employers and employees
- To business organizations.
SMALL SCALE BUSINESS
The small-scale business will benefit immensely, if the government is
encouraging entrepreneurs in the country and proper orientation on
their obligation as an entrepreneur towards business is given. Besides,
an enabling environment should be created to enable them to thrive, and
also carry out their functions in the business environment. Thus
small-scale business in the country will grow if government can also
provide financial assistance in order to encourage the individual
There will be a tremendous increase or improvement in the Nigerian
economy. Entrepreneurship will be of benefit to industrial, household,
firms and government. In the area of decision making, organizing the
organizational structures, and making out plans are accomplished. Thus,
this will go a long way in increasing job opportunities in the country,
which in turn will reflect on the country’s capital income, and this
will increase the rate of the G. N. P.
TO VARIOUS EMPLOYERS AND EMPLOYEES.
Entreprenurship will be of importance to employers and employees. In
the areas of employers, it will enrich their managerial skills, their
vision, purpose and plans for the organization. Also in the area of the
employees, there will be job opportunities for the graduates and other
school leavers and this will reduce the rate of dependence ratio in the
country that is not solely relying on government to provide jobs. To
this effect, the government has introduced various programs under the
N.D.E.so as to motivate both the employers and employees. Under this
program, the N.D.E. provides loans to graduates for the operation of
TO BUSINESS ORGANIZATIONS
Entreprenurship will also be of immense benefit to business
organizations because the Nigerian economy and its environment will be
an investing area for most investors due to capable skilled workers that
will handle the affairs of the organization or company without
involving much foreign counterparts on the job. Thus, will in turn
create more job opportunities in the country and this will increase the
level of organizational profitability ratio.
1.4 SCOPE OF THE STUDY.
It is an obligation on the part of the researcher to survey and
evaluate the purpose of entrepreneurial development and its benefits to
the economy. The researcher will also find out the tactics of an
entrepreneur in the 1980’s, the causes and the brain behind their
failures and success. The researcher will also find out various
economics scholars who have contributed immensely to the growth of
entrepreneur in the world. The researcher will also find out more
information about entreprenurship in the country. However, the study of
the researcher covers the purpose of entrepreneur in the country
1.5 RESEARCH QUESTIONS
The following research questions were imposed: -
i What is the essence of Entrepreneurship in an economy?
ii What are the problems of Entrepreneurship?
iii Does organization benefit from entrepreneurs?
iv What has the government done for entrepreneurs in the country?
1.6 RESEARCH HYPOTHESIS
The following hypothesis would be tested: -
i Ho – Entrepreneurs does not encourage large scale production in the economy.
Hi – The essence is to build up the nation’s economy to create employment and to improve managerial skills.
ii. Ho- Entrepreneurial problems are not only in the following level of Managerial skill and poor infrastructure.
Hi – Entrepreneurial problems inNigeriaare as follows: -Financial
Constraint, lack of managerial skills and poor orientation.
iii Ho- Organizations benefits from entrepreneurs in organizational planning.
Hi – Organization does not benefit much from entrepreneurs due to Inefficiency of job performance.
iv Ho- Government plans towards the provision of credit facilities is not encouraging.
Hi- Government plans for entrepreneurs is to provide credit facilities to various entrepreneurs in the country.
1.7 SIGNIFICANCE OF THE STUDY.
The importance of the study cannot be over-emphasized, since it is
expected to affect our economy and also increase the creation of job
opportunities in the country especially inEnugustate. However, this
project when completed will be of immense benefits to the following: -
- The Nigerian economy in general
- The small-scale industries
- The general public
- Creation of job opportunities in the country.
- Also there will be increase in the managerial skills.
1.8 LIMITATIONS OF THE STUDY
The study is limited to the benefits and impact of entrepreneurial development with special attention toEnuguState.
Besides, in the course of studying or conducting this research,
there are some hindrances like not having enough materials to research
on. Also the researcher is faced with time constraint as it has an
effect on my study time in the framework of my school assignments and
1.9 DEFINITION OF TERMS.
The following terms used in this study should be taken to mean the following.
These are articles of trade
National Directorate of Employment
These are new existing products in the market environment
G. N. P
Gross National Product
This is a person who starts a business and takes the finance risks and personal risks involved in keeping the business going.
An entrepreneur is an individual agent who buys means of production
at a certain price in order to combine them into new product.
ANI B.N. (1999) Entrepreneurial Development Enugu J. T. C. Publishers,Edinburgh Road.
ODIKE J. C. (2001) Managerial EconomicsEnugu, J. T. C. Publishers,Edinburgh Road.