ABSTRACT
This research work, the Factors Influencing Entrepreneurial
Performance of Small Scale Business. The general objectives of this
study are to assess the factor that influence entrepreneurial
performance in small and medium scale enterprise (SMEs) and also to
assess how each factor identified affects the success of the of the
entrepreneur in small scale business. The primary data for this research
work was obtained through questionnaire response, personal interview
and personal observation. This was supplemented with secondary data.
Chi-square technique was used as a tool to test the hypothesis. It was
observed that there is a significant relationship between personality
trail and entrepreneurial performance and other variables such as
demographic feature, research and development (R&D), technology etc
can also influence the performance of entrepreneur in small scale
sectors. In the light of the above, it was recommended that
entrepreneurial development should become part and parcel of tertiary
institutions curriculum and also entrepreneur should be encourage to
attend training programmed in business management. This research works
concluded that entrepreneurship is regarded as an integral part in the
business culture of Nigeria economy and particularly as an engine for
job creation and economic growth.
CHAPTER ONE
INTRODUCTION
1.0 Background of Study
Entrepreneurship is increasing recognized as an important driver of
economic growth, productivity, innovation and employment, and it is
widely accepted as key aspect of economic dynamism. This has amplified
the studies on small and medium enterprises (SME) growth and more
importantly the formal and informal attributes associated with the
entrepreneurs who have led their companies successfully to growth stage.
Certainly, for an entrepreneur to be successful in terms of
establishing any form of small scale business, certain factors must be
put into consideration that can boost the inspiration of the
entrepreneur for effective and efficient management of his or her
business in achieving the set objectives.
An entrepreneurs can be seen as people who have the ability to see
and to evaluate business opportunities to gather the necessary resources
to take advantages of them and to initiate appropriate action to ensure
success Meredith et al (1982).
According to Ozigbo (2000), argued that there is no legal or single
clear cut of definition of what constitutes small scale enterprise in
Nigeria. And the classification of businesses into small, medium or
large is a subjective and quantitative judgment Ekpenyoung and Nyound,
(1992) under the Central Bank of Nigeria (CBN) monetary and credit
policy guideline for 1996, as reported by Ozigbo (2000), small scale
enterprises is an enterprise with fixed assets excluding land, but
including working capital not exceeding ten Million Naira (l0m).
In view of the above, it is necessary to study or review several
factors that influence the performance of entrepreneurship in small
scale business.
Obviously, there are various factors that can influence
entrepreneurial performance either positively or negatively such as
change in present life style, education, personal values, age, work
history, role Models and Support systems, moral support network and
professional support network, these factors can rather make or mar the
performance of entrepreneurship.
Most importantly, it is very necessary in this background of study to
recognized the fact that the management of entrepreneurship is always
at the hand of one or two persons who put their idea, skills,
techniques, creativities and resources together in order to implement or
innovate some thing new and they also act or serve as the manager’s
proprietors and pioneers who pilots the affair of that business because
entrepreneur are seen to be optimistic moderate risk taker and believing
in his or her ability to control his or her own business rather than
just making money.
Carland, Hoy et at (1984) define an entrepreneurship as an individual
who established and managed a business for the principle purpose of
profit and growth.
In this context entrepreneurs could make much better choice,
ironically by adopting some strategies and principles for achieving a
better entrepreneurial performance.
The following are some of the strategies to employs,
Do your research,
Have a good mentor,
Learn to exercise patience,
Stay within your budget,
Always be moving,
Make sure you enjoy what you do,
Self confidence and perseverance,
Feasibility studies,
Management training and development,
This picture that emerge might lead one to conclude that, despite the
attempts by government to support small scale business in Nigeria,
small firms have not be able to fully realize their potential because of
the hostile environment borne by economic decline.
Conclusively, it appeared that entrepreneurs are face with economic
difficulties, which lead to the study of factors influencing
entrepreneurial performance in order to profile a reasonable solution
for sufficient and effective performance.
1.2 Statement of the Problem
Studies have shown that self-awareness or personal knowledge can
improve the performance of entrepreneur, but lack of studies on the part
of entrepreneur prompt the question about its importance. The major
concern is that, an entrepreneur should have in-depth knowledge about
the existing and inevitable environmental factors. The most probable
factors contributing to this problem is believed to be the possibility
of certain environmental factors.
The problem and its dimension may be stated as follow:
a) The environmental factors which consist of dynamism, munificence, complexity and industry characteristics.
b) Weak environmental orientation in terms of autonomy,
innovativeness, risk taking, proactiveness, competitive and
aggressiveness.
c) The demographic characteristics which consist of growth, age, education and marital status.
d) Lack of entrepreneurial skills, in research and development
(R & D), insufficient funds (capital) and poor expertise.
1.3 Objectives of the Study
The purpose of this study is to ascertain a superior managerial
performance with special emphasis on entrepreneurial competences
required for a successful performance.
The general objective is as follow:
a) To assess the factors that affects the success of the entrepreneur in small scale business.
b) To assess how each factors identified can affect the success of entrepreneur in small scale business.
c) To examine how research and development (R & D) can improve an entrepreneurial performance in small scale business.
1.4 Research Questions
The above research problem and purpose leads to the formation of
question at which the answer to those questions would proficient
solution to the problem. The questions are stated below;
1. What are the relationship between environmental factors and entrepreneurial performance in small scale business?
2. What are the relationship between research and development (R&D) and entrepreneurial success?
3. To what extent does technology affect entrepreneurial performance in small sale business?
1.5 Research Hypotheses
H01: There is no significant relationship between personality trait and entrepreneurial performance.
H02: There is no significant relationship between research and development and entrepreneurial success.
H03: There is no significant relationship between technology and entrepreneurial performance in small scale business.
1.6 Scope of the Study
This research work focus on a niche-segment which indicates
entrepreneurial performance in few selected small scale business in
Asaba, Delta State capital. It also limits itself on how an
entrepreneur’s can improve their skills for effective and successful
performance in small scale business.
This research work covered a duration of 10 (ten) years from
(2002-2012), with the use of primary data like questionnaire and direct
interview being carried out among residents in Asaba, Delta State
capital.
1.7 Significance of the Study
This research study indicates the value, knowledge and contribution
of difference scholars in regards to factors influencing entrepreneurial
performance in small scale business.
The need to study this research topic becomes imperative because it highlight the following;
a) Vital information that can enhance an entrepreneurial success in small scale business.
b) The need for an entrepreneur to adopt managerial skills for effective performance.
c) The efficacy of technology toward entrepreneurial success.
d) Also to identify the series of factors that influence entrepreneurial performance.
Thus, the success of business is due to many factors, but among the
greatest determinants of a business success is the entrepreneur.