Entrepreneurship as we all know is a self employed business which is written for student who must live in a world influenced by business activities, because without business human being cannot operate on his own self.
The aim of this project is to provide both student who have graduated from the university and still seeking for job either in federal or private work to be self employed.
Nigerians are now forced to start a fresh re-wakening to the challenges and realities of true national that is a creation of new emphasis on self-employment. Graduates and school leavers are now realizing that government have no interest to come to there and through paid employment.
Some problem, business men encounter during this self employed job in entrepreneurship is that people seem to lack the ability to perceive profitable business opportunities even as the opportunities come and also they seem to be unwilling to take risk on perceive opportunities for fear of losing their capital and some are ignorant of existing business opportunities.
Also this project will also help graduates student to know how, where, what they needed in order to start a business of own the benefits one get in doing business of his own it been independent and how to become a millioner.
LIST OF TABLES
3.4 THE SAMPLES SIZE IS DETERMINE
3.7 PRESENTATION OF DATA IN FREQUENCY TABLE OF DISTRIBUTION
4.1 ADMINISTRATION OF QUESTIONNAIRES
4.2 SEX DISTRIBUTION OF RESPONDENTS
4.3 MARITAL STATUS OF RESPONDENTS
4.4 EDUCATIONAL QUALIFICATION OF
4.5 NATURE OF ESTABLISHMENTS
4.6 TYPES OF PRODUCTIVE ACTIVITY
4.7 RESPONSES TO RATE OF GROWTH OF SMES
4.8 FACTOR RESPONSIBLE FOR RAPID GROWTH IN THE NUMBER OF SMES
4.9 RESPONSES TO AWARENESS OF GOVERNMENT EFFORTS TO PROMOTE SMES
4.10 INSTITUTIONAL ARRANGEMENT AND LOANS SCHEMES FOR ENTREPRENEURSHIP DEVELOPMENT
4.11 ASSESSMENT OF GOVERNMENT EFFORTS
4.12 PROBLEMS ENCOUNTERED AT THE INITIAL STYLE
4.13 CURRENT PROBLEMS
4.14 RESPONSES TO PROSPECTS FOR RAPID
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research questions
1.5 Significance of the study
1.6 Definition of terms and acronyms
2.1 Meaning of entrepreneurship
2.2 Nature of entrepreneurship development in Nigeria
2.3 Institutional arrangement for facilitation of entrepreneurship development in Nigeria
2.4 Problems of entrepreneurship development in Nigeria
2.5 Prospects for rapid and sustained entrepreneurship development in Nigeria
2.6 Summary of review of related literature
3.1 Research design
3.2 Sources of data
3.2.1 Primary source
3.2.2 Secondary source
3.3 Population of study
3.3.1 Sample and sampling techniques
3.5 Method of data collection
3.6 Method of data analysis
3.7 Scope of the study
3.8 Limitation of the study
Presentation and analysis of data
4.1 Data presentation and analysis
Summary, conclusion and recommendations.
5.1 Summary of findings
5.4 Area for further studies
1.1 BACKGROUND OF THE STUDY
Enterprise states limitless prospects and reward for private enterprise and self-employment. It is an economy that rewards creativity, initiative and hard work (Ugbaja, 1998:115). Nigeria is one of such economy. People are therefore self-determining in their approach to life. Every one seems to be thinking of what he or she can do with his or her hands or brain, since it is obvious that the government cannot provide gainful employment for all the people.
Since 1960, the country’s development plan have land a great emphasis on public sector control of the economy (Eze 1997:12) we have a situation where the public/private sector mix has increasingly titled towards public sector domination. The trend has generally distinguished the government as a major investor in a let of business which otherwise should have been left to the private sector (Ike 1998:23) the net effect of this type of government participation in (and control of) business activities has been the emergence and general perception of the government as the provider of almost all that make life worth living, including employment.
But today the situation is changing. Bad economic management on the past leaders, wasteful attitude of the government and the people as well as the relegation of the agricultural sector and private initiative has now given way to hunger, squalor, diseased and mass unemployment among other (Okeke, 1997: 29).
Nigeria appears to be currently finding the right path to a possible entrepreneurial venture in the 21st century. Nigerians are now forced to start a fresh re-awakening to the real challenges and realities of true nationhood. The new emphasis on self-employment is understood to be in line with the above consideration. The unemployment situation in the country is luring a lot of unemployed Nigerians, including graduates into self-determination through self employment (Aluko, 1988:15)
Graduates, and school-leavers are now realizing that government and the organized private sector enterprises are not ready to come to there and directly through paid employments. Short of alternative, Nigerians are therefore launching themselves into various business ventures (Ogudu, 1977:15).
The low literacy level and general ignorance, which pervade and cause a lot of bad attitude and malpractices within the Nigerian business environment would be seriously challenged and overcome with the new trend. Entrepreneurship will eventually assume a new perspective. It is against the background that this study attempts to examine the challenges of entrepreneurship development in Nigeria.
1.2 STATEMENT OF THE PROBLEM
The new emphasis on self-employment is evidenced by the rekindled entrepreneurship in the country appears, to be facing some serious constraints. In the first instances, people seem to lack the ability to perceive profitable business opportunities even as the opportunities come.
Secondly, they seem to be unwilling to take risk on perceived opportunities for fear of losing their capital.
Thirdly, most people who are willing to take risk seem to lack entrepreneurial skills associated with business management.
Again, many are ignorant of existing business opportunities while others who are willing and have perceived such opportunities lack the start-up capital.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study are therefore:
1. To examine the nature and dimension of entrepreneurship development in Nigeria.
2. To examine some of the efforts of the government at encouraging entrepreneurship in Nigeria.
3. To identify the factors constraining rapid entrepreneurship development in Nigeria.
4. To examine the prospects of rapid and sustained entrepreneurship development in Nigeria.
5. To suggest ways of facilitating entrepreneurship development in Nigeria.
1.4 RESEARCH QUESTIONS
The following research questions are formulated for the purposed of this study.
1. What is the nature and dimension of entrepreneurship development in Nigeria?
2. What measures have the past and present government taken to encourage entrepreneurship development in Nigeria.
3. To what extent is the business environment favourable to entrepreneurship development in Nigeria?
1.5 THE SIGNIFICANCE OF THE STUDY
This study will be found useful by namely individuals and institutions. This is because its because its findings and suggestions will be invaluable to those who will have the opportunity of going through the work.
In the first instance, graduates and school leaves will particularly benefit from the study. Given the level of unemployment in the country and the rate of turn-out of graduate in the country and the rate of turn-out of graduates and school leaves from Nigeria educational institutions there is the need for a new emphasis on self employment and self-determination. The study will show the various programmes and opportunities open to these individuals to become self-employed and independent in pursuing their daily living. Besides, the study will examine and identify the various challenges facing potential entrepreneurship development in Enugu. The recommendations will include how these individuals will overcome the problems.
Secondly, businessmen will also find the study interesting; it will show how and why many entrepreneurs have not become successful given the prevailing economic circumstance in the country. The recommendation will help them more innovative taking initiative and risks in the course of managing the business.
Thirdly, government will also find the study useful as it will find in it is the reasons why the level of entreprenurship development in the country is very low. This will enable it provide an enabling environment for potential entrepreneurs in the state. Such supporting facilities are believed will help reduce entrepreneurship risk and facilitate the venture.
Furthermore, the study will show how rapid and sustained entrepreneurship development will promote industrial development in Nigeria.
Finally, the study will be found useful for academic purposes. It will serve as a data bank for students or other researchers who will carry out studies on the subjects matter or related areas in the futures. Besides the research findings can provide the basis for further studies.
1.6 DEFINITION OF TERMS AND ACRONYMS
This is an individual who creates a new firm and continues to manage it until it is successful. An entrepreneur is a person who organizes, runs and takes the risk of a small business. He risks money and reputation he works hard and puts his talent on the line. He attempts to earn a profit by taking the risk of operating business enterprises. Entrepreneur is the name given in economic theory to the owner manager of the firm. The entrepreneur organizes resources or the factors of production (land, labour and capital) within their firm with the aim of building up a successful profit making company. Entrepreneur is a French word, which means “the one who undertakes”. An entrepreneur is a person who sets up a business taking a greater than normal financial risks in order to succeed. An entrepreneur is a person who attempts to make a profit by starting their own company or by operating along in the business world especially when it involves taking risks. He is manager, controller and a champion.
Entrepreneurship is the process of establishing a new firm, taking risk and making profit in the process. Entrepreneurship or business enterprises refers it a group of skills, which includes the ability to combine land, labour and capitals in the most efficient way, the willingness to run the risk of the business failure and the creativity required to invent new products and new ways to market them. Entrepreneurship can be considered a special type of human resources. Entrepreneurship is the act or process of getting into and managing your own business enterprises. This involves any form of innovation that has a bearing on the welfare of the firm.
3. BUSINESS ENVIRONMENT
Business environment means all the physical facilities, environment factors, opportunities and risks in ones surrounding. One may wonder why the emphasis on the availability of up-to-date information networks for in particular and the Nigerian economy in general. Relevant and current information helps business people to be aware of and adapt to their environments. Environments can and do lead to business success or failure. The factors that make up the environment are constantly changing. So, in order to survive and prosper, business must also change. By environment we mean the sum of all the external forces that influence, legal, economic, political, social and physical element each overlaps and influences the others.
The environment provides three main things to an organization. They are opportunities, threats and constraint. In most cases, these environmental elements present challenges and problems to business. One can rightly say that environmental factors play a decisive role in determining the success or failure of any organization. As such any organization or entrepreneur that ignores or refuses to respond (or adopt) to these factors is breeding trouble for itself. The ability and willingness of an entrepreneur to make maximum use of the opportunities provided by its environment, avoids or maneuver its threats and operate within the constraints reflect the hall mark of a responsive and efficient entrepreneur. A good entrepreneur should aim at effectively matching the opportunities and demand of the environment with the strengths and weaknesses of the organizations resources-human, financial, physical, system and technology.
The scope of an enterprises business environment can be categorized into three major groups:
a. Internal environments
b. Task environments
c. The general environments
a. INTERNAL ENVIRONMENTS:
The internal environment (or climate) of an organization can be seen from two main angles:
- Identification of the resources of an organization.
- The analysis of the perception of the enterprise members.
That is what organization members feel about over all management style; organization’s nature and character.
Organizational resources deal with the following resources: financial resources, physical resources, human resources and system and technological resources.
b. TASK ENVIRONMENT:
Task environment is also known as direct action environment. Task environment of an enterprise consists of other specific organization that is likely to influence that enterprise. The basic elements of the task environment include; competitors, customers, suppliers, regulators, union and associates.
c. GENERAL ENVIRONMENT:
There are many aspects and dimensions of the general environment and they are: the economic environment, political and legal environment, the cultural and social environment and the international environment
4. VENTURE CAPITAL:
Through new in the country, venture capital could be a good source of finance for a new business that is pioneering in a new field and for existing business with innovative business proposals and bankable project ideas. This means that it is a high-risk investment in ideas and ventures. It invests on relatively undeveloped business areas that promise good growth potentials. This may account for the reasons why it is less attractive to many investors especially in a country like Nigeria with unstable political and economic environments.
Venture capitals areas of interest include new services process and products in commercial, industrial and scientific industry. Hence the company concerned with it (venture capital company) is a highly specialized company capable of commercializing unique business opportunities and research findings. Their financing take different forms, but the most common is by means of straight exchange of shares for the funds. The company may also act as advise to the new business, providing background support in financial marketing and managerial areas. It may also have a hard in selected a board of directors for the new business. Many commercial and merchant banks in this country have venture capital departments manned by specialists.
Entrepreneurs and firms should avail themselves of the services of the venture capital departments and companies. This is because venture capital can turn small business into medium sized and giant enterprises, thereby contributing immensely to the economic development of this country.
5. START UP CAPITAL
This refers to the capital required to set up a business. It is the second of financial set after seed capital. Start up capital is involved in developing and testing initial product and services to determine if commercial sales are feasible. This type of capital is needed to apply to the following:
- Production development
- Initial marketing
- Expansion or development financing
6. SMALL TO MEDIUM SCALE ENTERPRISE (SMES)
The working definition of SME varies among countries industrial goods and financial institution. Generally, in determining what should be a small or a medium scale business, many different criteria have been used number of employees, as sets value, sales volume, financial strength, number of locations, relations and so on. Against, this background, the following definitions are used at different times and circumstances in this country.
- Osaze (1986) sees small business as one which is owned, managed controlled by one or two person, is family influenced in decision making, has an undifferentiated organizational structure, has a relatively small share of the market and employs less than 50 people.
- The Nigerian Bank for commerce and industries (BNC) in 1981/82 (for the purpose of reveling loan scheme for small scale industries), regards small scale enterprises as those investing no more than N500, 000.00 (excluding working capital but including land)
- In respect of the scale industries credit schemes (SSICS) the federal Ministry of industries held small–scale industry to be any manufacturing, processing or service industry with capital investment not exceeding N150, 000.00 in machinery and equipment alone.
- The industrial research unit of Obafemi Awolowo university, Ife defined small-scale business as one whose total assets in capital, equipment, plant and working capital are less than N250, 000.00 and employing fewer than 50 full time workers.
- In the 1991 credit guideline (monetary policy circular No 25) the central Bank of Nigeria (CBN) states that small-scale enterprises for commercial and merchant banks’ loans is defined as one whose capital investment does not exceed N5 million (including land and working capital) or whose turnover is not more than n25 million annually.
According to section 351 subsection 1 of the companies and Alhed matters decree 1990 (CAMD) a company qualified as a small company in a year if for that year the following conditions are satisfied:
* It is a private company having a share capital.
* None of its members is an alien
* The amount of its turnover for the years is not more that N2 million or such amount as may be fixed by the commission (ie corporate Affairs commission)
* None of its members is a members of government corporation or agency or its nominee and
* The directors between than hold not less than 51 percent of its equity share capital.
7. BUSINESS PLAN:
The business plan of an entrepreneur is a document which shows what the entrepreneur want to do how he wants to do it and who will do it. Planning is the process while business plan is the document.
8. BUSINESS OPPORTUNITIES:
This means introducing a new product, changing existing production line.