In this chapter the research introduced the topic role of foreign capital in Entrepreneurship development in Nigeria (A case study of Enugu state Metropolis). The chapter is broken down into sub – headings. Background of the study, statement of problem, purpose of the study, scope of the study, research questions, research hypothesis, significant of the study. Definition of terms and references.
The sub – heading are discussed below.
1.1 BACK GROUND OF THE STUDY
The current emphasis on entrepreneurship development is informed by the protracted economic downtown which has not only retarded economic growth but aggravated unemployment situation in the country (Ugbaja,2001:22) Hitherto, everyone looked into the government as the provider of employment opportunities. Many Nigeria did not think of self determination as an alternative to government employment. But the worsening unemployment situation currently playing the country has changed this thinking, short of alternatives, many graduates and school leavers as well as other Nigeria are now moving in quest of self determination by launching themselves into various business venture (Eze, 1997:34).
In recognition of the need of foreign capital to enhance entrepreneurship development in Nigeria, the federal government has introduced has introduced a series of policy packages that are designed to attract foreign investment in the Nigeria small and medium enterprises sub – sector. In an attempt to diversify the economy and stimulate foreign private enterprise development government agencies and private institutions are liasing with international with international organization to enhance the letters participation in different entrepreneurship development activities in Nigeria (Onyishi, 2001.19). there are international organization such as the international labour organization involved in promoting small business and entrepreneurship in different part of the world (Afolabi,2001:22). In addition to providing foreign capital these international organizational also provide technical assistance for these African countries. It is against this back ground that this study is set to examine the role of foreign capital in entrepreneurship development in Nigeria.
1.2 STATEMNET OF PROBLEMS
Entrepreneurship development at providing self – employment opportunities for millions of unemployed Nigeria. However, this has not been effectively achieved in Nigeria because of the following.
1. Inadequate financing from local financial institution.
2. The lad of foreign investment in the economy is low and cannot adequately provide foreign capital to supplement the available domestic capital for entrepreneurship development.
3. The present of international organization through which foreign capital can be channeled into the economy is low. All these constrain the repid growth of entrepreneurship development in Nigeria.
1.3 PURPOSE OF THE STUDY
The purpose of the study are:
1. To examine the nature of entrepreneurship development in Enugu state
2. To examine the institutional arrangements development for entrepreneurship development.
3. To determine the role of foreign capital in entrepreneurship development
4. To determine the extent of foreigners participation in entrepreneurship activities
5. To examine the challenges of entrepreneurship development in Enugu state
1.4 SCOPE OF THE STUDY
The scope of this study covers the nature of entrepreneurship development and the impact of foreign capital, in this regard, however the study is concentrated in Enugu state.
1.5 RESEARCH QUESTIONS
1. What is the nature of entrepreneurship development in Enugu state?
2. What are the institutional arrangement for entrepreneurship development?
3. What is the role of foreign capital in entrepreneurship development?
4. To what extent do foreigners participates in entrepreneurship activities.
5. What are the challenges and prospects of entrepreneurship development in Enugu state?
1.5 RESEARCH HYPOTHESIS
Ho: Nigerian entrepreneurship do not have access to foreign capital
Hi: Nigeria entrepreneur have access to foreign capital.
Ho: Foreign capital does not contribute significantly to entrepreneurship development in Nigeria
Hi: Foreign capital does not contribute significance to entrepreneurship development in Nigeria
Ho: Foreign private investment does not enhance entreperneurship development
Hi: Foreign private investment enhance entrepreneurship development
SIGNIFICANCE OF THE STUDY
This study will be useful as it will serve various purpose. Firstly, graduates and school – leavers will be encouraged by this study to take the existing opportunities to entrepreneurship development to be self – determining. In this way, they can stop wasting their time waiting for non – existent jobs in the public sector. Secondly, the study will enable all potential entrepreneurship understand the challenges of entrepreneurship and how they can be overcome. Thirdly, private institution government agencies and Nigeria businessmen with international connections will also benefit from this study. They will understand from this study the need for them to attract or bring foreigners into Nigeria to form participation. This will be a very significant way of making foreign capital to flow into the country for the purpose of entrepreneurial activities. Foreign capital will enable the local entrepreneurs to acquire or procure adequate equipments and infrastructures required for small business or entrepreneurial operations.
Fourthly, the government will also benefit from the study. The rloe of foreign capital in entrepreneurial development can not be over emphasized. The government will see in this study the need to enter into agreements with government of the western and eastern Europe as well as the far east and American on the funding of entrepreneurial programmes in Nigeria. Not only foreign government should this involved but – National organizations. Fifthly, all well – meaning Nigeria will also benefit from the study. This is because it will make them understand the need for increased emphasis and exploration into entrepreneurial ventures and how a sustained entrepreneurship activities will enhance industrial development in Nigeria. Finally, the study will be useful for academic purpose. It will provide useful data and information for all those who will carryout related studies in the future. Besides, the research findings can provide the for further studies.
DEFINITION OF TERMS
Entrepreneur : this refers to any individual who creates new business and manages it until it succeeds.
Entrepreneurship: this is the process of creating a new business and managing it until it succeeds.
Business environment: this includes all the physical facilities, regulation, opportunities and risk there in.
Venture capital: this is the funds which investment institutions loan not for investment purpose.
Business – up capital: this is the capital needed for initial take off of business. Business opportunities: this is a potentially profitable event.
Innovative: this is the development of a new product from an old one.