THE IMPACT OF FOREIGN CAPITAL IN ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF IMO STATE)

ABSTRACT

The purpose of this study is to determine the impact of foreign capital in entrepreneurship development in Nigeria. To do this, data were collected through questionnaires and literature review.

The data were presented in table as frequency distribution and analysed with frequencies and percentage.

Having analysed the data, the following are the major findings

v  Multilateral organization, foreign government and private investors provide foreign capital for entrepreneurship development in Nigeria.

v  Foreign capital increase loanable funds for Nigeria entrepreneurs, provides funds for importation of foreign machinery and equipment as well as for entrepreneurship training in management.

v  Nigeria entrepreneurship can also arise foreign capital from international capital markets while multinational companies indirectly finance entrepreneurship development in Nigeria.

LIST OF TABLES

4.1              Administration of Questionnaires.

4.2              Sex Distribution of Respondents

4.3              Age Distribution of Respondents

4.4              Marital Distribution of Respondents

4.5              Educational Distribution of Respondents

4.6              Organizational Distribution of Respondents

4.7              Responses to provision of funds for entrepreneurial development

4.8              Types of Entrepreneurial venture funded

4.9              Nature of Entrepreneurial activities

4.10          Source of Loanable funds

4.11          Responses to access to foreign capital

4.12          Source of foreign capital

4.13          Reponses to contribution of foreign capital to entrepreneurship development.

4.14          The role of foreign capital in Entrepreneurship development in Nigeria

4.15          Responses to foreign private investment and promotion of entrepreneurship development

4.16          Reponses to Nigeria entrepreneurs and fund raising from international capital  market

4.17          Multinational companies and provision of foreign capital for entrepreneurship development.

TABLE OF CONTENTS

CHAPTER ONE-- INTRODUCTION

1.1              Background of the study

1.2              Statement of problem

1.3              Purpose of the study

1.1              Scope of the study

1.2              Research questions

1.3              Research hypothesis

1.4              Significance of the study

1.5              Limitation of the study

1.6              Definition of terms

References

CHAPTER TWO-- REVIEW OF RELATED LITERATURE

2.1              Review of related literature

2.2              Nature of entrepreneurship development in

Imo state

2.3              Institutional arrangement for enhancing entrepreneurship development  in Nigeria

2.4              Challenges of entrepreneurship development

In Nigeria

2.5              International organisation and entrepreneurship development

2.6              The role foreign capital in entrepreneurship development in Nigeria.

References

CHAPTER THREE - RESEARCH DESIGN AND METHDOLOGY

3.1       Research design

3.2      area of the study

3.3     population of the study

3.4     sample and sampling procedures and      techniques

3.5     instrument of data collection

3.6     validation of the instrument

3.7     reliability of the instrument

3.8     method of data collection

3.9     method of data analysis

            References

CHAPTER FOUR----DATA PRESENTATION AND ANALYSIS

4.1                          Presentation and analysis of data

4.2                          Testing of hypothesis

4.3                          Summary of results

Reference

CHAPTER FIVE-----DISCUSSION RECOMMENDATION AND CONCLUSION

5.1                          Discussion Of Result And Finding

5.2                          Conclusion

5.3                          Implication

5.4                          Recommendation

5.5                          Suggestion for further research

References

                  Bibliography

                  Appendix i.

                  Appendix Ii

CHAPTER ONE

INTRODUCTION

 In this chapter the research introduced the topic role of foreign capital in Entrepreneurship development in Nigeria (A case study of Imo state. 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 padages 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 liaising 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 is:

1.                  To examine the nature of entrepreneurship development in Imo 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 Imo 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 Imo state.

1.5                                                                                      RESEARCH QUESTIONS

1.                  What is the nature of entrepreneurship development in Imo 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 Imo state?

1.6              RESEARCH HYPOTHESIS

HYPOTHESIS ONE

Ho: Nigerian entrepreneurship do not have access to foreign capital

Hi: Nigeria entrepreneur have access to foreign capital.

HYPOTHESIS TWO

Ho: Foreign capital does not contribute significantly to entrepreneurship development in Nigeria

Hi:       Foreign capital does not contribute significance to entrepreneurship development in Nigeria

HYPOTHESIS THREE

Ho:      Foreign private investment does not enhance entrepreneurship development

Hi:       Foreign private investment enhances entrepreneurship development

 SIGNIFICANCE OF THE STUDY

This study will be useful as it will serve various purposes. 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 role 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 these 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 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.