THE IMPACT OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA(A STUDY OF SELECTED ENTREPRENEURS IN SOUTHERN AREA)

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The level of development of any nation is measured by its economic activities and productivity. Also, the economic realities of a nation are a function the rate of investment (public or private). The rate at which the investors commit their funds either to expand existing plants or to start a new project entirely depends on their perception of the economic environment prospects at a given time.

Government alone cannot provide all the investment needed in a country. To complement the government’s effort is the private sector. As a result of the perceive role, the private sector can play in giving rise to positive economic growth in a country, several governments including Nigerian have designed programmes and various forms of assistance to spur the support active participation of the sector in economic development. Entrepreneurship development is the major pillar upon which active private sector participation in economic development rests.

The starting point for entrepreneur ship lies in the human needs and wants. The existence of these needs and wants give rise to the concept of products that have utility to satisfy such needs. Man in his quest to satisfying his unending needs find himself into production. In the traditional period, man was involved in self production (i.e. Hunting, farming, fishing etc) and in the modern period.  It’s all about transforming or changing from one or two resource input to a desired output service.

The entrepreneur, the human factor of a different order from labour has the ability to combine other factors to inputs. The entrepreneurial capability being a rate germ in business is highly soured. The ability to initiate a business idea and also take position decisions in combining other factors of production (land, labour and capital) for efficient and effective utilization despite all environmental problems (the focus of this study) determines who’s an entrepreneur. This therefore has its peculiar characteristics, problems and prospects. While most people allow condition to control their attributes the entrepreneur use their attitude helps the budding entrepreneur to focus on desired activities and events and result he hopes to achieve even negative experiences will contain something positive mental attitude towards all events and look from every experience.

1.2   STATEMENT OF THE PROBLEMS

In Nigeria, investment opportunities open to both public and private sectors of the economic. The private sector opportunities are limited to those areas where the government or public sector has not help away. The private sector of the Nigerian economic remains a fertile ground for investment when due cognizance is taken off the Nigeria market and potentiality of economy. The investment opportunity that abound are now even more than before the present economic crisis, thanks to the various economic emergency measures that have succeeded in driving the truth home to Nigerians that the survival of the country is in their hands.

The Nigeria entrepreneurs are taking up the challenge of self reliance and recovery. The entrepreneurial capability being a rare and a factor embedded in the personality, its problems are partly natural and partly the product of interaction between innate disposition of individuals and their environment viewed as an entire social system. In view of this, entrepreneurial problems can be grouped controllable and uncontrollable.

The problems of entrepreneur vary from country to country due to their level of development and natural endowment in most developed countries like USA and Britain, the entrepreneurial ability and capability has been aided to develop in the individuals by sophisticated system of data collection.

On the hand, the development of entrepreneurial capability in the developing countries (Nigeria) has been growing, through at a slow pace due to inherited patterned of economic policies and development programmes and factors inherited in the environment. And also the desire of math political independence with economic independence. The development and establishment of bogus programmes and strategies that is less relevant to the problems, Ali Akeredolu (1975:20) in a study under development of   indigence entrepreneur in Nigeria, pointed out amongst other things, that aside from socio – structural factors, historical factors have been largely responsible for the way and manner entrepreneurship have developed in the country.

Hence, the available studies on entrepreneurship give clear evidence that entrepreneurship in less developed countries like Nigeria under is under-developed.

1.3   OBJECTIVES OF THE STUDY

The main objective of this study is the challenges of records management in a business organization. Other sub-aims are as follows

1. To find out the problems that exist in finding an entrepreneur in Nigeria
2. To determine whether raw materials constitute problems for indigenous entrepreneurial development in Nigeria
3. To examine the problems associated with the management of an enterprise?
4. To find out the factors that militates against entrepreneurial development in Nigeria?

1.4 RESEARCH QUESTIONS

The following question shall be as used in the course of this research study.

1. What problems exist in finding an entrepreneur in Nigeria?
2. Does a raw material constitute problems for indigenous entrepreneurial development in Nigeria?
3. What are the problems associated with the management of an enterprise?
4. What factors militate against entrepreneurial development in Nigeria?

1.5 SIGNIFICANCE OF THE STUDY

Entrepreneurship capabilities of any nation are like pivotal point upon which its economic industrial and social environment revolves on. When a nation is under – developed, she has to look inward upon her citizenry and their entrepreneurial to fashion out modalities for her development.

On this backdrop, the study is relevant and useful in the following ways:

1. it will help to identify inhibitive factors of the nation’s entrepreneurial deficiency or under-developed.
2. It will serve as a research or vehicle upon which policy formulation can be based as to tailor out solutions to the problems of entrepreneurs in the country and Bayelsa State in particular.
3. It will become a part of growing body of literature on the subject.

1.6 SCOPE OF THE STUDY

This study is intended to cover wider geographical locations in Nigeria, however in view of time constrain and inadequate finance to tour other area with the country specific emphasis is place within the Bayelsa State Capital, Yenegoa. The industries or firm are manufacturing Trading, Farming and individual business outfits (like shalom world collection in the state which are viewed in the following areas;

–       The structure of the operational firm or industry.

–       Duration of firms operation.

–       The capital base of the firm.

–       Raw materials procurement and problems.

–       Managerial competency and personnel.

The above information is hoped to be gathered through primary and secondary ate collection and are thoroughly analyzed.

1.7 LIMITATIONS OF THE STUDY

This research work will in no small measure encounter problems. These unavoidable problems are big constraints to this research work.

First, these problems range from unavailable of time for the research study to financial constraints. Another inhibiting problem is the unwillingness of the respondents to give out information because they see researcher as a spy to their business secrets.

Another major problem is the bureaucratic characteristics of Nigerian organization. It will take several visits after booking appointments to see the director after you will be directed to the manager to accountant and to supervisor and back to the director with the claim of ignorance and they are managers in name and designation and not in position to talk on such issues as required.

1.8 DEFINITION OF TERMS

Controllable:   These are internal environment factors or variable that influences the decision of the entrepreneur in one way or the other but are subject to control or change the entrepreneur. These variables include labour, material, money and management etc.

Cottage industry: cottage industry or small scale industry is defined by the Central Bank of Nigeria in 1984 as an establishment whose turnover does exceed N500, 000.00. Many other definition look at either from the number of employees and share of the market. Others look at it from the angel of management structure or limit on capital investment. Entrepreneur is one who has the skill, ability, willingness and drives to identify and establish an investment opportunity whether in large or small scale. He is the prime mover of all other resources of the organization (land, labour, machines, money and material (resources) in order to achieve optimal result and efficiency. He bears all the risks in the business and its management.

Equity Capital: This is a capital structure or fund provided for establishment of an enterprise through issues of shares and those who buy such shares automatically become part owners of the business.

Management: management is an adroit combination and utilization of organization scarce resources (human and non-human) for an optimal result.

Market:   market as used in this study text is differentiated from market place and means the real demand (consumers) of one product.

Marketing concept: This is the management orientation that holds that the key to achieving enterprise objectives depends in determining and satisfying the needs and wants of the target market.

Uncontrollable: These are the external factors that are beyond the control of the entrepreneur due to their incessant changes and they also have greater influence on the entrepreneur’s decision. Law, nature, politics, technology,etc.