THE ROLES OF INDIGENOUS ENTREPRENEURSHIP IN THE DEVELOPMENT OF NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Entrepreneurship is a dynamic process of creating incremental wealth. The creation of this wealth, the entrepreneurs assume the major risk in terms of equity time and career commitment of providing value for some products or services.

According to Robert E. Holmes, Ph.D (Dean of UAB’s school of Business) “Entrepreneurship is more a philosophy than anything else, it is a way of not only taking advantages of existing opportunities but also bringing new opportunities into being”.

To an economist, an entrepreneur is a factor of production one that can coordinate other factors of production such as land, labour and capital to make greater value and also who initiate changes and innovation of a new order of business.

To the psychologist an entrepreneur is a person who have a goal – direction for the fulfillment of needs. To a businessman an entrepreneur is one who takes risk to start and run a business that create wealth for others as well as finding better ways to utilize resources waste and create jobs that other are glad to get.

The idea of entrepreneurship is not new in Nigeria. Entrepreneurship existed before the coming of the colonial masters. There was no paid employment prior to their coming. Entrepreneurship activities that have to do with the establishment and operation of business enterprise which include:

1. Identification of investment opportunities
2. Deciding what opportunities to exploit for profit

iii.    Promotion and establishment of business enterprises

1. Pooling of various scare resources for production and distribution of goods and services.
2. Organization and management of the human and material resources for the attainment of the objectives of enterprises
3. Risk bearing and innovation

All these were going on before the coming or the colonial masters. Thus, the importance of entrepreneurship is known to Nigerian. But in the context of our present poverty and unemployment situation in Nigeria, this work will examine the role of indigenous entrepreneurship on Nigeria economy.

The very word “entrepreneur” brings to mind motivated individual who works for themselves. But such people can also thrive within the corporate structure. Within a company. In the technological sector can also be technopreneurship on Nigeria economy.

Perhaps it is necessary to answer some question to really appreciate the issues on ground. These questions are how important is entrepreneurship to the future of Nigerian economy that has depended significantly on oil revenues? As over 60% of our graduates are not able to get employment immediately. Is entrepreneurship a must? Does the way Nigerians view entrepreneurship affect the quality of indigenous entrepreneurs? can the importance of entrepreneurship in the process of economic development of Nigeria be over-emphasized?

From the researcher observation, entrepreneurship development is tantamount to self reliance or self employment or job creation.

Entrepreneurship is wealth creation, it is perhaps the only viable option left for most unemployed Nigerians. Whether retrenched workers, University or Polytechnic graduates, failed politicians and ex-militants, the Nigerian government must encourage entrepreneurship and the orientation of Nigerian need to change towards wealth creation.

1.2 STATEMENT OF THE PROBLEM

The former president of the federal republic of Nigeria, Chief Olusegun Obasanjo set an ambiguous goal for the nation. He wants Nigeria to become one of the world’s top 20 economics during the text “two decades” (2000 – 2010).

In Nigeria past and present efforts to developed entrepreneurship have been sporadic. This can only be compared to trying to cure a sick person without diagnosis. As one and two symptoms of the ailment is being treated that is the situation in Nigeria. Ideas are conceived, industries, small, medium and large scale business spring up here and there, but in 6months or a year, they disappear from the scene.

1.3 OBJECTIVE OF THE STUDY

The purpose of this study is to investigate the role of indigenous entrepreneur in the Nigeria economy. It is aimed at exposing the factors that constrained the indigenous entrepreneurs from functioning effectively and imparting adequately on the economy.

Entrepreneurship is not just about having a great idea, being connected and having the abilities to get the needed capital.

But knowing how to make the most effective use if that idea being able to recognize opportunities, knowing how to bring people together to work towards a shared goal and having the prerequisite knowledge needed for service delivery.

1.4 RESEARCH QUESTIONS

From the above problem statement, the exact research questions would be:

1. What are the reasons for entrepreneurship?
2. How can entrepreneurship roles lead to economic growth?
3. What are the factors that hinder the effectiveness of entrepreneurship in the Nigeria economy?
4. Does entrepreneurship encourage participation in the Nigeria economy?
5. What qualities are essential for successful entrepreneurship?

1.5 SCOPE OF THE STUDY

This work is centered on the role of indigenous entrepreneurship on Nigeria economy. So we shall be considering what entrepreneurship is; the reasons for entrepreneurship, as well as the function of the entrepreneurship. We will also look into the difference businessman and entrepreneur; we will see the importance/benefits of entrepreneurship.

This study will also highlight the problems and challenges of entrepreneurship; there is also a list of some indigenous entrepreneurs. Finally, we will carefully examine the roles of indigenous entrepreneurship on Nigeria economy. Port Harcourt. The capital of city of Rivers State us used as our geographical location.

1.6 SIGNIFICANT OF THE STUDY

This study will be of immense benefit to the following people:

–       Researchers in the field (including entrepreneurs, business administration and management students) for knowledge increase and application.

–       It will be benefits to entrepreneurs as the expected outcome will be applied by them.

–       A wide range of readers both in academic, business world and all other fields of human endeavors especially as they deal with entrepreneurship.

–       Stimulate government to re-examine its involvement and strategies for the encouragement of entrepreneurship and the overall development of the Nigeria economy.

1.7 HYPOTHESIS FORMULATION

H0 There is no relationship between an entrepreneur and a business man.

HA There is a relationship between an entrepreneurship and business but entrepreneur is not an easy feat.

1.8 LIMITATION OF THE STUDY

This study has been restricted to Port Harcourt (Rivers State). Also only selected enterprises were considered in relations to the impact being made by indigenous entrepreneurs to the Nigeria economy.

1.9 DEFINITION OF TERMS

ROLE: A function that a person or thing is expected to have.

INDIGENOUS: That which has its origin and is being produced growing, living, or occurring naturally in a particular region or environment.

ECONOMY:   Household management /administration. It refers to the relationship that exists    between production trade and the supply of money in a particular country.

DEVELOPMENT:  The action or process of         developing or being developed it is an increase that occurs in stage of technological and financial state of a country.

ENTREPRENEURSHIP:       A development of new enterprise within a corporate or organization by a corporate       executive.