Entrepreneurship Development in Nigeria – Its Problems and Prospects

Entrepreneurship Development in Nigeria – Its Problems and Prospects 

Entrepreneurship Development in Nigeria – The entrepreneur plays a vita role in the process of economic growth and development.  Iwu Eze A. [1986] in a paper presented in on entrepreneurship development in Nigeria said that an entrepreneur is a contractor, an organizer of an enterprise for the public, a resourceful person with a dream. Entrepreneurs are bold men and woman who have initiative and the ability to lead, manage and take the consequences. They are men of action, risk takers, missioners, creative and highly respected of their ability to effectively and efficiently concubine the functions of management to achieve the goals.

To purchase the complete Project Material, Pay the sum of N3, 000 to our bank accounts below:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

After paying the sum of N3, 000, send your full name, email address and the title of the project topic as text message to our phone: 07033378184

We will send your complete project materials to your email within 10 Mins after payment.

He also noted that during the colonial period, only few of Nigerians could boast of personal or family capital to start off any meaningful business and hence the next place of call for business and financial was bank. It is a well known flat that banking operations during the colonial era were highly and sparsely limited urban centers. The bank at that time existed to serve the internets of the colonial civil servants who had appreciated incomes to warrant banking transaction Nigerians who had no collaterals or big financials to guarantee their loans could not hope on banks to start off any business.

During the colonial era, the Nigerian businesses scene was dominated even at the grassroots levels by inclines, Greeks, Ghanaians, Sierra Lonians and others. These foreign nationals had a better exposition from the Nigerians and with this advantages, it was easy to dislodge them when the colonials left the scene in 1960. Then, in other to give Nigerians an opportunity in participating and shaping their country economic future, the federal government introduced indigenization and enterprise promotion dance of 1972 and  it’s revision in 1977. The objective was to foster economic self-reliance and maximize external intervention in politics.

Against, the national development plans were introduced and also in July 1986 SAP [structural adjustment programme] was introduced. Entrepreneurship constitutes a vital engine in the economic growth and development of nations including Nigeria because it helps in the stimulation of indigenous entrepreneurship, leads to the transformation of traditional industry, creates employment opportunities, generates incomes [locally and externally] contributes to regional activity and co-operation etc.

According to Ani N.B. [1999,5,7] said that entrepreneurship started when people produced more products than they needed and as such, had who also these surpluses with others who also wanted to dispose of their surpluses.  For instance, if a black smith produced more hoes then he needed, he exchanged the surplus he had with what he specialization. This process is known as trade by barter before the advent of any form of money.

Modern entrepreneurship in Nigeria started with coning of the colonial masters and during the era, Nigeria was not their own masters. An entrepreneur often needs starting capital, which is normally small and derived from personal savings or from family sources.

Concrete attempts at encouraging the growth and development of entrepreneurship have led to the establishment of some government agencies as industrial development [I.D], small scale industry corporation [SSIC], Nigerian bank for commerce and industries [NBC], national economic reconstruction fund [NERFUNA] directorate of foods, roads and viral development [DFRRI] etc.

All these have been made to ensure the sustain ace and growth of small and medium scale enterprises in the country.

 STATEMENT OF THE PROBLEM

Entrepreneurship developed which forma the bedrock of all business evolutions and economic miracles of the nation has its peculiars problems, which go a long way in satisfying its growth and development among which are:

a.       The most problems of entrepreneurship development are lack of fund and difficulty in securing loans from banks. Financial limitations constitute a serious set back to the entrepreneurship, they complain that banks are reluctant to grant them credit and even alleged that they often have to offer loans{s}. This inability of an entrepreneur to provide tangible collateral securities for loans make him a misfit in the competitive struggle for limited funds in our snappy economy [Onuoha B.C.1994.183 –184]

B.      The desire for quick returns in business and application of fraudulent practices are inimical to sustain entrepreneurship growth.

C.      Lack of adequate planning, many enterprises do not hire trained and qualified manager to run their business for them.

1. The absence of infrastructure facilities for smooth running of the business example, regular and electricity supply, a functioning telephone system which could reduce the number of times the entrepreneur is on the road, good roads etc.

 PURPOSE OF THE STUDY

The purpose of this study is to find out the followings:

a.       To determine the various enterprise and their activities in the area of study.

b.       To examine the nature of the management practices and their sources of fund.

c.       To determine area of government assistance and to pinpoint area where assistance is lacking.

d.       To determine major problems on countered by these entrepreneurs.

e.       To make recommendation based on the findings, which will be great help to other entrepreneurs and new aspirants into the business.

 SCOPE OF THE STUDY 

This research intends to consider the problems and prospects of entrepreneurship development in Enugu South local government area. This study will give a broader view of problems and prospects of entrepreneurial development in this area and to make recommendation on findings.

 RESEARCH QUESTIONS

In order to solve the research problems, the following research questions will be asked:

a.       What is the nature and extent of government control assistance over entrepreneurial business?

b.       What problems do entrepreneurs encounter in setting up their business?

c.       What are the various types and activities of entrepreneurial business in Enugu south?

d.       What are the prospects of entrepreneurial business in Enugu South?

SIGNIFICANCE OF THE STUDY

Irrespective of the role of entrepreneurs in economic development of Nigeria, enough has not been done in terms of education, awareness and finance assistance.

The study is of great importance to entrepreneurs as a guide in business, in addition the study will as well serve as literature for further studies and will serve as a useful guide in entrepreneurship, the policy makers in business organizations will find it useful also in making decisions.

In addition, it is expected that the findings will help to bridge the gap that may exist or may have existed and to make entrepreneurship business more effective and efficient in the cause of carrying out the business activities.

  LIMITATIONS OF THE STUDY.

This research on the problems and prospects of entrepreneurship development in Enugu south is not an exception to the usual constraints associated with research work. The constraints are:

a. Time: Time has been a major constraint that has militated against the realization of the objectives of the research; especially as the researcher had to carry it out in the midst of academic pressure.

b. Finance: Finance being the life wire of any business and any research work, has posed a major barrier that has immensely militated against the realization of researchers objectives. The researcher faced inadequate finance for the acquisition of the necessary stationeries for the work.

C. Negative attitude of some people interviewed some of the people interviewed were not ready to give out the required information’s needed due to the fact that, they think, the researcher wants to know about their privacy, this issue militated against the realization of researchers objectives.

 DEFINITION OF TERMS:  

For easy and concise understanding of this work, it is necessary that vital terms be defined.

a.       Entrepreneur: An entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk.

Meredith et al [1991] looks at an entrepreneur as an individual who has the ability to see and evaluate business opportunities gather the necessary resources to take advantage of them and initiate appropriate action to ensure success and he is a risk taker.

b.       Entrepreneurship Development:  this is the coming into existence in society of the class of individuals, who are not limited to pace odds.

c.       Small Scale Business: Ejiofor [1989.71] defined  small scale business as those enterprises that have relatively little capital investment, that produce in small quantities and as a result control a small share of market that employ not more than fifty workers [50] and in which management marketing and entrepreneurship functions are used in the proprietor.

d.     Management; According to Akapla [1990.3], management is defined as process of combining and utilizing of an organization inputs [men, materials and money] by proper planning organizing, directing and controlling for the purpose of producing outputs [good & services] desired by customers to that the organizational goals or objective are accomplished.

e.       Indigenization:  Ejiofor [1989.26] indigenization is the mass transfer of ownership and control of economic organization from foreigners to nationals. It is a situation where a deliberate effort is made with a back up of government regulation to transfer proprietary interest of man.

f. Planning: planning can be defined as a process which managers visualize and determine in advance, the objectives of an enterprise or organization and select future cause of action for their accomplishment.

 LITERATURE REVIEW 

Who is an entrepreneur?

An entrepreneur is a hardworking person with an idea, a dream and vision to be independent; he sees a business opportunity in line with his dream and applies himself rigorously in order to achieve his life’s ambition or mission.

He is a person that sees challenges and accepts them, takes risks and one who is future oriented.

According to horn by [1997.403] the wood entrepreneur” means a person who starts or organizes business especially one involving financial risk.

Enudu [1999.162] stated that an entrepreneur is any person who initiates organizes, controls, and directs the processes, involved in the production or creation and distribution of nay commodity or service.

Akunle [1978.58] stated “ no productive activity can take place without co-operation of all the three factors production” [land, Labour, capital] he is well pointed out that these factors cannot do anything on their own without someone to organize them and that the person who does this is known as entrepreneur.

Jones and Jones [1971.21] said that the entrepreneur is usually the owner of business and also provides the capital.

According to Stamlake [1976.52] in his view pointed out that whoever takes the decision and the consequent risk is known as entrepreneur. He is the person who undertakes production with a view of profit.

Alfred and Douglas [1972.357] said that entrepreneur was assumed in earlier economic theory to be owner of one business, they further pointed out that the entrepreneur is one who lines factors of production and that his decision are always based on an attempt to maximize profit. They also said that entrepreneur is the only factor of production whose role is to concubine and organize other factors of production. They referred the entrepreneur as a human calculating machine”

Webster in his own view pointed out that the entrepreneur is the organizer of a venture especially one who organizes, owns, managers, and assumes the risk of a business.

Olafamyin [1979.200] referred entrepreneur as the owner who manipulates the factors of production. According to him, entrepreneur manages the business alone with the help of one or two aids usually the family members.

Ihinga [1979.248] defines an entrepreneur as a man of special managerial ability who controls, organizes and managers the entire business firm. He said entrepreneur employs all types of workers and put them at the places where they are most suited by virtue of education and training.

Okudilo in his manuscript pointed out that the entrepreneur is the only active factors of production for it is who calls the other factors which otherwise would have remained idle.

According to Neck and Nelson [1987.3] the term entrepreneur is used in it’s broadest sense and includes person who works in large medium and small enterprise, as well as those who work in cooperative and government offices. He also pointed out that in non-work situation, entrepreneur may be considered as those the person who improves. Social and economical conditions in local communities.

Finally, Onuoha [1994.267] defined an entrepreneur as a person who is able to look at the environment, identify opportunities to improve the environment, marshal resources and implement action to maximize those opportunities.

—This article is not complete———–This article is not complete————
This article was extracted from a Project Research Work/Material Topic

“THE PROBLEM AND PROSPECTS OF ENTREPRENEURSHIP DEVELOPMENT.

(A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA)

RECOMMENDED TOPICS

[simple-links category=”3213″]

Articlesng.com will only provide papers as a reference for your research. The papers ordered and produced should be used as a guide or framework for your own paper. It is the aim of Articlesng.com to only provide guidance by which the paper should be pursued. We are neither encouraging any form of plagiarism nor are we advocating the use of the papers produced herein for cheating.