Entrepreneurial development and its Impact in our economic growth and development
This research work has the title. ‘Entrepreneurial Development and its impact in our economy’ this study was embarked upon in order to know the problems militating against entrepreneurship, its source of finance and the roles entrepreneurs play in Eboyi state as a test case.
A good number of works already carried out were reviewed. In order to achieve the set objectives, care was taken in collection of relevant data, using primary and secondary method of data collection such as interviews, questionnaires administration, personal observation and experiences.
Target population was appropriately segmented into sample – size. The researcher tried as much as possible to state the entrepreneurial developments and its impact honour economy bearing in mind the importance of the study.
The data gathered which were subsequently analyzed and interpreted, helped us to know the impact of entrepreneurial development in our economy in the area of job opportunities, social amenities and the like.
Consequently, the researcher found out that entrepreneurship attributes so much in our economy positively such as ;
– enough produce
– provision of employment opportunities
– production for exportation
– increase in our foreign exchange earnings.
– Growth of small and medium scale industries.
The researcher concluded, sequel to the result of the hypothesis tested which proved true entrepreneurship encourages large- scale production.
Finally, the researcher recommended that the government should provide and keep proper watch the entrepreneurs as checks and balances. There should be increase in the proper utilization of credit facilities to enhance the growth of entrepreneurship in Eboyi state, and the like.
1.1 Background Of The Study
The worldwide economic depression of the early 80’s caused a rapid deterioration of the Nigeria economy. The output shrank to an all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country. Therefore, by the end of 1985, the unemployment situation in Nigeria had increased its proportions and as such most Nigeria graduates were faced with hardship due to unemployment in the country. This situation therefore calls for entrepreneurship in Nigeria economy which also leads to entrepreneurial development in the higher institution.
However, at this juncture a brief history of entrepreneurship in Nigeria will give more insight on the study. Statistics have it that Africa is the poorest and less developed continent in world. Many state-owned enterprise in Africa were created when it was believed that the fastest route to development occurred when the state took on the role of entrepreneur.
Although Nigeria was at one time characterized by such inefficiency, but has recently pursued entrepreneurship encouragement policies. And the initial indications suggest that the policies have been successful. In Nigeria, the state-owned enterprises traditionally clogged business opportunities and restructure private entrepreneurs from entering the market. However, in the mid 1980’s Nigeria abolished it’s marketing board, which prevented entry into certain industries and it’s market to competition from domestic entrepreneurs.
Although Nigeria is still ploughed by many development problems preliminary evidence suggest a favourable response by the private sector to the new entrepreneurial opportunities. Although there is only limited consensus about the characteristics of entrepreneurship, the concept is almost as old as the formal discipline of economics itself. Early 18th century French economist named Richard Canadian first introduced the term entrepreneur. In his writings he formally described the entrepreneur as the agent who buys the means of production at certain prices in order to combine them into new product. (Schumpeter, 1951) short after that the French economist J. B. added to the Castilian definition by including the idea that entrepreneurs has to be leaders. That an entrepreneur is one who builds a single product organism. (Schumpeter, 1951)
The necessity of entrepreneurship for productivity was formally recognized by Alfred Marshall in 1990. In his famous practice principle of economics, Marshall ascertains that there are four factors of production; Land, Labour Capital and organization. These factors are properly utilized by an entrepreneur. Thus entrepreneur creates new commodities or improves the plan of producing an old commodity. (Marshall1994).
Hence early entrepreneurs were characterized with production and manufacturing. In this case, the producers most often started with small capital. Early entrepreneurship started with trade by barter even before the advent of money. However, modern entrepreneurship in Nigeria started with the coming of the colonial masters, who brought in their wears and made Nigerians their Middlemen. In these way modern entrepreneurs was conceived. Most of the modern entrepreneurs were engaged in retail trade or sole proprietorship.
1.2 Statement Of Problem
When comparing entrepreneurship development in Nigeria with other countries like America, Japan, China etc, we realize that these countries started on the same platform as Nigeria started with trade by barter and then advanced to their present state of economic growth. In fact they are faster in their development of entrepreneurship than Nigeria. Why this differences? This research work will find out to this effect the following:-
1) The general problem encountered by entrepreneurs in Nigeria in establishing business.
2) To find out the basic orientation that should be given to Nigerian entrepreneurs.
3) To discover the rate of employment and find out the various business opportunities that will be of help to the Nigerian economy through entreprenurship.
4) To also find how government program has been of help to various entrepreneurs in the country.
1.3 Purpose Of Study
From all that has been mentioned above, it is the aim of the study to find out the or know entrepreneurial benefits on the following:-
– Small scale business
– Nigeria economy
– To various employers and employees
– To business organizations.
Small Scale Business
The small-scale business will benefit immensely, if the government is encouraging entrepreneurs in the country and proper orientation on their obligation as an entrepreneur towards business is given. Besides, an enabling environment should be created to enable them to thrive, and also carry out their functions in the business environment. Thus small-scale business in the country will grow if government can also provide financial assistance in order to encourage the individual entrepreneurs.
There will be a tremendous increase or improvement in the Nigerian economy. Entrepreneurship will be of benefit to industrial, household, firms and government. In the area of decision making, organizing the organizational structures, and making out plans are accomplished. Thus, this will go a long way in increasing job opportunities in the country, which in turn will reflect on the country’s capital income, and this will increase the rate of the G. N. P.
To Various Employers And Employees
Entrepreneurship will be of importance to employers and employees. In the areas of employers, it will enrich their managerial skills, their vision, purpose and plans for the organization. Also in the area of the employees, there will be job opportunities for the graduates and other school leavers and this will reduce the rate of dependence ratio in the country that is not solely relying on government to provide jobs. To this effect, the government has introduced various programs under the N.D.E.so as to motivate both the employers and employees. Under this program, the N.D.E. provides loans to graduates for the operation of small-scale business.
To Business Organizations
Entrepreneurship will also be of immense benefit to business organizations because the Nigerian economy and its environment will be an investing area for most investors due to capable skilled workers that will handle the affairs of the organization or company without involving much foreign counterparts on the job. Thus, will in turn create more job opportunities in the country and this will increase the level of organizational profitability ratio.
1.4 Scope Of The Study
It is an obligation on the part of the researcher to survey and evaluate the purpose of entrepreneurial development and its benefits to the economy. The researcher will also find out the tactics of an entrepreneur in the 1980’s, the causes and the brain behind their failures and success. The researcher will also find out various economics scholars who have contributed immensely to the growth of entrepreneur in the world. The researcher will also find out more information about entrepreneurship in the country. However, the study of the researcher covers the purpose of entrepreneur in the country particularly Enugu State.
1.5 Research Questions
The following research questions were imposed: –
i What is the essence of Entrepreneurship in an economy?
ii What are the problems of Entrepreneurship?
iii Does organization benefit from entrepreneurs?
iv What has the government done for entrepreneurs in the country?
1.6 Research Hypothesis
The following hypothesis would be tested: –
i Ho – Entrepreneurs does not encourage large scale production in the economy.
Hi – The essence is to build up the nation’s economy to create employment and to improve managerial skills.
ii. Ho- Entrepreneurial problems are not only in the following level of Managerial skill and poor infrastructure.
Hi – Entrepreneurial problems in Nigeria are as follows: -Financial
Constraint, lack of managerial skills and poor orientation.
iii Ho- Organizations benefits from entrepreneurs in organizational planning.
Hi – Organization does not benefit much from entrepreneurs due to Inefficiency of job performance.
iv Ho- Government plans towards the provision of credit facilities is not encouraging.
Hi- Government plans for entrepreneurs is to provide credit facilities to various entrepreneurs in the country.
1.7 Significance Of The Study
The importance of the study cannot be over-emphasized, since it is expected to affect our economy and also increase the creation of job opportunities in the country especially in Enugu state. However, this project when completed will be of immense benefits to the following: –
– The Nigerian economy in general
– The small-scale industries
– The general public
– Creation of job opportunities in the country.
– Also there will be increase in the managerial skills.
1.8 Limitations Of The Study
The study is limited to the benefits and impact of entrepreneurial development with special attention to Enugu State.
Besides, in the course of studying or conducting this research, there are some hindrances like not having enough materials to research on. Also the researcher is faced with time constraint as it has an effect on my study time in the framework of my school assignments and quizzes.
1.9 DEFINITION OF TERMS.
The following terms used in this study should be taken to mean the following.
These are articles of trade
National Directorate of Employment
These are new existing products in the market environment
G. N. P
Gross National Product
This is a person who starts a business and takes the finance risks and personal risks involved in keeping the business going.
An entrepreneur is an individual agent who buys means of production at a certain price in order to combine them into new product.