ENTREPRENEURSHIP DEVELOPMENT AND POVERTY ERADICATION IN NIGERIA (A SURVEY OF ENTREPRENEURSHIP IN PORT HARCOURT, RIVERS STATE)

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Abstract

The study was aimed at examining the relationship between entrepreneurship development and poverty eradication in Nigeria. The descriptive survey research design was adopted since the study was to ascertain the relationship between entrepreneurship development and poverty eradication. The population of the study was made to comprises one hundred and fifty (150) entrepreneurs randomly selected from mile one and mile three market. The Taro Yemens formula was used to determine the sample size of 120. Self-designed questionnaires on entrepreneurship development and poverty eradication was used and administered for the collection of data from the respondents. In this study both the primary and secondary data were used. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. Findings amongst others reveal that entrepreneurship development improves the standard of living in Nigeria, entrepreneurship development can bridge income inequality in Nigeria and job creation can eradicate poverty in Nigeria and entrepreneurship development can enhance poverty eradication in Nigeria. Based on the findings of the study we recommended that entrepreneurship development should be inculcated into the school’s curriculum to promote human empowerment and development and development through entrepreneurial skills and acquisition training and there should be collaboration between entrepreneurs and research institution for exploitation and research findings of those institutions to achieve technological development.

Table of Contents

Title Page    i

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      viii

Table of Contents ix

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of the Problem  3

1.3 Objective of the Study       4

1.4 Research Questions 4

1.5 Significance of the Study   5

1.6Scope of the Study   5

1.7 Limitation of the Study     6

1.8 Definition of Terms 6

CHAPTER 2        8

LITERATURE REVIEW        8

2.1 Conceptual Framework     8

2.1.1 Concept of Entrepreneurship   8

2.1.2 Dimensions of Entrepreneurship       11

2.1.3 Concept of Poverty Eradication        14

2.1.4 Poverty Eradication       17

2.1.5 The Relationship between Entrepreneurship Development and        18

2.2 Theoretical Framework     18

2.3 Empirical Review    18

CHAPTER 3        22

RESEARCH METHODOLOGY      22

3.0 Introduction   22

3.1 Research Design      22

3.2 Population of the Study    23

3.3 Sample Size Determination         23

3.4 Sampling Techniques        24

3.5 Source and Method of Data Collection 25

3.6 Method of Data Analysis  27

CHAPTER 4        28

DATA PRESENTATION AND ANALYSIS       28

INTRODUCTION         28

4.1 Questionnaire Administration and Retrieval…………………..……..28

4.2 Data Analysis 29

4.3 Discussion of Findings      33

CHAPTER 5        35

SUMMARYS, CONCLUSIONS AND RECOMMENDATIONS     35

5.1 Summary       35

5.2 Conclusions   35

5.3 Recommendations   37

References  40

Appendix I 44

Appendix II          45

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Poverty is the main obstacles and problem of the people are facing particularly in the world (Ogundele, 2007). As of 2013, there were about 2.47 billion people in the world living in poverty with an income of USD 2 or less a day most of them from developing or under developing countries located in African and Asian continent (Onwuchuruba, 2004). The population living under poverty only declined from 2.59 billion to 2.47 billion between 1981 and 2013 (Yusuf, 2002). Hence the declines principally are seated mostly in developed countries (Ogundele, 2007).

Poverty means the lack of income or shortage of assets; the lack of competence, confidence, disempowerment, etc.; has also deprivation of national currency; it is also common to speak of an poor understanding, or culture, or spirit (Onwuchuruba, 2004). Poverty may arise from low productivity of the households and they face financial constraints and lack of other incentives of entrepreneurship (Ogundele, 2007). Alan E. Singer in 2006 said that the best cure for poverty alleviation in any region of the world lies in encouraging more on business activity and startup the new ventures through entrepreneurship development (Adeolu and Taiwo, 2004). Moreover, entrepreneurship provides a basis for economic change through new knowledge creation and application (Adeolu and Taiwo, 2004).

On the other hand, development and growth require shifts from low to high productivity, the creation and adoption of new goods and services, new skills and new knowledge. These shifts are made possible by entrepreneurs who are the architects of “capacity creation‟ for productivity and growth

(Arogundade, 2011). Mobilizing the specific factors of capital, labor and technology which are generally imperfectly marketed, may not otherwise be allocated to activities supplied where productivity could be the greatest (Arogundade, 2011). The creation of successful new ventures locally also helps to generate indigenous growth and reduce the reliance on the mercurial character of foreign direct investment (Adeolu and Taiwo, 2004). However, entrepreneurship consistent source of income earnings not only to the entrepreneur and labor but also other factor inputs and given the long-term focuses and the growth potential of entrepreneurial activities Ogundele (2007). The entrepreneur and labor with all income earners become more economically independent and confident to confront the challenges of life and it can, therefore, be stated that entrepreneurship promotes income empowerment in an economy and in the modern world; entrepreneurship provides a new approach for fighting poverty and stimulating economic growth in developing countries Ogundele (2007).

Entrepreneurship development contributes to poverty reduction when it creates employment through the startup of new entrepreneurship or the expansion of existing ones and they increases social wealth by creating new markets, new industries, new technology, new institutional forms, new jobs and net increases in real productivity, increases income which culminates in higher standards of living for the population then it is logically to state that if the number of entrepreneurs of any given country increase the poverty indicators will decrease Ogundele (2007). In 2013, Bruton, G. D., D. J. Ketchen Jr., et al. examined the extant knowledge about entrepreneurship and where the future research on this important topic should move to enhance the knowledge about entrepreneurship as a pathway to reducing poverty (Okechuku, C. 2009). Individuals are living in poverty is a critical issue which is focuses on how entrepreneurship will help to solve the poverty, on the other hand, those who living under poverty create their own business, ultimately, entrepreneurship is a process which is creating long lasting  solutions  to  alleviate  (Okechuku, C. 2009). One  line  of  thinking  about  poverty  reduction  has developed around the idea of entrepreneurial activities in the form of new venture formation, innovation  and  high-growth  firms  (Amussah, 2012).  Entrepreneurship is  viewed  today  as  a  key  driver  of economic growth (Ariyo, 2008). This is because small rapidly growing firms started by entrepreneurially minded individuals, create wealth and a significant number of jobs economies, thereby impacting greatly on social and economic development. From the foregoing, therefore the study is determined to examine the relationship between entrepreneurship development and poverty eradication in Nigeria.

1.2 Statement of the Problem

To deal with the problem of poverty through poverty alleviation programme in an African country like Nigeria, knowledge of poverty profile is essential. It has been empirically established that low productivity in agriculture is the cause of high incidence of poverty in Nigeria (world bank, 1996). This is obvious as agriculture is the mainstay of Nigeria’s economy contributing about 42% to total GDP and employing about 77% of the working population. It therefore imperative that any policy measure aimed at alleviating poverty must take agriculture and rural development into consideration. Entrepreneurial innovation in Nigeria in faced with the given below problems: Capital constitutes a major constraint from the entrepreneurs in Nigeria and also most of the entrepreneurs run into the problems of commercialization which is more crucial Developing the equipment and machinery used by enterprises which cost money. Working capital is also hard to come by. Small business has problems securing bank loans. The infrastructure is lacking, and entrepreneurs sometimes have to provide generators, dig boreholes, etc. by themselves, it could be better the Nigerian government provide for these.

1.3     Objective of the Study

The main objective of the study is to examine the relationship between entrepreneurship development and poverty eradication in Nigeria. Other specific objectives to be accomplished include:

  1. To examine the extent to which entrepreneurship development improve the standard of living in Nigeria.
  2. To examine the extent to which entrepreneurship development bridge income inequality in Nigeria.
  3. To find out way can job creation can eradicate poverty in Nigeria.

1.4 Research Questions

The following question shall be use in course of this research study.

  1. To what extent does entrepreneurship development improve the standard of living in Nigeria?
  2. How can entrepreneurship development bridge income inequality in Nigeria?
  3. In what way can job creation eradicate poverty in Nigeria?

1.5 Significance of the Study

This is on entrepreneurship and poverty eradication in Nigeria. The study is also proposed to provide a standard for entrepreneurs, the Nigerian government and the society, whom are faced with the difficulty in investigating entrepreneurship and poverty eradication in Nigeria.

Finally, this study will help in-experience entrepreneurs who wish to establish and acknowledge the entrepreneurship development and poverty eradication in Nigeria.

1.6Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the relationship between entrepreneurship development and poverty eradication in Nigeria. The dependent variable is poverty eradication measured by infrastructural development and job creation. While dependent variable is entrepreneurship development, measures by innovativeness, proactiveness and risk-taking.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to selected entrepreneurs in Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study.

This study involves an investigation of entrepreneurship development in relation to poverty eradication. Hence it is a micro level study.

1.7 Limitation of the Study

The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.

Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and compilation of data for the project.

1.8 Definition of Terms

EMPLOYMENT

The state of being employed or having a job; is also the work in which one is engaged; an activity to which one devotes time, the percentage of number of people gainfully employed.

ENTREPRENEURSHIP

Entrepreneurship is the willingness and ability of an individual to seek out investment opportunities and take advantage of scarce resources to exploits the opportunities profitably.

INFRASTRUCTURE

The basis structure of features of a system or organization. Also is the stock of facilities, service, and equipment in a country, including factories, roads, and schools, that the needed for it to function.

INNOVATIVENESS

The innovativeness dimension of entrepreneurship reflects a tendency of a firm to engage in and support new ideas, novelty, experimentation, and creative processes, thereby departing from established practices and technologies, and leading to new products, services, or technological processes.

POVERTY

Poverty is the state of being very poor.

PROACTIVENESS

Proactiveness reflects an action orientation and refers to a firm’s response to promising market opportunities.

RISK-TAKING

Risk-taking refers to a firm’s tendency to engage in high-risk projects and managerial preferences for bold versus cautious actions in order to achieve firm objectives.

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