(A SURVEY OF SELECTED SMALL SCALE ENTERPRISES IN KHANA L.G.A)
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ABSTRACT
In this research work we examined entrepreneurship development and poverty alleviation in Nigeria. (A survey of selected small scale enterprises in Khana Local Government Area of Rivers State). The researcher therefore adopted the descriptive/survey method as well as the use of questionnaires to enable the collection of necessary data. The simple frequency table was used in presenting the data whereas the chi-square statistical technique was used in testing the formulated hypothesis in the relevant findings of the research is that there are no significance relationship between entrepreneurship and poverty alleviation in Nigeria. And the researcher concluded that development of entrepreneurship has been a dynamic process in Nigeria influenced considerably by changes in domestic business environment as well as the external influences, which are typical for a small country with open economy. Development of entrepreneurship through SME development and regional firm formation has supported economic development in Nigeria and finally recommended that entrepreneurship development should be inculcated into the school’s curriculum to promote human empowerment and development through entrepreneurial skill acquisition and training. There should be collaboration between Entrepreneurship and research institution for exploitation and research findings of those institutions to achieve technology development. iii. Governments at all levels could intervene in postulating good policies to reduce the problem of entrepreneurs through the supply of needed technological business information and advices.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In Nigeria and other African countries, poverty is described as a socio-economic problem that affects growth and development in the region.
The government of these countries have designed and embarked on several measures to reduce the degree of poverty and improve the social well-being of the people. In Nigeria, the federal government has initiated several measures and policies to reduce the level of poverty among the masses.
Poverty is often described as a threat to economic and social stability and is defined as a condition of being in want of something. It is also characterized by malnutrition, illiteracy, disease, high infant mortality and low life expectancy at birth. Poverty is not only a state of existence but also a process with many dimensions and complexities. The presidency (2001), Ogundele (2007), shows the trends in poverty level in Nigeria between 1980 and 1996. The incidence of poverty increased sharply both between 1980 and 1985 and between 1992 and 1996. The 27.2% for 1980 translated to 17.7 million persons whereas there were 34.7 million poor persons in 1985. As at 1996, two out of every three Nigerians were below the poverty line Onwuchuruba, (2004): (Yusuf, 2002). Poverty alleviation is any processes which seek to reduce the level of poverty in a country or amongst a group of people or countries. According to Adeolu and Taiwo (2004) said that the federal government office statistical world bank in their analysis of the poverty trend in Nigeria noted that poor families are in higher proportion in farming household than mainly in the rural areas.
Further, entrepreneurship is one the measures embraced by the government to reduce mass poverty and unemployment in Nigeria. Entrepreneurship education and training entails philosophy of self-reliance such as creating a new cultural and productive environment, promoting new sets of attitudes and culture for the attainment of future challenges. (Arogundade, 2011).
The development process of any country is determined by the way the production forces in and around the economy is organized. Most countries the development of industry had depended a great deal on the role of private sector. Entrepreneurship has played a major role in this regard. According to Ogundele (2007) also promotion and development of entrepreneurial activities would aid the dispersal and diversification of economic activities and induce even development in a country.
According to, Central Bank of Nigeria, Research Department (1999) added that entrepreneurial development in Nigeria should be perceived as a catalyst to increase the rate of economic growth, create job opportunities, reduces import of manufactured goods and decrease the trade deficits that result from such imports.
According to Onwuliri C. Okechuku (2009), defined entrepreneurship as a process that is dynamic in the creation and innovation of new values through time inference that centers on financial, psychological environment, According to Amussah (2012), entrepreneurship is defined as a situation where one or more person pool their resources together for the purpose of understanding or undertaking and appreciating the practice of business through the performance of numerous interrelated activities and other human activity associated within the most effective, efficient, and profitable manner.
Also according to Ariyo, (2008), noted that if Nigeria wanted to reach its full potential in terms of economic and social development, it cannot afford to ignore the importance of its indigenous entrepreneurship and contributions that they make to the country economy. Entrepreneurship remain the gateway to sustainable wealth creation in Nigeria. If Nigeria desire to move out of the disturbing high level of unemployment and ravaging poverty adequate attention must be given to the growth of entrepreneurship. Nigeria still remain in the doldrums because of the combination of ignorance, low capacity building and lack encouragement of entrepreneurship.
The successful contribution of entrepreneurship to the alleviation and economic development in Rivers State depend on entrepreneurship training and orientation. The entrepreneurship education is a structured formal conveyance behaviour and performance of entrepreneurship competencies. While the orientations is the development of entrepreneurial skills, effective and efficient in management of business to create a significant differences from other business, several studies on entrepreneurship concentrate on the contribution of entrepreneurship to sustainable economic development, job creation, innovation and resource allocation.
According to Gray et al (2007), small business are generally regarded as the driving force of economic growth, job creation, and poverty reduction in developing countries. Small business is define as a means through which accelerated economic growth and rapid industrialization have been achieved. Research on small business development has shown that the rate of failure in developing countries is higher than in the developed world. Some scholars have indicated that starting a business is a risky-venture and warn that the chance of small business owners making it past the five years marked are very slim that they should develop both long-term and short-term strategies to guard against failure.
1.2 STATEMENT OF THE PROBLEM
In an attempt to deal with the problem of poverty through poverty alleviation programme in an agrarian 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 purpose of this study is to investigate entrepreneurship and poverty alleviation in Nigeria. Other specific objectives to be accomplished include:
- To examine the relationship between entrepreneurship and poverty alleviation.
- To assess the relationship between opportunity and poverty alleviation.
- To assess if entrepreneurship in Rivers State is creative.
- To know the relationship between entrepreneurship and innovation in Nigeria.
- To know the proactive nature of poverty in Nigeria.
- To find solution to the problems of entrepreneurship and poverty alleviation and industrial development in Nigeria.
1.4 SIGNIFICANCE OF THE STUDY
This is on entrepreneurship and poverty alleviation 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 alleviation in Nigeria.
Finally, this study will help in-experience entrepreneurs who wish to establish and acknowledge the entrepreneurship and poverty alleviation in Nigeria.
1.5 THE RESEARCH QUESTIONS
The following question shall be use in course of this research study.
The research on entrepreneurship and poverty alleviation in Nigeria will make use of the under-listed representing the basic research questions are.
- What are the roles of entrepreneurship?
- What is the role of entrepreneurship and poverty alleviation in Nigeria?
- Are the poor in Rivers State developed through the assistance of the entrepreneurship?
- What is the problem of entrepreneurship and poverty alleviation in Nigeria?
- To what extent has entrepreneurship assisted the poor in Nigeria?
- Are there solution to the problems of entrepreneurship and poverty alleviation and industrial development in Nigeria?
1.6 RESEARCH HYPOTHESES
The following are the research hypotheses.
HO: There is no significance relationship between entrepreneurship and poverty alleviation in Nigeria.
Hi: There are significance relationship between entrepreneurship and poverty alleviation in Nigeria?
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study is limited to entrepreneurship and poverty alleviation in Nigeria this will help to give direction to the researcher and the users of this work.
The geographical area of this research is the Khana Local Government Area of Rivers State.
The unit variable comprises of the selected small businesses in the area.
The most limiting factor encountered in course of carrying out this research work was lack of fund. Also, the time duration required for the completion was too short, hence not encouraging. Sourcing of material was a difficult task due to the fact that some materials were not available at the time of writing.
1.8 DEFINITION OF RELATED TERMS
Capital: Is an amount of money that an investor invested or used to start a business.
Centralization: The act of consolidating power under a central control.
Economic: The system of production and management of material wealth; economic growths aspect of social and political.
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.
Enterprises: Is defined as a business venture or structure or one or group of persons put in place which a business activity undertaking is carried out.
Fund: Is an amount of money that has be saved or made available for a particular purpose.
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.
Medium Business: In the context of business users of telecommunication service, a medium business is any commercial account whose telecom services charges.
Poverty: poverty is the state of being very poor. Aruwa, (2004) current, (1989) assert that poverty can be categorized into three namely: absolute poverty, relative poverty and subjective poverty.
Poverty alleviation: Is the process in which poverty can be reduced.
Problems: problems are those challenges or obstacles faced by a small scale enterprise
Prospects: The possibility of future success:
Small Business: A Entrepreneurship that is privately owned and operated with a small number of employees and relatively low volume of sales.