GROWING CHALLENGES OF ENTREPRENEURIAL DEVELOPMENT IN NIGERIA

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(A SURVEY OF RIVERS STATE)

Abstract

The study examined the growing challenges of entrepreneurial development in Nigeria. The survey design was employed. The population of this study involves all entrepreneurs selected from oil mill, mile three and mile one market in Port Harcourt which was unknown. The judgmental sampling technique which is a non probability sampling technique was used for selecting the sample. The sample size of this study is a judgmental sample of 55 respondents. In this study both the primary and secondary data were used. A self-designed questionnaire on the challenges of entrepreneurship development in Nigeria was used and administered for the collection of data from the respondents. The statistical test used in the analysis of the data collected was the Pearson Product Moment Correlation statistical tool. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS Version 22). The study revealed that multiple taxes and levies, lack of Knowledge of technology and unfair competition are the challenges of entrepreneurship development in Nigeria. The study also revealed that technology enhances entrepreneurship development in Nigeria. Based on the findings of the study, we recommended that Government (policy makers) should genuine recognize the essence of entrepreneurship to economic development and Government should increase its funding of financial institutions that provide on lending to entrepreneurs.

Table of Contents

Cover Page i

Cover Page ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgement         vi

Abstract      viii

Table of Contents ix

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of problem        2

1.3 Objectives of the Study     3

1.4 Research Questions 3

1.5 Research Hypotheses        4

1.6 Significance of the Study   4

1.7 Scope of the Study  5

1.8 Limitation of the Study     5

1.9 Definition of Terms 5

CHAPTER 2        7

REVIEW OF RELATED LITERATURE   7

2.0 Introduction   7

2.1 Conceptual Framework     7

2.1.1 Concept of Entrepreneurship   8

2.1.2 Entrepreneurial Opportunities 10

2.1.3 Entrepreneurship Development in Nigeria  14

2.1.4 Sources of Funding of Entrepreneurs          17

2.1.5 Prospect of entrepreneurship Development          17

2.1.6 The Role of Entrepreneurs in National Development     19

2.1.7 Challenges of Entrepreneurship in Nigeria  21

2.1.8 Government efforts towards entrepreneurship development in Nigeria      25

2.2 Theoretical framework      29

2.2.1 The Neo-Classic Theory of Entrepreneurship      29

2.2.2 Innovative Theory of Entrepreneurship      30

2.3 Review of Related Empirical Studies    30

CHAPTER 3        33

RESEARCH METHODOLOGY      33

3.1 Introduction   33

3.2 Research Design      33

3.3 Population of the Study    33

3.4 Sampling Techniques Used         33

3.5 Sample Size    34

3.6 Source of Data         34

3.6.1 Primary Source (s) of Data      34

3.6.2 Secondary Source of Data       34

3.7 Research Instrument for Data Collection       34

3.8 Validity and Reliability of Instrument  35

3.9 Techniques for Data Analysis     35

CHAPTER 4        36

DATA PRESENTATION AND ANALYSIS       36

4.1 DATA PRESENTATION AND ANALYSIS 36

4.2 Data Analysis 37

4.3 Testing of Hypotheses       42

4.4 Discussion Findings 44

CHAPTER 5        47

SUMMARY, CONCLUSION AND RECOMMENDATION  47

5.1 Summary       47

5.2 Conclusion     47

5.3 Recommendations   48

Appendix I 55

Appendix II          56

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Entrepreneurship is a key factor in any economic activity. For a sector to be competitive and contribute effectively to sustain growth, it requires increased private investment. This development must result in an enhanced productivity to stimulate and to be proper; it must also generate employment opportunity. There has been emergent acknowledgement that a sustainable economic transformation in Nigeria can be facilitated within the frame work of entrepreneurial driven activities. Indeed, the small businesses created by innovative entrepreneurs have proved to be the most significant contributors to the national wealth (Antai and Agnes, 2012).  Whereas entrepreneurs are individuals or persons, entrepreneurship is a process. At times the terms “entrepreneur” and “owner manager” are used interchangeably as if they mean the same thing because entrepreneurship is inextricably linked to small business management. Entrepreneurs are often both owners and employees and a considerable number of them are of them are small business owners or managers. Such people are risk takers, creative, innovative, independent, hardworking and posses other qualities that are driving force behind any entrepreneurial activities in the economy. These entrepreneurial activities significantly affect the economy of an area by building the economics of an area by building the economic base and providing jobs.

Entrepreneurship is the dynamic process of creating incremental wealth. Entrepreneurship is the willingness and ability of an individual to seek for investment opportunities, to establish and to run an enterprise successfully (Suleiman, 2006). The wealth is created by individuals who assume the major risks in terms of equity, time and career commitment or provide value for some products or unique, but value must somehow be infused by the entrepreneur by receiving and locating the necessary skills and resources. Entrepreneurship is also the process of getting into the managing your own business enterprise.

Nwangwu (2006) opine that entrepreneurship is the willingness and the ability of an individual or a firm to identify an environmental change and exploit such opportunity to produce goods and services for public consumption. Entrepreneurship is the totality of those attributes that enable a person to identify hidden business opportunities along with the capacity to organize needed resources with which to profitably take advantage of such opportunities in the face of calculated risk and uncertainty (Essien, 2006). The prosperity and progress of a nation depends on the quality of its people. If they are enterprising, ambitious and courageous enough to bear the risk, the society will develop quickly. Such people are identified as entrepreneurs and their character reflects entrepreneurship (Adeyemi, 2013).

Osemeke (2012) states that entrepreneurship development refers to the process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes.

Entrepreneurship development aims to enlarge the base of entrepreneurs in order to hasten the pace at which new ventures are created. This accelerates employment generations and economic development. Entrepreneurial development focuses on the individual who wishes to start or expand a business. Moreover, entrepreneurship development in Nigeria concentrates more on growth potential and innovation. Essentially this means the acquisition of skills that will enable an entrepreneur to function appropriately and adequately in terms of turning the perceived challenges into opportunities.

1.2 Statement of problem

Nigeria is naturally endowed with entrepreneurship opportunities; however, the realization of the full potential of these opportunities has been dampened by some challenges (Ebiringa, 2012). It has however been worrisome that despite the accessibility of technology and government contributions towards entrepreneurship development, entrepreneurship in Nigeria has not performed creditably well and hence the expected vital and vibrant role Entrepreneurship will play in the economic growth and development in Nigeria has been constrained by the challenges entrepreneurs face in Nigeria such as lack of knowledge of technology, unfair competition, multiple taxes, unfavorable monetary policies, uneasy access to funding, inadequate market research, unfavorable fiscal policies, poor policy implementation, which  has constrained the development of  entrepreneurship in Nigeria. The study focuses on assessing the growing challenges of entrepreneurial development in Nigeria with reference to Rivers State as a case study.

1.3 Objectives of the Study

This paper seeks to contribute to the analysis of the growing challenges of entrepreneurial development in Nigeria. Therefore, the specific objectives of the study are to:

i.        To     ascertain     the challenges of Entrepreneurship development in Nigeria.

ii.       To determine the extent to which technology enhances entrepreneurship development.

iii.      To determine the contributions of government towards entrepreneurship development in Nigeria.

1.4 Research Questions

The study will be guided by the understated research questions.

i.        What are the challenges towards entrepreneurship development in Nigeria?

ii.       To what extent does technology enhance entrepreneurship development in Nigeria?

iii.      What are the contributions of government towards entrepreneurship development in Nigeria?

1.5 Research Hypotheses

Based on the above, the understated hypothesis is proposed for this study as follows;

H01: Multiple taxes and levies, lack of Knowledge of technology and unfair competition are the challenges of entrepreneurship    development in Nigeria.

H02: Technology always enhances entrepreneurship development in Nigeria.

H03: Provision of technical support and research center are the contributions of government towards entrepreneurial development in Nigeria.

1.6 Significance of the Study

The study has examined the challenges of entrepreneurial development in Nigeria. The study is also proposed to provide a standard for entrepreneurial development in Nigeria, the Nigerian government and the society, whom are faced with the difficulty in entrepreneurial development will benefit from the study.

The study will serve as guide to entrepreneurial support agencies in particular and the Nigerian entrepreneurs as a whole in determining the best way of getting the best output from their businesses  who  are  presently  demoralized  in  the  face  of  the prevailing socio-economic hardship.

The study is also aimed at contributing to the literature in entrepreneurship development in Nigeria. Also, this work on completion will broaden the essence for entrepreneurship development in Nigeria.

1.7 Scope 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 challenges of entrepreneurial development in Nigeria.

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

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

This study involves an investigation the challenges of entrepreneurial development in Nigeria. Hence it is a micro level study.

1.8 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.

1.9 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.

ENTREPRENEURSHIP DEVELOPMENT: It is the process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes.

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