Entrepreneurship as an Essential Ingredient for Economic Growth and Development in Nigeria
Chapter One
OBJECTIVE OF THE STUDY
The broad objective of the study is to examine the entrepreneurship as an ingredient for economic growth and development in Nigeria.
The specific objectives are
- To find out how entrepreneurship has contributed to economic growth and development in Nigeria.
- To ascertain the problem of small and medium scale enterprises in Nigeria,
- To establish response for the improvement and advancement in entrepreneurship towards economic growth and development,
- To ascertain needs and challenges to entrepreneurs in Nigeria,
- To determine the measures that can be used by the government to help motivate and encourage entrepreneurs towards economic growth and development.
CHAPTER TWO
LITERATURE REVIEW
EMPIRICAL REVIEW
EVOLUTION OF ENTREPRENEURSHIP IN NIGERIA
First and foremost, entrepreneurship began when individuals created a large number of items more than that they can use so in this instant they needed to trade off their surpluses. For example, when a metal worker created a more considerable number of tools more than required, then the surplus is traded for what is needed. Possibly, he needed a few yams, goat and so forth, he would search for somebody who requires his items to trade for it. These producers then came to understand that they can move in their regions of creation to deliver progressively and after that trade with what they required. So, through this trade of items, business began. A commonplace Nigerian business visionary is an independent man who may be said to have the robust will to succeed. He or She may connect with the other administrations through their relatives to aid him in his work or production. (Ebo 2012.)
Nigeria was customarily an agrarian country with the people exposed to entrepreneurship opportunities inside and outside their native regions. The northern region entrepreneurs are specialists in leather works, pastoral farming and metalworks. The western region is majorly predominantly town dwellers who practised small-scale, subsistence agriculture and are well known as traders and craftsmen producing masterpieces of woodcarving and bronze casting. The finished products were traded on as business ven- tures and enterprises. Just like the west, the Eastern region entrepreneurs were expertise in trade, and they specialised in inventory control, management and distribution all of which they are still known for today (Ejiogu & Nwajiuba 2012, 9.)
Recent growth of entrepreneurship in Nigeria
Since the mid-1980s there has been an expanded responsibility of government to entrepreneurship de- velopment particularly after the presentation of the Structural Adjustment Program (SAP) in 1986. In additional are the formulation of national training and employment program to focus is on the growth, coordination and integration of SMEs so they can achieve their full potential (Thaddeus 2012, 33.) Essentially the Nigerian government advances entrepreneurial culture through activities that construct business certainty, uplifting mentality, pride in progress, support and consolation of new thoughts, social duty, giving innovative backings, empowering between firm linkages and advancement of innovative work.
In Nigeria education system, entrepreneurship studies got more attention in the mid-2000. The Centre for Entrepreneurship Growth (CED) was established with the sole aim of teaching and encouraging customers of higher institutions to acquire entrepreneurial, innovative, and management skills so that these graduates can be independently employed, more job opportunities can be created for others and more wealth generated. Thaddeus proceeded with that enterprise improvement in Nigeria. Toward the ending of the country civil war, the second national growth plan concentrated on the improvement of the 3Rs goals of reconstruction, re-advancement and reconciliation. The exercises in the arrangement tested/entrusted the creativity and innovative aptitude of the people. (Thaddeus 2012, 35.)
Thaddeus explained that entrepreneurship growth in Nigeria wound up noticeably noteworthy simply after the Nigerian civil war. After the war, the second national growth plan made focused on the growth of the 3Rs objectives of reconstruction, re-advancement and reconciliation. The activities in the plan challenged the ingenuity and inventive skill of the individuals. In that period of industrialisation which was achieved by technical progress and investment was the ultimate source of economic growth. After the country’s independence in 1960, the government saw from the experience of the developed world that economic growth is due to the quality and efficiency of the entrepreneur hence they realised the need to promote indigenous entrepreneurs. Hence, various support institutions were established to provide aid to SMEs, but they all lack purpose function today. (Thaddeus 2012, 38- 41).
Challenges of Business Start-ups (Small and Medium Scale Business) in Nigeria.
Entrepreneurship is the engine of growth that drives the socio-economic transformation of any country, especially in a developing country like Nigeria. Although, there are many advantages to establish business start-ups / SMEs in Nigeria. It is complicated to operate so in few years many SMEs collapsed or operate in debt as a result of the Nigerian harsh economic environment and many other challenges faced by them. Discussing some of these challenges are below.
Lack of financial capital is seen to be a severe problem of establishing and operating the small and medium enterprise in the country. Business start-ups need money to get the business running, but very few people are willing to invest money in an untested company. The banks that should help are not willing to give new companies that have no experience loans, or they asked for high interest and collat- eral the business owners cannot afford. Although, the federal government try to intervene through the introduced microfinance policy in 2005 with the aim of lending funds to the small and medium enterprise. This policy yield little result compared to numbers of growth needed in the economy.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The study employed a descriptive and cross-sectional survey design. According to Asika, descriptive and survey design is suitable for studies involving field enquiries by collecting data over a period. It seeks to describe the variable associated with a phenomenon of interest. However, empirical studies mainly use survey design in an attempt to establish a relationship between dependent and independent variables. (Asika 2005.)
Population
The targeted population of this research study consists of cooks and customers of Wuse 11 Hungry man restaurant Wuse 11, Abuja. However, due to logistics constraints and to collect relevant and timely data within a brief period, cooks and customers of Wuse 11 Hungry man restaurant Wuse 11, Abuja were randomly chosen for the study.
The questionnaire was structured to gather the respondent opinion on the subject under investigation. However, the survey conducted in August 2017 in Abuja, Nigeria distributed nothing less 60 questionnaires while 30 respondents questionnaires were received and administered. Therefore, the number of surveys obtained represents the base for the population preceded on for analysis and conclusion on the research.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
DATA ANALYSIS
This chapter focuses on the presentation and analysis of results obtained by the researcher. The data is analysed using basic descriptive statistics and representation of tables.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
conclusions
The conclusion from the perspective of analysis on the questionnaire administered to respondents. Significant respondents widely agreed that entrepreneurship plays a significant role in economic growth. Notably, during the economic crisis as it fosters job creation, reduces unemployment, eradicates poverty and creating value. Therefore, it is necessary for youth to be encouraged to start their businesses and entrepreneur endeavours be encouraged by the government and agencies.
This study was set out to explore the role of entrepreneurship in achieving economic growth during the economic crisis and the impact of entrepreneurship on nation’s growth. The study discovered that in the developing economies like Nigeria, there exist a positive relationship between entrepreneurship and economic growth. Hence, it is a potential remedy for Nigeria economic crisis. Entrepreneurship is known to encourage skill acquisition, creative thinking, product growth, marketing, leadership training and wealth creation which in return results in flourishing micro, small and medium enterprises (MSMEs) that generates gainful employment, creates wealth, diversify the economy and consequently grow the economy.
The study also found out that Nigeria has depended on oil for more than 90 percent of its foreign exchange income for far too long and for the country to come out of its current economic crisis there has to be an aggressive diversification of the economy. A conscious effort needs to be made to develop other sectors of the economy such as mining, agriculture, manufacturing so they can as well translate to foreign exchange income for the country. Also, from this study, it could be inferred that entrepreneurship entails identifying, utilising and maximising profitable venture opportunities in a viable manner that can advance the economic growth of a community or nation. However, in the current economic situation, only entrepreneurship revolution in Nigeria can enable necessary dynamics of economic life, stop migrations towards abroad, improve the quality of life and, in general, set the new standards of social stratification based on knowledge and productivity.
Despite the massive benefits entrepreneurship can proffer to the Nigerian economy. The government policies and dominant factors in a business environment can impede the significant impact of entrepreneurship on economic growth. Hence, observation during this study connotes that government should assess and ensure proper economic policy coordination throughout each fiscal year to achieve policy stability. Secondly, reforms in institutions such as the education system’s curriculum are necessary to encourage self-reliance and vocational skills. Also, there is a need to revitalise infrastructure such as the country’s power sector owing to its enormous impact on primary activities that can hance growth.
More importantly, there should be a drastic reduction in tax and lending interest rate for SMEs to encourage large-scale industrial investor’s interest. Diversifying the economy is apparently another thing to be considered because the country’s economy is monotonous. Much emphasis based on oil exploration being the primary source of revenue. The economy needs diversification in a manner that other areas such as agriculture, manufacturing, information technology and fashion thrive. Nonetheless, it is advisable that government consider reduction on import duties for essential raw materials.
Above all, This study on entrepreneurship and economic growth reflected the fact that entrepreneurship is the key to propel expected economic growth in a short-term or long-term period. Hence, further research is recommended and focus towards benefits of using SMEs as a stimulator for economic growth.
RECOMMENDATIONS
Considering the avalanche of findings, the study therefore made the following recommendations: The government should revamped the initiated programmes by appointing men of good will that have passion for entrepreneurship to head some of the establishments in an attempt to enhance their activities taking cognizance of the vital role it plays on the economic development of the State. The Federal Government should look into the activities of the micro-finance bank in order to address the ever-increasing interest rate that is posing challenges to the entrepreneurs in Enugu State. Most people who may have conceived a creative idea that can revamp the economy, could not put it into use, simply because, they cannot borrow money from the banks.
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