Effect of Government Policy on Entrepreneurship Development
Chapter One
Objectives of the Study
The primary objective of this research work is to examine the effect of government policies on entrepreneurship development.
While the specific objectives of this research work are to:
- ascertain if government policies has significantly impacted on entrepreneurship development in Nigeria.
- evaluate the relationship between government policies and economic growth in Nigeria.
- ascertain the long-run relationship that exists between government policy and entrepreneurship development in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Introduction
The purpose of this chapter is to give a detailed review of the literature on the variables understudy. This would permit the reader to gain a thorough understanding of the many facets of government policies theories and concepts in modern literature.
Conceptual Framework
This section present literature review related to the definition and concept of government policy and it effect on entrepreneurship development.
Concept of Government Policy
A policy can refer to the proposal of a programmed, major decision or the refusal to make certain decisions (Sharkanskv, 1978 in Akanle & Ejiofor, 2014). In other words, policy is simply actions taken or to be taken by government or private organisation (Ikelegbe, 1996 in Akanle & Ejiofor, 2014).
A policy option made by an individual is known as “private policy” because it affects the person alone, and no any other person (Olaniyi, 1998 in Akanle & Ejiofor, 2014).
Another school of thought opines that: government policy emanates from the ‘public sector’ including both the institutions of central and local government and state created agencies such as water or health authorities, commission and corporations, it may be implemented through and directed at a wide variety of individuals and organisations which may or may not be part of the state apparatus and which may be to a greater or lesser degree independent of state influence or control (Barrett & Fudge, 1981 in Akanle & Ejiofor, 2014).
Chandler and Plano (1988) in Olorunshola, (2013) defines government policy as the strategic use of resources to alleviate problems or government concerns.
Similarly, Dimock et al. (1983) in Olorunshola, (2013) describes public policy as deciding at any time or place, what objectives and substantive measures should be chosen in order to deal with a particular problem issue or innovation. It also includes the reasons they should be chosen.
Writing on the origin of policies, Micheal and Jones (1973) in Olorunshola, (2013) identified government as one of the major sources of policy – formulation saying that: “ Policies may originate in response to problem encountered in organizational operation or both with respect to various interest groups associated with the firm sometimes referred to as the” claimants on the operation”.
Continuing, Micheal and Jones (1973) in Olorunshola, (2013) stated “That government at various levels is an important claimant of, anti-trust and labour laws, product labeling requirements, taxation and various other kinds of government regulations and control”.
Ibekwe (1984) in Olorunshola, (2013) stressing the importance of policy making at government level writes “the objectives of policies of a country as often stated are increase of output, reduction of inflation, reduction of employment, diminution of economy inequality and trade balance creation”.
Ahiazu and Nwokoye (1984) in Olorunshola, (2013) stated that business legislation (policies) made by government are aimed at including acceptable behaviour from individuals, groups and corporate entities in a civilized society and at imposing sanctions on deviant behaviours. Business legislation has a wide range of objective including:
- Furthering national economic goals such as curbing inflation, stimulating the economy or conserving foreign exchange.
- Enhancing competition among business entities by prohibiting monopolistic tendencies and unfair method of competition by firms.
- Ensuring that contracts are entered into and executed with justice done to the parties to the contracts.
To ensure feasibility and implementation of set objectives, government make sure policies are on fiscal, monetary, agricultural and rural development, industrial etc which all help in the expansion of small business growth and other forms of business.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter describes the research methodology used in the study other aspects to be discussed are; research design, population of the study, sample and sampling techniques, data collection instrument and instrumentation, reliability and validity tests, method of data analysis.
Research Design
This research follows a descriptive design and analysis base on primary data generated through a structured questionnaire that was administered to the respondents.
Population of the Study
The population of the study comprised of selected small scale ventures in Ifako-Ijaye Local Government Area, Lagos State.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction
In this chapter, the research presented both the quantitative and qualitative data collected during the field work. These data include the responses from the interview conducted by the researcher, the personal observations, the information elicited with the questionnaire.
The analysis of the findings followed a systematic approach of providing answers to each of the research questions.
CHAPTER FIVE
DISCUSSION OF FINDINGS, CONCLUSION, RECOMMENDATION
Introduction
This aspect forms the concluding part of the research work where the researcher discuss the findings of this study, draw some conclusions and finally make some recommendations.
Discussion of Findings
The first hypothesis stated that government policies have no significance effect on entrepreneurship development in Nigeria. The findings reveal that government policies have a significant effect on entrepreneurship development. It may be due to the fact that one of the major problems affecting the growth of entrepreneurship development in Nigeria is due to political instability in government and policy for continuity of entrepreneurship programs.
The study was consistent with that of Babatunde, & Olajide (2012) who finds out that lack of finance and management skills affects the efficient performance of entrepreneurs in Nigeria. Their study was also in line with that of Ismail, Zakaria, Noor, Ahmad, Hazri, Salleh, Tajuddin & Sallem (2012) who finds out that government funding are instrumental in the success of the efforts to accelerate the competitiveness level of entrepreneurship.
It can be seen in their study that government are the main source of increase in entrepreneurship programme. Government policy was found to be the dominant factor influencing entrepreneurship development.
The study was not consistent with that of Sokoto & Abdullahi (2013) who their study contradict the expectation that government policy influences employment generation as it was seen that lack of entrepreneurial knowledge, skill acquisition was the cause of the increased poverty rate. This can be associated to the people’s lack of know-how, laziness and illiteracy.
The second hypothesis stated that there is no significant relationship between government policies and economic growth in Nigeria. The findings indicated that there is a significant relationship between government policies and economic growth in Nigeria. This may be due to the fact that inconsistency in government policy has affected economic growth in Nigeria, as new government come-up with new policy. This study was in line with that of Taiwo, Ayodeji, & Yusuf (2012) whose results showed that lack of financial support, poor management, corruption, lack of training and experience, poor infrastructure, insufficient profit and low patronage served as the most common constraints to the growth and development of SMEs in Nigeria.
The study was also in line with that of Syed, Abidi, Ghumro, Chandio & Shaikh (2011) who find out that the biggest challenges encountered is when doing business at home, where there is lack of marketing facilities, low standard of living and constant decrease in earnings.
The third hypothesis stated that there is no long-run relationship between government policies and entrepreneurship development in Nigeria. The findings indicated that here is a long-run relationship between government policies and entrepreneurship development in Nigeria. This may be due to the fact that government policy either positively implemented or negatively implemented has always been affecting entrepreneurship development.
This study was in line with that of Oluchukwu (2012) whose findings from his study revealed that entrepreneurship development promotes sustainable development. Thus, the study recommend that government should encourage the youth to develop entrepreneurial skills so as to be self employed as this would decrease overdependence on paid employment.
This study was also consistent with that of Shaik, Shafiq, & Shah (2011) who in their findings revealed a significant increase in the growth of entrepreneurship in the last decades particularly with active participation of women in Sidh. The study therefore recommend for the government to encourage women in various parts of Pakistan to increase their participation towards entrepreneurship activities.
The study was also in line with that of Osotimehin, Charles, Babatunde, & Olajide (2011) who finds out that lack of finance and management skills affects the efficient performance of entrepreneurs in Nigeria. Therefore, the authors recommend that both government and non-governmental organization should always organize seminars and educate them on how to plan, organize, direct as well as control their business.
Conclusion
Based on the findings, the study concluded that:
Entrepreneurship development is dependent upon government policy as it is seen that creation of skill acquisition centre, promulgation of law suitable for entrepreneurial activities by the government has been dominant or persistent. Government encouragement through entrepreneurial activities in Ifako-Ijaye local government area can be perceived to be the reason for the increase in the people standard of living, as well as reduction in over-dependency on paid employment.
Also, it was revealed that government policy has really encouraged economic growth in that community because, there is increase in the people’s standard of living, increase in people’s earnings and also reduction in the poverty level through poverty alleviation programmes established by the government.
All these are seen to be the reasons for the increase in the economic welfare of the community, since government policy are suitably implemented and are fashioned towards the community needs and demands.
Recommendation
Based on the findings, the study recommended that:
- government should increase the creation of skill acquisition centres as well as entrepreneurial activities as it has been seen to be the reasons for the people increase in standard of living.
- government should endeavour to encourage fair tax imposition in Ifako-Ijaye local government area as it was part of the reason for the increase in economic growth in that locality (Ifako-Ijaye LGA.).
- government should make sure they increase and encourage local technologies, innovations and creativity through initiation of policies that would enable the habitants of Ifako-Ijaye local government improve their attitude towards all these aforementioned recommendation.
It is evidenced that this also was part of the reasons for the increased standard of living of the people in the area under study.
- government should endeavour to set up monitoring committees/teams to oversee and evaluate the practical implementation of policies and programmes on entrepreneurship development in the local government area in particular and Lagos state in general.
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