Entrepreneurial Innovation as an Effective Tool for Poverty Reduction in FCT Abuja
CHAPTER ONE
Objectives of the Study
The main objective of the study is to evaluate the effectiveness of entrepreneurial innovation as a tool for poverty reduction and sustainable development in FCT Abuja.
The specific objectives include:
- To assess the role of entrepreneurial innovation in creating employment opportunities for the residents of FCT Abuja.
- To evaluate the contribution of entrepreneurial innovation in improving Access to basic services for residents of FCT Abuja.
- To analyze the contribution of entrepreneurial innovation in diversifying economic activities and reducing the dependence on traditional sources of income in FCT Abuja.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Review
Entrepreneurship
Entrepreneurship is a significant driver of economic growth and societal transformation, often defined as the pursuit of opportunity beyond current resources or constraints, aiming to bring new value to the market (Adenutsi, 2021). This process typically involves identifying and exploiting business opportunities, which in turn can generate employment, improve productivity, and drive overall economic development (Ahlstrom & Ding, 2022). The role of entrepreneurship in fostering economic advancement is especially crucial in emerging economies where traditional job markets are limited, and entrepreneurship can serve as a pathway out of poverty (Akhuemonkhan, Raimi, & Sofoluwe, 2023). In low-income regions, entrepreneurial activities can stimulate local economies, increasing household income and contributing to a reduction in poverty (Agupusi, 2007).
The importance of entrepreneurship lies not only in economic empowerment but also in social transformation, as it encourages innovation, enhances consumer choice, and supports social mobility (Austin, Stevenson, & Wei-Skillern, 2022). Entrepreneurs introduce new products or services, often at competitive prices, which can improve quality of life and make goods more accessible (Alvarez, Moreno, & Mataix, 2023). Moreover, entrepreneurial ventures can reduce economic dependency on government support by creating self-sustaining business models that can withstand market fluctuations (Ali & Ali, 2023). In this way, entrepreneurship provides both economic resilience and a foundation for sustainable economic growth.
There are various types of entrepreneurship, each with its unique role and impact on the economy. Small business entrepreneurship, for instance, encompasses local businesses that primarily serve the community and generate employment on a smaller scale (Ayogu & Agu, 2021). This form of entrepreneurship is often seen in family-owned stores, local restaurants, or small service providers that cater to specific community needs. These businesses contribute to economic stability by creating job opportunities and stimulating local spending (Bagozzi & Yi, 2020). Additionally, small business entrepreneurship provides foundational skills for individuals to innovate and grow within their sectors, creating a ripple effect on the economy.
CHAPTER THREE
METHODOLOGY
Introduction
This chapter outlines the research methodology employed in the study, detailing the approach taken to investigate the impact of entrepreneurship on poverty alleviation. The methodology section is crucial as it defines the research design, the population from which data were collected, the sampling techniques employed, and the instruments used for data collection. It also addresses the reliability and validity of these instruments, the data collection procedures, and the methods used for data analysis. By clearly delineating the methodological framework, this chapter establishes a foundation for the subsequent findings and conclusions of the study.
Research Design
A quantitative research design was adopted for this study to assess the relationship between entrepreneurship and poverty alleviation effectively. This design was chosen due to its ability to facilitate the collection of numerical data and its suitability for testing hypotheses regarding the impact of entrepreneurial activities on poverty levels (Saunders et al., 2019). The structured nature of quantitative research allows for clear, objective measurements of variables, making it easier to analyze relationships and draw generalizable conclusions. Survey research, in particular, enabled the collection of data from a large number of respondents, providing a broad perspective on the issue and allowing for the identification of trends and patterns in the responses.
CHAPTER FOUR
Introduction
This chapter presents the analysis and interpretation of data collected for this study on entrepreneurial innovation as a tool for poverty reduction in FCT Abuja. This chapter includes detailed results from descriptive and inferential analyses, based on responses from the structured questionnaire administered to 109 participants. The chapter addresses the study’s core objectives by examining the impact of entrepreneurial innovation on employment creation, access to basic services, and economic diversification. The findings are presented in tables, with discussions that draw connections between the data and the hypotheses, providing insights into the role of innovation in addressing poverty in the region.
CHAPTER FIVE
SUMMARY, CONCLUSIONS, RECOMMENDATION AND SUGGESTION
Summary
The study provides valuable insights into how innovation-driven ventures can significantly impact employment, access to essential services, and economic diversification. This summary encapsulates the key findings, implications, and contributions of the research, underscoring the importance of fostering an entrepreneurial ecosystem to enhance the socio-economic landscape of Abuja.
The primary objective of this study was to investigate the extent to which entrepreneurial innovation contributes to creating employment opportunities for residents of FCT Abuja, improves access to basic services, and diversifies economic activities. The research employed a quantitative approach, utilizing structured questionnaires to collect data from a sample of 109 respondents drawn from various sectors in Abuja. The data were analyzed using descriptive statistics and a one-sample t-test to evaluate the hypotheses formulated at the outset of the study.
The findings revealed a robust agreement among respondents regarding the significance of entrepreneurial innovation in creating employment opportunities. A substantial majority indicated that innovative startups are more effective in generating jobs compared to traditional industries. This observation aligns with global trends, where entrepreneurship is increasingly recognized as a vital driver of employment, particularly in developing economies. In Abuja, where formal job opportunities are often scarce, the emergence of innovative businesses offers a promising solution to high unemployment rates. The results emphasize the need for strategic support for entrepreneurial initiatives to sustain and enhance job creation in the region.
Recommendation
The following recommendations were proposed:
- Enhance Access to Funding for Entrepreneurs: Government and financial institutions should establish dedicated funding programs and grants to support startups and innovative businesses in FCT Abuja. This can include low-interest loans, seed funding, and investment incentives aimed at reducing the financial barriers faced by budding entrepreneurs, thereby encouraging more individuals to engage in entrepreneurial activities.
- Implement Training and Capacity-Building Programs: To ensure the sustainability of entrepreneurial ventures, training programs should be developed that focus on essential business skills, such as financial management, marketing, and innovation strategies. Collaborations with educational institutions, business associations, and experienced entrepreneurs can help equip aspiring business owners with the knowledge and skills needed to thrive in a competitive environment.
References
- Adenutsi, D. E. (2021). Entrepreneurship, job creation, income empowerment, and poverty reduction in low-income economies.International Journal of Commerce and Management Research. MPRA Paper, 29569.
- Agupusi, P. (2007). Small business development and poverty alleviation in Alexandra, South Africa.Second Meeting of the Society for the Study of. https://doi.org/10.1556/AEthn.52.2021.1.5
- Ahlstrom, D., & Ding, Z. (2022). Entrepreneurship in China: An overview.International Small Business Journal: Researching Entrepreneurship, 32(6), 610-618.
- Ajegi, S. O. (2022). The Affluence of Poverty: A Critical Evaluation of Nigeria Poverty Reduction Programmes.Journal of Economic and Social Research, 3.
- Akhuemonkhan, I. A., Raimi, L., & Sofoluwe, A. O. (2023). Entrepreneurship Education and Employment Stimulation in Nigeria.Journal of Studies in Social Sciences, 3(1), 55-79.
- Ali, A. Y. S., & Ali, A. H. (2023). Entrepreneurship Development and Poverty Reduction: Empirical Survey from Somalia.International Journal of Current Research and Academic Review, 2(3), 108-113.
- Alvarez, M., Moreno, A., & Mataix, C. (2023). The analytic hierarchy process to support decision-making processes in infrastructure projects with social impact.Total Quality Management & Business Excellence, 24(5–6, SI), 596-606.
