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EZENAGU IJEOMA CELIN PG/MBA/12/61619
ENTERPRENUERSHIP DEVELOPMENT IN ENUGU STATE: ISSUES AND CHALLENGES
FACULTY OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT
Ebere omeje Digitally Signed by: Content manager’s Name DN : CN = Webmaster’s name O= University of Nigeria, Nsukka OU = Innovation Centre
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ENTREPRENEURSHIP DEVELOPMENT IN
ENUGU STATE: ISSUES AND CHALLENGES
EZENAGU IJEOMA CELIN PG/MBA/12/61619
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA ENUGU CAMPUS
SEPTEMBER, 2014
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ENTREPRENEURSHIP DEVELOPMENT IN ENUGU STATE: ISSUES AND CHALLENGES
EZENAGU IJEOMA CELIN PG/MBA/12/61619
A PROJECT SUBMITTED
IN PARTIAL FULFILLMENT FOR THE AWARD OF MASTER IN BUSINESS ADMINISTRATION (MBA) DEGREE
IN MANAGEMENT
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA ENUGU CAMPUS
SUPERVISOR: PROF. U.J.F. EWURUM
SEPTEMBER, 2014
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APPROVAL
This project has been approved for the Department of Management.
……….......……..……….. ……………….. PROF. U.J.F. EWURUM DATE Supervisor ……….......……..……….. ……………….. DR. O. C. UGBAM DATE Head of Department
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CERTIFICATION
I, Ezenagu Ijeoma Celin, a postgraduate student in the Department of
Management with Registration Number PG/MBA/12/61619, state that I
have satisfactorily completed the requirements for the award of Masters
in Business Administration (MBA), Degree, in Management in the
Department of Management, Faculty of Business Administration,
University of Nigeria, Enugu Campus. I also state that the work
embodied in this project is original and has not been submitted in part or
full for any other Diploma or Degree of this or any other University.
………………..……………….. EZENAGU IJEOMA CELIN
PG/MBA/12/61619 Student
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DEDICATION
This research work is dedicated to the Almighty God, for his guidance
throughout the period of this course. It is his grace and kindness that saw
me through.
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ACKNOWLEDGEMENTS
The researcher of this project is most grateful to the Lord God Almighty,
for his unending mercy and grace throughout this work. I would like to
recognize and acknowledge the contributions of my project supervisor,
Professor, UJF Ewurum whose expertise gave this work a solid and
meaningful directions through proper vetting and supervision of work at
its preliminary stages.
I cannot thank enough whose contribution made the completion of this
work a reality more especially, Henry I. Mokwuah, because a good
academic work can never be the sole effort of an individual. Many people
are bound to offer help, and advice, encouragement, and active assistance
in setting the work ready for presentation. I would like to acknowledge all
writers and authors whose works are cited in this project, special thanks
also extended to my husband: Mr. Peter Ezenagu, my children for their
great and honest support and special gratitude and appreciation to my
family.
My sincere thanks to my course mates too also wish to place on record
the tireless effort of my lecturers in the Management Department:
Professor Ewurum U.J.F, H.O.D Dr. O.C Ugbam, Dr Nnadi, Dr. Mrs.
Ogbo, A.I. Dr. E.K Agbaeze. My completion of this project could not
have been accomplished without the support of my classmates, Mr.
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Amulu Chinwuba Christopher and Mrs. Ngozi Okonkwo. Lastly, my
profound gratitude goes to members of my family.
“To God be the Glory.
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ABSTRACT
The research work is all about entrepreneurship development in Enugu state, issues and challenges. A sample size of 240 respondents from small scale industrialists were drawn from the six selected arm of Enugu metropolis, Abakpa Nike, Achara layout, coal camp, Uwani, Emene area and Business administration students of IMT and ESUT were also used. The data collected were analyzed using frequency tables, percentages and simple tabulation method were used from the study, it was discovered that the effect of inadequate startup capital constitutes a major problem or constraints to development of entrepreneurship in Enugu state, lack of venturing spirit is one of the major constraints to the growth of entrepreneurship in Enugu state and lack of adequate knowledge and training background of entrepreneur is one major constraints that hinder the growth of entrepreneurship in Enugu state. It is recommended that strong educational background is highly recommended to potential entrepreneurs to ensure successful business venture, government should endeavor to provide adequate infrastructural facilities and provision of training of entrepreneurs and also formulate fiscal, monetary and regulating policies conducive to the growth and development of the economy.
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TABLE OF CONTENT
Approval i
Certification ii
Acknowledgments iii
Abstract vi
List of Tables x
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 The objectives of the Study 5
1.4 Research Question 6
1.5 Significance of the Study 7
1.6 Scope of the Study 8
1.7 Limitation of Study 8
1.8 Definition of Terms 9
References 10
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction 11
2.2 Conceptional Framework 12
2.3 Theoretical Framework 14
2.4 Empirical Review 16
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2.4.1 The Need for Entrepreneurship in Enugu State
and the Nation at Large 18
2.4.2 Challenges Associated with Entrepreneurship
Development in Enugu State 18
2.5 Strategies for Promotion Development of
Entrepreneurship 27
2.6 Role of Educators in Entrepreneurship Development 30
2.7 Prospects of Developing Entrepreneurship in
Enugu State 32
2.8 Entrepreneurship Opportunities 34
2.9 Summary of Related Literature 37
Reference 39
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 40
3.2 Research Design 40
3.2.1 Pilot Survey 40
3.3 Sources of Data Collection 41
3.3.1 Primary Data 41
3.3.2 Secondary Data 41
3.4. Population of the Study 42
3.5 Determination of Sample Size 42
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3.6 Validity of Instrument 43
3.7 Reliability of the Instrument 44
References 45
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation 46
4.2 Data Analysis and Interpretation 47
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS
AND CONCLUSION
5.1 Summary of Findings 56
5.2 Conclusion 57
5.3 Recommendations 58
Bibliography 60
Appendix 62
Questionnaires 63
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LIST OF TABLES
Table 4.1: Return Rate of Questionnaire 46
Table 4.2: Frequency distribution of respondents based on gender 47
Table 4.3: Distribution of respondents based on Age 47
Table 4.4: Distribution of respondents based on martial status 48
Table 4.5: Distribution of respondents based on academic qualifications 48
Table 4:6: Distribution of respondents based on inadequate start up
capital that hindered the development of entrepreneurship 49
Table 4.7: Distribution of respondents based on lack of venturing spirit
that effect the development of entrepreneurship 49
Table 4.9: Distribution of respondents based on having adequate
knowledge and training background of the business they want
to established? 50
Table 4.11: Distribution of Respondents based on government policies on
accessibility to credit facilities that effect development of
entrepreneurs 51
Table 4.12: Distribution of Respondents based on whether the
environment’s conducive for the growth of entrepreneurs 51
Table 4.13: Distribution of respondents based on whether the teaching of
basic entrepreneurship skills and competences that important to the
growth of entrepreneurship 52
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Table 4.14: Distribution of Respondents based on encouraging students
to view business a career option a way of developing
entrepreneurship 52
Table 4:15: Distribution of Respondents based on people are aware of the
benefits of entrepreneurship to the nation economy 53
Table 4.16: Distribution of Respondents based on the existence of small
industries reduce unemployment problem 53
Table 4:17: Distribution of Respondents based on entrepreneurship as a
of survival to the people that engages in it 54
Table 4.18: Distribution of Respondents based on the existence of small
industries introduces new products in the market 54
Table 4.19: Distribution of Respondents based on entrepreneurs need
government and society support to grow 55
Table 4:20: Distribution of Respondents based on government provide
necessary incentives for the growth of entrepreneurship 55
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
There is no country in the modern world where an improvement in the
material level of living is not regarded as a desirable goal by rulers and
citizens alike. The growing acceptance of the need to do something for
the poor, can be noticed in the numerous poverty alleviation programmes
in Nigeria, the average Nigerian still lives subsist below the absolute
poverty line. Amongst the challenges that confront Nigeria, a major
contributory factor was the style and expectations of the development
strategy that was pursued and faced with this failure; the need for a
meaningful national development is not only necessary but also
imperative. To this end, a lot of economic reform programmes or
strategies have evolved but recently special emphasis is being made on
self-reliance via entrepreneur and its numerous small and medium
enterprises. The economic success of the countries of south east, Asia,
and America is traceable to the contributions made by self-reliant
individuals (entrepreneurs), through their numerous small medium
development depend on the entrepreneur who makes a living by creating
new business new jobs and new ideas.
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Entrepreneur means different things to different people. In other to
appreciate this study more, some concepts that are associated with this
study will be explained.
According to Oxford advanced Learner’s dictionary it defines
entrepreneur as a person who starts or organizes a commercial
enterprises, especially one involving financial risk. To an economist,
entrepreneur is one who brings resources, Labour, materials and other
assets into combination that make their value greater than before and who
introduce changes, innovations and a new order. Entrepreneurs are the
risk takers who create businesses; they assemble all the factors of
production in an effort to start and operate a business and to make a
profit. For Schumpeter “the whole process of economic change hung
ultimately on the person who makes it happen–the entrepreneurs”.
Entrepreneurship involves combining to initiate changes in production
hence it is essentially the promotion of economic change, it is a process
involving the entrepreneur and an entrepreneurial career. Hirsch and
Peters in their text entitled entrepreneurship: describes this process as one
of creating something difficult with value by devoting the necessary time
and assuming the accompanying financial, psychic and social risks and
receiving the resulting, the rewards of monetary and personal satisfaction.
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In Nigeria, many policies are constantly being implemented to ensure
their survival which will in turn enable them contribute maximally to
economic development but there challenges were intensified more by the
perennial energy crisis, weak infrastructure, poor import and export
policies, tariff structure among others, which have prevailed in the
country for sometime now. These have, inevitably led to the near collapse
and failure of the small medium enterprises. The government of this
country should look into the modalities of solving these challenges. It is
therefore against this background that this work sets out to evaluate
entrepreneurship development in Enugu state: issues and challenges.
1.2 Statement of The Problem
It has been observed that some of the problems associated with
entrepreneurship development in Enugu state include but not limited to:
In Competence of Management: The major hazard of an entrepreneurship
business is the incompetence of management. A small business owner
may know will may know all the management principles and theories, his
management practice may Jeopardize his business. He may not possess
the leaderships qualities, be unwilling to delegate authority, lack of
appropriate human relations ability and may not possess the appropriate
skills of management, such a business operated by this business owner is
likely to fail.
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Inadequacy of Infrastructural Facilities: Water, electricity, accessible
roads, and other means of communication is are sine quanon to the
efficient performance of entrepreneurship enterprise. Their absence or
inadequacy affects negatively the efficient performance of entrepreneurial
businesses.
Disaster: There are certain circumstances over which small scale business
owner may have little or no control. Natural disaster such as thunder,
product or accident or sudden death of the owner may adversely affect the
operation of the small scale business enterprise.
High Rate of Loan Diversion and Defaults: Both loans obtained from
government, banks and individual persons are used to promote personal
aggrandizement instead of the corporate objective of the business and
hence failure to repay the loan plus interest affect the business.
Inadequate Credit Control: A common problem facing entrepreneurial
business owner is whether or not to extend credit. Some small scale
business enterprise possesses credit granting practices, credits extended to
friends and relations are often times too hard to collect in times of need.
This therefore, increases the financial predicament of the business owner.
Inadequate Planning: Planning a business begins with gathering and
evaluating data on resources requirements, operating costs, potential
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markets and sales, competition, supplies, relevant government
regulations, etc. Unfortunately, however, many eager business owners
push ahead impulsively, without paining attention to planning, and thus
business failure sets in. Lack of the use of modern method of gathering
and analyzing data constituted a weak point in the small business
strategies planning effort.
Poor Business Accountability: The financial problem of small scale
enterprises is rarely only financial. Often it is only a symptom, the
diagnosis of which reveals other weaknesses. Business finance and stress
are mixed up with personal finance and stacks required for personal needs
cash and slacks are taken at will for personal use whenever the need
arises with out accounting for such withdrawals. This makes is difficult to
assess the operating results of the business and at times starves the forms
of its liquid resources.
1.3 The Objectives of The Study
The aim of this topic is to recall the pivotal role, which entrepreneurs and
the small medium enterprises are expected to play in modern economics.
Therefore the study will make every effort to reveal the various ways to
encourage entrepreneurship development in Enugu state.
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The expectations can be achieved by the following:
(1) To identify the constraints encountered by entrepreneurs as a sole
operator or as a bigger organization and how their challenges can
be overcomes.
(2) To determine the level of awareness of people towards
entrepreneurship developments in Enugu state.
(3) To examine various ways that will be employed to develop
entrepreneurship in order to get the desired result.
(4) By extension and implication, the study shall provide how the
government both state and national and also the society will
influence positively on entrepreneurship
1.4 Research Questions
Having established the appropriate framework within which this research
study is being conducted, it becomes necessary to raise some pertinent
questions which are considered to be at the care of the subject matter of
this research effort.
1) What are the major constraints inhibiting entrepreneurs in Enugu
state from carrying out their roles as catalysts of economic growth
and how these challenges can be overcomed?
2) In what practical ways can the government and educators via
education assist in entrepreneurship development?
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3) What identifiable and specific roles (Financial, economic, social,
motivational, psychological) do entrepreneurs in Enugu state play
in order to get the desired result (advancement of the nations
economy).
4) In what ways can both the government (state and national via their
policies and programmes and also society influence
entrepreneurship development?
1.5 Significance of The Study
The research work will be of great significance to students, prospective
and practicing entrepreneurs, co-operators, chief executives and other
practicing managers of business and non–business organizations. The
research work will serve as a background and catalyst to any future
researchers and scholars who may wish to venture into the areas of
promoting entrepreneurship development in Enugu state. Again the
outcome of the research could be significance to the people with different
occupations and professions. The conclusion which this research may
expose, could lead to improvement and efficiency in Enugu state as
regard to entrepreneurship. The confidence level on embarking on
entrepreneurship development in Nigeria will improve, and more people
or the general public will agree to venture in that business. To researcher,
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the topic is a partial fulfillment for the award of post graduate master in
management (MBA).
1.6 Scope of The Study
The study extends its interest on entrepreneurship development in Enugu
state, issues and challenges, Osaze (1996).
1.7 Limitations of The Study
The researcher however, encountered series of challenges in the course
of carrying out this study, such challenges include:
Time constraints: The research was faced with time intensive activities
which she was unable to under taken in combination with load of family
issue, office work and academic course works. Accessibility to adequate
and reliable data for analysis was one of the limitations of this study. An-
in depth study and analysis of the subject would not be possible since the
study was restricted to just one state (Enugu state). Lastly, some of the
materials (literature) required for the sourcing of secondary data relevant
to the study were not handy even though a concerted effort was made to
secure from a valuable sources. Inspite of all these challenges or
hindrances the researcher did her best.
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1.8 Definitions of Terms
1) Entrepreneur: Stone and freeman (1992:156) defined it as either
the originator of a new business venture or a manager who tries to
improve an organizational unit by initiating productive changes. In
other words, it is an individual or group of individuals, who sees
environmental change as an opportunity and uses the factors of
production to produce new goods and service.
2) Entrepreneurship: Hisrich, (1995:17) Defines Entrepreneurship
as a process of creating something different with the value by
devoting the necessary time and effort assuming the
accompanying financial, psychic and social risks and receiving the
resulting rewards of monetary and personal satisfaction.
3) Small Business: Onuoha (1994:322), citing Osaze (1996), sees
small business as one which is owned, managed and controlled by
one or two persons, is family influenced in decision makings, has a
differentiated organizational structure has a relatively small share
of the market and employs less than 50 people.
4) Entrepreneurship Development: This is the coming into
existence in society of the class of individuals, who are not limited
to pace odds.
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REFERENCES
Eze, J. A. (1999), Fundamentals of Small Business Management; Enugu, Nigeria, Glanic Benture.
Hills, G. E. (1983), Entrepreneurship Education-A National Priority
Business Education, Forum, Vol.37 No7. Hisrich, R and Peters, M. (1995), Entrepreneurship: Irwin. Hornby, A.S. (1995), Oxford Advanced Learner’s Dictionary, London.
Oxford University Press, New York. Onuoha, C. (1994), Entrepreneurial Development in Nigeria, An
Integrative Perspective, Okigwe, Avah Global Publication. Schumpter, J. (1961), The Theory of Economic Development. Cambridge:
Harvard University Press. Shapero, A. (1975), Entrepreneurship and Economic Development
(Wisconism; Project SEED Ltd. The Centre for Venture Management.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introductions
Entrepreneurship in Nigeria started when people in the villages and
farming communities produced more products than they needed, as such;
they had to exchange these surpluses with those who needed them within
their immediate and neighboring communities. The exchange of goods
for goods or services was based on trade by barter initially, until
commodity money was developed and used. Exchange encouraged
specialization among producers, and the communities came to realize that
they can concentrate on the areas of production they are best fitted.
Consequent on the above, the culture of entrepreneurship in Nigeria
(Nicks, 2008; Raimi and Towobola, 2011)
In the words of Ani (1995) a typical Nigeria entrepreneur is a self made
man who might be said to have strong will to succeed, he might engage
the services of others, like friends, mates, in-laws etc, to help him in his
work of production. Through this way Nigerians in the olden days
engaged in entrepreneurship. Early engagement in entrepreneurship is
characterized with production or manufacturing in which case the
producer most often started with small capital, most of it from his own
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savings. Early entrepreneurship started with trade by barter ever before
the advent of any form of money.
Modern Stage: Modern entrepreneurship in Nigeria started with the
coming of the colonial masters who brought in their wears and made
Nigerians their middle men. In this way, modern entrepreneurship was
conceived. Most of modern entrepreneur were engaged in retail trade or
sole proprietorship. One of the major factors which has in many ways
discouraged the flow of entrepreneurship development in Nigeria is the
value system brought about by formal education. For many decades
people had the opportunity of being employed in the civil service,
because those days the economy was large enough to absorb people into
the prestigious occupation, all Nigerians with some form of formal
education. Again, the contact between the Nigerian entrepreneurs and
foreign entrepreneurs during the colonial era was very detrimental and the
competitive business strategy of the foreign entrepreneurs was ruinous
and also against moral standard established in the society. They did not
adhere to the theory of fight and let’s live. For instance, the United
African Company (UAC) that was responsible for a substantial
percentage of the import and export trade of Nigeria.
They had the policy of dealing directly with producers and refuse to make
use of Nigerians. The refusal of the expatriates to utilize the services of
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local businessmen inhibited their expansion and acquisition of necessary
skills and attitude. Because of this, many eventually folded up. Those that
folded, built up resentment against business, which became very
demoralizing to other prospective entrepreneurs.
As a result, the flow of entrepreneurship in the country was showed
down. But with more people been educated and the fact that government
could no longer employ most school leavers economic programs to
encouraged individuals to go into private business and be self-reliant
were initiated. (Theodore, and Gieger 2011), such economic policy
programs that are geared towards self-reliance for individuals are
programs as open apprenticeship scheme, graduate employment program
etc, and other policies that encourage or make it easy for entrepreneurs to
acquire the needed funds, e.g., peoples Bank of Nigeria, funds for small-
scale industries (FUSSI) Co-operative societies etc, were established to
assist entrepreneurs.
2.2 Conceptional Framework
The words” entrepreneurship and development has been giving various
meanings. According to Shane and Ventaraman, (2010), entrepreneurship
is the creation and management of a new organization designed to pursue
a unique, innovative opportunity and achieve rapid, profitable growth.
Kanothi (2009), quoting Binks and Vale (1980), defines entrepreneurship
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as an unreleased combination of economic resources instigated by the
uncertain prospect of temporary monopoly profit. Entrepreneurship also
entails the act of risk taking, innovation, arbitrage and co-ordination of
factors of production in the creation of new products or services for new
and existing users in human society (Acts and storey 2004, minimize and
Levesque 2008 Nacide 2007, Kanothi, 2009),
In the words of Kilby (1971:6), entrepreneurship has been defined as the
willingness and ability of an individual to seek out investment
opportunities, establish and run an enterprise successfully. The oxford
advanced dictionary of current English (Hornby 1975:292), defined
entrepreneurship as the ability to organize a business undertaking and
assume the risks for the sake of profit. It is also defined as the ability and
willingness of a person to initiate, control and direct the processes of
production of goods and services and bear the attendant risks thereof. The
deliverable of entrepreneurship is making or doing things differently,
making or providing innovative products or services or organizing the
products made or supplied. Development on the other hand is a process of
sustained increase in total per capital incomes accompanied by structural
transformation and modernization of socio-economic environment.
(Umebali, 2001:133),
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In other words, is defined as the process whereby the quality and quantity
of productive factors, and the institutionalization of the growth process in
particular, development implies not merely the growth of per capital real
incomes, but also its distribution, the sources of growth, the development
of infrastructure and administrative framework essential to sustained an
economic growth (Olayide, et al 1981).
2.3 Theoretical Framework
According to Dusan and Velickaite (2008), Rapidly growing companies
have been the subject of study is for many years. Researches have tried to
overview and clarity the key factors that cause some business to grow
rapidly. While others remain small or grow very slowly, often studies
have concentrated on the founder his or her personality management
skills, goal and so forth in academic discussion, the question of
entrepreneurial skill is related to the debate on whether entrepreneurship
can be conceived as something teachable or not. Katz (1991), For
example, suggests that most likely there are some skills that can be taught
and some that cannot. Some theories were developed that entrepreneurs
are born. Nevertheless experience has shown that entrepreneurship can be
taught and that a positive environment encouraged entrepreneurial
thinking promotes innovation and leads to a higher degree of social and
economic sustainability.
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The observed scientific problem exits within the entrepreneurship
research as generally accepted definition of entrepreneurship and related
definitions such as entrepreneur, entrepreneurial team corporate
entrepreneurship, etc, cannot be imposed or even assumed. In respect, the
search for an appropriate basis for understanding and describing the
phenomenon creates a challenging problem for entrepreneurship
researchers. The goal of this paper is to provide some systematic
clarification on the concept of entrepreneurship. Its components and
related processes and to build a theoretical framework, based on relevant
research in the field. The objective of the research is entrepreneurship, its
components processes and nexus between them. On the purpose to reach
the aim, scientific literature analysis, comparison and systematization
methods were applied. Entrepreneurship research has been paid by great
attention during the past for decades as ownership of firms (Cuevas
1994), management of small businesses (Scott and Bruce 1987),
innovativeness (Schumpeter 1934, Hin et al, 2001), networking (Larson
and Starr 1993), organizing (Johanisson 1988), making the ideas work
even though the needed resources are not under control (Stevenson and
Jarilto 1990), all new businesses (Acs et al 2001) etc. Because of the lack
of a conceptual framework that explains and predicts a set of empirical
phenomena not explained by conceptual frameworks already in existence
in other, related fields of research, the distinctive contribution of the
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entrepreneurship field is still difficult to identify (1,2). Many different
views about entrepreneurship were greatly worked out by Gartner (1990),
deservedly reputed as the leader in entrepreneurship research. Lately
entrepreneurship research seems to focus on two dimension individual or
trail approach and process or behavioral approach, mostly concluding on
the outcome new value creation that fuels economic growth (Maes, 2003;
Teoren 2007). But before going in the analysis of these approaches,
definitional problems should be reviewed.
2.4 Empirical Review
Idam (2014), entrepreneurship, as an emerging field of study and as an
area of human endeavor, has received increasing interest of researchers,
academicians and policy makers the world over. It has equally provoked
controversies over its concept and definition. Entrepreneurship is seen as
an effective means not only of combating unemployment, poverty and
under-development in the developing nations, but also as a strategy for
rapid economic development in both developed and developing nations
(Schumpeter, 1934, Harper, 1991, Morris & Lewis, 1991, Hamilton,
2000, Clausen, 2006, Praag & Versloot, 2007). Naude (2011) contends
that global development is entering a phase, where entrepreneurship will
increasingly play a more important role. The adduces three reasons for
this development.
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The first is that the managed economy of the 1970s. 2009 in the west,
characterized by reliance on big business and mass production, has given
way to a so-called entrepreneurial economy, where knowledge driven
goods and services are more flexibly provided by smaller creative class
secondly, impressive growth in the emerging economics, notably Brazil,
Russia, India and china , has been driven by innovative entrepreneurial
revolution. Thirdly, in the least developed countries, where dependency is
high, donor agencies have shifting emphasis in development co-operation
towards private sector development. Naude (2011) draws the conclusion
that entrepreneurship will contribute to growth and employment creation
in advanced, emerging and least developed economics alike. In Nigeria,
studies have been carried out on the effect of entrepreneurship
development on the problem of high unemployment rate, high level of
poverty and slow economic growth rate (Adejumo, 2001, Ariyo, 2005,
Agboli and Ukaegbu, 2006, Abimbola and Agboola, 2011, Thaddeus,
2012, Oyelola et. al, 2013, Satami, 2013). Given the generally held view
that entrepreneurship development is the key to poverty eradication.
Employment generation and rapid economic development, various
government in Nigeria have, over the past three decades, evolved policies
and programme aimed at developing entrepreneurship through the
development of small and medium scale enterprises (SMEs). In spite of
all the efforts, unemployment rate has remained high, rising from 13.1%
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in year 2000 to 23.9% in 2011, with youth unemployment put at over
50% (IMF, 2013, rise networks, 2013). Over 100 million Nigerian live
below poverty line on less than US$I a day and with the percentage of the
population in abject poverty rising from 54.7% in 2004 to on 60.0% in
2010 (Yusuf, 2011). Above all, Nigeria’s human development index
(HDI) remain abysmally low at 0.453, much below world weighted
average of 0.7 (UNDP, 2006).
2.4.1 The Need for Entrepreneurship in Enugu State and the Nation
at Large
Entrepreneurs and small business enterprise have on their own made
immense contributions to the development of the state and the national
economy over the years. The economic contribution accrued from the
development of entrepreneurship.
a) Employment Generation: The committee for economic
development cited by Bamback et al (1973:15) highlighted the
benefits of small scale industries such as employment generation
and sectoral linkages.
2.4.2 Challenges Associated with Entrepreneurship Developments in
Enugu State
There are a number of challenges associated with entrepreneurship
development in Enugu state. These challenges are:
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(1) Access to finance
(2) Access to land
(3) Licenses and permits
(4) Corruption
(5) Courts
(6) Crime, theft and disorder
(7) Customs and trade registration
(8) Electricity/inadequate electric supply
(9) Inadequately educated workforce
(10) Labour regulations
(11) Political instability
(12) Practice informal sector
(13) Tax administration
(14) Tax rates
(15) Transportation
Source: Business environment and enterprise performance Surveys
World Bank 2007. Also Ile (2001:467), summarized the challenges
associated with entrepreneurship development in Enugu state to include:
(1) Under capitalization
(2) Poor business accountability
(3) Poor record keeping
(4) Lack of enterprise
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(5) Lack of business knowledge
(6) Poor and wrong location
(7) Inadequate planning
(8) Unplanned expansion
(9) Inadequate credit control
(10) Neglect and time pressure
(11) Incompetence of management
(12) Lack of proper inventory control
(13) Disaster
(14) High rate of loan diversion and defaults
(15) Inadequacy of infrastructural facilities
(16) Lack of good advice cum unwillingness to accept good advice
(17) Poor competitive positive
(18) Poor education and lack of required skills
(19) Lack of preparedness
(20) Wrong choice of product or services
(21) Problem of not conducting feasibility studies
(22) Government policies and regulations
(23) Problem of management succession
(24) Problem of acceptability of Nigeria made goods.
36
However, Kent (1982:10), defined several factors influencing the level of
entrepreneurship activity in the economy at a given time, they are as
follow:
a) Demand for final output: Is demand generally strong in the
economy?
b) Availability of inputs : Are resources available to make new
venture possible?
c) Inflation : Is inflation making debt too expensive to find new
ventures development?
d) Taxation: Are there tax consideration affect new venture?
e) Political stability : Is public favorable to long term investment
needed for new ventures?
From the above authorities, we summarize the challenges associated with
entrepreneurship development in Enugu state to include the following:
(1) Problem of acceptability of Nigeria made goods
(2) Lack of preparedness
(3) Access to finance
(4) Inadequate of infrastructural facilities
(5) Inadequately educated workforce
(6) Poor education and lack of required skills
(7) Access to land
37
(8) Corruption
(9) Courts
(10) Crimes and theft and disorder
(11) Electricity
(12) Labour regulations
(13) Political instability
(14) Practice informal sector
(15) Tax administration
(16) Tax rates
(17) Transportation
(18) Poor business accountability
(19) Poor record keeping
(20) Lack of enterprise
Let us review some of the above mentioned points.
Some of the problems include
a) Dependence on Foreign Goods: Items that are locally produced
in Nigeria are not valued and Enugu state amongst other states
is not exempted, there is a great reliance on imported goods. It
is true that most of our locally produced goods are inferior
compared with the foreign goods but we must remember that
practice they say makes perfect. To make matters worse most
38
literate ones have misplaced view of what education was meant
to achieve that is economical, educational, political and social
independence. This view was voiced by President Anjoma of
Namibia at the Award Giving Ceremony. Making in Nigeria’s
40th independence anniversary, and quote “we (Africans) have
independence but not political or economic independence. An
educated man is a person which is truly proud of what he could
make or appreciate and value that made and produced by his
people.
b) Lack of Venturing Spirit: This is a major problem facing the
people of Enugu state because an average man in Enugu state
believes that Enugu is not a business area and a such will not
want to risk venturing into a business of his own in the state. In
Nigeria generally people tend to do what every person is doing,
nobody wants to take a plunge into a new area that is why there
is backwardness in entrepreneurship development.
c) Financial Handicap: In the true sense of Enugu state is more
or less an educational state; they are not business incline. This is
because of our geographical location, we don’t have seaports,
oil companies etc, around us, money do not really change hands
as in business wise in this state. The small scale industrialists
therefore usually find himself in financial trauma due to limited
39
source of fund. Oshumbiyi (1989:10) saw the key problem
facing most small scale business in Nigeria is lack of financial
resources. He added that whether for the establishment of new
industries or to carryout expansion plans that the inability to
attract financial credit has shifted. The difficulty in obtaining
credit is probably the most serious handicap of a small
entrepreneur as it limits his ability to obtain the funds necessary
to operate his enterprise. Despite the effort of the federal
government and its specialized agencies like the (National
Directorate of Employment, Nigeria bank of industry,
microfinance bank) in finding lasting solutions to the funding
challenges of small scale industries in Nigerian, the challenges
has persisted and manifest in different dimensions.
d) Low level of Technology: The technological awareness of the
people of Enugu state is still at its lowest ebb. The impact of
technology while appreciated is till being paid lip service. There
are no facilities for the implementation of technological
‘breakthrough’. Most technological achievements are usually
allowed to remain at the research laboratories with no hope of
seeing the daylight.
e) Mass Illiteracy of the General Populace: It is a fact of history
that the number of those illiterates is still staggering. The
40
feature does not make for the execution of government plan
(especially economic). This creates communication gap as the
uneducated entrepreneurs do not often possess the necessary
technical skills especially financial expertise to put together
bankable proposition even when they have a good idea of their
need based on their experiences. Due to illiteracy and its
resultant lack of skills, knowledge and administrative skills
which could have aided productivity are usually nonexistence.
f) Limited Infrastructure: The infrastructures present in Enugu
state are grossly inadequate to the rapidly increasing population.
As a result water and power supply are not in existence in most
rural areas. The available power supplies in the urban areas are
not constant thereby hinder productivity. Means of
communication is poor in the state, letters take a long time to
reach their destinations, and there is no network for phone calls
(mobile phones) in the most rural areas. Most of the roads
especially those in the rural areas are in dilapidated state. This
makes it impossible for business enterprises to operate
efficiently.
g) Under Utilization of Available Resources: Government of the
state does not encourage a wide range of entrepreneurs. Most
jobs are given to the people that come from their own
41
community whether skilled or not. The indigenous construction
firms are not given jobs as often as it should be. The reason that
their jobs are not satisfactory does not sound convincing. Also
Oyelola (2011) went further to state that for promoting
development of entrepreneurs development in Enugu state, it
requires that development of entrepreneurial skills married with
excellent knowledge of information and communication
technology (ICT) as additional they to technological and
entrepreneurial and entrepreneurial development is important
Nigeria’s visions. Development of entrepreneurial skills married
with excellent read again knowledge of information and
communication technology (ICT) as additional key to
technological and entrepreneurial development is important.
Nigerian’s vision of achieving sustainable economic growth and
social development will remain unrealized if the nation’s
infrastructural needs are not addressed. The provision of
infrastructure such as power, transport and water is vital.
Without adequate, constant and reliable electric power supply,
no technological development will be successively achieved.
New innovation is lacking in Nigeria, most entrepreneurs prefer
to import goods and package for sales because of high cost of
production. In order to reverse this trend, it is pertinent that
42
government gives priority to capacity building for technological
innovation, good infrastructure and provide environment
conducive for business that will lead to sustainable economic
growth.
Additionally, since entrepreneurs are vital to economic growth, legislators
and other leaders who develop economic policies should strive to
encourage the innovation and risk taking of entrepreneurs. Enforcing
property rights through contact, patent and copyright laws, encouraging
competition through free trade, deregulation and antitrust legislation and
promoting a healthy economic climate. Any country that lacks capacity
for production of goods will become a consuming nation instead of an
industrial nation. Finally, the Nigerian government needs to shift from
over-dependence on oil and place more attention on the development of
small & medium sized enterprises for sustainable economic growth in
Nigeria. Economic prosperity in Nigeria, as in the rest of the world,
depends on strong and empowered private sector to a higher level of
growth would significantly contribute to the country’s economic well
being.
2.5 Strategies for Promoting Development of Entrepreneurship
1) External Assistance: Learning from others and adapting to it
offers the opportunity to make raid advances without repeating
43
others mistake. The government should therefore not hesitates to
seek help the federal and international bodies to co-ordinate, assist
or even contribute their wealth of knowledge. The World Bank
report observed that most knowledge that is beneficial for
developing countries is not the product of internationally sponsored
research, vital though such research can be; it is rather than
consequences of actions taken in developing countries themselves.
It is therefore pertinent to create an enabling environment in order
to unleash powerful development forces through local knowledge
and efforts.
2) Strategic Environmental Assessment: Just as adequate
knowledge and information can help enhance the performance of
economic activities of the state so can adequate information about
the environment help to minimize the problem of development
especially entrepreneurship development. In order to achieve
sustainable growth, government, institution and individuals must
seek to integrate environmental issues into the development plans
of the state. This would course help in understanding the peculiar
challenges of the entrepreneurs in order to deploy the appropriate
strategies to minimize the negative impact of the current
development predicament.
44
3) Financial Records: Hence Dickson (1971:4) holds that “small
business enterprises are plagued by inadequacies and serious
misuse of business records and business information. The problem
of access to credit, which remains the bane of economic sustenance
among entrepreneurs, is an issue that derives from information
failure as wealthy savers lack information about the entrepreneurs
and so cannot lend to them with confidence. The best known
mechanism for improving the flow of information among
entrepreneurs and their access to credit are the group lending
schemes. These enable an outsides lender to tap a source of
information that people have in abundance about each other.
Accounting standards, in form of “financial statement” for example
is another way that information about firms can be compared
against information from other firms. This thus makes it easier for
investor and creditors to access and evaluate the condition and
credit worthiness of enterprises. Government must therefore
encourage as well as ensure that entrepreneurs keep these
important records so that they could attract investors, creditors and
other interested stakeholders.
4) Knowledge/Education: According to the current edition of World
Bank Development report “knowledge illuminates every economic
transaction, revealing preference, giving clarity to exchanges,
45
markets. Basic education is the foundation for building skilled and
agible labour force as it increases people’s capacity to learn and
interpret information, knowledge can therefore be seen as a
strategy towards improved productivity. However to acquire the
minimum knowledge and technical know-how that can adequately
enhance development, the adaptation of polices that support
improved educational, financial, telecommunications,
environmental and information generation initiative is imperative.
In essence the World Bank report is a necessity for the
development of entrepreneurship because a well informed
individual can better appreciate his environment and consequently
profit more on opportunities around him.
2.6 Role of Educators in Entrepreneurship Development
Many vocational education program components lead to entrepreneurship
skills although vocational educators do not often identify these as
entrepreneurship training. They include running small business as art of
the programme, (example school stores, repairs, flower shops etc)
studying business management participating in youth club activities and
working with entrepreneurs in the community. Vocational education
programmes offers opportunities for more specific types of self-
employment education through experience. But entrepreneurship
46
education, although the content is the same now involves a new
personalized focus. Instead of saying “business people do this or that” a
teacher should show students how they could do them. Experience is the
best teacher if one wishes to be a successful new venture creator.
Vocational education can therefore play an important part in building
successful new business in the future by starting now to build
entrepreneurship in our students. Educators are therefore faced with a big
challenge regarding entrepreneurship and small business management.
The first challenge is to build business in general; small business in
particular into the realm of respectability. Education plays a key role in
determining how students, tomorrows adults view business operators.
Educators should begin with simple explanations of the nation’s business
system in the early years of education. An essential part of shaping
students attitudes is their understanding of the relationship between the
system and the quality of the society’s life. Educators need to analyze the
system, develop a positive attitude about it and begin to express the value
of entrepreneurship to the pupil. It is through student knowledge and
assimilated attitude that students will determine whether to become
contemptuous and revolt against it or become part of the system.
Education is being increasingly important to the entrepreneur and small
business manager.
47
Educational institution should begin to establish programmes that will
edify students to have the characteristics and instincts, which are
associated with entrepreneurs of small business manager. Extra-curricula
activities which have a small business orientation such as business
fraternities, co-operative education programmes and student chapters of
professional associations need to be encouraged and developed. In
conclusion, educators can make a great contribution by encouraging
students to view entrepreneurship and small business management as a
vital career option and also by preparing students to deal with problems
and opportunities associated with entrepreneurship and small business
management.
2.7 Prospects of Developing Entrepreneurship in Enugu State
The future of small business has been a source of concern by a lot of
interested parties, especially owners of small firms. However, one things
is certain and that is that the future will always be different from the
present. That means that at any given time, numerous entrepreneurial
opportunities will always exist. Successful entrepreneurs are therefore,
the resourceful people who can see and exploit propitious situations.
a) One Major Structural Change that Favour Small Business: Is
the shift from a manufacturing to a service economy. The
manufacturing segment in which big business predominates is
48
currently declining in relative importance while retailing and
wholesaling is growing. These areas are fields in which small
business have been traditionally strong.
b) Adaptability of Changing Conditions: The survival of any
business will depend upon its ability to adapt to the changing
environment within which it functions. Future success belongs to
those enterprises that managers are sensitive to the changing
business scene and who are prepared to capitalize on its
opportunities.
c) Government and the Future of Small Business: The federal
government recent creation of small business administration
represents a positive attempt to strength small business both at the
federal and state levels and therefore portrays a good omen for the
growth of entrepreneurship. Superiority in the production and
marketing of goods and services constitutes the greatest guarantee
of continued life for a small business. Nevertheless, small business
will do themselves good not to constitute itself a “special interest”
group dependent upon government assistance and political
legislation.
49
2.8 Entrepreneurship Opportunities
According to Hubbard et al (1988:3) in an economic democracy, there is
opportunity for project recognition and service for anyone service than
the other. The essence of the free enterprises system is competition. It is
competition that makes a person who is already doing a good job to try
even harder. Competition provides choices when a purchase is made, the
money paid becomes “vote” in Favour of the service product or service
chosen. Those businesses which do not receive sufficient sales in form of
money votes from customers cannot possible succeed. It is the job of a
business to provide little extra service or a little better product so as to
improve its ability to compete. Schumpeter (1970:19); stated that
entrepreneurial profit comes specifically from innovation. When a
business can no longer satisfy a segment of the population, sufficiently
large enough to support it, that business is bound to fail and with the
aging population, changes in life styles, increases in spendable income,
changes in technology and communication there are opportunities for
many more business to provide goods and services.
If a business goes to a growing community and starts gaining popularity
and as well monopolize the market and make his profit before others will
come in to join him and if the location is good, other business will soon
arrive who may not even be in direct competition with the former if they
50
represent different products and services. They will actually bring more
business as copper and Drymkelbery (1981:8), found entrepreneurs differ
from industry to industry although we do not have systematic knowledge
of the difference. An entrepreneurs however can profit by thinking about
the qualities most helpful in different kind of business. However, anyone
with imagination and a little courage and who believes in his or her own
ability and ambition can be successful in business, with education, skills,
maturity and determination combined with a creative business idea the
outlook is good. The primary requirement for a new venture is to have an
item or service which satisfies the public and new business must be
viewed against the background of the community in which they are
located, they must be keeping with time. Everyday research and invention
produces new products and new services that replace the old products and
services.
According to Berko (1992:9) the history of business is full of instances of
firms which died from failure to innovate their products. As an innovator,
the entrepreneur initiates changes to improve enterprise performance to
achieve progress because no enterprises can rest on its past glory.
According to Ani (1999:5), great opportunities exist for entrepreneur with
entrepreneurial spirit necessary to take some risks to develop a country’s
51
economic resources, it is observed that entrepreneur are likely to do well
if they posses the following traits.
(1) Risk taking, self confidence, hard work, goal setting,
accountability, innovation and versatility. A good entrepreneur idea
should be thoroughly discussed with trade association, bank and
department of commerce.
Opportunity is defined as a situation that allows one to make gain or
profit. It is also defined as unfilled demand in the society, an unsatisfied
need, something that is valuable for which people will like to pay. It is a
potentially gainful situation example; the government by removing
exercise duties creates business opportunities for some companies. Most
good opportunities do not suddenly appear but rather from an
entrepreneur being alert to possibilities and in some cases by establishing
mechanism to identify potential opportunities. Regardless of the source of
opportunities, each must be carefully screened and evaluated. The
evaluation enables entrepreneurs to determine whether the specific
product or service has the earnings needed for resources required. It is
equally good to determine the market size and the length of the
opportunity, which are the primary bases for determining the risks and
rewards of opportunity.
52
2.9 Summary of Related Literature
This paper reviewed entrepreneur and entrepreneurship definition from
different perspective. Ducker in his own definition present entrepreneurs,
not as people who are born with certain character traits but as managers
who know where to look for innovation and how to develop it into useful
products or markets once they have found it. He furthermore consider
entrepreneurship not being an art you either have, or you don’t but rather
a practice which you constantly follow or you choose to ignore. It can
thus be develop, and learned. Its core activity is innovation and a
continuous purposeful search for new ideas, and their practical
applications. Also discussed are the need and various roles of
entrepreneurs and entrepreneurship in economic development of the state
in section 21. However, the paper proceeded to identify the problems
militating against the development of entrepreneurship.
The recurring constraints to which entrepreneurs are generally exposed
that limit their contribution to economic development includes
dependence on foreign goods, lack of venturing spirit, financial handicap,
lack of infrastructural facilities etc. Elicited from the review is also the
prospects for entrepreneurship development in Enugu state in section 2.5
and the issues which are worth considering in order to accelerate the
growth and development of entrepreneurship are government provision of
53
a solid foundation by giving basic training to entrepreneurs as well as
appropriate incentives provision of infrastructure and creation of an
enabling business environment for entrepreneurial efforts to flourish in
section 2.3, state government should as well seek assistance from the
federal government and if possible from other external bodies. Nigeria
generally is endowed with vast natural resources and a large pool of
individual abound who are ready and willing to be self reliance and
contribute their own quota to the economic development of the nation of
which Enugu state people are not left out to be precise. As such they
require a more conductive environment to actualize their dreams. The
review thus review the role of educators in entrepreneurship development
which include the establishing of vocational centers as it is being done by
NDE (National Directorates for Employment) engaging school leavers,
graduates to acquire different skills so that they can be on their own.
Therefore given the right environment, the prospects for entrepreneurial
development in Enugu is bright.
54
REFERENCES
Ani, N.B (1999), Entrepreneurial Development: Enugu: Nigeria, JTC Publisher.
Bamback, (1973), How to Organize and Operate a Small Business, Fifth
Edition, Prentice Hall Inc Eaglewood Cliffs. Broom, H. N. and Longnecker J.G (1983), Small Business Management,
(South Western Publishing C0. Cincinnati, Ohio). Davis, C.H (1988), “Education’s Role in Developing Instincts for
Entrepreneurship and Small Business Management” (Export Business Education Forum).
Dickson, F.J. (1971), Successful Management of the Small and Medium
Sized Business, Eaglewood Cliffs New Jersey, Prentice Hall Inc. Dinwiddy, B. (1974), “Promoting African Enterprise. London. Drucker, P.F. (1974), Management: Tasks Responsibilities practices:
New York: Harped and Row. Hasting, P.G. (1968), Fundaments of Business Ownership, London D.
Van Nostrand Company Inc. Hisrich, R. and Peters, M. Entrepreneurship. Irwin. Ogaga H.P. (1986),
“Encouraging Small Scale Enterprises” Business Times: Lagos. Oshumbiyi, O. (1989): Ensuring Survival of Small Scale Industries”,
Business Times. Schumpeter, (1975), The Theory of Economic Development, Harvard
University. Shapero, A. (1975), Entrepreneurship and Economic Development,
(Wisconsin Project Seed Ltd, The centre for Ventures Management).
55
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter has a detailed account of the research design and procedures.
Discussed in this chapter are sources of data and data collection
techniques, background of the population, determination of the sample
size, questionnaire administration and collection, and methods of
statistical data analysis.
3.2 Research Design
In order source adequately reliable data for analytical purposes and
subsequent useful inferences, the descriptive research method was
combined with yet a survey approach. Might come up in the course of
the study proper.
3.2.1 Pilot Survey
A sample of the targeted population was interviewed and simultaneously
administered with the questionnaire in order to test the reliability of the
questionnaires instrument and ensure that it possess the characteristics
which a good measuring instrument should have for the purpose of
validity.
56
3.3 Sources of Data Collection
Both primary and secondary data derived from different sources were
used.
3.3.1 Primary Data
To get hand information the researcher undertook the following steps.
Personal Interview
The personal interview was used to obtain direct and first hand
information from the respondents (entrepreneur and students) so as to
reinforce and complement the information emanating from the structural
questionnaires.
Questionnaires
Questionnaires were administered to two (2) groups of respondents; the
entrepreneurs and students respectively.
3.3.2 Secondary Data
Secondary data formed a sizeable portion of this work and were notably
mainly from library sources. Books, journals, magazines, dailies,
unpublished thesis/projects and lecturers constituted the sources of
secondary data used to provide a theoretical framework for this study.
57
3.4 Population of the Study
The population includes a representative sample of small scale industries
drawn from the six selected arm of Enugu, Abakpa, Asata, Achara
Layout, Coal camp, Uwani and Emene Area. Students of two institutions
were Institute of Management and Technology (IMT) Enugu State
University of Science and Technology (ESUT).
(a) Small-scale industrialists 500
(b) Business administration students 300
3.5 Determination of Sample Size
To determine the sample for the study, the study made up of Yaro
Yamane (1973) formular which states this
N = N 1 + Ne2
Where n = the sample size
N = The total population
E = Error margin (which is normally % or 0.05)
I = mathematical constant
The margins of error were % or 0.05% which was chosen voluntarily by
the said research. Therefore substituting the formula above
N = 800 (0.05)2 1 + 800
58
n = 800 (0.0025) 1 + 800
= 800 = 800 = 266.67 1 + 2 3 = 267 approximately
(a) Small-scale industrialists
n = 267 x 500 800 1
= 133500 = 166875 800
(b) Business administration students
= 300 x 267 811 1
= 80100 810 100.125
166.875 100.725 267.000
= 267.000 Approximately
= 267 sample size
3.6 Validity of Instrument
To ensure that the instrument was able to ensure what it is set measure,
face validity was carried. The questionnaire was given to the research
project supervisor who examined the instrument for relevance of content
59
and effectiveness in producing required responses to the problem under
study. After vetting the questionnaires was cleared for use.
3.7 Reliability of the Instrument
According to Nwaorgu (2006:100), the reliability of an instrument refers
to the degree of consistency with which the instrument measures, what
event measures. In the area of the research, the reliability can be tested
by administering the same question design in the interview question on
the practicing manages of business, co-operators chief executives, and
non- business organized the an sores from other sources can then be
compared with the researcher experience.
3.8 Method of Data Analysis
Data collection from the questionnaires were presented and analyzed by
using simple tabulation method in form of frequency distribution and
percentage as shown below:
F x 100 ∑n 1
Where = f = number of response
n = total number of the respondent
100% or percentages
∑ = summation
60
REFERENCES
Nwaorgu, A. (2006), Introduction to Academic, Enugu Printing and Publishing Company.
Baridam, D., (1990), Research Methods in Administrative Sciences.
Ibadan Beik Publishers. Onodugo, V. A. (2007), “Short Notes on Research Methodology”,
Department of Management, University of Nigeria, Enugu Campus.
Osuala, E., (1985), Introduction to Research Methods and Procedures,
African Rep., Publishers Ltd.
61
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation
This chapter comprises the presentation of data in a tabular form and
analyzing the data received from the selected respondents with
percentage. In carrying out this research, a total of 267 copies of
questionnaires has distributed to the respondents and out of 267 copies
distributed, that a total of 240 was duly completed and returned making a
representation of 89.89% while a total of 27 were not returned also
making a representation of 10.11%
Table 4.1: Return Rate of Questionnaire
Questionnaire No of respondent Percentage (%)
Number return 240 89.89
Number not returned 27 10.11
Total 267 100
Source: Field Survey, 2014.
Table 4.1: Shows that respondents of the two (2) group of respondents,
the entrepreneurs and students respectively were interested with the
above study. This can be ascertain from the response rate gotten from
study. These were a positive response from the respondents.
62
4.2 Data Analysis and Interpretation
Table 4.2: Frequency distribution of respondents based on gender:
Sex Small scale
% Students % Total
Male 80 33.33 60 25 140
Female 60 25 40 46.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
From table 4.2, it can be deduced that under small scale industrialists 140
of the respondent were small scale industrialists, while 100 were students.
Table 4.3: Distribution of respondents based on Age
Age Small scale
% Students % Total
Below25 35 14.58 60 25 140
26-30 35 14.58 40 46.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Table 4 3: Shows that 14-58 of the respondents were below 25yrs, 14-58
were below 35 yrs, while 29-17 were 31-40yrs. This means that the
majority of the respondents were below 31-40.
63
Table 4.4: Distribution of respondents based on martial status
Status Small scale
% Students % Total
Single 60 25 - - 140
Married 80 58.33 100 100 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Table 4.4, shows 25% of the respondents were single, 58-33% of them
were married under small scale industrialists
Table 4.5: Distribution of respondents based on academic qualifications
Academic qualified on
Small scale industrialists
% Students % Total
WAEC 35 14.58 60 25 140
GCE/RSA 35 14.58 - - -
OND/NTCR/NCE 70 29-17 40 16.67 100
HND/Degree - - - - -
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Table 4.5: Shows that 14.58% of the respondents hold WAEC (1 level)
and GCE, RSA certificate 14.58% of them have OND/NTCR/NCE,
29.17% have HND, and B.SC under industrialist. Therefore the majority
of the respondents possess OND/MTCE/NCE.
64
SECTION B
Table 4:6: Distribution of respondents based on inadequate start up
capital that hindered the development of entrepreneurship
Response Small scale
% Students % Total
Yes 140 58-33 100 41.67 140
No - - - - 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Table 4.6, showed that 58.33% under industrialists and 41.67% under
students agreed that inadequate startup capital can hinder the
development of entrepreneurship.
Table 4.7: Distribution of respondents based on lack of venturing
spirit that effect the development of entrepreneurship
Response Small scale
% Students % Total
Yes 140 58-33 100 41.67 140
No - - - - 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
65
Table 4.8, showed that 58.33% under industrialists and 41.67% under
students agreed that lack of venturing spirit affect the development of
entrepreneurship in Enugu state.
Table 4.9: Distribution of respondents based on having adequate
knowledge and training background of the business they want to
established?
Response Small scale
% Students % Total
Yes - - - - -
No 140 58.33 100 41-67 140
- 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014
Table 4.10: Indicates that 58.33% under industrialists and 100% under
students indicates No, that entrepreneurs does not have adequate
knowledge and training background of the business they want to
establish.
66
Table 4.11: Distribution of Respondents based on government
policies on accessibility to credit facilities that effect development of
entrepreneurs
Response Small scale
% Students % Total
Yes 80 33.33 60 25 140
No 60 25 40 16.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014
Result: 80% of the respondent under industrialists and 60% under
students says yes to question No 8 while 60% of the respondent under
industrialists and 40% under students say No to the question No 8.
Table 4.12: Distribution of Respondents based on whether the
environment’s conducive for the growth of entrepreneurs
Response Small scale
% Students % Total
Yes 60 25 40 16.67 140
No 80 33.33 60 25 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014
67
Result: 25% under industrialists and 16.67 under students indicated yes
to the question 9 while 33.33 under industrialists and students 25% of
them say No”.
Table 4.13: Distribution of respondents based on whether the
teaching of basic entrepreneurship skills and competences that
important to the growth of entrepreneurship
Response Small scale
% Students % Total
Yes 80 33.33 60 25 140
No 60 25 40 16.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014
Result: Indicated that 33.33 under industrialist and 25% under students
indicates yes” to the question 10 while 25% under industrialists and
16.67% under students indicate “No” to it.
Table 4.14: Distribution of Respondents based on encouraging
students to view business a career option a way of developing
entrepreneurship
Response Small scale
% Students % Total
Yes 80 33.33 60 25 140
No 60 25 40 16.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
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Result shows that 33.33% under industrialists and 25% under students
says yes to the question while 25% under industrialists and 16.67%
students indicate “No” to question No 11.
Table 4:15: Distribution of Respondents based on people are aware
of the benefits of entrepreneurship to the nation economy
Response Small scale % Students % Total
Yes 35 14.58 40 16.67 140
No 70 29.17 60 25 100
I don’t know 35 14.58 - - -
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Result, shows that 14.58% under industrialists and 16.67 under students
says yes to the No 12 question while 29.17% under industrialists and 25%
under students says No to it and 14.58% of the industrialists says they
don’t know.
Table 4.16: Distribution of Respondents based on the existence of
small industries reduce unemployment problem
Response Small scale
% Students % Total
Yes 80 33.33 60 25 140
No 60 25 40 16.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
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Result showed that 80% under industrialists and 60% under student says
“ yes” to question No 13 while 60% industrialist and 40% under students
says “No” to it.
Table 4:17: Distribution of Respondents based on entrepreneurship
as a of survival to the people that engages in it
Response Small scale
% Students % Total
Yes 80 33.33 100 41.67 140
No 60 25 - 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Result shows that 33.33% under industrialists and 60% under students
says “yes to the question No 14 while 60% under industrialists say “No”
Table 4.18: Distribution of Respondents based on the existence of
small industries introduces new products in the market?
Response Small scale
% Students % Total
Yes 80 33.33 60 25 140
No 60 25 40 16.67 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
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Result shows that 80% under industrialists and 60% under students says
“yes” while 60%, under industrialist, 40% under students says no to
question No 15
Table 4.19: Distribution of Respondents based on entrepreneurs need
government and society support to grow?
Response Small scale
% Students % Total
Yes 140 58.33 100 41.67 140
No - - - - 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Results indicate that 58.38 under industrialists and 41.67% under students
indicates yes to question No 16.
Table 4:20: Distribution of Respondents based on government
provide necessary incentives for the growth of entrepreneurship
Response Small scale
% Students % Total
Yes 60 25 40 16.67 140
No 80 33.33 60 25 100
Total 140 58.33 100 41.67 240
Source: Field Survey, 2014.
Result shows that 60% under industrialists and 40 under students says
“yes” while 60% under industrialists and 60% under students says “ No”
to question 17.
71
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
Data analysis carried out into this project research revealed the following
facts:
• The effect of inadequate start up capital constitutes a major
challenges or constraints to the development of entrepreneurship.
• Lack of venturing spirit is one of the major constraints to the
growth of entrepreneurship.
• Lack of adequate knowledge and training background of
entrepreneurs is one major constrains that hinder the growth of
entrepreneurship.
• Government policies on accessibility of credit facilities have a
negative effect on the development of entrepreneurship.
• Lack of conductive environment makes it hard for the growth of
entrepreneurs.
• The teaching of basic entrepreneurship skills and competences to
students will assist the entrepreneurship development.
• Encouraging students to view business as a career option will go a
long way to assist the development of entrepreneurs.
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• Proper awareness of the benefit of entrepreneurship will encourage
much people to go into the venture.
• The existence of small-scale industries creates employment
opportunities to people.
• Entrepreneurship is a means of livelihood to the people that embark
on it.
• New products and services are made available in the market
thereby creating options to choice of products to buy.
• Entrepreneurs need government support and that of societies to
make them be established by patronizing their products.
� Government has to provide necessary incentives for the
development entrepreneurship.
5.2 Conclusion
Entrepreneurship is without doubts an important component in the
process of economic development. Infact, The start up and development
of small business remains one of the major ingredients of continued
growth in any economy. There is need to have good business training and
skills that enable them know the intricacies and logistics in business
administration. The spectrum of data need include among others, business
trend, operating environment dynamics, ingredients for business survival
etc.
73
As revealed in the study so far carried out shows that the problem that
hinders the development of entrepreneurship is raising the right amount
of working capital and capital for expansion at the time. They cannot
afford to use the highly sophisticated machines nor employ qualified
skills due to the poor incentive and inadequate knowledge and training
background. Finally government should endeavor to address the problem
of industrialists in the country with special reference to the development
entrepreneurship with regard to providing the necessary infrastructure and
establishing environment for the entrepreneurs.
5.3 Recommendations
1) Government should endeavor to provide adequate infrastructural
facilities and provision of training of entrepreneurs and also
formulate fiscal, monetary and regulatory policies conducive to the
growth and development of the economy.
2) Strong educational background is highly recommended to potential
entrepreneurs to ensure successful business venture.
3) Laws should be made by government for small business enterprises
to insure their business with insurance companies as a means of
transferring their business risks to their insurer in case of any loss;
by so doing the venturing spirit of the people will be increased
74
4) The support of government and society to the entrepreneur will
help increase success to business venture.
5) Government should encourage practical ways which education can
assist entrepreneurship development by educating students the
important of self employment through organizing seminars and
training workshop where already entrepreneurs will be invited to
motivate them.
6) There is also need to eliminate undue influence such as political
consideration etc. so that only genuine and responsible
entrepreneurs will receive support in whatever form.
7) Small business owners should always assess themselves and know
their capabilities in handling a particular business venture. In other
words self diagnosis is very important for the success of small
business.
8) Small business entrepreneurs should endeavor to gain the required
training needed before establishing their business to ensure smooth
running of business.
75
BIBLIOGRAPHY
Ani, N.B (1999), Entrepreneurial Development: Enugu: Nigeria, JTC Publisher.
Bamback, (1973), How to Organize and Operate a Small Business, Fifth
Edition, Prentice Hall Inc Eaglewood Cliffs. Baridam, D., (1990), Research Methods in Administrative Sciences.
Ibadan Beik Publishers. Broom, H. N. and Longnecker J.G (1983), Small Business Management,
(South Western Publishing Co. Cincinnati, Ohio). Davis, C.H (1988), “Education’s Role in Developing Instincts for
Entrepreneurship and Small Business Management” (Export Business Education Forum).
Dickson, F.J. (1971), Successful Management of the Small and Medium
Sized Business, Eaglewood Cliffs New Jersey, Prentice Hall Inc. Dinwiddy, B. (1974), “Promoting African Enterprise. London. Drucker, P.F. (1974), Management: Tasks Responsibilities practices:
New York: Harped and Row. Eze J. A. (1999), Fundamentals of Small Business Management; Enugu,
Nigeria, Glanic Benture. Hasting, P.G. (1968), Fundaments of Business Ownership, London D.
Van Nostrand Company Inc. Hills, G. E. (1983); Entrepreneurship Education-A National Priority
Business Education, Forum, Vol.37 No7. Hisrich, R. and Peters, M. (1995); Entrepreneurship: Irwin. Hisrich, R. and Peters, M. Entrepreneurship. Irwin. Ogaga H.P. (1986),
“Encouraging Small Scale Enterprises” Business Times: Lagos. Hornby, A. S. (1995), Oxford Advanced Learner’s Dictionary, London.
Oxford University Press, New York.
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Nwaorgu, A. (2006), Introduction to Academic, Enugu Printing and Publishing Company.
Onodugo, V. A. (2007), “Short Notes on Research Methodology”,
Department of Management, University of Nigeria, Enugu Campus.
Onuoha, C. (1994), Entrepreneurial Development in Nigeria, An
Integrative Perspective, Okigwe, Avah Global Publication. Oshumbiyi, O. (1989): Ensuring Survival of Small Scale Industries”,
Business Times. Osuala, E., (1985), Introduction to Research Methods and Procedures,
African Rep., Publishers Ltd. Schumpeter, (1975), The Theory of Economic Development, Harvard
University. Schumpter, J. (1961); The Theory of Economic Development. Cambridge:
Harvard University Press. Shapero, A. (1975), Entrepreneurship and Economic Development
(Wisconism; Project SEED Ltd. The Centre for Venture Management.
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(Wisconsin Project Seed Ltd, The centre for Ventures Management).
77
APPENDIX
School of Post Graduates Department of Management, Faulty of Business Administration University of Nigeria Enugu Campus Enugu.
Dear Respondents,
I am a post graduate student of the above named institution conducting a
research on the topic, “Entrepreneurship Development in Enugu State:
Issues and Challenges”.
I hereby solicit your assistance in completing these questionnaires so as
to obtain the necessary information needed. The research work is purely
an academic exercise and all information obtained from you shall be
treated with strictest confidence.
Thanks for your co-operation.
Yours faithfully,
Ezeagu Ijeoma Celin
78
QUESTIONNAIRES
1. sex of respondent
(a) Male [ ]
(b) Female [ ]
2. Age of respondent
(a) Below [ ]
(b) 26-30 [ ]
(c) 31 – 40 [ ]
(d) above 40 [ ]
3. Marital status
(a) Single [ ]
(b) Married [ ]
4. Academic qualifications
(a) WASEC, O’LEVEL, GCE, RSA [ ]
(b) OND, NCE [ ]
(c) B.Sc, HND [ ]
5. Is inadequate start up capital a hindrance to the development of
entrepreneurship?
(a) Yes [ ]
(b) No [ ]
79
6. Does lack of venturing spirit effect the development of
entrepreneurship?
(a) Yes [ ]
(b) No [ ]
7. Does entrepreneurs have adequate knowledge and training
background of the business they want to establish?
(a) Yes [ ]
(b) No [ ]
8. Does government policies on accessibility to credit Facilities in
anyway effect development of entrepreneur?
(a) Yes [ ]
(b) No [ ]
9. Is the environment conducive for the growth of entrepreneurial?
(a) Yes [ ]
(b) No [ ]
10. Does teaching basic entrepreneurship skills and Competencies
important to the growth of entrepreneurship?
(a) Yes [ ]
(b) No [ ]
80
11. Does encouraging students to view business is a career Option a
way of developing entrepreneurship?
(a) Yes [ ]
(b) No [ ]
12. Do you think people are aware of the benefit of Entrepreneurship
to the nation economy?
(a) Yes [ ]
(b) No [ ]
13. Do you think that the existence of small scale industries reduce
unemployment problems?
(a) Yes [ ]
(b) No [ ]
14. Is entrepreneurship a means of survival to the people that engages
in it?
(a) Yes [ ]
(b) No [ ]
15. Do you think that the existence of small –scale industries introduce
new products in the market?
(a) Yes [ ]
(b) No [ ]
81
16. Does entrepreneurs need Government and society support to grow?
(a) Yes [ ]
(b) No [ ]
17. Does government provide necessary incentives for the growth of
entrepreneurship?
(a) Yes [ ]
(b) No. [ ]