THE CHALLENGES OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA
ABSTRACT
The study examined the critically the challenges entrepreneurship development is facing in Nigeria using Elens Consult as a study. The study adopted survey design using primary source of data with questionnaire as instrument of data collection. A total of 55questionnaires were administered to the staff within Elens consult out of which 50 were duly filled and returned. Chi-square statistical method was used to verify the degree of significance of entrepreneurship development. The result of the findings shows that market men and women lack access to constant power supply. It was also noted that local traders do not have access to fund to support their businesses. More so, in terms of factors that encourage entrepreneurship development, it was discovered that skill acquisition is vital for entrepreneurial development and that membership in co-operatives is essential for entrepreneurial development. Based on the findings the study recommends, that the government should prioritize giving of loans to the small businesses in Nigeria as well as allow them to enjoy some tax concessions, Informed government policy, education and international participation are crucial for development of entrepreneurship in Nigeria, Interest rate on loans should be reduced to allow for easy access to fund by small business owners, there should also be adequate infrastructural development in terms of constant electricity power supply, good roads, appropriate loan facilities and good communication network for reduced cost and smooth running of small scale businesses in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
It is our utmost desire as a Nation to stimulate growth in the various sub-sectors of the economy.Folaranmi (2017) observed that it is only when this is achieved that we can begin to record significant improvement in the living standard of Nigerians .No doubts about it, man can achieve anything he imagines through the actualization of his imaginative faculty. Creative ideas are the beginning point of all fortunes. The last hundred years in the history of man has witnessed a tremendous and mind bogging innovations during which man has harnessed nature’s resources. Notable among these is the indomitable conquering of the air, land and sea .through the aid of his- imagination. As reflected by Napoleon (2016), man’s only limitation, within reason, being his development and use of his imagination. He has not yet reached the apex of development in” the use of his imaginative faculty. In essence, imagination is the ultimate missing link in many business failures, and a vital ingredient for success. Candler provided this link when supplied the -requisite imagination which turned the formula for coca-cola into a fortune. ‘Ihus, behind many fortunes there is somebody who had the creative idea.
According to Adebayo (2014), it is believed that satanic scrounge of unemployment in the country today can be brought to a very low level if proper information and the knowledge of entrepreneurship is fully disseminated and understood by everyone. Entrepreneurship is also known all over the world as the main engine (Power house) that propels the economic prosperity of a nation. It was in an attempt to revive the battered economy that successive government in Nigeria had come up with different rolling plans, such as the austerity measures of the Muritala/Obasanjo’s Administration (19761979). And the Structural Adjustment programme of Babangida’s regime (1985-1993), the deregulated and the Abdulsalam Abubakar’s administration (1998-1999) respectively.
Nevertheless, all these national policies fail to encourage the expected economic and industrial growth, rather the economy witnessed significant decline in its Gross Domestic Product (GDP) hyper-inflation and a significant increase in our external portfolio. It is imperative to note that majority of these policies suffer from one reason to the other, ranging from policy contradictions, policy somersault, non-continuity to lack of purpose and vision said Afolaranmi (2013), it is on this backdrop, that the Obasanjo’s regime (1999-2007) made the restructuring of the Nigerian economy, their policy focus. Thus, his economic reforms were primarily centered on market orientation, private sector led, self-employment, self-reliance and technology driven (Adesoto, Akesinro and Oladejo, 2013). To this end, one of the instruments that the Obasanjo’s regime used was the promotion of the small and medium scale enterprises (SME) and the development of the creative and entrepreneurial ability of its citizenry.
1.2 Statement of the Problem
Nearly all developing countries including Nigeria are experiencing one form of crisis or the other. The crises range from hunger, unemployment, poor infrastructures, and high cost of living to low per capital income. Nigeria as one of the developing nations has adopted various policy measures to address the stated problems of proliferation of business ventures at the stated problems but without the desired results, the problem of proliferation of business ventures at the level of small and medium scale enterprises is often blamed on persons in Nigeria. As a result, when people see a business outfit that is profitable or seems to be profitable, there is a mad rush to replicate that business until it is over-saturated and becomes unprofitable. There are obvious issues hindering the development of entrepreneurship include but not limited to the following: epileptic power supply, foreign exchange problems to mention but a few.
1.3 Aim and Objectives of the Study
The broad objective of this study is to critically evaluate the challenges entrepreneurship development is facing in Nigeria while the specific objectives while the specific objectives are to:
i) identify factors that are responsible for lack of entrepreneurship culture in Nigeria.
ii) identify if entrepreneurship has upgraded the status of self-employment as a careeralternative in the society
iii identify if entrepreneurship has actually facilitated and accommodated the variouscomponents vital for enterprises culture
iv) examine the impact of small and medium scale businesses on profitable employment.
1.4 Research Questions/Hypothesis
The principal question of this research is how entrepreneurial development has in the face of challenges within Nigeria. This research will also try to provide answers to the following sub-questions in the course of this study:
i) What factors are responsible for lack of entrepreneurship culture in Nigeria?
ii) Has entrepreneurship upgraded the status of self-employment as a career alternative in the society?
iii) Has entrepreneurship facilitated and accommodated the various components vital forenterprise culture?
iv) What is the impact of small and medium scale businesses on profitable employment?
1.5 Research Hypotheses
In order to do a suitable research the following Null hypothesis will be tested
Hypothesis 1
H0: Entrepreneurial development has not faced any significant challenges
Hypothesis 2
Ho: Small and Medium scale businesses establishment have not significantly improved the employment rate in Nigeria.
1.6 Significance of the Study
The importance of this study will include but not limited to the following:
i) It will throw light on the relevance of entrepreneurship in serving as a lasting solution to profitable employment,
ii) It will also promote an understanding on how a profitable employment can be attained by creativity and innovation of entrepreneur,
iii) It will also impart on the students generally, positively by eliciting thoughts of self-reliance.
1.7 Scope of the Study
The scope of this study covers the challenges entrepreneurship development in Nigeria is facing. The study will take into consideration all micro, small and medium business owners within the Elens Consult. By choosing this class of entrepreneurs, the study will be able to ascertain the challenges entrepreneurial development is facing in Nigeria.
1.8 Definitions of Terms
Entrepreneur: a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.
Creativity: is the act of turning new and imaginative ideas into reality. Creativity is characterized by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions.
Entrepreneurship: has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a start-up company, offering a product, process or service for sale or hire.
References
Audretsch D. (2012). ‘Entrepreneurship: A Survey of the Literature’, Published by the European Commission, Enterprise Directorate General, July 2002, Onah, F. (2011). Urban unemployment situation in Nigeria. In: E Ezeani, N.
Dyring C, J, & Goedhuys, M. (2014). Impact of National Policy and Legal Environments on Employment Growth and Investment in Micro and Small Enterprises, Small Enterprise Programme, working paper No. 63.
Elekwa (Eds.): Issues in Urbanization and Urban Administration in Nigeria. University of Nigeria Nsukka. Enugu, Nigeria: Jamo Enterprises, pp. 154 -167.