THE IMPACT OF ENTREPRENEURIAL DEVELOPMENT ON THE ECONOMIC DEVELOPMENT OF A STATE
1.1 Background of the study
The world economics fall of the early years cause a quick fall of the Nigeria economic. The output shrank to all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country, this situation of unemployment in the country therefore calls for entrepreneurship in Nigeria economy which will lead to entrepreneurial development in the higher institution. However, at this juncture a brief history of entrepreneurship in Nigeria will give more insight on the study. The actual potential entrepreneurs may not need to be given a fish but rather information on how to catch a fish because information is the greatest asset you need. Statistics have it that African is the poorest in the world and also the less developed continent.
Many state owned enterprises (firms) in Enugu urban were created when it was believed that the fastest route to development occurred when the state took on the roles of entrepreneurs Although Enugu urban was at one time characteristerized by such inefficiency, but has recently pursed entrepreneurship encouragement policies. And these policies have been successful. Nigeria is still ploughed by many development problems preliminary evidence suggests a favorable respond by the private sector to the new entrepreneurial opportunity. Even though there is only limited consensus about the characteristics of entrepreneurship. The concept is now very old as the formal discipline of economic itself early 18th century, French economist named Richard Canadian first introduced the terms entrepreneur in this coritting he formally described the entrepreneur as the agent who buys the means of production at certain prices in order to combine them into new product- A French economist J.B added the definition by including the idea that the entrepreneurs have to be leaders, is also the one who build a single product organism Schumpeter (1951).
The necessity of entrepreneurship for productivity was formally organized by Alfred marshal in (1990) his famous practice principle of economic marital ascertain that there are four factors of production, land, labour capital and organization which are utilized by an entrepreneur. Investment opportunities establish and run an enterprise successfully. Hence early entrepreneurs were characterized with production and manufacturing. In this case, the producers most often started with trade by barter even before the advent of money however, modern entrepreneurship in Nigeria sated with the coming of the colonial masters, who brought in their wears and max Nigerians their middlemen. In these way modern entrepreneurs was conceived. Most of the modern entrepreneurs were engaged in retail trade or sole proprietorship.
1.2 STATEMENT OF THE PROBLEM
When comparing entrepreneurship development in Enugu urban with other towns started on the same platform as Enugu with trade by barter and then advanced to their present state of economic growth- those towns are faster in their development of entrepreneurship then Enugu urban why this differences? This research work will find out to these effects:
1. The general problem encountered by entrepreneurs in Enugu urban in establishing business.
2. To find out the basic orientation that should be given to Enugu urban entrepreneurs.
3. To discover the rate of employment and find out the various business opportunities that will be help to the Enugu urban economy through entrepreneurship.
4. To also find out how government program has been of help to various entrepreneurs in the city.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study are;
1. To know the extent to which firms in the Enugu urban study entrepreneurship.
2. To know the problems encountered by entrepreneurs in their firms.
3. To know the important of entrepreneurial development on the firms in Enugu urban.
4. To know the promotional tools used by the firms to improve productivity.
5. To know the extent to which lack of research occur in their firm.
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: there are no problems encountered by entrepreneurs in their firms.
H1: there are problems encountered by entrepreneurs in their firms.
H02: there are no promotional tools used by the firms to improve productivity.
H2: there are promotional tools used by the firms to improve productivity.
1.5 SIGNIFICANCE OF THE STUDY
The importance of the study cannot be over emphasized, since it is expected to affect our economy and also increase the creation of job opportunities in the country especially in Enugu state. However, this project when conducted will be of immense benefit to the following:
-The Nigeria economic in general
-The small scale industries
-The general public
-Creation of job opportunities in the state also there will be increase in the managerial skills.
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of this study is restricted to the Impact of Entrepreneurial Development on the economic development of a state with regard to two selected firms in Enugu urban which includes.
1. Innotex global LTD
2. Innson Technical Industrial Company LTD
The researcher encounters some constrain which limited the scope of the study;
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
The following terms used in this study should be taken to mean the following:
1 SMALL SCALE INDUSTRIES: This is a manufacture processing or services industry involved in a factory or production type of operations, employing up to fifty (50) full time workers, it also stated, the government are encouraging people to establish their own small enterprises to reduce the problem of unemployment in the state and also reduce the rate of importation of goods, more so to produce exportable products.
2. NATIONAL DIRECTORATE OF EMPLOYMENT (NDE): They are one of the agencies which provide loans to graduates for the operation of small scale business.
3. PROMOTIONAL TOOLS OF A FIRMS: Is the combination of one or more of the elements it chooses to use to communicate its offering to the market. Promotion has the objective informing, persuading and reminding. It forms the potential buyer about the alienability and nature of products.
The elements or tools that make up promotional tools are:
b. Personal Selling
c. Sales Promotion
d. Rubric Relations and Publicity
a. ADVERTISING: Advertising is defined as any paid form of non-personal sales presentation of a product services, ideas, by and identified sponsor. The media used in advertising to transmit information include newspapers, magazines, television, direct mail, radio and outboard bill board. Advantages of advertising include the reading a large number of people efficiently and the ability to communicate specific product benefit it’s to prospective buyers. Advertising allows a company to control what it wants to say, how it wants to say it and when to send the message. However, it has the disadvantage of no immediate feedback Edoga (2005, P193) advertising is paid form of non-personal communication about an organization, goods, service or idea by an identified sponsor.
b. PERSONAL SELLING: This is another major element in the promotional tools, it is person to person communication in which immediate feedback is provide to the audience as it is a conversation between two or more parties. Kotler (2000,P 550) personal selling is a face to face interaction with one or more prospective purchasers for the purpose of making presentations answering questions and procuring orders.
c. SALES PROMOTION: This is defend as any promotion activity other than advertising, personal selling, public relation or publicity, direct marketing which is aliened at moving sales above its immediate level. Edoga (2005:194) sale promotion consists of marketing activities other than personal advertising public relations that re-stimulate consumer purchases and dealer effectiveness.
d. PUBLIC RELATION AND PUBLICITY: This is defined as an organization effort aimed at building good will or mutual understanding between an organization and the public. Publicity on the other hand is a tool on public relations. An advantage of publicity credibility. The disadvantages of publicity related to the lack of the user’s control over what is said, to which or when. Adirika (1996:90) public relation is a planned and sustained effort by an organization to create and maintain favorable relationship between the organizations and its numerous public while publicity is news worthy item or event about company and its product.
e. GROSS NATIONAL PRODUCT (GNP): This is one of the needs for entrepreneurship in the growth national of the economy. Is the total naira value or state in a particular year.
f. ENTREPRENEUR: This is a person who starts a business and takes the finance risks and personal risks involved in keeping the business going or .An entrepreneur is an individual agent who buys means of production at a certain price in order to combine them into new product.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows: Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study