CHAPTER ONE
BACK GROUND OF THE STUDY
The current emphasis on entrepreneurship development is informed by the protracted economic down lows unemployment situation of the country, Eugbaja, 2011 Hitherto, everyone looked into the government as the provider of employment opportunities. Many Nigeria did not think of self-determination as an alternative to government employment. But the worsening unemployment’s situation currently praying the country has changed this thinking short of attain lives many gradualist and school leavers as wed as other Nigeria are now moving in guest of self termination by lunching them selves unto various business failure (Eze 2017)
In recognized of the need of foreign capital to enhance entrepreneurship development in Nigeria the federal government has introduced a series of policy packages that are designed to attract foreign investment in the Nigeria small and medium enterprises sub-sector. In an attempt to diversify of the economy and stimulate foreign private enterprises development government agencies and private institution are creasing with international organisation enhance the letters participation in different entrepreneurship development activities in Nigeria (ENYISA 2011)There are international organisation involved in promoting small business and entrepreneurship in different parts of the world (ATOLABI,2011)in addition to providing foreign capital these international organizations also provable technical assistance for these African countries. It is against this background that this study is set to examine the impact of foreign capital on entrepreneurship development in Nigeria.
1.2 STATEMENT OF THE PROBLEM
Adebusriyl (2017) identified the following problems as mildating against entrepreneurship development in Nigeria.
1. Lack of Infrastructural base:
lack of adequate infrastructure constitutes one of the greatest constraints to entrepreneurs have to resort to the provision of basic infrastructure like access roads, water, electricity ete al great expense in a world Bank study (1989) it was estimated that the cost of infrastructural such as roads, water, electricity communication and security accounted for 15-20 percent of the cost of establishing a manufacturing enterprise in Nigeria.
II POOR EDUCATIONAL BACKGROUND: Many small scale and medium scale entrepreneurs lack relevant educational back ground, experience and through manufacturing exposure sequel to this, many of them are not sufficiently innovative and dynamic to meel growing and expending business challenges.
III.LACK OF ACCESS TO INSTITUTIONAL CREDIT: The banking sector has demonstrated their unwillingness to extend credit to many Nigeria entrepreneurs on the following grounds.
(a) Inadequate prepared project proposal
(b) Incomplete cash flow documentation
(b) Inadequate collateral including inability to raise the required equity contribution.
(d) The absence of succession plan in the event of the death of the entrepreneur.
(iv) PROCUMBENT PROBLEMS: These problems pose one of the greatest constraints to improve capacity utilization rate among the Nigeria entrepreneurs. This problem is traceable to the unskilled macro economic policy environment in the past find years which led to the increase in customer duties and pool charges, high cost of foreign each engaged consequent and back on imported raw materials supplied related to this is the inaccessibility to and high cost of equipment.
(v) INABILITY TO A (V) INABILITY TO ADJUST PRICE
Inability of some entrepreneur to reasonably adjust prices to reflect additional cost following the substantial depreciation of the naira exchange rate. This is largely because doing so makes them uncooperative with large scale entrepreneurs. Those who produce for specific industrial consumer’s face added difficulty of being price takers.
1.3 PURPOSE OF THE STUDY:
THE PURPOSE OF THE SHUDYARE
A. To examine the nature of entrepreneurships development in Enugu State.
B.To examine the institutional arrangements development for entrepreneurship development.
C. To determine the role of foreign capital in entrepreneurship development.
D.To determine the extent of foreign participation in entrepreneurship activities.
E.To examine the challenges of entrepreneurship development in Enugu state.
1.4 SCOPE OF THE STUDY
The scope of the study covers the nature of entrepreneurship development and the impact of foreign capital, in this regard, however the study contracted in Enugu state.
1.5 SIGNIFICANCE OF THE STUDY
They study will be useful as it will serve various purposes. First, graduates and school leavers will be encouraged by this study to take the existing opportunities of entrepreneurship development to be self determining in this way, they can shop washing their time wasting for non-existent jobs in the public sector. Secondly, the study well enable all potential entrepreneurship understand the challenges of entrepreneurship and how they can be overcome.
Thirdly, private institution government agencies and Nigeria businessman with international connections will also benefit from this study. They will understand from this study the need for them to attract or bring foreigners into Nigeria to form participation. This will be a very significant way of making foreign capital to flow into the country for the purpose of entrepreneurial activities foreign will enable the local entrepreneurs to acquire or procure adequate equipment and in fractures required for equipment and infrastructures required small business or entrepreneurial operations.
Fourthly, the government will also benefit from the study the role foreign capital in entrepreneurial development cannot be over emphasized. The government will see in this study the need to enter into agreements of the investor and easterm Europe as well as the far east and American on the funding of entrepreneurial programmed in Nigeria not only foreign government should this involved but national organizations.
Fifthly, as well meaning Nigeria will also being from the study. This is because it will make them understand the need for increased emphasis and exploration into entrepreneurial ventures and how a sustained entrepreneurship activities will enhance industrial development in Nigeria. Finally, the study will be useful data and information for all those who will carryout related studies in the future. Besides, the research finding can provide the for further studies.
1.6 DEFINITION OF TERMS
ENTREPRENEUR:This refers to any individual who creates new business and manages it until succeeds
ENTREPRENEURSHIP:This is the process of creating a new business and managing it until it succeeds.
VENTURE CAPITAL: This is the fund which investment institution’s loans not for investment purpose.
BUSINESS OPPORTUNITIES:This is poetically
PROFITBLE EVENT INNOVATION:This is the development of a new product from an old one.
