THE ROLE OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA ECONOMY

THE ROLE OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA ECONOMY

ABSTRACT

Generally this study seeks to explore the role of entrepreneurship development in Nigeria Economy, with a case study of the hungry man restaurant. To find out if there is significance in the role played by entrepreneurship in Nigeria, also to emphasize the need for entrepreneurship in an economy, examining the participation of government in the development of entrepreneurship in the country. This review the deliberate act or policy of government at all level in the federation initiated and executed, aiming at promoting the growth and development of entrepreneurship in the society. The researcher used both primary and secondary data collection to gather information for analysis. Base on statistical test carried out using X,² hypothesis shows that the inconsistency of the government to provide serious support for business sectors has contributed to the underdevelopment of the economy. Recommendations were made that government should at all level establish a strong support to small scale industries in the society.

CHAPTER ONE

INTRODUCTION

1.       Background of the Study

Entrepreneurship is generally described as the ability of an individual or a group of individuals to create or discover an opportunity and utilize it to the benefit of the society, which will yield success to the innovators and their organization. According to Dau and Cuervo-Cazurra (2017), the authors take a legalistic view of entrepreneurship and define it ‘as the creation of fresh businesses a stable collection of people who coordinate their efforts to produce new value-added economic activity’. The relationship between entrepreneurship and economic growth of a country has increasingly gained a lot of interest from economists and policy makers over the years.

The dynamic role of entrepreneurs and small business owners in emerging economies has contributed to vast development opportunities in these markets. Over the past decade, the evolution of entrepreneurs has been at the heart of Africa’s growing economy. The International Monetary Fund (IMF) Regional Economic Outlook for Sub-Saharan Africa (SSA) indicates that small and medium-sized enterprises (SMEs) create over 80% of the region’s employment. Thus revitalizing the working-class population and encouraging opportunities for robust economic interactions across borders. Hence, entrepreneurs are increasingly recognized as seeds of economic revival within the African region (Bouazza, 2015).

Entrepreneurship development performs a vital role on the growth and development of any modern economy. Entrepreneurship is viewed as the engine of economic growth and a main thrust of economic restructuring, decentralization and development toward market economy. The role of entrepreneurship development progamme on economic development remain a subject of continuing debate and discussion globally and in Nigeria particularly. Economic growth and development is a significant feature of every country, be it in the developed or less developed economies. In Nigeria, government of every state embarks on policies and programs aimed at influencing the direction of economic progress towards a rapid and sustainable economic growth (Ogundele et al., 2012; Sule, 2014).

Entrepreneurship development has the advantages of employment generation, facilitates economic growth, sustainable development and poverty reduction. At the moment number of institutions of higher learning offering courses on small-scale business management and entrepreneurship development has risen over the years.

The performance and effectiveness of entrepreneurs in the country as an instrument of economic growth and development has long been under scrutiny. This intense scrutiny has been against the backdrop of the low performance and inefficiency that characterized small business particularly in assessing its role on economic growth and development. A nation’s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Good entrepreneur can create a strong economy. Nigerians have equally made their marks in diverse fields such as science, technology, academics, business and entertainment. Entrepreneurship activities in Nigeria have developed enterprises in areas such as agriculture/agro-allied, solid minerals, transportation, information, and telecom, hospitality and tourism business, building and construction etc. According to Nkechi, Emeh, and Okechuku (2012), these human and natural resources notwithstanding, Nigeria is still one of the poorest countries in the world and has one of the highest rates of youth unemployment in Africa despite its alleged strong economic growth.

In respect of the above sad and deplorable situation, the government has done little to reduce the misery and frustrations of the citizenry. This has foisted a state of hopelessness on majority of young and old people who have resorted to any means including crime to succeed in life (Nkechi, 2012). The need for entrepreneurship development in the country today is necessitated by the fact that entrepreneurship development is a major factor in economic growth and development and also the permanent cure for extreme hunger and poverty necessitated by unemployment.

1.       Statement of the Problem

The business environment is dynamic and competitive in such an environment an organization can be best achieved it’s good through a well established leadership style and good managing director that will manage business organization such as; Entrepreneurship development. The small scale business would have been a source to Nigeria economic development. But today, entrepreneurship development are not yielding positive result due to poor performance and lack of government intervention. Therefore, this project will source for various solutions to these problems that militate against entrepreneurship development. These are Entrepreneurship development which includes:

1. Poor Management:

The most critical problem affecting of almost all indigenous enterprise in Nigeria is poor management. The lack of efficient organizational structure and the practice of modern management techniques. If enterprises could be ascribe to two factors, first, if the limited understanding modern management practices by owners managers could be with their strong desire to run the business alone.

• Lack of Management Skills:

Also the problem facing entrepreneurship development include stress primarily arise from the need of hire skilled and qualified personnel to assist in the running of the industries demands the greatest problems of entrepreneurship development is lack of necessary skill in the management group. In every entrepreneurship development, the entrepreneur is one person management team. This makes it difficult for the effective operation of the enterprises.

• Individualism of management of entrepreneurship development:

This is the characteristics of individualism among entrepreneurs. The owner bears the management burden alone. The jobs varies and likes managerial responsibilities are few, if any. The managers are called “Jack of all trades and master of none”.

• Difficulty in services of qualifies personnel: Another factor which leads to managerial problems with entrepreneurship development is difficulty in securing the services of qualified personnel.
• Lack of training and development of personnel: Lack of training and developments of personnel is another factor which compounds the managerial problems of entrepreneurship development in Nigeria. Training provide employees change in job requirement and new technology. It equally serves as motivation of incentive for the existing employees, which increase their productivities. In essence, lack of training and development for the existing workers made replacement of vacant for the existing position difficult.
• Financial Problem: The capital for entrepreneurship development industries are very small. This is because most Nigerian business men and women operate in a low income economy. They are unable to generate sufficient funds through personnel savings which involved huge capital equipment or other fixed assets.

1.       Objective of the Study

The general objective of this study is to examine the role of entrepreneurship development in Nigeria economy. The specific objectives include:

1. To find out the significant role of entrepreneurship in economic development of Nigeria.
2. To ascertain the extent that government policies have improved the performance of entrepreneurial organization in Nigeria.
3. To identify the challenges of entrepreneurship in economic development in Nigeria.

1.       Research Question   

The following research question will serve as a guide to the researcher in attempt to achieve the objective of this study.

1. Does entrepreneurship play significant role in economic development of Nigeria?
2. To what extent do the government policies improved the performance of entrepreneurial organization in Nigeria?
3. What are the challenges of entrepreneurship in economic development in Nigeria?

1.       Research Hypothesis

H₀₁: Entrepreneurship does not play any significant role in economic development of Nigeria.

H₀₂: Government policies have not significantly improved the performance of entrepreneurial organization in Nigeria.

H₀₃: There are no challenges of entrepreneurship in economic development in Nigeria.

1.       Significance of the Study

The study is significant in a number of ways to the following people:

• Students: The study would be of immense significant to the students of management, economics/political economy and sociology as the findings of the study will serve as source of secondary data for further studies.
• Entrepreneur: Entrepreneurs will find the findings of this study to be very useful as it will educate them on the role of entrepreneurship development to the development of Nigeria Economy. This will also enable government agencies and policy makers to make favourable policies that encourage the development of entrepreneurship in Nigeria.
• Academicians: The study is significant in that it would contribute to the growth of literature in the area of entrepreneurial culture/entrepreneurship and it will be very useful for all those who want to carry out research in the same area.

1.       Scope of the Study

The scope of this study is limited to the role of entrepreneurship development in Nigeria Economic with particular references to Hungry Man Restaurant Wuse II Abuja. The study will cover the role entrepreneurship development plays in economic development of Nigeria, the extent that government policies have improved the performance of entrepreneurial organization in Nigeria and finally identified the challenges of entrepreneurship in economic development in Nigeria.

1.       Historical Background of the Case Study

Hungry man Restaurant was established in the year 2012 with its headquarter located at No 24 Durban Street, Wuse 2, Abuja Nigeria with a branch in Owerri is a business outfit that provides restaurant services. The Hungryman Restaurant provides food delivery and excellent services of memorable African local delicacies and Nigerian cuisine.

Hungry Man Restaurant offers the following services:

• Delicious Food
• Experienced Chef
• Trained Staff
• Cheerfulness
• Ambience
• Quality Service
• Great Price
• Time Management
• Prompt Attention
• Neatness
• Creativity
• Effective Business Management

1.       Definition of Terms  

For easy and concise understanding of this work, it is necessary that vital terms be defined.

1. Entrepreneur: An Entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk. Meredith et al (2018) look at an entrepreneur as an individual who has the ability to see and evaluate business opportunities gather the necessary resources to take advantage of them and initiate appropriate action to ensure success and he is a risk taker.
2. Entrepreneurship Development: This is the coming into existence in society of the class of individuals, who are not limited to pace odds.
3. Small scale business: Ejiofor (2017) defines small scale business as those enterprises that have relatively little capital investment, that produce in small quantities and as a result of controlling a small share of market that employs not more than fifty workers (50) and in which management marketing and entrepreneurship functions are used in the proprietor.
4. Economic Development: The improvement of the individuals, society well being, such that the GDP of such people/societies equals or greater than the United Nations standard.