the impact of entrepreneurship on development and economic growth in kwara central senatorial district

Description

ABSTRACT

This study entitled “the impact of entrepreneurship on development and economic growth in Nigeria, Kwara central senatorial district.” was intended to assess the impact, implementation and evaluating the effectiveness of NDE & NEEDS, especially in relation to policy and strategy formulation, implementation, co-ordination, monitoring, and utilization of human and materials resources. Four hypotheses were formulated to guide the study. Related literature on entrepreneurship and poverty reduction strategies and programmes were intensively and extensively reviewed. The study also utilized the survey research and made use of primary source of data collection and analysis. It was found that NDE had to some extent created jobs for the unemployed ones, reduced poverty in the area and generally in Nigeria. Based on the above findings and conclusion, NDE and other stakeholders should develop a dimensional approach towards other effective and efficient poverty alleviation programmes, efforts should be made by government to increase funding and in the areas of implementation, monitoring and evaluation, the government anti-corruption bodies should intensify efforts to deal with and brought to order any person whose misappropriating handling of funds concerning poverty reduction is wanting in Kwara state and Nigeria as a whole.

 

                                                                           TABLE OF CONTENTS

Title page………………………………………………………………………………………. i

Certification …………………………………………………………………………………… ii

Dedication ……………………………………………………………………………………. . iii

Acknowledgment ………………………………………………………………………………. Iv

Abstract ………………………………………………………………………………………… v

Table of content ………………………………………………………………………………..  vi

CHAPTER ONE

• Background of the study ……………………………………………………………. 1- 2
• Statement of the problem …………………………………………………………… 2-5
• Research Question ………………………………………………………………….. 5-5
• Objectives of the study …………………………………………………………….. 5-5
• Hypothesis formulation …………………………………………………………….. 6-6
• Significance of the study ……………………………………………………………. 6-7
• Scope of the study …………………………………………………………………… 7-7
• Definition of key terms ……………………………………………………………… 7-8

CHAPTER TWO

LITERATURE REVIEW

2.1       Conceptual Review …………………………………………………………………. 9-12

2.2       Characteristics of Entrepreneurship ………………………………………………….12-13

2.3       Types of Entrepreneurship …………………………………………………………..13-13

2.3.1    Craftsman Entrepreneurs …………………………………………………………… 14-14

2.3.2     Opportunistic Entrepreneurs ………………………………………………………. 14-15
2.4       Contributions of Entrepreneurship Training towards Poverty Reduction in Nigeria .15-17

2.5 Other Contributions of Entrepreneurship towards Poverty Reduction in Nigeria  …        17-17

2.5.1    Entrepreneurship Education ……………………………………………………       17-18

2.5.2    Alleviating Poverty through Women Entrepreneurship ………………………..       18-19

2.6       Hindrances of Entrepreneurship Training in achieving Poverty Reduction in Nigeria19-25

2.7       Theoretical Review …………………………………………………………………. 25-35

2.8       Empirical Review……………………………………………………………………35-37

2.9        Identification of Gap ……………………………………………………………37-38

CHAPTER THREE

RESEARCH METHODOLOGY

3.1       Research Design …………………………………………………………………39- 39           3.2       Sources of data collection ………………………………………………………  39-39

3.3       Population of the study ……………………………………………………………39-39

3.4       Sample Size and Sampling Technique …………………………………………….   39-40

3.5       Administer of Questionnaire ………………………………………………………   40-41

3.6       Method of Data Analysis …………………………………………………………41-41

3.7       Justification of the Method ………………………………………………………42-42

CHAPTER FOUR

DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1       Data presentation ………………………………………………………..       43-43

4.2       Statement of Hypothesis ………………………………………………..         43-44

4.3       Test of Hypothesis ………………………………………………………       44-52

4.4       Discussion of Findings …………………………………………………..       52-52

CHAPTER FIVE

  SUMMARY, CONCLUSIONS AND RECOMMENDATION

5.1       Summary…………………………………………………………………     53-55

5.2       Conclusion ……………………………………………………………….. 55-57

5.3       Recommendation …………………………………………………………57-60

Reference

Appendix

 

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Starting from the time of report of the fascinating study of entrepreneurs by Anderson (2010) in which he came out with a list of nine characteristics of the entrepreneur, several other writers have equally illuminated the list of entrepreneur characteristics. Anderson (2010) listed the following characteristics of   entrepreneur; need for achievement, desire for responsibility, preference for moderate risks, perception of probability of success, stimulation by feedback, energetic activity, future orientation, skill in organizing and attitude toward money.

An entrepreneur is an innovator who implements changes within a market through the carrying out of new combinations. The carrying out of new combination can take several forms; the introduction of a new good quality, therefore; the introduction of a new method of production, the opening of a new market; the congress of a new source of new materials or parts; the carrying out of the new organization of any industry. Furthermore, an entrepreneur is an individual that identifies, develop and brings vision to life under condition of risk and a considerable uncertainty. The vision may be an innovative idea, an opportunity or simply a better way to do something (Abiola, 2014).

This is the reason why it is often said that every entrepreneur is a human being but not every human being is an entrepreneurs. Going by this adage; it can be said that entrepreneurs are special people with distinguishable features or characteristics. As such an entrepreneur is result oriented; future oriented; creative, innovative, has self-confidence; has a good human relations; must be self-discipline; copies with uncertainty and above all profit oriented.

Entrepreneurship is a blanket term related to starting a business. Howard Stevenson of Harvard Business School, for example, has defined entrepreneurship as the “pursuit of opportunity beyond resources controlled,” considering it as a kind of managerial approach rather than a specific time, like a business’s creation, or a specific person within a business, such as its founder.1

While there are some complicating factors to the relationship between entrepreneurship, economic growth, development, and welfare, discussed below, the increase in economic growth from entrepreneurship is considerable. It is not, however, a magic bullet, and as discussed below broader economic conditions outside of entrepreneurship are important in determining whether economic growth occurs.

Entrepreneurial efforts have forced new social, political, and economic changes, holding out the promise for new innovations that will address intractable social problems such as climate change and structural racism. Notably, however, the results can vary, sometimes not creating as much social justice or positive development outcomes as initially promised.

Entrepreneurship is important to economic development. The benefits to society will be greater in economies where entrepreneurs can operate flexibly, develop their ideas, and reap the rewards. Entrepreneurs respond to high regulatory barriers by moving to more innovation-friendly countries or by turning from productive activities to non-wealth-creating activities. To attract productive entrepreneurs, governments need to cut red tape, streamline regulations, and prepare for the negative effects of layoffs in incumbent firms that fail because of the new competition.

When an economy is doing well, there is less incentive to encourage new, entrepreneurial firms. When people and firms are making money, why take a risk on something new and untested? Entrepreneurs often challenge incumbent firms, and while this might seem undesirable, unchallenged, established firms tend to become complacent, content to take their profits without investing in research and development to improve their business. These stagnating firms are the first to suffer when imports arrive—withering rapidly, unable to respond to the competition. Thus, challenging incumbents to do better during good economic times is a benefit of entrepreneurship.

Entrepreneurs are equally, if not more, important when the economy is doing badly. When unemployment is high and the economy is contracting or stagnating, dynamic entrepreneurship could help turn the economy around. By developing novel products or increasing competition, new firms can boost demand, which could in turn create new job opportunities and reduce unemployment.

If entrepreneurs are consistently encouraged, in bad economic times as well as good, then all businesses are kept on their toes, motivated to work continuously to improve and adapt. Entrepreneurs are the fresh blood that keeps economies healthy and flourishing even as some individual firms fail.

The dynamic economic conditions of the world today need flexible individual with entrepreneurial value, attitude and mental capacity for creative thinking and innovative behaviour that can provoke their venture spirit for timely generation of new ideas and ways of improving their businesses in meeting the demands of the environment. Such individuals who are able to drive through change are expected to possess the transformational capacity to embrace change and to steer business through crisis and chaos, to guide, integrate and initiate force. This force is however referred to as entrepreneurship Udu,2008). Hisrich,(2002) sees entrepreneurship as a process of creating something new of value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks, and receiving the resulting rewards of money and personal satisfaction and independent. In the same vain, Udu (2008) argue that entrepreneurship is a process by which economic and commercial activities necessary for the improvement of the standard of living of the society are created by entrepreneursindividuals, corporation, institutions and government.

Iwu (2000) observed that during the colonial period, only few of Nigerians could boost of personal or family capital to start off any meaningful business. During the colonial era, the Nigerian businesses scene was dominated even at the grass-root levels by foreigners. Theses foreign nationals had a better exposition from the Nigerian traders and subsequently left in 1960. Their departure gave Nigerians the opportunity in participating and shaping the country’s economic development. The federal government introduced indigenization and enterprise promotion Act. Of 1972 and it’s revision in 1977 respectively. Again, the National Development plan which led to the introduction of Structural Adjustment Programme (SAP) in July 1986. Entrepreneurship constitutes a vital engine in the economic growth and development of nations; this is because it helps in the stimulation of indigenous entrepreneurship in Nigeria (Paul, 2013).

In addition, Nigerian government had subsequently established the following programmes in an attempt to assist entrepreneurial activities in the country. Bank of Industry (BOI) established in 2000, Small and Medium Industries Development Agency of Nigeria (SMIDAN), Nigerian Agricultural Cooperative and Development Bank (NACRDB) established in 2000, Macro Finance Bank in 2005, others include Family Support Programme (FSP), Family Economic Advancement Programme (FEAP) and Obasanjo’s programme on National Poverty Eradication Programme (NAPEP) in 2001 with a start-up grant of six billion naira (Paul, 2013). The aforementioned programmes were designed to make the Banking industry contribute towards the effort of the government in stimulating economic growth, through fund mobilization, enterprise promotion and development for the entrepreneurs (Mustapha,2013)

1.2                                                             Statement of the Problem

Entrepreneurship development heretofore has been proven to be a catalyst of a sustainable economic growth of a nation (Ebiringa, 2012). To this effect, the federal government had on several occasions initiated various programmes in a bid to empower and encourage entrepreneurial activities, taking cognizance of the pivotal role it plays in economic development necessary for enhanced standard of living of the people. Yet, the aim for creating the aforementioned programmes was defeated orchestrated by the inability of those initiated programmes in providing the necessary financial assistance to entrepreneurs.

Entrepreneurs are experiencing difficulties in borrowing money from banks because of their stringent policy on lending. The borrowing conditions of the banks had discouraged many entrepreneurs from borrowing of which some who may have conceived creative idea that would have revamped the economy could not put it into use due to dearth of finance. In addition, one of the challenges that are encountered by entrepreneurs is the issue of multiple-taxation. Although entrepreneurs in a country have a responsibility of funding the government through payment of taxes, most of the taxes charged on entrepreneurs are not lawful and have the effect of increasing the cost of doing business. Although Nigeria’s Companies Income Tax Act (CITA) has approved only 39 taxes and levies, there are over 500 various levies and taxes that are imposed by state and local government agents on entrepreneurs (Okezie, 2013).

Nigeria is a country with numerous entrepreneurs as a result of the abundant human and natural resources it possesses. The growth of these entrepreneurs in the country is important to economic growth. This growth can be achieved by providing means of assessing loan and low tax rate.

1.3 Research Questions

Based on the above identified statement of research problems the following research questions were raised

1. Why does the senatorial district still lack adequate training facilities and equipment despite several years of its existence?
2. What has made trainers unqualified and unskilled in performing their duties?
3. Why does access to capital pose big problems to entrepreneurship development?
4. How does government attitude towards funding entrepreneurship activities affect entrepreneurial development?

This research will deal with the aforementioned issues.

1.4    Objectives of the Study

The broad objective is to assess the impact of entrepreneurship on development and economic growth in Nigeria while the specific objectives are to:

1. Investigate the reasons behind lack of adequate training facilities and equipment.
2. Determine level of qualified and skilled trainers in performing entrepreneurship activities.
3. Examine the problems of capital accessibility to entrepreneurship development.
4. Assess government attitude towards funding entrepreneurship activities in Nigeria.

1.5 Research Hypothesis

H₀₁:     There is no significant relationship between inadequate training facilities and equipment on entrepreneurship development.

H₀₂:    There is no significant relationship of qualified and skilled trainers on the performance of entrepreneurship activities.

H₀₃:   There is no significant problem of accesing capital on entrepreneurship development.

H₀₄: There is no significant effect in government attitudes towards funding entrepreneurship in Nigeria.

1.6       Significance of the study

The research project would be important to the community in the local Government of the senatorial district, state and federal government. It will also help future entrepreneurs, beneficiaries and policy makers as a result of the analysis and discussion will give recommendation on how to enhance better improvements of the programmes.

The research would also be relevant to scholars and student on entrepreneurship programme, most especially when crucial concept of entrepreneurship and poverty is seen from the political power and theoretical framework.

The study also intends to provide insights into changes in family lifestyles as a result of effectiveness of entrepreneurship on modern society. This knowledge would be of great value to these classes of people who will design programmes that will help people cope with problems.

1.7       Scope and Limitations to the Study

The study is carried out on National Directorate of Employment (NDE) and on National Economic Empowerment and Development Strategy (NEEDS) in Kwara central. The Study will also look at the contribution of the NDE & NEEDS towards alleviating poverty and uplifting the standard of living of the beneficiaries through entrepreneurship.

Militating factors as time, insufficient fund, and coverage of large areas network were major problems encountered.

Studying a large sample size of this nature can be stressful and so can result into a burnout situation. However, the research work was completed with the believe that the output would contribute immensely to human capital development.