Project – Entrepreneurship as a tool for economic growth in Nigeria. A study of top Royal laundry and dry-cleaning services

ABSTRACT

The study examined the Entrepreneurship as a tool for economic growth in Nigeria.  A study of top Royal laundry and dry-cleaning services. Four research objectives were used in the study, namely: to examine the role of entrepreneurship in stimulating economic growth in Nigeria; to analyze the impact of government policies on entrepreneurship development and economic growth in Nigeria;

to identify the challenges faced by entrepreneurs in Nigeria and how these affect the country’s economic growth; and to evaluate the contribution of small and medium scale enterprises (SMEs) to Nigeria’s economic growth. Descriptive research design was adopted for the study. Simple random sampling techniques was used in the study. The research hypothesis stated was tested using Chi-Square Statistics. To select the needed samples for this study, the researcher used a total number of one hundred (100) workers of Royal laundry and dry-cleaning services, Lagos-Island, Lagos. The study recommended that the government invests in infrastructure development. Good infrastructure, such as reliable electricity and internet, is crucial for businesses to thrive. The study concluded that Entrepreneurship has significant impact on the Nigeria economic growth

CHAPTER ONE

INTRODUCTION

• Background to the Study

Entrepreneurship has been recognized as a significant driver of economic growth, particularly in developing countries like Nigeria. According to Acs and Szerb (2007), entrepreneurship contributes to economic growth through innovation, job creation, and competition. In Nigeria, the entrepreneurial sector has been growing rapidly, with small and medium-sized enterprises (SMEs) accounting for about 96% of businesses and 84% of employment (NBS, 2013). However, despite its potential, the entrepreneurial sector in Nigeria faces several challenges, including lack of access to finance, inadequate infrastructure, and a complex regulatory environment (Acs, Desai & Klapper, 2008).

The role of entrepreneurship in Nigeria’s economic growth has been explored in several studies. For instance, Akinwale (2014) found a positive relationship between entrepreneurship and economic growth in Nigeria, suggesting that entrepreneurship can be a viable tool for economic development. Similarly, Oyelana and Adu (2015) found that entrepreneurship significantly contributes to Nigeria’s GDP. These studies highlight the potential of entrepreneurship as a tool for economic growth in Nigeria.

However, the entrepreneurial environment in Nigeria is fraught with challenges. According to a report by the World Bank (2019), Nigerian entrepreneurs face several obstacles, including lack of access to finance, inadequate infrastructure, and a complex regulatory environment. These challenges hinder the growth and development of entrepreneurship in Nigeria, thereby limiting its contribution to economic growth.

Despite these challenges, there have been efforts to promote entrepreneurship in Nigeria. The Nigerian government, for instance, has implemented several policies and programs aimed at fostering entrepreneurship, such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Bank of Industry (BOI) (Adejumo, 2013). These initiatives have contributed to the growth of entrepreneurship in Nigeria, although their impact on economic growth is still a subject of debate.

Furthermore, the role of entrepreneurship in Nigeria’s economic growth is also influenced by cultural and societal factors. According to Nwankwo, Kanyangale, and Chijere (2014), Nigerian culture and societal norms play a significant role in shaping entrepreneurial activities. For instance, the high value placed on self-reliance and independence in Nigerian society encourages entrepreneurial behavior.

In conclusion, entrepreneurship has the potential to drive economic growth in Nigeria. However, for this potential to be fully realized, there is a need for concerted efforts to address the challenges facing the entrepreneurial sector in Nigeria. This includes improving access to finance, enhancing infrastructure, simplifying the regulatory environment, and fostering a culture that encourages entrepreneurship.

• Statement of the Problem

The problem of economic stagnation in Nigeria is a pressing issue that has been the subject of numerous studies and policy discussions. Despite the country’s abundant natural resources and potential for growth, Nigeria continues to grapple with high levels of poverty, unemployment, and underdevelopment (Acs, 2006).

One of the key issues identified in the literature is the lack of entrepreneurial activity in Nigeria. According to Naudé (2010), entrepreneurship is a critical driver of economic growth and development. However, in Nigeria, the entrepreneurial sector remains underdeveloped, with many potential entrepreneurs facing significant barriers to entry and growth. These barriers include lack of access to finance, inadequate infrastructure, and a challenging regulatory environment (Acs & Szerb, 2007).

The underdevelopment of the entrepreneurial sector in Nigeria has significant implications for the country’s economic growth. According to Acs and Szerb (2007), countries with a vibrant entrepreneurial sector tend to have higher levels of economic growth and development. In contrast, countries with a weak entrepreneurial sector, like Nigeria, often struggle with economic stagnation and underdevelopment.

Furthermore, the lack of entrepreneurship in Nigeria also contributes to the country’s high levels of unemployment. According to the World Bank (2019), entrepreneurship can be a significant source of job creation, particularly in developing countries. However, in Nigeria, the lack of entrepreneurial activity means that many potential jobs are not being created, contributing to the country’s high unemployment rate.

The problem of entrepreneurship as a tool for economic growth in Nigeria is a complex and multifaceted issue. It involves a range of factors, including the barriers to entrepreneurship, the role of entrepreneurship in economic growth and job creation, and the implications of the lack of entrepreneurial activity for Nigeria’s economic development. Further research is needed to understand these issues better and develop effective strategies to promote entrepreneurship in Nigeria.

• Aim and Objectives of the Study

The aim of the study is to examine Entrepreneurship as a tool for economic growth in Nigeria.  The specific objectives are:

1. To examine the role of entrepreneurship in stimulating economic growth in Nigeria.
2. To analyze the impact of government policies on entrepreneurship development and economic growth in Nigeria.
3. To identify the challenges faced by entrepreneurs in Nigeria and how these affect the country’s economic growth.
4. To evaluate the contribution of small and medium scale enterprises (SMEs) to Nigeria’s economic growth.

• Research Questions

The research questions are buttressed below:

1. What role does entrepreneurship play in stimulating economic growth in Nigeria?
2. How do government policies impact entrepreneurship development and economic growth in Nigeria?
3. What are the challenges faced by entrepreneurs in Nigeria and how do these challenges affect the country’s economic growth?
4. How do small and medium scale enterprises (SMEs) contribute to Nigeria’s economic growth?

• Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Entrepreneurship has no significant impact on the Nigeria economic growth

H1: Entrepreneurship has significant impact on the Nigeria economic growth

• Significance of the Study

Entrepreneurship plays a crucial role in the economic development and growth of any nation. In Nigeria, entrepreneurship has been identified as a significant tool for stimulating economic growth. This study aims to explore this relationship in depth, providing valuable insights into how entrepreneurship contributes to Nigeria’s economy. The findings could help policymakers, researchers, and entrepreneurs understand the importance of entrepreneurship in economic growth.

The study’s significance also lies in its potential to shed light on the impact of government policies on entrepreneurship development. Government policies can either foster or hinder entrepreneurial activities. By analyzing the effects of these policies on entrepreneurship in Nigeria, the study could provide recommendations for policy adjustments that could enhance entrepreneurship development and, consequently, economic growth.

Furthermore, the study is significant as it seeks to identify the challenges faced by entrepreneurs in Nigeria. Understanding these challenges is crucial for creating an environment that supports and encourages entrepreneurial activities. The findings could guide the development of strategies and interventions to address these challenges, thereby promoting entrepreneurship and economic growth.

The study also focuses on the contribution of small and medium scale enterprises (SMEs) to Nigeria’s economic growth. SMEs are often the backbone of developing economies, and their role in Nigeria’s economy cannot be overstated. By evaluating their contribution, the study could highlight the importance of supporting SMEs as a strategy for economic growth.

Additionally, the study’s findings could have implications for entrepreneurship education in Nigeria. By understanding the role of entrepreneurship in economic growth and the factors that influence it, educators could design more effective entrepreneurship curriculums. This could lead to the development of more successful entrepreneurs, further driving economic growth.

Finally, the study is significant because it contributes to the existing body of knowledge on entrepreneurship and economic growth in Nigeria. It provides a more nuanced understanding of the relationship between these two areas, which could inform future research and policy decisions.

• Scope of the Study

The study examines entrepreneurship as a tool for economic growth in Nigeria.  A study of top Royal laundry and dry-cleaning services.

• Operational Definition of Terms

1. Entrepreneurship: This is the process of designing, launching, and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs. Entrepreneurship has been described as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit.”
2. Economic Growth: This is an increase in the production of goods and services in an economy. Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth. Economic growth is usually measured as the rate of increase in Gross Domestic Product (GDP).
3. Revenue: This is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.
4. Resources: In the context of business and economics, resources are the inputs that are used in the production process to produce output—that is, finished goods and services. The utilized amounts of the various inputs determine the quantity of output according to a relationship called the production function. There are three basic resources or factors of production: land, labor, and capital. These include any resource needed for the creation, maintenance, and growth of a company or economy.

Project – Entrepreneurship as a tool for economic growth in Nigeria. A study of top Royal laundry and dry-cleaning services