DEVELOPMENT OF ENTREPRENEURSHIP IN A DISTRESS ECONOMY
(A STUDY OF SOME SELECTED SMES IN LAGOS STATE)
Click here to Get this Complete Project Chapter 1-5
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Prior to the advent of any form of money, entrepreneurship had started with trade by barter. When people produced more products than needed, these surpluses are exchanged with other commodities. According to Agumagu (2006), entrepreneurship can be described as a creature and innovative response to the environment, such response can take place in any field of social endeavor for instance; in business industry, agriculture, education and social work.
According to Downing (1991), entrepreneurship is seemingly a discontinuous process of combining resources to produce change in production, while Goldstein (2001), describes entrepreneurship as being viewed by developing the necessary time and effort on assuming the company finances, psychic and social risks and receiving the resulting reward of monetary and personal satisfaction.
In Nigeria, both states and federal government now place much emphasis on the promotion of indigenous small-scale enterprise with a view to encouraging entrepreneurship. The government has a policy to provide special support and protection to these enterprises. It is anticipated that these new enterprises grow and produce some of the goods that the country still import thus conserving our dwindling foreign exchange earnings. Furthermore, it seems ridiculous to ask what development means given the problems faced by Africa and the countries generally. According to the Oxford Advanced Learners dictionary, development means the action or process of developing or being developed (Shulpen and Peter, 2002).
Gottschalk and Danziger (1985) defined development in terms of progress towards a complex of welfare goals, such as reduction of poverty and employment and diminution of inequality score; therefore entrepreneurship development is structural to organizational transformation of the society. It is a process to deviate from underdevelopment and eradicate poverty, every society aims towards development and Nigeria is no exception. Entrepreneurship development can be viewed from diverse perspective positions. Modernization, growth changes transformations process etc is achieved by the individual, groups, organization and government of a given society.
Entrepreneur must adopt strategy in order to achieve set goal and objectives; therefore, entrepreneurship development goes along with economic development, especially in a distressed economy (Mazzarol and Thein, 1999).
1.2 Statement of Problem
The need for development of entrepreneurship in a distressed economy is vital to the growth and development of any nation’s economy. Problems faced in development of entrepreneurship are enormous; the control system practiced in the local government, the effect of economic development on profit, productivity, income and employment. Another issue is the infrastructural facilities, access to credit loan, funds, availability of technical services or education by the local government among others. The researcher believes that with a reasonable profit, the entrepreneur will satisfy the needs and wants of the society by improving the standard of living.
1.3 Aim and Objectives of the Study
The primary aim of the study is to create awareness for the need of development of entrepreneurship while the objectives are to:
- Determine the degree of relationship between entrepreneurship and economic development.
- Strategies to adopt to eliminate the steady decline of communication network among entrepreneurs.
- Find out the major reasons for failure in economic development of entrepreneurship
- Examine the level of entrepreneurial activities in social development.
1.4 Relevant Research Questions
The data provided by the respondents are used to answer the following research questions:-
- What is the relationship between entrepreneurship and economic development?
- What are the strategies necessary to eliminate the decline of communication network among Entrepreneurs?
- What are the major reasons for failure in economic development of entrepreneurship?
- How have entrepreneurial activities affect social development?
1.5 Relevant Research Hypotheses
Hypothesis 1
H‚: There is no significant relationship between entrepreneurship and economic development.
H‚: There is no significant relationship between entrepreneurship and economic development.
Hypothesis 2
H‚: There is no significant relationship between strategies adopted and the steady decline in communication network among entrepreneurs.
H‚: There is a significant relationship between strategies adopted and the steady decline in communication network among entrepreneurs.
1.6 Scope of Study
This study was conducted under many constraints, non-availability of statistics and information on Nigerian economic and the entrepreneurship growth, inadequate fund and time constraints. This study covers the entrepreneurship and entrepreneurial organization in some selected enterprises in Lagos. Emphasis has been on the economic and social aspect of entrepreneurship behaviour in economic development, it gives insight to the hindrance of entrepreneurship and its contributions to economic development. It covers the value of entrepreneurship organization and ascertain the success or failure of its economic development function and serves as feedback information for future development approach and performance, it also affords entrepreneurs the opportunity of self appraisal of its social responsibilities and roles, to meet the demand for employment and good quality product to the economy as a whole.
1.7 Significance of the Study
This study focuses on the benefits of development of entrepreneurship in a nation’s economy, the extent to which entrepreneurship have fared in the economic and social development in Nigeria. Entrepreneurship is key for economic growth, development and stability, all socio-economic activity evolves and revolves around it.
The study reflects not only the economic importance of entrepreneurship to economic development in a distressed economy but the state of confusion and failure in the economy if entrepreneurs are not socially oriented. It is hoped that improvement in the social responsibility and attitude of entrepreneurship in an economy earns the society in general, a favourable and progressive socio-economic development. Entrepreneurs have been consistent on the provision of employment and elevate standard of living. Economic responsibility of an entrepreneur to development entails making profits, which leads to the secondary responsibility of increase in productivity, GPA, per capita income, employment, urbanization, industrialization and technological growth while social responsibility lead to economic development through improved standard of living (i.e. health care, infrastructure, education, security etc) the services and alleviate poverty and illiteracy.
1.8 Definition of Terms
Entrepreneur: An entrepreneur as an individual who has the ability to see and evaluate business opportunities gather the necessary resource to take advantage of them and imitate appropriate action to ensure success Meredith et al (1991).
Entrepreneurship: Entrepreneurship can be described as a creative and innovation response to the environment (Schumpeter 1961.
Community: The people living in one place, district or country, considered as a whole.
Society: A society is a self government group of people engage in abroad range of co-operative activities.
Development: Development is a progress toward a complex of welfare goal, such as reduction of poverty and employment and diminution of inequality score.
Strategy: This denotes a general problem of action and a deployment of emphasis and resources towards the attainment of the overall objective. O.G Agbo (2000).
Social: Related to activities in which you meet and spend time with other people and which happen during the time when you are not working.
References
Agumagu, O. (2006). Entrepreneurship development policy; A renewed perspective for achieving economic development in Nigeria. Nigerian Academy of Management Journal, 1 (1), pp. 179-192.
Downing, J. (1991). Gender and Growth Microenterprises Journal of Small EnterprisesDevelopment vol. 2, No 1. pp 4 “ 12.
Goldstein, D. M. (2001). Microenterprise Training Programs, Neoliberal common sense, and the discourses of self-esteem in J. Goode, & J. Maskovsky (Eds). The new Poverty Studiespp. 236 “ 272
Gottschalk, P. and Danziger, S. (1985). œ A Framework for Evaluating the Effects of Economic Growth and Transfers on Poverty, The American Economic Review 75(1), 153-161.
Mazzarol, T. and Thein, V. (1999). Factors Influencing Small Business Start Ups. International Journal of Entrepreneurial Behaviour and Research, 5(2), 48-63.
Shulpen,L and Peter Gibbon(2002): Private Sector Development: Policies, Practices and Problems; World Development 30(1),1-15
Get the Complete Project
This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $15 for International clients.
Click here to Get this Complete Project Chapter 1-5