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EZENAGU IJEOMA CELIN PG/MBA/12/61619

ENTERPRENUERSHIP DEVELOPMENT IN ENUGU STATE: ISSUES AND CHALLENGES

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT

Ebere omeje Digitally Signed by: Content manager’s Name DN : CN = Webmaster’s name O= University of Nigeria, Nsukka OU = Innovation Centre

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ENTREPRENEURSHIP DEVELOPMENT IN

ENUGU STATE: ISSUES AND CHALLENGES

EZENAGU IJEOMA CELIN PG/MBA/12/61619

DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA ENUGU CAMPUS

SEPTEMBER, 2014

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ENTREPRENEURSHIP DEVELOPMENT IN ENUGU STATE: ISSUES AND CHALLENGES

EZENAGU IJEOMA CELIN PG/MBA/12/61619

A PROJECT SUBMITTED

IN PARTIAL FULFILLMENT FOR THE AWARD OF MASTER IN BUSINESS ADMINISTRATION (MBA) DEGREE

IN MANAGEMENT

DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA ENUGU CAMPUS

SUPERVISOR: PROF. U.J.F. EWURUM

SEPTEMBER, 2014

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APPROVAL

This project has been approved for the Department of Management.

……….......……..……….. ……………….. PROF. U.J.F. EWURUM DATE Supervisor ……….......……..……….. ……………….. DR. O. C. UGBAM DATE Head of Department

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CERTIFICATION

I, Ezenagu Ijeoma Celin, a postgraduate student in the Department of

Management with Registration Number PG/MBA/12/61619, state that I

have satisfactorily completed the requirements for the award of Masters

in Business Administration (MBA), Degree, in Management in the

Department of Management, Faculty of Business Administration,

University of Nigeria, Enugu Campus. I also state that the work

embodied in this project is original and has not been submitted in part or

full for any other Diploma or Degree of this or any other University.

………………..……………….. EZENAGU IJEOMA CELIN

PG/MBA/12/61619 Student

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DEDICATION

This research work is dedicated to the Almighty God, for his guidance

throughout the period of this course. It is his grace and kindness that saw

me through.

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ACKNOWLEDGEMENTS

The researcher of this project is most grateful to the Lord God Almighty,

for his unending mercy and grace throughout this work. I would like to

recognize and acknowledge the contributions of my project supervisor,

Professor, UJF Ewurum whose expertise gave this work a solid and

meaningful directions through proper vetting and supervision of work at

its preliminary stages.

I cannot thank enough whose contribution made the completion of this

work a reality more especially, Henry I. Mokwuah, because a good

academic work can never be the sole effort of an individual. Many people

are bound to offer help, and advice, encouragement, and active assistance

in setting the work ready for presentation. I would like to acknowledge all

writers and authors whose works are cited in this project, special thanks

also extended to my husband: Mr. Peter Ezenagu, my children for their

great and honest support and special gratitude and appreciation to my

family.

My sincere thanks to my course mates too also wish to place on record

the tireless effort of my lecturers in the Management Department:

Professor Ewurum U.J.F, H.O.D Dr. O.C Ugbam, Dr Nnadi, Dr. Mrs.

Ogbo, A.I. Dr. E.K Agbaeze. My completion of this project could not

have been accomplished without the support of my classmates, Mr.

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Amulu Chinwuba Christopher and Mrs. Ngozi Okonkwo. Lastly, my

profound gratitude goes to members of my family.

“To God be the Glory.

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ABSTRACT

The research work is all about entrepreneurship development in Enugu state, issues and challenges. A sample size of 240 respondents from small scale industrialists were drawn from the six selected arm of Enugu metropolis, Abakpa Nike, Achara layout, coal camp, Uwani, Emene area and Business administration students of IMT and ESUT were also used. The data collected were analyzed using frequency tables, percentages and simple tabulation method were used from the study, it was discovered that the effect of inadequate startup capital constitutes a major problem or constraints to development of entrepreneurship in Enugu state, lack of venturing spirit is one of the major constraints to the growth of entrepreneurship in Enugu state and lack of adequate knowledge and training background of entrepreneur is one major constraints that hinder the growth of entrepreneurship in Enugu state. It is recommended that strong educational background is highly recommended to potential entrepreneurs to ensure successful business venture, government should endeavor to provide adequate infrastructural facilities and provision of training of entrepreneurs and also formulate fiscal, monetary and regulating policies conducive to the growth and development of the economy.

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TABLE OF CONTENT

Approval i

Certification ii

Acknowledgments iii

Abstract vi

List of Tables x

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 2

1.3 The objectives of the Study 5

1.4 Research Question 6

1.5 Significance of the Study 7

1.6 Scope of the Study 8

1.7 Limitation of Study 8

1.8 Definition of Terms 9

References 10

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction 11

2.2 Conceptional Framework 12

2.3 Theoretical Framework 14

2.4 Empirical Review 16

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2.4.1 The Need for Entrepreneurship in Enugu State

and the Nation at Large 18

2.4.2 Challenges Associated with Entrepreneurship

Development in Enugu State 18

2.5 Strategies for Promotion Development of

Entrepreneurship 27

2.6 Role of Educators in Entrepreneurship Development 30

2.7 Prospects of Developing Entrepreneurship in

Enugu State 32

2.8 Entrepreneurship Opportunities 34

2.9 Summary of Related Literature 37

Reference 39

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction 40

3.2 Research Design 40

3.2.1 Pilot Survey 40

3.3 Sources of Data Collection 41

3.3.1 Primary Data 41

3.3.2 Secondary Data 41

3.4. Population of the Study 42

3.5 Determination of Sample Size 42

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3.6 Validity of Instrument 43

3.7 Reliability of the Instrument 44

References 45

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation 46

4.2 Data Analysis and Interpretation 47

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS

AND CONCLUSION

5.1 Summary of Findings 56

5.2 Conclusion 57

5.3 Recommendations 58

Bibliography 60

Appendix 62

Questionnaires 63

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LIST OF TABLES

Table 4.1: Return Rate of Questionnaire 46

Table 4.2: Frequency distribution of respondents based on gender 47

Table 4.3: Distribution of respondents based on Age 47

Table 4.4: Distribution of respondents based on martial status 48

Table 4.5: Distribution of respondents based on academic qualifications 48

Table 4:6: Distribution of respondents based on inadequate start up

capital that hindered the development of entrepreneurship 49

Table 4.7: Distribution of respondents based on lack of venturing spirit

that effect the development of entrepreneurship 49

Table 4.9: Distribution of respondents based on having adequate

knowledge and training background of the business they want

to established? 50

Table 4.11: Distribution of Respondents based on government policies on

accessibility to credit facilities that effect development of

entrepreneurs 51

Table 4.12: Distribution of Respondents based on whether the

environment’s conducive for the growth of entrepreneurs 51

Table 4.13: Distribution of respondents based on whether the teaching of

basic entrepreneurship skills and competences that important to the

growth of entrepreneurship 52

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Table 4.14: Distribution of Respondents based on encouraging students

to view business a career option a way of developing

entrepreneurship 52

Table 4:15: Distribution of Respondents based on people are aware of the

benefits of entrepreneurship to the nation economy 53

Table 4.16: Distribution of Respondents based on the existence of small

industries reduce unemployment problem 53

Table 4:17: Distribution of Respondents based on entrepreneurship as a

of survival to the people that engages in it 54

Table 4.18: Distribution of Respondents based on the existence of small

industries introduces new products in the market 54

Table 4.19: Distribution of Respondents based on entrepreneurs need

government and society support to grow 55

Table 4:20: Distribution of Respondents based on government provide

necessary incentives for the growth of entrepreneurship 55

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

There is no country in the modern world where an improvement in the

material level of living is not regarded as a desirable goal by rulers and

citizens alike. The growing acceptance of the need to do something for

the poor, can be noticed in the numerous poverty alleviation programmes

in Nigeria, the average Nigerian still lives subsist below the absolute

poverty line. Amongst the challenges that confront Nigeria, a major

contributory factor was the style and expectations of the development

strategy that was pursued and faced with this failure; the need for a

meaningful national development is not only necessary but also

imperative. To this end, a lot of economic reform programmes or

strategies have evolved but recently special emphasis is being made on

self-reliance via entrepreneur and its numerous small and medium

enterprises. The economic success of the countries of south east, Asia,

and America is traceable to the contributions made by self-reliant

individuals (entrepreneurs), through their numerous small medium

development depend on the entrepreneur who makes a living by creating

new business new jobs and new ideas.

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Entrepreneur means different things to different people. In other to

appreciate this study more, some concepts that are associated with this

study will be explained.

According to Oxford advanced Learner’s dictionary it defines

entrepreneur as a person who starts or organizes a commercial

enterprises, especially one involving financial risk. To an economist,

entrepreneur is one who brings resources, Labour, materials and other

assets into combination that make their value greater than before and who

introduce changes, innovations and a new order. Entrepreneurs are the

risk takers who create businesses; they assemble all the factors of

production in an effort to start and operate a business and to make a

profit. For Schumpeter “the whole process of economic change hung

ultimately on the person who makes it happen–the entrepreneurs”.

Entrepreneurship involves combining to initiate changes in production

hence it is essentially the promotion of economic change, it is a process

involving the entrepreneur and an entrepreneurial career. Hirsch and

Peters in their text entitled entrepreneurship: describes this process as one

of creating something difficult with value by devoting the necessary time

and assuming the accompanying financial, psychic and social risks and

receiving the resulting, the rewards of monetary and personal satisfaction.

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In Nigeria, many policies are constantly being implemented to ensure

their survival which will in turn enable them contribute maximally to

economic development but there challenges were intensified more by the

perennial energy crisis, weak infrastructure, poor import and export

policies, tariff structure among others, which have prevailed in the

country for sometime now. These have, inevitably led to the near collapse

and failure of the small medium enterprises. The government of this

country should look into the modalities of solving these challenges. It is

therefore against this background that this work sets out to evaluate

entrepreneurship development in Enugu state: issues and challenges.

1.2 Statement of The Problem

It has been observed that some of the problems associated with

entrepreneurship development in Enugu state include but not limited to:

In Competence of Management: The major hazard of an entrepreneurship

business is the incompetence of management. A small business owner

may know will may know all the management principles and theories, his

management practice may Jeopardize his business. He may not possess

the leaderships qualities, be unwilling to delegate authority, lack of

appropriate human relations ability and may not possess the appropriate

skills of management, such a business operated by this business owner is

likely to fail.

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Inadequacy of Infrastructural Facilities: Water, electricity, accessible

roads, and other means of communication is are sine quanon to the

efficient performance of entrepreneurship enterprise. Their absence or

inadequacy affects negatively the efficient performance of entrepreneurial

businesses.

Disaster: There are certain circumstances over which small scale business

owner may have little or no control. Natural disaster such as thunder,

product or accident or sudden death of the owner may adversely affect the

operation of the small scale business enterprise.

High Rate of Loan Diversion and Defaults: Both loans obtained from

government, banks and individual persons are used to promote personal

aggrandizement instead of the corporate objective of the business and

hence failure to repay the loan plus interest affect the business.

Inadequate Credit Control: A common problem facing entrepreneurial

business owner is whether or not to extend credit. Some small scale

business enterprise possesses credit granting practices, credits extended to

friends and relations are often times too hard to collect in times of need.

This therefore, increases the financial predicament of the business owner.

Inadequate Planning: Planning a business begins with gathering and

evaluating data on resources requirements, operating costs, potential

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markets and sales, competition, supplies, relevant government

regulations, etc. Unfortunately, however, many eager business owners

push ahead impulsively, without paining attention to planning, and thus

business failure sets in. Lack of the use of modern method of gathering

and analyzing data constituted a weak point in the small business

strategies planning effort.

Poor Business Accountability: The financial problem of small scale

enterprises is rarely only financial. Often it is only a symptom, the

diagnosis of which reveals other weaknesses. Business finance and stress

are mixed up with personal finance and stacks required for personal needs

cash and slacks are taken at will for personal use whenever the need

arises with out accounting for such withdrawals. This makes is difficult to

assess the operating results of the business and at times starves the forms

of its liquid resources.

1.3 The Objectives of The Study

The aim of this topic is to recall the pivotal role, which entrepreneurs and

the small medium enterprises are expected to play in modern economics.

Therefore the study will make every effort to reveal the various ways to

encourage entrepreneurship development in Enugu state.

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The expectations can be achieved by the following:

(1) To identify the constraints encountered by entrepreneurs as a sole

operator or as a bigger organization and how their challenges can

be overcomes.

(2) To determine the level of awareness of people towards

entrepreneurship developments in Enugu state.

(3) To examine various ways that will be employed to develop

entrepreneurship in order to get the desired result.

(4) By extension and implication, the study shall provide how the

government both state and national and also the society will

influence positively on entrepreneurship

1.4 Research Questions

Having established the appropriate framework within which this research

study is being conducted, it becomes necessary to raise some pertinent

questions which are considered to be at the care of the subject matter of

this research effort.

1) What are the major constraints inhibiting entrepreneurs in Enugu

state from carrying out their roles as catalysts of economic growth

and how these challenges can be overcomed?

2) In what practical ways can the government and educators via

education assist in entrepreneurship development?

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3) What identifiable and specific roles (Financial, economic, social,

motivational, psychological) do entrepreneurs in Enugu state play

in order to get the desired result (advancement of the nations

economy).

4) In what ways can both the government (state and national via their

policies and programmes and also society influence

entrepreneurship development?

1.5 Significance of The Study

The research work will be of great significance to students, prospective

and practicing entrepreneurs, co-operators, chief executives and other

practicing managers of business and non–business organizations. The

research work will serve as a background and catalyst to any future

researchers and scholars who may wish to venture into the areas of

promoting entrepreneurship development in Enugu state. Again the

outcome of the research could be significance to the people with different

occupations and professions. The conclusion which this research may

expose, could lead to improvement and efficiency in Enugu state as

regard to entrepreneurship. The confidence level on embarking on

entrepreneurship development in Nigeria will improve, and more people

or the general public will agree to venture in that business. To researcher,

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the topic is a partial fulfillment for the award of post graduate master in

management (MBA).

1.6 Scope of The Study

The study extends its interest on entrepreneurship development in Enugu

state, issues and challenges, Osaze (1996).

1.7 Limitations of The Study

The researcher however, encountered series of challenges in the course

of carrying out this study, such challenges include:

Time constraints: The research was faced with time intensive activities

which she was unable to under taken in combination with load of family

issue, office work and academic course works. Accessibility to adequate

and reliable data for analysis was one of the limitations of this study. An-

in depth study and analysis of the subject would not be possible since the

study was restricted to just one state (Enugu state). Lastly, some of the

materials (literature) required for the sourcing of secondary data relevant

to the study were not handy even though a concerted effort was made to

secure from a valuable sources. Inspite of all these challenges or

hindrances the researcher did her best.

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1.8 Definitions of Terms

1) Entrepreneur: Stone and freeman (1992:156) defined it as either

the originator of a new business venture or a manager who tries to

improve an organizational unit by initiating productive changes. In

other words, it is an individual or group of individuals, who sees

environmental change as an opportunity and uses the factors of

production to produce new goods and service.

2) Entrepreneurship: Hisrich, (1995:17) Defines Entrepreneurship

as a process of creating something different with the value by

devoting the necessary time and effort assuming the

accompanying financial, psychic and social risks and receiving the

resulting rewards of monetary and personal satisfaction.

3) Small Business: Onuoha (1994:322), citing Osaze (1996), sees

small business as one which is owned, managed and controlled by

one or two persons, is family influenced in decision makings, has a

differentiated organizational structure has a relatively small share

of the market and employs less than 50 people.

4) Entrepreneurship Development: This is the coming into

existence in society of the class of individuals, who are not limited

to pace odds.

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REFERENCES

Eze, J. A. (1999), Fundamentals of Small Business Management; Enugu, Nigeria, Glanic Benture.

Hills, G. E. (1983), Entrepreneurship Education-A National Priority

Business Education, Forum, Vol.37 No7. Hisrich, R and Peters, M. (1995), Entrepreneurship: Irwin. Hornby, A.S. (1995), Oxford Advanced Learner’s Dictionary, London.

Oxford University Press, New York. Onuoha, C. (1994), Entrepreneurial Development in Nigeria, An

Integrative Perspective, Okigwe, Avah Global Publication. Schumpter, J. (1961), The Theory of Economic Development. Cambridge:

Harvard University Press. Shapero, A. (1975), Entrepreneurship and Economic Development

(Wisconism; Project SEED Ltd. The Centre for Venture Management.

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Introductions

Entrepreneurship in Nigeria started when people in the villages and

farming communities produced more products than they needed, as such;

they had to exchange these surpluses with those who needed them within

their immediate and neighboring communities. The exchange of goods

for goods or services was based on trade by barter initially, until

commodity money was developed and used. Exchange encouraged

specialization among producers, and the communities came to realize that

they can concentrate on the areas of production they are best fitted.

Consequent on the above, the culture of entrepreneurship in Nigeria

(Nicks, 2008; Raimi and Towobola, 2011)

In the words of Ani (1995) a typical Nigeria entrepreneur is a self made

man who might be said to have strong will to succeed, he might engage

the services of others, like friends, mates, in-laws etc, to help him in his

work of production. Through this way Nigerians in the olden days

engaged in entrepreneurship. Early engagement in entrepreneurship is

characterized with production or manufacturing in which case the

producer most often started with small capital, most of it from his own

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savings. Early entrepreneurship started with trade by barter ever before

the advent of any form of money.

Modern Stage: Modern entrepreneurship in Nigeria started with the

coming of the colonial masters who brought in their wears and made

Nigerians their middle men. In this way, modern entrepreneurship was

conceived. Most of modern entrepreneur were engaged in retail trade or

sole proprietorship. One of the major factors which has in many ways

discouraged the flow of entrepreneurship development in Nigeria is the

value system brought about by formal education. For many decades

people had the opportunity of being employed in the civil service,

because those days the economy was large enough to absorb people into

the prestigious occupation, all Nigerians with some form of formal

education. Again, the contact between the Nigerian entrepreneurs and

foreign entrepreneurs during the colonial era was very detrimental and the

competitive business strategy of the foreign entrepreneurs was ruinous

and also against moral standard established in the society. They did not

adhere to the theory of fight and let’s live. For instance, the United

African Company (UAC) that was responsible for a substantial

percentage of the import and export trade of Nigeria.

They had the policy of dealing directly with producers and refuse to make

use of Nigerians. The refusal of the expatriates to utilize the services of

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local businessmen inhibited their expansion and acquisition of necessary

skills and attitude. Because of this, many eventually folded up. Those that

folded, built up resentment against business, which became very

demoralizing to other prospective entrepreneurs.

As a result, the flow of entrepreneurship in the country was showed

down. But with more people been educated and the fact that government

could no longer employ most school leavers economic programs to

encouraged individuals to go into private business and be self-reliant

were initiated. (Theodore, and Gieger 2011), such economic policy

programs that are geared towards self-reliance for individuals are

programs as open apprenticeship scheme, graduate employment program

etc, and other policies that encourage or make it easy for entrepreneurs to

acquire the needed funds, e.g., peoples Bank of Nigeria, funds for small-

scale industries (FUSSI) Co-operative societies etc, were established to

assist entrepreneurs.

2.2 Conceptional Framework

The words” entrepreneurship and development has been giving various

meanings. According to Shane and Ventaraman, (2010), entrepreneurship

is the creation and management of a new organization designed to pursue

a unique, innovative opportunity and achieve rapid, profitable growth.

Kanothi (2009), quoting Binks and Vale (1980), defines entrepreneurship

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as an unreleased combination of economic resources instigated by the

uncertain prospect of temporary monopoly profit. Entrepreneurship also

entails the act of risk taking, innovation, arbitrage and co-ordination of

factors of production in the creation of new products or services for new

and existing users in human society (Acts and storey 2004, minimize and

Levesque 2008 Nacide 2007, Kanothi, 2009),

In the words of Kilby (1971:6), entrepreneurship has been defined as the

willingness and ability of an individual to seek out investment

opportunities, establish and run an enterprise successfully. The oxford

advanced dictionary of current English (Hornby 1975:292), defined

entrepreneurship as the ability to organize a business undertaking and

assume the risks for the sake of profit. It is also defined as the ability and

willingness of a person to initiate, control and direct the processes of

production of goods and services and bear the attendant risks thereof. The

deliverable of entrepreneurship is making or doing things differently,

making or providing innovative products or services or organizing the

products made or supplied. Development on the other hand is a process of

sustained increase in total per capital incomes accompanied by structural

transformation and modernization of socio-economic environment.

(Umebali, 2001:133),

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In other words, is defined as the process whereby the quality and quantity

of productive factors, and the institutionalization of the growth process in

particular, development implies not merely the growth of per capital real

incomes, but also its distribution, the sources of growth, the development

of infrastructure and administrative framework essential to sustained an

economic growth (Olayide, et al 1981).

2.3 Theoretical Framework

According to Dusan and Velickaite (2008), Rapidly growing companies

have been the subject of study is for many years. Researches have tried to

overview and clarity the key factors that cause some business to grow

rapidly. While others remain small or grow very slowly, often studies

have concentrated on the founder his or her personality management

skills, goal and so forth in academic discussion, the question of

entrepreneurial skill is related to the debate on whether entrepreneurship

can be conceived as something teachable or not. Katz (1991), For

example, suggests that most likely there are some skills that can be taught

and some that cannot. Some theories were developed that entrepreneurs

are born. Nevertheless experience has shown that entrepreneurship can be

taught and that a positive environment encouraged entrepreneurial

thinking promotes innovation and leads to a higher degree of social and

economic sustainability.

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The observed scientific problem exits within the entrepreneurship

research as generally accepted definition of entrepreneurship and related

definitions such as entrepreneur, entrepreneurial team corporate

entrepreneurship, etc, cannot be imposed or even assumed. In respect, the

search for an appropriate basis for understanding and describing the

phenomenon creates a challenging problem for entrepreneurship

researchers. The goal of this paper is to provide some systematic

clarification on the concept of entrepreneurship. Its components and

related processes and to build a theoretical framework, based on relevant

research in the field. The objective of the research is entrepreneurship, its

components processes and nexus between them. On the purpose to reach

the aim, scientific literature analysis, comparison and systematization

methods were applied. Entrepreneurship research has been paid by great

attention during the past for decades as ownership of firms (Cuevas

1994), management of small businesses (Scott and Bruce 1987),

innovativeness (Schumpeter 1934, Hin et al, 2001), networking (Larson

and Starr 1993), organizing (Johanisson 1988), making the ideas work

even though the needed resources are not under control (Stevenson and

Jarilto 1990), all new businesses (Acs et al 2001) etc. Because of the lack

of a conceptual framework that explains and predicts a set of empirical

phenomena not explained by conceptual frameworks already in existence

in other, related fields of research, the distinctive contribution of the

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entrepreneurship field is still difficult to identify (1,2). Many different

views about entrepreneurship were greatly worked out by Gartner (1990),

deservedly reputed as the leader in entrepreneurship research. Lately

entrepreneurship research seems to focus on two dimension individual or

trail approach and process or behavioral approach, mostly concluding on

the outcome new value creation that fuels economic growth (Maes, 2003;

Teoren 2007). But before going in the analysis of these approaches,

definitional problems should be reviewed.

2.4 Empirical Review

Idam (2014), entrepreneurship, as an emerging field of study and as an

area of human endeavor, has received increasing interest of researchers,

academicians and policy makers the world over. It has equally provoked

controversies over its concept and definition. Entrepreneurship is seen as

an effective means not only of combating unemployment, poverty and

under-development in the developing nations, but also as a strategy for

rapid economic development in both developed and developing nations

(Schumpeter, 1934, Harper, 1991, Morris & Lewis, 1991, Hamilton,

2000, Clausen, 2006, Praag & Versloot, 2007). Naude (2011) contends

that global development is entering a phase, where entrepreneurship will

increasingly play a more important role. The adduces three reasons for

this development.

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The first is that the managed economy of the 1970s. 2009 in the west,

characterized by reliance on big business and mass production, has given

way to a so-called entrepreneurial economy, where knowledge driven

goods and services are more flexibly provided by smaller creative class

secondly, impressive growth in the emerging economics, notably Brazil,

Russia, India and china , has been driven by innovative entrepreneurial

revolution. Thirdly, in the least developed countries, where dependency is

high, donor agencies have shifting emphasis in development co-operation

towards private sector development. Naude (2011) draws the conclusion

that entrepreneurship will contribute to growth and employment creation

in advanced, emerging and least developed economics alike. In Nigeria,

studies have been carried out on the effect of entrepreneurship

development on the problem of high unemployment rate, high level of

poverty and slow economic growth rate (Adejumo, 2001, Ariyo, 2005,

Agboli and Ukaegbu, 2006, Abimbola and Agboola, 2011, Thaddeus,

2012, Oyelola et. al, 2013, Satami, 2013). Given the generally held view

that entrepreneurship development is the key to poverty eradication.

Employment generation and rapid economic development, various

government in Nigeria have, over the past three decades, evolved policies

and programme aimed at developing entrepreneurship through the

development of small and medium scale enterprises (SMEs). In spite of

all the efforts, unemployment rate has remained high, rising from 13.1%

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in year 2000 to 23.9% in 2011, with youth unemployment put at over

50% (IMF, 2013, rise networks, 2013). Over 100 million Nigerian live

below poverty line on less than US$I a day and with the percentage of the

population in abject poverty rising from 54.7% in 2004 to on 60.0% in

2010 (Yusuf, 2011). Above all, Nigeria’s human development index

(HDI) remain abysmally low at 0.453, much below world weighted

average of 0.7 (UNDP, 2006).

2.4.1 The Need for Entrepreneurship in Enugu State and the Nation

at Large

Entrepreneurs and small business enterprise have on their own made

immense contributions to the development of the state and the national

economy over the years. The economic contribution accrued from the

development of entrepreneurship.

a) Employment Generation: The committee for economic

development cited by Bamback et al (1973:15) highlighted the

benefits of small scale industries such as employment generation

and sectoral linkages.

2.4.2 Challenges Associated with Entrepreneurship Developments in

Enugu State

There are a number of challenges associated with entrepreneurship

development in Enugu state. These challenges are:

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(1) Access to finance

(2) Access to land

(3) Licenses and permits

(4) Corruption

(5) Courts

(6) Crime, theft and disorder

(7) Customs and trade registration

(8) Electricity/inadequate electric supply

(9) Inadequately educated workforce

(10) Labour regulations

(11) Political instability

(12) Practice informal sector

(13) Tax administration

(14) Tax rates

(15) Transportation

Source: Business environment and enterprise performance Surveys

World Bank 2007. Also Ile (2001:467), summarized the challenges

associated with entrepreneurship development in Enugu state to include:

(1) Under capitalization

(2) Poor business accountability

(3) Poor record keeping

(4) Lack of enterprise

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(5) Lack of business knowledge

(6) Poor and wrong location

(7) Inadequate planning

(8) Unplanned expansion

(9) Inadequate credit control

(10) Neglect and time pressure

(11) Incompetence of management

(12) Lack of proper inventory control

(13) Disaster

(14) High rate of loan diversion and defaults

(15) Inadequacy of infrastructural facilities

(16) Lack of good advice cum unwillingness to accept good advice

(17) Poor competitive positive

(18) Poor education and lack of required skills

(19) Lack of preparedness

(20) Wrong choice of product or services

(21) Problem of not conducting feasibility studies

(22) Government policies and regulations

(23) Problem of management succession

(24) Problem of acceptability of Nigeria made goods.

36

However, Kent (1982:10), defined several factors influencing the level of

entrepreneurship activity in the economy at a given time, they are as

follow:

a) Demand for final output: Is demand generally strong in the

economy?

b) Availability of inputs : Are resources available to make new

venture possible?

c) Inflation : Is inflation making debt too expensive to find new

ventures development?

d) Taxation: Are there tax consideration affect new venture?

e) Political stability : Is public favorable to long term investment

needed for new ventures?

From the above authorities, we summarize the challenges associated with

entrepreneurship development in Enugu state to include the following:

(1) Problem of acceptability of Nigeria made goods

(2) Lack of preparedness

(3) Access to finance

(4) Inadequate of infrastructural facilities

(5) Inadequately educated workforce

(6) Poor education and lack of required skills

(7) Access to land

37

(8) Corruption

(9) Courts

(10) Crimes and theft and disorder

(11) Electricity

(12) Labour regulations

(13) Political instability

(14) Practice informal sector

(15) Tax administration

(16) Tax rates

(17) Transportation

(18) Poor business accountability

(19) Poor record keeping

(20) Lack of enterprise

Let us review some of the above mentioned points.

Some of the problems include

a) Dependence on Foreign Goods: Items that are locally produced

in Nigeria are not valued and Enugu state amongst other states

is not exempted, there is a great reliance on imported goods. It

is true that most of our locally produced goods are inferior

compared with the foreign goods but we must remember that

practice they say makes perfect. To make matters worse most

38

literate ones have misplaced view of what education was meant

to achieve that is economical, educational, political and social

independence. This view was voiced by President Anjoma of

Namibia at the Award Giving Ceremony. Making in Nigeria’s

40th independence anniversary, and quote “we (Africans) have

independence but not political or economic independence. An

educated man is a person which is truly proud of what he could

make or appreciate and value that made and produced by his

people.

b) Lack of Venturing Spirit: This is a major problem facing the

people of Enugu state because an average man in Enugu state

believes that Enugu is not a business area and a such will not

want to risk venturing into a business of his own in the state. In

Nigeria generally people tend to do what every person is doing,

nobody wants to take a plunge into a new area that is why there

is backwardness in entrepreneurship development.

c) Financial Handicap: In the true sense of Enugu state is more

or less an educational state; they are not business incline. This is

because of our geographical location, we don’t have seaports,

oil companies etc, around us, money do not really change hands

as in business wise in this state. The small scale industrialists

therefore usually find himself in financial trauma due to limited

39

source of fund. Oshumbiyi (1989:10) saw the key problem

facing most small scale business in Nigeria is lack of financial

resources. He added that whether for the establishment of new

industries or to carryout expansion plans that the inability to

attract financial credit has shifted. The difficulty in obtaining

credit is probably the most serious handicap of a small

entrepreneur as it limits his ability to obtain the funds necessary

to operate his enterprise. Despite the effort of the federal

government and its specialized agencies like the (National

Directorate of Employment, Nigeria bank of industry,

microfinance bank) in finding lasting solutions to the funding

challenges of small scale industries in Nigerian, the challenges

has persisted and manifest in different dimensions.

d) Low level of Technology: The technological awareness of the

people of Enugu state is still at its lowest ebb. The impact of

technology while appreciated is till being paid lip service. There

are no facilities for the implementation of technological

‘breakthrough’. Most technological achievements are usually

allowed to remain at the research laboratories with no hope of

seeing the daylight.

e) Mass Illiteracy of the General Populace: It is a fact of history

that the number of those illiterates is still staggering. The

40

feature does not make for the execution of government plan

(especially economic). This creates communication gap as the

uneducated entrepreneurs do not often possess the necessary

technical skills especially financial expertise to put together

bankable proposition even when they have a good idea of their

need based on their experiences. Due to illiteracy and its

resultant lack of skills, knowledge and administrative skills

which could have aided productivity are usually nonexistence.

f) Limited Infrastructure: The infrastructures present in Enugu

state are grossly inadequate to the rapidly increasing population.

As a result water and power supply are not in existence in most

rural areas. The available power supplies in the urban areas are

not constant thereby hinder productivity. Means of

communication is poor in the state, letters take a long time to

reach their destinations, and there is no network for phone calls

(mobile phones) in the most rural areas. Most of the roads

especially those in the rural areas are in dilapidated state. This

makes it impossible for business enterprises to operate

efficiently.

g) Under Utilization of Available Resources: Government of the

state does not encourage a wide range of entrepreneurs. Most

jobs are given to the people that come from their own

41

community whether skilled or not. The indigenous construction

firms are not given jobs as often as it should be. The reason that

their jobs are not satisfactory does not sound convincing. Also

Oyelola (2011) went further to state that for promoting

development of entrepreneurs development in Enugu state, it

requires that development of entrepreneurial skills married with

excellent knowledge of information and communication

technology (ICT) as additional they to technological and

entrepreneurial and entrepreneurial development is important

Nigeria’s visions. Development of entrepreneurial skills married

with excellent read again knowledge of information and

communication technology (ICT) as additional key to

technological and entrepreneurial development is important.

Nigerian’s vision of achieving sustainable economic growth and

social development will remain unrealized if the nation’s

infrastructural needs are not addressed. The provision of

infrastructure such as power, transport and water is vital.

Without adequate, constant and reliable electric power supply,

no technological development will be successively achieved.

New innovation is lacking in Nigeria, most entrepreneurs prefer

to import goods and package for sales because of high cost of

production. In order to reverse this trend, it is pertinent that

42

government gives priority to capacity building for technological

innovation, good infrastructure and provide environment

conducive for business that will lead to sustainable economic

growth.

Additionally, since entrepreneurs are vital to economic growth, legislators

and other leaders who develop economic policies should strive to

encourage the innovation and risk taking of entrepreneurs. Enforcing

property rights through contact, patent and copyright laws, encouraging

competition through free trade, deregulation and antitrust legislation and

promoting a healthy economic climate. Any country that lacks capacity

for production of goods will become a consuming nation instead of an

industrial nation. Finally, the Nigerian government needs to shift from

over-dependence on oil and place more attention on the development of

small & medium sized enterprises for sustainable economic growth in

Nigeria. Economic prosperity in Nigeria, as in the rest of the world,

depends on strong and empowered private sector to a higher level of

growth would significantly contribute to the country’s economic well

being.

2.5 Strategies for Promoting Development of Entrepreneurship

1) External Assistance: Learning from others and adapting to it

offers the opportunity to make raid advances without repeating

43

others mistake. The government should therefore not hesitates to

seek help the federal and international bodies to co-ordinate, assist

or even contribute their wealth of knowledge. The World Bank

report observed that most knowledge that is beneficial for

developing countries is not the product of internationally sponsored

research, vital though such research can be; it is rather than

consequences of actions taken in developing countries themselves.

It is therefore pertinent to create an enabling environment in order

to unleash powerful development forces through local knowledge

and efforts.

2) Strategic Environmental Assessment: Just as adequate

knowledge and information can help enhance the performance of

economic activities of the state so can adequate information about

the environment help to minimize the problem of development

especially entrepreneurship development. In order to achieve

sustainable growth, government, institution and individuals must

seek to integrate environmental issues into the development plans

of the state. This would course help in understanding the peculiar

challenges of the entrepreneurs in order to deploy the appropriate

strategies to minimize the negative impact of the current

development predicament.

44

3) Financial Records: Hence Dickson (1971:4) holds that “small

business enterprises are plagued by inadequacies and serious

misuse of business records and business information. The problem

of access to credit, which remains the bane of economic sustenance

among entrepreneurs, is an issue that derives from information

failure as wealthy savers lack information about the entrepreneurs

and so cannot lend to them with confidence. The best known

mechanism for improving the flow of information among

entrepreneurs and their access to credit are the group lending

schemes. These enable an outsides lender to tap a source of

information that people have in abundance about each other.

Accounting standards, in form of “financial statement” for example

is another way that information about firms can be compared

against information from other firms. This thus makes it easier for

investor and creditors to access and evaluate the condition and

credit worthiness of enterprises. Government must therefore

encourage as well as ensure that entrepreneurs keep these

important records so that they could attract investors, creditors and

other interested stakeholders.

4) Knowledge/Education: According to the current edition of World

Bank Development report “knowledge illuminates every economic

transaction, revealing preference, giving clarity to exchanges,

45

markets. Basic education is the foundation for building skilled and

agible labour force as it increases people’s capacity to learn and

interpret information, knowledge can therefore be seen as a

strategy towards improved productivity. However to acquire the

minimum knowledge and technical know-how that can adequately

enhance development, the adaptation of polices that support

improved educational, financial, telecommunications,

environmental and information generation initiative is imperative.

In essence the World Bank report is a necessity for the

development of entrepreneurship because a well informed

individual can better appreciate his environment and consequently

profit more on opportunities around him.

2.6 Role of Educators in Entrepreneurship Development

Many vocational education program components lead to entrepreneurship

skills although vocational educators do not often identify these as

entrepreneurship training. They include running small business as art of

the programme, (example school stores, repairs, flower shops etc)

studying business management participating in youth club activities and

working with entrepreneurs in the community. Vocational education

programmes offers opportunities for more specific types of self-

employment education through experience. But entrepreneurship

46

education, although the content is the same now involves a new

personalized focus. Instead of saying “business people do this or that” a

teacher should show students how they could do them. Experience is the

best teacher if one wishes to be a successful new venture creator.

Vocational education can therefore play an important part in building

successful new business in the future by starting now to build

entrepreneurship in our students. Educators are therefore faced with a big

challenge regarding entrepreneurship and small business management.

The first challenge is to build business in general; small business in

particular into the realm of respectability. Education plays a key role in

determining how students, tomorrows adults view business operators.

Educators should begin with simple explanations of the nation’s business

system in the early years of education. An essential part of shaping

students attitudes is their understanding of the relationship between the

system and the quality of the society’s life. Educators need to analyze the

system, develop a positive attitude about it and begin to express the value

of entrepreneurship to the pupil. It is through student knowledge and

assimilated attitude that students will determine whether to become

contemptuous and revolt against it or become part of the system.

Education is being increasingly important to the entrepreneur and small

business manager.

47

Educational institution should begin to establish programmes that will

edify students to have the characteristics and instincts, which are

associated with entrepreneurs of small business manager. Extra-curricula

activities which have a small business orientation such as business

fraternities, co-operative education programmes and student chapters of

professional associations need to be encouraged and developed. In

conclusion, educators can make a great contribution by encouraging

students to view entrepreneurship and small business management as a

vital career option and also by preparing students to deal with problems

and opportunities associated with entrepreneurship and small business

management.

2.7 Prospects of Developing Entrepreneurship in Enugu State

The future of small business has been a source of concern by a lot of

interested parties, especially owners of small firms. However, one things

is certain and that is that the future will always be different from the

present. That means that at any given time, numerous entrepreneurial

opportunities will always exist. Successful entrepreneurs are therefore,

the resourceful people who can see and exploit propitious situations.

a) One Major Structural Change that Favour Small Business: Is

the shift from a manufacturing to a service economy. The

manufacturing segment in which big business predominates is

48

currently declining in relative importance while retailing and

wholesaling is growing. These areas are fields in which small

business have been traditionally strong.

b) Adaptability of Changing Conditions: The survival of any

business will depend upon its ability to adapt to the changing

environment within which it functions. Future success belongs to

those enterprises that managers are sensitive to the changing

business scene and who are prepared to capitalize on its

opportunities.

c) Government and the Future of Small Business: The federal

government recent creation of small business administration

represents a positive attempt to strength small business both at the

federal and state levels and therefore portrays a good omen for the

growth of entrepreneurship. Superiority in the production and

marketing of goods and services constitutes the greatest guarantee

of continued life for a small business. Nevertheless, small business

will do themselves good not to constitute itself a “special interest”

group dependent upon government assistance and political

legislation.

49

2.8 Entrepreneurship Opportunities

According to Hubbard et al (1988:3) in an economic democracy, there is

opportunity for project recognition and service for anyone service than

the other. The essence of the free enterprises system is competition. It is

competition that makes a person who is already doing a good job to try

even harder. Competition provides choices when a purchase is made, the

money paid becomes “vote” in Favour of the service product or service

chosen. Those businesses which do not receive sufficient sales in form of

money votes from customers cannot possible succeed. It is the job of a

business to provide little extra service or a little better product so as to

improve its ability to compete. Schumpeter (1970:19); stated that

entrepreneurial profit comes specifically from innovation. When a

business can no longer satisfy a segment of the population, sufficiently

large enough to support it, that business is bound to fail and with the

aging population, changes in life styles, increases in spendable income,

changes in technology and communication there are opportunities for

many more business to provide goods and services.

If a business goes to a growing community and starts gaining popularity

and as well monopolize the market and make his profit before others will

come in to join him and if the location is good, other business will soon

arrive who may not even be in direct competition with the former if they

50

represent different products and services. They will actually bring more

business as copper and Drymkelbery (1981:8), found entrepreneurs differ

from industry to industry although we do not have systematic knowledge

of the difference. An entrepreneurs however can profit by thinking about

the qualities most helpful in different kind of business. However, anyone

with imagination and a little courage and who believes in his or her own

ability and ambition can be successful in business, with education, skills,

maturity and determination combined with a creative business idea the

outlook is good. The primary requirement for a new venture is to have an

item or service which satisfies the public and new business must be

viewed against the background of the community in which they are

located, they must be keeping with time. Everyday research and invention

produces new products and new services that replace the old products and

services.

According to Berko (1992:9) the history of business is full of instances of

firms which died from failure to innovate their products. As an innovator,

the entrepreneur initiates changes to improve enterprise performance to

achieve progress because no enterprises can rest on its past glory.

According to Ani (1999:5), great opportunities exist for entrepreneur with

entrepreneurial spirit necessary to take some risks to develop a country’s

51

economic resources, it is observed that entrepreneur are likely to do well

if they posses the following traits.

(1) Risk taking, self confidence, hard work, goal setting,

accountability, innovation and versatility. A good entrepreneur idea

should be thoroughly discussed with trade association, bank and

department of commerce.

Opportunity is defined as a situation that allows one to make gain or

profit. It is also defined as unfilled demand in the society, an unsatisfied

need, something that is valuable for which people will like to pay. It is a

potentially gainful situation example; the government by removing

exercise duties creates business opportunities for some companies. Most

good opportunities do not suddenly appear but rather from an

entrepreneur being alert to possibilities and in some cases by establishing

mechanism to identify potential opportunities. Regardless of the source of

opportunities, each must be carefully screened and evaluated. The

evaluation enables entrepreneurs to determine whether the specific

product or service has the earnings needed for resources required. It is

equally good to determine the market size and the length of the

opportunity, which are the primary bases for determining the risks and

rewards of opportunity.

52

2.9 Summary of Related Literature

This paper reviewed entrepreneur and entrepreneurship definition from

different perspective. Ducker in his own definition present entrepreneurs,

not as people who are born with certain character traits but as managers

who know where to look for innovation and how to develop it into useful

products or markets once they have found it. He furthermore consider

entrepreneurship not being an art you either have, or you don’t but rather

a practice which you constantly follow or you choose to ignore. It can

thus be develop, and learned. Its core activity is innovation and a

continuous purposeful search for new ideas, and their practical

applications. Also discussed are the need and various roles of

entrepreneurs and entrepreneurship in economic development of the state

in section 21. However, the paper proceeded to identify the problems

militating against the development of entrepreneurship.

The recurring constraints to which entrepreneurs are generally exposed

that limit their contribution to economic development includes

dependence on foreign goods, lack of venturing spirit, financial handicap,

lack of infrastructural facilities etc. Elicited from the review is also the

prospects for entrepreneurship development in Enugu state in section 2.5

and the issues which are worth considering in order to accelerate the

growth and development of entrepreneurship are government provision of

53

a solid foundation by giving basic training to entrepreneurs as well as

appropriate incentives provision of infrastructure and creation of an

enabling business environment for entrepreneurial efforts to flourish in

section 2.3, state government should as well seek assistance from the

federal government and if possible from other external bodies. Nigeria

generally is endowed with vast natural resources and a large pool of

individual abound who are ready and willing to be self reliance and

contribute their own quota to the economic development of the nation of

which Enugu state people are not left out to be precise. As such they

require a more conductive environment to actualize their dreams. The

review thus review the role of educators in entrepreneurship development

which include the establishing of vocational centers as it is being done by

NDE (National Directorates for Employment) engaging school leavers,

graduates to acquire different skills so that they can be on their own.

Therefore given the right environment, the prospects for entrepreneurial

development in Enugu is bright.

54

REFERENCES

Ani, N.B (1999), Entrepreneurial Development: Enugu: Nigeria, JTC Publisher.

Bamback, (1973), How to Organize and Operate a Small Business, Fifth

Edition, Prentice Hall Inc Eaglewood Cliffs. Broom, H. N. and Longnecker J.G (1983), Small Business Management,

(South Western Publishing C0. Cincinnati, Ohio). Davis, C.H (1988), “Education’s Role in Developing Instincts for

Entrepreneurship and Small Business Management” (Export Business Education Forum).

Dickson, F.J. (1971), Successful Management of the Small and Medium

Sized Business, Eaglewood Cliffs New Jersey, Prentice Hall Inc. Dinwiddy, B. (1974), “Promoting African Enterprise. London. Drucker, P.F. (1974), Management: Tasks Responsibilities practices:

New York: Harped and Row. Hasting, P.G. (1968), Fundaments of Business Ownership, London D.

Van Nostrand Company Inc. Hisrich, R. and Peters, M. Entrepreneurship. Irwin. Ogaga H.P. (1986),

“Encouraging Small Scale Enterprises” Business Times: Lagos. Oshumbiyi, O. (1989): Ensuring Survival of Small Scale Industries”,

Business Times. Schumpeter, (1975), The Theory of Economic Development, Harvard

University. Shapero, A. (1975), Entrepreneurship and Economic Development,

(Wisconsin Project Seed Ltd, The centre for Ventures Management).

55

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter has a detailed account of the research design and procedures.

Discussed in this chapter are sources of data and data collection

techniques, background of the population, determination of the sample

size, questionnaire administration and collection, and methods of

statistical data analysis.

3.2 Research Design

In order source adequately reliable data for analytical purposes and

subsequent useful inferences, the descriptive research method was

combined with yet a survey approach. Might come up in the course of

the study proper.

3.2.1 Pilot Survey

A sample of the targeted population was interviewed and simultaneously

administered with the questionnaire in order to test the reliability of the

questionnaires instrument and ensure that it possess the characteristics

which a good measuring instrument should have for the purpose of

validity.

56

3.3 Sources of Data Collection

Both primary and secondary data derived from different sources were

used.

3.3.1 Primary Data

To get hand information the researcher undertook the following steps.

Personal Interview

The personal interview was used to obtain direct and first hand

information from the respondents (entrepreneur and students) so as to

reinforce and complement the information emanating from the structural

questionnaires.

Questionnaires

Questionnaires were administered to two (2) groups of respondents; the

entrepreneurs and students respectively.

3.3.2 Secondary Data

Secondary data formed a sizeable portion of this work and were notably

mainly from library sources. Books, journals, magazines, dailies,

unpublished thesis/projects and lecturers constituted the sources of

secondary data used to provide a theoretical framework for this study.

57

3.4 Population of the Study

The population includes a representative sample of small scale industries

drawn from the six selected arm of Enugu, Abakpa, Asata, Achara

Layout, Coal camp, Uwani and Emene Area. Students of two institutions

were Institute of Management and Technology (IMT) Enugu State

University of Science and Technology (ESUT).

(a) Small-scale industrialists 500

(b) Business administration students 300

3.5 Determination of Sample Size

To determine the sample for the study, the study made up of Yaro

Yamane (1973) formular which states this

N = N 1 + Ne2

Where n = the sample size

N = The total population

E = Error margin (which is normally % or 0.05)

I = mathematical constant

The margins of error were % or 0.05% which was chosen voluntarily by

the said research. Therefore substituting the formula above

N = 800 (0.05)2 1 + 800

58

n = 800 (0.0025) 1 + 800

= 800 = 800 = 266.67 1 + 2 3 = 267 approximately

(a) Small-scale industrialists

n = 267 x 500 800 1

= 133500 = 166875 800

(b) Business administration students

= 300 x 267 811 1

= 80100 810 100.125

166.875 100.725 267.000

= 267.000 Approximately

= 267 sample size

3.6 Validity of Instrument

To ensure that the instrument was able to ensure what it is set measure,

face validity was carried. The questionnaire was given to the research

project supervisor who examined the instrument for relevance of content

59

and effectiveness in producing required responses to the problem under

study. After vetting the questionnaires was cleared for use.

3.7 Reliability of the Instrument

According to Nwaorgu (2006:100), the reliability of an instrument refers

to the degree of consistency with which the instrument measures, what

event measures. In the area of the research, the reliability can be tested

by administering the same question design in the interview question on

the practicing manages of business, co-operators chief executives, and

non- business organized the an sores from other sources can then be

compared with the researcher experience.

3.8 Method of Data Analysis

Data collection from the questionnaires were presented and analyzed by

using simple tabulation method in form of frequency distribution and

percentage as shown below:

F x 100 ∑n 1

Where = f = number of response

n = total number of the respondent

100% or percentages

∑ = summation

60

REFERENCES

Nwaorgu, A. (2006), Introduction to Academic, Enugu Printing and Publishing Company.

Baridam, D., (1990), Research Methods in Administrative Sciences.

Ibadan Beik Publishers. Onodugo, V. A. (2007), “Short Notes on Research Methodology”,

Department of Management, University of Nigeria, Enugu Campus.

Osuala, E., (1985), Introduction to Research Methods and Procedures,

African Rep., Publishers Ltd.

61

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation

This chapter comprises the presentation of data in a tabular form and

analyzing the data received from the selected respondents with

percentage. In carrying out this research, a total of 267 copies of

questionnaires has distributed to the respondents and out of 267 copies

distributed, that a total of 240 was duly completed and returned making a

representation of 89.89% while a total of 27 were not returned also

making a representation of 10.11%

Table 4.1: Return Rate of Questionnaire

Questionnaire No of respondent Percentage (%)

Number return 240 89.89

Number not returned 27 10.11

Total 267 100

Source: Field Survey, 2014.

Table 4.1: Shows that respondents of the two (2) group of respondents,

the entrepreneurs and students respectively were interested with the

above study. This can be ascertain from the response rate gotten from

study. These were a positive response from the respondents.

62

4.2 Data Analysis and Interpretation

Table 4.2: Frequency distribution of respondents based on gender:

Sex Small scale

% Students % Total

Male 80 33.33 60 25 140

Female 60 25 40 46.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

From table 4.2, it can be deduced that under small scale industrialists 140

of the respondent were small scale industrialists, while 100 were students.

Table 4.3: Distribution of respondents based on Age

Age Small scale

% Students % Total

Below25 35 14.58 60 25 140

26-30 35 14.58 40 46.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Table 4 3: Shows that 14-58 of the respondents were below 25yrs, 14-58

were below 35 yrs, while 29-17 were 31-40yrs. This means that the

majority of the respondents were below 31-40.

63

Table 4.4: Distribution of respondents based on martial status

Status Small scale

% Students % Total

Single 60 25 - - 140

Married 80 58.33 100 100 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Table 4.4, shows 25% of the respondents were single, 58-33% of them

were married under small scale industrialists

Table 4.5: Distribution of respondents based on academic qualifications

Academic qualified on

Small scale industrialists

% Students % Total

WAEC 35 14.58 60 25 140

GCE/RSA 35 14.58 - - -

OND/NTCR/NCE 70 29-17 40 16.67 100

HND/Degree - - - - -

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Table 4.5: Shows that 14.58% of the respondents hold WAEC (1 level)

and GCE, RSA certificate 14.58% of them have OND/NTCR/NCE,

29.17% have HND, and B.SC under industrialist. Therefore the majority

of the respondents possess OND/MTCE/NCE.

64

SECTION B

Table 4:6: Distribution of respondents based on inadequate start up

capital that hindered the development of entrepreneurship

Response Small scale

% Students % Total

Yes 140 58-33 100 41.67 140

No - - - - 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Table 4.6, showed that 58.33% under industrialists and 41.67% under

students agreed that inadequate startup capital can hinder the

development of entrepreneurship.

Table 4.7: Distribution of respondents based on lack of venturing

spirit that effect the development of entrepreneurship

Response Small scale

% Students % Total

Yes 140 58-33 100 41.67 140

No - - - - 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

65

Table 4.8, showed that 58.33% under industrialists and 41.67% under

students agreed that lack of venturing spirit affect the development of

entrepreneurship in Enugu state.

Table 4.9: Distribution of respondents based on having adequate

knowledge and training background of the business they want to

established?

Response Small scale

% Students % Total

Yes - - - - -

No 140 58.33 100 41-67 140

- 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014

Table 4.10: Indicates that 58.33% under industrialists and 100% under

students indicates No, that entrepreneurs does not have adequate

knowledge and training background of the business they want to

establish.

66

Table 4.11: Distribution of Respondents based on government

policies on accessibility to credit facilities that effect development of

entrepreneurs

Response Small scale

% Students % Total

Yes 80 33.33 60 25 140

No 60 25 40 16.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014

Result: 80% of the respondent under industrialists and 60% under

students says yes to question No 8 while 60% of the respondent under

industrialists and 40% under students say No to the question No 8.

Table 4.12: Distribution of Respondents based on whether the

environment’s conducive for the growth of entrepreneurs

Response Small scale

% Students % Total

Yes 60 25 40 16.67 140

No 80 33.33 60 25 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014

67

Result: 25% under industrialists and 16.67 under students indicated yes

to the question 9 while 33.33 under industrialists and students 25% of

them say No”.

Table 4.13: Distribution of respondents based on whether the

teaching of basic entrepreneurship skills and competences that

important to the growth of entrepreneurship

Response Small scale

% Students % Total

Yes 80 33.33 60 25 140

No 60 25 40 16.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014

Result: Indicated that 33.33 under industrialist and 25% under students

indicates yes” to the question 10 while 25% under industrialists and

16.67% under students indicate “No” to it.

Table 4.14: Distribution of Respondents based on encouraging

students to view business a career option a way of developing

entrepreneurship

Response Small scale

% Students % Total

Yes 80 33.33 60 25 140

No 60 25 40 16.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

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Result shows that 33.33% under industrialists and 25% under students

says yes to the question while 25% under industrialists and 16.67%

students indicate “No” to question No 11.

Table 4:15: Distribution of Respondents based on people are aware

of the benefits of entrepreneurship to the nation economy

Response Small scale % Students % Total

Yes 35 14.58 40 16.67 140

No 70 29.17 60 25 100

I don’t know 35 14.58 - - -

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Result, shows that 14.58% under industrialists and 16.67 under students

says yes to the No 12 question while 29.17% under industrialists and 25%

under students says No to it and 14.58% of the industrialists says they

don’t know.

Table 4.16: Distribution of Respondents based on the existence of

small industries reduce unemployment problem

Response Small scale

% Students % Total

Yes 80 33.33 60 25 140

No 60 25 40 16.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

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Result showed that 80% under industrialists and 60% under student says

“ yes” to question No 13 while 60% industrialist and 40% under students

says “No” to it.

Table 4:17: Distribution of Respondents based on entrepreneurship

as a of survival to the people that engages in it

Response Small scale

% Students % Total

Yes 80 33.33 100 41.67 140

No 60 25 - 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Result shows that 33.33% under industrialists and 60% under students

says “yes to the question No 14 while 60% under industrialists say “No”

Table 4.18: Distribution of Respondents based on the existence of

small industries introduces new products in the market?

Response Small scale

% Students % Total

Yes 80 33.33 60 25 140

No 60 25 40 16.67 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

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Result shows that 80% under industrialists and 60% under students says

“yes” while 60%, under industrialist, 40% under students says no to

question No 15

Table 4.19: Distribution of Respondents based on entrepreneurs need

government and society support to grow?

Response Small scale

% Students % Total

Yes 140 58.33 100 41.67 140

No - - - - 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Results indicate that 58.38 under industrialists and 41.67% under students

indicates yes to question No 16.

Table 4:20: Distribution of Respondents based on government

provide necessary incentives for the growth of entrepreneurship

Response Small scale

% Students % Total

Yes 60 25 40 16.67 140

No 80 33.33 60 25 100

Total 140 58.33 100 41.67 240

Source: Field Survey, 2014.

Result shows that 60% under industrialists and 40 under students says

“yes” while 60% under industrialists and 60% under students says “ No”

to question 17.

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CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings

Data analysis carried out into this project research revealed the following

facts:

• The effect of inadequate start up capital constitutes a major

challenges or constraints to the development of entrepreneurship.

• Lack of venturing spirit is one of the major constraints to the

growth of entrepreneurship.

• Lack of adequate knowledge and training background of

entrepreneurs is one major constrains that hinder the growth of

entrepreneurship.

• Government policies on accessibility of credit facilities have a

negative effect on the development of entrepreneurship.

• Lack of conductive environment makes it hard for the growth of

entrepreneurs.

• The teaching of basic entrepreneurship skills and competences to

students will assist the entrepreneurship development.

• Encouraging students to view business as a career option will go a

long way to assist the development of entrepreneurs.

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• Proper awareness of the benefit of entrepreneurship will encourage

much people to go into the venture.

• The existence of small-scale industries creates employment

opportunities to people.

• Entrepreneurship is a means of livelihood to the people that embark

on it.

• New products and services are made available in the market

thereby creating options to choice of products to buy.

• Entrepreneurs need government support and that of societies to

make them be established by patronizing their products.

� Government has to provide necessary incentives for the

development entrepreneurship.

5.2 Conclusion

Entrepreneurship is without doubts an important component in the

process of economic development. Infact, The start up and development

of small business remains one of the major ingredients of continued

growth in any economy. There is need to have good business training and

skills that enable them know the intricacies and logistics in business

administration. The spectrum of data need include among others, business

trend, operating environment dynamics, ingredients for business survival

etc.

73

As revealed in the study so far carried out shows that the problem that

hinders the development of entrepreneurship is raising the right amount

of working capital and capital for expansion at the time. They cannot

afford to use the highly sophisticated machines nor employ qualified

skills due to the poor incentive and inadequate knowledge and training

background. Finally government should endeavor to address the problem

of industrialists in the country with special reference to the development

entrepreneurship with regard to providing the necessary infrastructure and

establishing environment for the entrepreneurs.

5.3 Recommendations

1) Government should endeavor to provide adequate infrastructural

facilities and provision of training of entrepreneurs and also

formulate fiscal, monetary and regulatory policies conducive to the

growth and development of the economy.

2) Strong educational background is highly recommended to potential

entrepreneurs to ensure successful business venture.

3) Laws should be made by government for small business enterprises

to insure their business with insurance companies as a means of

transferring their business risks to their insurer in case of any loss;

by so doing the venturing spirit of the people will be increased

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4) The support of government and society to the entrepreneur will

help increase success to business venture.

5) Government should encourage practical ways which education can

assist entrepreneurship development by educating students the

important of self employment through organizing seminars and

training workshop where already entrepreneurs will be invited to

motivate them.

6) There is also need to eliminate undue influence such as political

consideration etc. so that only genuine and responsible

entrepreneurs will receive support in whatever form.

7) Small business owners should always assess themselves and know

their capabilities in handling a particular business venture. In other

words self diagnosis is very important for the success of small

business.

8) Small business entrepreneurs should endeavor to gain the required

training needed before establishing their business to ensure smooth

running of business.

75

BIBLIOGRAPHY

Ani, N.B (1999), Entrepreneurial Development: Enugu: Nigeria, JTC Publisher.

Bamback, (1973), How to Organize and Operate a Small Business, Fifth

Edition, Prentice Hall Inc Eaglewood Cliffs. Baridam, D., (1990), Research Methods in Administrative Sciences.

Ibadan Beik Publishers. Broom, H. N. and Longnecker J.G (1983), Small Business Management,

(South Western Publishing Co. Cincinnati, Ohio). Davis, C.H (1988), “Education’s Role in Developing Instincts for

Entrepreneurship and Small Business Management” (Export Business Education Forum).

Dickson, F.J. (1971), Successful Management of the Small and Medium

Sized Business, Eaglewood Cliffs New Jersey, Prentice Hall Inc. Dinwiddy, B. (1974), “Promoting African Enterprise. London. Drucker, P.F. (1974), Management: Tasks Responsibilities practices:

New York: Harped and Row. Eze J. A. (1999), Fundamentals of Small Business Management; Enugu,

Nigeria, Glanic Benture. Hasting, P.G. (1968), Fundaments of Business Ownership, London D.

Van Nostrand Company Inc. Hills, G. E. (1983); Entrepreneurship Education-A National Priority

Business Education, Forum, Vol.37 No7. Hisrich, R. and Peters, M. (1995); Entrepreneurship: Irwin. Hisrich, R. and Peters, M. Entrepreneurship. Irwin. Ogaga H.P. (1986),

“Encouraging Small Scale Enterprises” Business Times: Lagos. Hornby, A. S. (1995), Oxford Advanced Learner’s Dictionary, London.

Oxford University Press, New York.

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Nwaorgu, A. (2006), Introduction to Academic, Enugu Printing and Publishing Company.

Onodugo, V. A. (2007), “Short Notes on Research Methodology”,

Department of Management, University of Nigeria, Enugu Campus.

Onuoha, C. (1994), Entrepreneurial Development in Nigeria, An

Integrative Perspective, Okigwe, Avah Global Publication. Oshumbiyi, O. (1989): Ensuring Survival of Small Scale Industries”,

Business Times. Osuala, E., (1985), Introduction to Research Methods and Procedures,

African Rep., Publishers Ltd. Schumpeter, (1975), The Theory of Economic Development, Harvard

University. Schumpter, J. (1961); The Theory of Economic Development. Cambridge:

Harvard University Press. Shapero, A. (1975), Entrepreneurship and Economic Development

(Wisconism; Project SEED Ltd. The Centre for Venture Management.

Shapero, A. (1975), Entrepreneurship and Economic Development,

(Wisconsin Project Seed Ltd, The centre for Ventures Management).

77

APPENDIX

School of Post Graduates Department of Management, Faulty of Business Administration University of Nigeria Enugu Campus Enugu.

Dear Respondents,

I am a post graduate student of the above named institution conducting a

research on the topic, “Entrepreneurship Development in Enugu State:

Issues and Challenges”.

I hereby solicit your assistance in completing these questionnaires so as

to obtain the necessary information needed. The research work is purely

an academic exercise and all information obtained from you shall be

treated with strictest confidence.

Thanks for your co-operation.

Yours faithfully,

Ezeagu Ijeoma Celin

78

QUESTIONNAIRES

1. sex of respondent

(a) Male [ ]

(b) Female [ ]

2. Age of respondent

(a) Below [ ]

(b) 26-30 [ ]

(c) 31 – 40 [ ]

(d) above 40 [ ]

3. Marital status

(a) Single [ ]

(b) Married [ ]

4. Academic qualifications

(a) WASEC, O’LEVEL, GCE, RSA [ ]

(b) OND, NCE [ ]

(c) B.Sc, HND [ ]

5. Is inadequate start up capital a hindrance to the development of

entrepreneurship?

(a) Yes [ ]

(b) No [ ]

79

6. Does lack of venturing spirit effect the development of

entrepreneurship?

(a) Yes [ ]

(b) No [ ]

7. Does entrepreneurs have adequate knowledge and training

background of the business they want to establish?

(a) Yes [ ]

(b) No [ ]

8. Does government policies on accessibility to credit Facilities in

anyway effect development of entrepreneur?

(a) Yes [ ]

(b) No [ ]

9. Is the environment conducive for the growth of entrepreneurial?

(a) Yes [ ]

(b) No [ ]

10. Does teaching basic entrepreneurship skills and Competencies

important to the growth of entrepreneurship?

(a) Yes [ ]

(b) No [ ]

80

11. Does encouraging students to view business is a career Option a

way of developing entrepreneurship?

(a) Yes [ ]

(b) No [ ]

12. Do you think people are aware of the benefit of Entrepreneurship

to the nation economy?

(a) Yes [ ]

(b) No [ ]

13. Do you think that the existence of small scale industries reduce

unemployment problems?

(a) Yes [ ]

(b) No [ ]

14. Is entrepreneurship a means of survival to the people that engages

in it?

(a) Yes [ ]

(b) No [ ]

15. Do you think that the existence of small –scale industries introduce

new products in the market?

(a) Yes [ ]

(b) No [ ]

81

16. Does entrepreneurs need Government and society support to grow?

(a) Yes [ ]

(b) No [ ]

17. Does government provide necessary incentives for the growth of

entrepreneurship?

(a) Yes [ ]

(b) No. [ ]