ENTREPRENEURSHIP AND THE DEVELOPMENT OF THE NIGERIAN ECONOMY
TABLE OF CONTENT
ENTREPRENEURSHIP AND THE DEVELOPMENT OF THE NIGERIAN ECONOMY
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objective Of The Study
1.4 Research Hypotheses
1.5 Scope Of The Study
1.6 Significance Of The Study
1.7 Limitations Of The Study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Review of Literature on Variables
2.3 Conceptual Framework
2.4 Review of Previous Studies
2.5 Theoretical Framework
CHAPTER THREE: METHODOLOGY OF THE STUDY
3.1 Introduction
3.2 Model Specification
3.3 Estimation Technique
3.4 Sources of Data
CHAPTER FOUR: EMPIRICAL ANALYSIS
4.1 Introduction
4.2 Correlation Analysis
4.3 Regression Analysis
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary
5.2 Policy Recommendations
5.3 Conclusion
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objective Of The Study
1.4 Research Hypotheses
1.5 Scope Of The Study
1.6 Significance Of The Study
1.7 Limitations Of The Study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Review of Literature on Variables
2.3 Conceptual Framework
2.4 Review of Previous Studies
2.5 Theoretical Framework
CHAPTER THREE: METHODOLOGY OF THE STUDY
3.1 Introduction
3.2 Model Specification
3.3 Estimation Technique
3.4 Sources of Data
CHAPTER FOUR: EMPIRICAL ANALYSIS
4.1 Introduction
4.2 Correlation Analysis
4.3 Regression Analysis
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary
5.2 Policy Recommendations
5.3 Conclusion
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The Nigerian economy has been characterized with a lot of inefficiencies; public sector dominance, over reliance on oil as the major revenue earner and this has typically affected the country’s course of development. However, since the mid-1980s, Nigeria has introduced some structural economic reforms, abolished polices and structures which prevented entry into certain industries, and opened up its markets to competition from domestic and foreign entrepreneurs. The government have also introduced and pursued a number of entrepreneurship encouragement policies aimed at reducing the high rates of unemployment and poverty. Though, Nigeria is still plagued by many development challenges, "preliminary evidence suggests a favourable response by the private sector to the new entrepreneurial opportunities thus created" (Elkan, 1988).
The importance of entrepreneurship development through new business formation for economic growth has been recognized since Schumpeter (1934).
According to the Global Entrepreneurship Monitor Report (2000), about 70 percent of an area’s economic performance and well being is dependent upon how entrepreneurial the area’s economy is.
Ogundele, Olajide and Ashamu (2008) argued that entrepreneurship activities are very fundamental to any meaningful development of an economy. Many well meaning people and leaders in the societies always clamour for the development of entrepreneurs that would bring a turnaround in the economy. This explains the reason behind the government conscious policy statements that are often made in this direction. However, it has to be noted that the benefit and relevance of entrepreneur to accelerated economic growth cannot be achieved in isolation without the existence of the right opportunities that serve as the wheel of its development.
Entrepreneurship, as used in this study, refers to innovative individuals who observe business opportunities or create business opportunities which they exploit in order to provide product or service to the society at a benefit to the entrepreneur. It is the trust of this study therefore that without the opportunity, there cannot be entrepreneurship. Where entrepreneurs observe there are no opportunities, they will create one to make themselves relevant. The contention of this study therefore, is that private organizations, public institutions and the entire society should provide necessary foundation structures for the existence of opportunities which the entrepreneurs can utilize/exploit to serve the society.
Abdullahi (2008) reported for countries to accelerate their economic growth and development, it is necessary for them to build up the critical mass of first generation entrepreneurs because development is now being linked more and more to entrepreneurship. Entrepreneurship as argued by Abdullahi (2008) stands as a vehicle to improve the quality of life for individuals, families and communities and to sustain a healthy economy and environment.
However, the acceptance of entrepreneurship as a central development force by itself will not lead to economic development and the advancement of private enterprises until an enabling environment necessary for entrepreneurship to be rewarding is created within communities. The existence of such an environment largely depends on public policies promoting entrepreneurship and according to Abdullahi (2008), the effectiveness of such policies in turn depends on a conceptual framework about entrepreneurship. One of the goals of economic development strategies pursued by successive Nigerian Governments has been the reduction of poverty through job creation. Ipso facto, many government policies over the years for the achievement of the objective have been based on the development of indigenous entrepreneurship. However, Ekpu (1992) humorously observed some of these policies have been like changing one structure for another much like ‘exchanging a monkey for a baboon, recycling of ideas; a duplication of efforts (which) turn out to be of doubtful relevance or simply a money-guzzling machine.”
1.2 STATEMENT OF THE RESEARCH PROBLEM
Chukwuemeka, Nzewi and Okigbo (2008) opined that a cursory look at Nigeria indicates that she either lacks entrepreneurship ability or that government entrepreneurship oriented policies are not effective. Ugwu (2006) argues that most entrepreneurship related policies and programmes in Nigeria fall short of appropriate development frameworks, some of the policies are poor, frequent changing of policies and programmes and lack of clear entrepreneurial development vision and commitment pose serious threat to entrepreneurship in Nigeria. Some of the entrepreneurial related policies are good but the issue of poor environmental forces hinders them. For instance electricity supply, water and good road network are not available to encourage entrepreneurs. An easy access to finance, high import tariff and other tariffs of government pose serious threat for the survival of young entrepreneurs.
In the light of the foregoing, the following research questions are raised:
1. Does inadequate infrastructure affect youth entrepreneur in Nigeria?
2. Does financial constraint a serious factor militating against youth entrepreneurship in Nigeria?
3. Do promotion of entrepreneurship and the development of private business enterprises influence youth entrepreneurs in Nigeria?
1.3 OBJECTIVE OF THE STUDY
The broad objective of this study is to examine entrepreneurship in Nigeria: Challenges and Opportunities to the Youth.
The specific objectives are:
1. To examine if inadequate infrastructure affect youth entrepreneur in Nigeria.
2. To verify whether financial constraint a serious factor militating against youth entrepreneurship in Nigeria.
3. To determine whether promotion of entrepreneurship and the development of private business enterprises influence youth entrepreneurs in Nigeria.
1.4 RESEARCH HYPOTHESES
To properly guide the focus of this study, the following hypotheses were formulated:
Hypothesis I
Ho: Inadequate infrastructure did not affect youth entrepreneur in Nigeria.
H1: Inadequate infrastructure affect youth entrepreneur in Nigeria.
Hypothesis II
Ho: Financial constraint is not a serious factor militating against youth entrepreneurship in Nigeria.
H1: Financial constraint is a serious factor militating against youth entrepreneurship in Nigeria.
Hypothesis III
Ho: Promotion of entrepreneurship and the development of private business enterprises do not influence youth entrepreneurs in Nigeria.
H1: Promotion of entrepreneurship and the development of private business enterprises influence youth entrepreneurs in Nigeria.
1.5 SCOPE OF THE STUDY
This research focuses on entrepreneurship in Nigeria: Challenges and Opportunities to the Youth.
The population of the study is the entire entrepreneurs in Nigeria, while the sample size is restricted to some selected entrepreneurs operating in Edo State.
The length of period covered by the study was six years (i.e. 2007 – 2012).
1.6 SIGNIFICANCE OF THE STUDY
It is expected that this study would consolidate existing literature on the issues surrounding the challenges and opportunity of youth entrepreneurship in Nigeria. The study would also facilitate the examination of the effects of entrepreneurship and thus boosting the empirical evidence from Nigeria. Furthermore, given the empirical nature of the study, the outcome of this study would aid policy makers and regulatory bodies in economic modeling and policy simulation with respect to the selected variable examined in the study.
The result of the study would be of benefits to investment analysts, investors and corporations in examining the effectiveness of youth entrepreneurship. It will also be useful in stimulating public discourse given the dearth of empirical researches in this area from emerging economic like Nigeria. Finally, it would also add to the available literature on the area of study while also providing a platform for other researchers who may want to further this study.
1.7 LIMITATIONS OF THE STUDY
A study of this nature cannot be carried out without constraints.
The low response rate from respondents is also a limiting factor including the imprecise measurement of variables.
The sample size and the inability to obtain a completely random sample is also a limiting factor to this research work.
