Entrepreneurship as an Essential Ingredient for Economic Growth and Development in Nigeria
Entrepreneurship is a concept that deals with creating opportunities for human/self empowerment. The purposed of this study is to ex-ray on entrepreneurship as an essential ingredient for economic growth and development. the methodology used for data collection included primary and secondary method of data collection findings reviews that many graduates are now gainfully self employed as a result of entrepreneurship programmes lack of capital is also a major factor which affect the effective realization of entrepreneurship objective. Many students have not realized the need for entrepreneurship education. Many see it as other courses and not as a craft/career. However, the researcher recommends that the government should provide starting grants for unemployed graduates to practicalize what the learnt under entrepreneurship studies. Students/graduates should adopt the concept, which said if you can find a way, you make me.
1.1 BACKGROUND OF THE STUDY
The world entrepreneur was derived from the French word “entrepreneur” literally, it means “one who takes between” (Adelabu, 2008). Early references to the entrepreneurs in the 14th century spoke about tax contractors, individuals who paid a fixed sum of money to a government for license to collect taxes in their region. They bear the risk of collecting individual taxes. If they collected more than the agreed sum they paid for their licenses then made profits and kept excess if they fail to collect enough the match the cost of their license government officials who already laid their money from license fees could not careless.
The earliest economist including Richard Cotillion, Adam Smith, Jean Baptist say and John Stuart Mill discussed the entrepreneur and entrepreneurship before 1950s. After the 1950s, the concept of entrepreneurship suffered years of obscurity, because economist become concerned with models of macro economics with precise mathematical expressions Udu and Eze (2008). According to Ama et al (2008) economic as a discipline has discussed four conventional factors of production. These factors are land, capital, labour and entrepreneurship. Entrepreneurship being the last factor to be discovered. Before its role was discovered some writers regarded it as a part of capital, a situation that made entrepreneurs to be called capitalist. A lot of attempts have been made to state among them include.
An entrepreneur is a daring person with vision and originality who acts as a boss, who decide as to how the business shall run, who co-ordinates the activities of different factors of production, who anticipate the future trend of demand and price, who invest and introduce new ideas, a new commodity, a new process or some revolutionary machines and who, in general carries out new activities. Sundharam and Vaish (1989).
An entrepreneur is someone who bring things like money, material and labor together in a new business, production process or improved organization to ensure business success by perhaps, creating something new. Act of creating or innovating usually require exceptional determination as well as acumen, initiative and creativity which need not be innate or inborn but must be fuelled by desire to out compete other, excel or to change a stagnant situation (Imaga 2002).
Entrepreneurs are those who found their business from scratch and nurse them into lofty ventured by dint of hand work and idea getting ability (Uzoma 1998).
An entrepreneur is an individual who assumes the major risks in terms of equity, time and or career commitment or provide valve for some product or service, the product or service may or may not be new or unique but value must somehow be in fused by the entrepreneur by receiving and locating the necessary skills and resources (Ronstadt 1984). This phenomenon has proved to us that if any economy is to entrepreneurship should be allowed to boom. It is also safe to say that the employment generation, the increased competition market expansion, market penetration and sourcing new market all result in generation that ultimately help an economy to become more prosperous luring millions of people out of poverty and generation funds for social welfare activities ultimately uplift the standard living of its citizenry. Some land mark study which was carried out by (Igbo 2005) has shown that as much as 74% of economic innovation originated from small scale business unemployment is social evil that bring loss of dignity, human suffering penury and family disintegration. Today, entrepreneurship has settled some of these obnoxious acts mentioned above, now people can be self employed without depending on the government again.
Furthermore, entrepreneurship has created job, self reliance, wealth generation and in the main, economic growth and development. Entrepreneurship performs numerous roles in business.
Finally entrepreneurship is a process of creation that is bringing something new by adding value. Entrepreneurship involves rewards which could be inform of personal satisfaction or momentary reward (Harbinson and Myers 1984) entrepreneurs are agents who perform a vital role in the economic growth of a country and are linked to the overall industrial development of a nation.
1.2 STATEMENT OF THE PROBLEM
Within the past decades or there of one factor which has been emphasized as a necessary pre-requisite to economic growth and development. Hence creation of employment or job opportunities, creation of wealth by accelerating contribution to the gross national product (GDP), innovation and creativity etc. are achievable through entrepreneurial invention.
However government on its parts initiated policies and programmes in order to encourage entrepreneurship in the country. Despite the enormous contributions of entrepreneurship in Nigeria economic growth and development, there still continue to exist many challenges which hamper entrepreneurship activities in Nigeria.
1.3 OBJECTIVE OF THE STUDY
The broad objective of the study is to examine the entrepreneurship as an ingredient for economic growth and development in Nigeria.
The specific objectives are
To find out how entrepreneurship has contributed to economic growth and development in Nigeria.
To ascertain the problem of small and medium scale enterprises in Nigeria,
To establish response for the improvement and advancement in entrepreneurship towards economic growth and development,
To ascertain needs and challenges to entrepreneurs in Nigeria,
To determine the measures that can be used by the government to help motivate and encourage entrepreneurs towards economic growth and development.
1.4 SCOPE OF THE STUDY
It is important to point out that this work is not exhaustive on entrepreneur in Nigeria and it specifically look into the manifestation of small and medium scale enterprise in the area and equally look into the obstacles facing entrepreneurship in Nigeria. This restriction of the study is the role entrepreneurship, the problem encounter in carrying out their research and prospect of the entrepreneurs on their industries.
1.5 RESEARCH QUESTION
What is entrepreneurship? Entrepreneurship: this is the service that the entrepreneur renders. It is in accepting the risk of starting and running a business. Entrepreneurship is the term used broadly in connection with the innovative and creative activities of modern industrial business leaders the discipline of entrepreneurship generally studies the why, when and how of opportunity creation, recognition and utilization for providing goods and services through the creation of new firms (start-ups) and within existing firms for both profit and non-profit purposes.
TO WHAT EXTENT HAS ENTREPRENEURSHIP CONTRIBUTED TO ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA
- Entrepreneurship produces and distributes goods and services to satisfy certain public needs to fulfill this task, business has to be very flexible and constantly research consumer demand.
- Entrepreneurship create job opportunities more than that, most jobs business helps create are productive jobs i.e. people employed by subsides ventures produce “real” goods and services.
- Entrepreneurship provides income – here we come at last to the money matter but don’t forget income that business provides is by no means restricted to the profit its owners get it pays salaries and wages to its employees, and this way makes the whole business world go round. They spend the money they earn buying all kinds of good and favour further development of business ventures.
- Entrepreneurship contributes to national well-being. It does it in several ways: by means of taxes ti pays which make it possible mfor the government to maintain all kinds of public and social institutions and services by investing money in developing science and technology and constructing new enterprise by full.
Use of local recourses, including those located in remote rural area and is a number of other ways.
Entrepreneurship helps enlighten and educate people and encourage their further personal growth level of competitions makes it vital for both businessmen and their employees to be involved in the constant process of learning and developing their personal qualities such as creativity, determination, communication skills and vision for new business opportunities.
WHAT ARE THE PROBLEMS MILITATING AGAINST ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA?
- INADEQUATE CAPITAL: There is always the problem of initial start-up capital for most entrepreneurs prospective entrepreneurs with viable business opportunities at times only end up dreaming of their life business without actualizing them simply because of financial problem initial capital outlay remains one of the frustrating problems both for start-up and for entrepreneurship expansion in Nigeria.
- HIGH LEVEL OF ILLITERACY: Most of the entrepreneur investors are illiterates. As such they lack the wisdom and knowledge in business transactions. Their level of literacy is usually not adequate enough to carry out their business to the level that it will benefit them and the society. This limitation most often forces some of them out of the business or displaces them entirely in the line of business.
- POOR MANAGEMENT ABILITY: This is a common phenomenon among most entrepreneurs. In entrepreneurship, a blend of technical know-how and success most often, these two essential factors appear lacking in entrepreneurs. Many of the entrepreneurs lack the needed managerial ability and competence and as such do not know what it takes to be a manager in a business ventures.
- LACK OF GOVERNMENT SUPPORT: There is a clear indication of lack of government support for entrepreneurship development especially in Nigeria. Although various regimes in Nigeria have paraded good policies and programs for self employment, unfortunately, almost all those good policies and programs were frustrated at the corridor of power and implementation.
- POOR INFRASTRUCTURAL FACILITIES: Another limiting factors to entrepreneurship development and expansion is the state of infrastructure in our society. In Nigeria, to be precise, there are poor infrastructural provisions like good road network, electricity, public health clinic and portable water supply. This makes it impossible for entrepreneurs to set up their cottage business opportunities exist.
- POOR MARKET NETWORK: Market network is an essential factor for entrepreneurial development. There is completely the absence of expensive market network to stimulate enough transaction and exchange for entrepreneurs within our environment for entrepreneurs to actually thrive there is need for expanded market network to ensure that customers and consumer, products from entrepreneurs are exchanged in good time to satisfy consumer need and stimulate further production and or supplies in the hands of the entrepreneurs.
HOW CAN THE IDENTIFIED PROBLEM BE SOLVED
- Critical Thinking Skills: The human train has been identifies as the most powerful data processing machine but unfortunately, only few people ever utilize their brain power. Critical thinking is the ultimate key to problem solving and Is the most important problem solving skill you should develop, Napoleon Hill said that all achievement begin with an idea and ideas are the product of critical thinking. Critical thinking skill is important because it enables entrepreneur identify problems and turn such problem into opportunities. Business and financial intelligence, competence, idea generations and strategic project execution are all result of critical thinking. Most in===================== business problem have been solved by challenging the brain to come up with solutions. Business challenges and problems can never be resolved without critical thinking; done either by the entrepreneur or business team just as Robert Kiyosaki says “ your brain is your most powerful asset.
- People Skills: The third critical problem solving skill you need to develop is people skills; but I prefer to use the word “team spirit” to become an excellent problem solver; you must learn to think critically in solitude as well as part of a team. Business and investing are team sports and to succeed; you must learn how to think in synergy with your business management team. You must be able to assemble different experts from difference walks of life and channel their intelligence to the problem at hand, this can never be achieved without a mastery of people management skills.
- Encouraged the last Skill: you need to effectively solve problems in business is courage. Courage to face the consequences of your decision; and courage to take extreme measures or solutions, just like faith, courage is developed over time through personal mastery. In conclusion, these are six most important skills required to effectively solve intricate business problems develop these problem solving skills and I will see you at the pinnacle.
1.6 SIGNIFICANCE OF THE STUDY
Entrepreneurship plant significant role in Nigeria, and it is in the light of this study is significant in many ways. It will add to the already existing literature in the field of study. It will be a sources of reference material to other researcher.
However, it contributes to the body of literature on the subject area and brings to light the result in order to ascertain which strategy would eventually work eradicating unemployment in Nigeria.
1.7 DEFINITION OF TERMS
Entrepreneurship: Is defined as the willingness and ability of an individual in an environment, and be able to establish and run an enterprise successfully based in identified opportunities. (Nwafer, 2007).
Utomi, (2003), posted that entrepreneurship is persistent pursuit of opportunity to create wealth through innovative creation of a product or service that meets a need of customer using scarce resource in a way that result in the expectation of stakeholder whose roles sustain business.
- Entrepreneurship is a process of creation that bringing something new by adding value to it.
- Entrepreneurship require time and effort
- Entrepreneurship entails, taking risk and
- Entrepreneurship involves rewards, which could be in form of personal satisfactory or monetary rewards.
In the words of (Nzelibe 1996)” it is the act of operating in an exceptional way and the ability to start a new business successfully and effectively.
Entrepreneur: entrepreneur is seen by (Okenwa 2005) as an individual who is able and willing to take risk with and objective of maximizing profits.
(Hornadary and Aboud 1971) see entrepreneur as a person who started a business where there was none before, a man that is comparatively higher on scales reflecting needs for achievement, independence, leadership and low on scale emphasis on need for support.
Economy: The wealth and resources at a country or state especially in term of the production and consumption of goods and services.
Development: Development is a change in a structure, institution, culture, social life from low level to a higher level.
Economic Growth: Economic growth is the increase in the market value in the goods and service produce by economy overtime.
Self-Reliance: Ability to do things for yourself and not depending on other people.
Utilization: To put to use especially to make profitable or effective use of something.
Globalization: This is the worldwide movement toward economic.
Management: According to Akapla (1990:3) management is defined as process of combining and utilizing of an organization inputs (men, materials and money) by proper planning organizing, directing and controlling for the purpose of producing outputs (good and service) desired by customers to that the organizational goals or objectives are accomplished.
Planning: Planning can be defined as a process which manager visualize and determine in advance, the objectives of an enterprise or organizations and select future cause of action for their accomplishment.
Indigenization: Ejiofor (1989.26) indigenization is the mass transfer of ownership and control of economic organization foreigners to nationals. It is a situation where a deliberate effort is made with a back up of government regulation to transfer proprietary interest of man.
Small Scale Business: Ejiofor (1989:71) defined small scale business at those enterprise that have relatively little capital investment, that produce in small quantities and as a result control a small share of market that employ not more than fifty workers (50) and in which management marketing and entrepreneurships functions are used in the proprietor.
Entrepreneurship Development: This is the coming into existence in society of the class of individuals, who are not limited to pace odds.