Promotion of Entrepreneurial Development and Poverty Reduction in FCT Abuja
Abstract
In this study, a quantitative survey research design was adopted to investigate the dynamics of entrepreneurial activities and their impact on poverty reduction in the Federal Capital Territory, Abuja. A structured questionnaire was meticulously designed to collect data from a sample of 120 respondents, providing a comprehensive understanding of the current state of entrepreneurship in the region. The study utilized the Statistical Package for Social Sciences (SPSS) version 27 for data presentation and analysis, offering a robust platform for statistical insights. Hypotheses were formulated to explore key relationships within the context of entrepreneurial development and poverty reduction. The one-sample t-test, with an assumed mean of 0 and a critical table value of 2.92 at a 5% level of significance, was employed to rigorously test these hypotheses. The results provided compelling evidence, demonstrating significant relationships between the promotion of entrepreneurial development and poverty reduction, the impact of entrepreneurial activities on poverty levels, and the challenges hindering entrepreneurial growth in the FCT Abuja. In conclusion, the study not only confirmed these significant relationships but also unveiled critical insights into the challenges faced by entrepreneurs in the region. The findings underscore the need for targeted interventions to overcome barriers such as limited access to financing, regulatory hurdles, and deficiencies in mentorship and business development support. The study culminates in a series of recommendations aimed at policymakers, business support organizations, and educational institutions, providing actionable strategies for fostering a conducive entrepreneurial environment and, consequently, contributing to poverty reduction efforts in the FCT Abuja. Overall, this research enhances our understanding of the complex interplay between entrepreneurship and poverty reduction, offering both theoretical and practical implications for future endeavours in this field.
CHAPTER ONE
INTRODUCTION
Introduction
Entrepreneurial development has emerged as a crucial driver for economic growth and poverty reduction worldwide. This thesis investigates the interplay between the promotion of entrepreneurial activities and poverty reduction in the Federal Capital Territory (FCT) Abuja, Nigeria. As an epicentre of administrative and economic activities, the FCT offers a unique setting to explore how fostering entrepreneurship can contribute to alleviating poverty and fostering sustainable development.
Background of the Study
Entrepreneurship has emerged as a pivotal catalyst for economic development globally, offering promising pathways toward poverty alleviation and sustainable growth. Nigeria, a nation endowed with abundant resources, grapples with the longstanding challenge of poverty despite its economic potential and diverse population(Evans, 2019). In the Federal Capital Territory (FCT) Abuja, the confluence of administrative activities and economic dynamism presents an intriguing context to explore the intersection between entrepreneurial development and poverty reduction.
According to Evans (2019), in low-income economies like Nigeria, entrepreneurship holds the promise of not only generating jobs but also empowering individuals by creating income opportunities. This potential connection between entrepreneurship and poverty reduction is further highlighted by studies such as Hussain, Bhuiyan, and Bakar (2018), which empirically reviewed the role of entrepreneurship in alleviating poverty, stressing the need for a thorough understanding of its implications.
Despite its potential, the relationship between entrepreneurial endeavours and poverty levels remains complex and multifaceted. Anwana (2022) discusses specific initiatives like the ‘My Entrepreneurship Goals Programme,’ which signifies the recognition of entrepreneurship as a viable pathway for socio-economic progress. However, a critical gap exists in understanding the nuances and challenges hindering the effective promotion of entrepreneurship as a poverty alleviation tool in the FCT Abuja region.
The Federal Capital Territory (FCT) Abuja, as outlined by the Central Bank of Nigeria (2019), represents a microcosm of Nigeria’s economic landscape. This region, characterized by its diverse economic activities and vibrant entrepreneurial ecosystem, presents an opportunity to investigate the status quo of entrepreneurial activities. This aligns with the objectives of this study to assess the current state of entrepreneurial activities in the FCT (Adofu & Akoji, 2013).
Moreover, the exploration of the correlation between entrepreneurial development and poverty reduction becomes imperative. Studies like Ezeanyeji, Imoagwu, and Ejefobihi (2019) highlight the synergy between entrepreneurship development and poverty reduction in Nigeria. These findings underscore the need for a comprehensive examination of how entrepreneurial activities contribute to poverty alleviation specifically in the unique context of the FCT Abuja.
Understanding the challenges faced by entrepreneurs in the region is crucial. Kara and Potter (2018) emphasize the significance of empirical studies in understanding the motivations, challenges, and stress factors experienced by Nigerian entrepreneurs. Similarly, Bale (2017) discusses the impact of entrepreneurship on economic change, highlighting the potential barriers and opportunities faced by entrepreneurs within the FCT Abuja context.
Statement of the Problem
Despite the growing recognition of entrepreneurship as a potent tool for economic development and poverty alleviation globally, the specific dynamics within the Federal Capital Territory (FCT) Abuja remain inadequately explored. The existing literature, as reflected by Evans (2019) and Hussain et al. (2018), emphasizes the potential of entrepreneurship to mitigate poverty in low-income economies. However, a critical gap exists in understanding how the intricate relationship between entrepreneurial development and poverty reduction manifests within the unique economic landscape of the FCT Abuja.
While Anwana’s (2022) “My Entrepreneurship Goals Programme” indicates local initiatives, there is a dearth of comprehensive studies that delve into the current state of entrepreneurial activities in the region. Adofu and Akoji’s (2013) exploration of endogenous technological change contributes to the theoretical understanding, but a specific examination of the FCT Abuja’s entrepreneurial ecosystem is notably absent. This creates a void in our understanding of the on-the-ground realities and challenges faced by entrepreneurs in the FCT.
Additionally, studies by Ezeanyeji, Imoagwu, and Ejefobihi (2019) highlight the synergy between entrepreneurship development and poverty reduction in Nigeria. However, the specific barriers impeding entrepreneurial growth within the FCT Abuja context remain unexplored. Kara and Potter’s (2018) study on Nigerian entrepreneurs emphasizes the importance of empirical investigations into the challenges faced by entrepreneurs, yet the nuances of these challenges within the FCT Abuja region require dedicated attention.
Furthermore, while the role of government initiatives, as seen in the disbursement of COVID-19 funds in Akwa Ibom (Etim, 2022), suggests an active policy environment, the effectiveness of such measures in promoting entrepreneurship and subsequently reducing poverty in the FCT remains unclear. This study aims to fill these critical gaps by conducting a thorough investigation into the state of entrepreneurial activities, the relationship between entrepreneurial development and poverty reduction, and the specific challenges faced by entrepreneurs in FCT Abuja.
Objectives of the Study
The primary objectives of this research are threefold:
- To assess the current state of entrepreneurial activities in the Federal Capital Territory, Abuja.
- To examine the relationship between entrepreneurial development and poverty reduction in the region.
- To identify the challenges hindering entrepreneurial growth in the FCT.
Research Questions
To achieve the stated objectives, the following research questions guided the study:
- What is the current status of entrepreneurial activities in the Federal Capital Territory, Abuja?
- How does entrepreneurial development relate to poverty reduction in the region?
- What are the primary challenges faced by entrepreneurs in FCT Abuja?
Research Hypothesis
Aligned with the research objectives, the following hypotheses are proposed:
Null Hypotheses(H0):
- There is no significant relationship between the promotion of entrepreneurial development and poverty reduction in the FCT Abuja.
- There is no significant impact of entrepreneurial activities on poverty levels in the FCT Abuja.
- The challenges faced by entrepreneurs in FCT Abuja do not significantly impede entrepreneurial growth.
Alternative Hypotheses(H1):
- There is a significant relationship between the promotion of entrepreneurial development and poverty reduction in the FCT Abuja.
- Entrepreneurial activities have a significant impact on poverty levels in the FCT Abuja.
- The challenges faced by entrepreneurs in FCT Abuja significantly impede entrepreneurial growth.
Significance of the Study
The significance of this research extends to a diverse array of stakeholders, encompassing policymakers, entrepreneurs, researchers, and development agencies. Delving into the intricate relationship between entrepreneurship and poverty reduction in the Federal Capital Territory (FCT) Abuja, this study has far-reaching implications for shaping informed policies and strategic interventions. By comprehending the nuanced role of entrepreneurship in poverty alleviation, policymakers can formulate targeted initiatives tailored to the specific needs of the FCT’s economic landscape.
Entrepreneurs, a vital demographic in the economic fabric, stand to benefit significantly from the findings of this research. Insights into the dynamics between entrepreneurial development and poverty reduction can empower entrepreneurs with a deeper understanding of their role in driving socio-economic change. This knowledge can guide them in navigating challenges, optimizing opportunities, and contributing more effectively to the economic growth of the FCT.
For researchers, this study opens avenues for further exploration and inquiry into the realm of entrepreneurship and poverty reduction, enriching the academic discourse in this field. The findings may serve as a foundation for future studies, fostering a continuous cycle of research and knowledge advancement.
Development agencies, with a vested interest in fostering sustainable growth, can leverage the outcomes of this research to inform their strategies. The potential for the FCT to serve as a model for other regions amplifies the significance of this study on a broader scale. Lessons learned from the FCT’s experience can be extrapolated and applied to diverse socio-economic contexts, contributing to the development agenda at both regional and global levels.
In essence, the implications of this research ripple through various sectors, offering a comprehensive understanding of the role of entrepreneurship in poverty reduction. The outcomes have the potential not only to shape policies and interventions in the FCT but also to inspire positive economic transformation in analogous regions, thereby promoting a trajectory of sustainable development and poverty alleviation.
Justification of the Study
This study assumes critical importance in addressing a prevailing knowledge deficit concerning the influence of entrepreneurial development on poverty reduction, specifically within the distinctive context of the Federal Capital Territory (FCT) Abuja. The recognition of this knowledge gap underscores the urgency of investigating and comprehending the intricate dynamics at play in the FCT’s entrepreneurial landscape and their direct implications for poverty alleviation.
By embarking on a rigorous empirical exploration, this research endeavours to bridge this existing gap, offering not only a deeper understanding but also tangible insights into the interplay between entrepreneurial activities and poverty levels. Through the acquisition of empirical evidence, the study aspires to make a dual contribution—enriching academic scholarship by expanding the body of knowledge in this specialized field and providing pragmatic insights that can be directly applied by policymakers and entrepreneurs.
Academically, the research endeavours to augment the existing literature by bringing forth fresh perspectives and evidence from the specific socio-economic milieu of the FCT Abuja. The findings have the potential to contribute valuable nuances to theoretical frameworks, thereby enhancing the broader understanding of how entrepreneurial development can be harnessed for poverty reduction.
On a practical level, the insights generated by this study are poised to be instrumental for policymakers and entrepreneurs alike. Policymakers can draw upon the empirical evidence to formulate targeted and effective strategies, tailored to the unique needs and challenges prevalent in the FCT. Entrepreneurs, armed with a more nuanced understanding of the relationship between their endeavours and poverty levels, can make informed decisions, navigate challenges more adeptly, and optimize their contributions to the socio-economic fabric of the FCT.
Scope of the Study
This study focuses exclusively on the Federal Capital Territory, Abuja, Nigeria. It encompasses an analysis of the current state of entrepreneurial activities, their impact on poverty, and the challenges faced by entrepreneurs. The temporal scope includes data from the past decade, offering a comprehensive overview of trends and changes.
Limitations of the Study
Acknowledging the inherent constraints, this study may be subject to potential biases in data collection and the dynamic nature of entrepreneurship. Additionally, external factors influencing poverty levels may not be entirely within the study’s purview. Resource constraints may limit the coverage of all aspects of entrepreneurship and poverty reduction.
Definitions of the Terms
Entrepreneurship: The process of conceptualizing, launching, and operating a new business or venture to capitalize on opportunities and generate profit.
Poverty Reduction: The deliberate efforts and strategies aimed at improving the economic well-being and living conditions of individuals and communities, ultimately reducing the prevalence of poverty.
Federal Capital Territory (FCT) Abuja: The political and administrative capital of Nigeria, established in 1991, housing the central government and serving as a focal point for diverse economic activities.
Micro, Small, and Medium-sized Enterprises (MSMEs): Businesses classified based on their size, including micro-enterprises, small enterprises, and medium-sized enterprises, typically characterized by factors such as revenue, assets, and employee count.
Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing economic, social, and environmental considerations.
Economic Growth: The increase in the production and consumption of goods and services within an economy, often measured by the Gross Domestic Product (GDP) or similar indicators.
Policy Interventions: Deliberate actions taken by governments or institutions to influence or regulate economic activities, to achieve specific economic or social objectives.
Social Capital: The networks of relationships, social norms, and trust within a community or society that facilitate cooperation and collaboration among individuals and groups.
References
- Ali, L. (2017). The Principles of Entrepreneurship in Nigeria. England: Longman.
- Bale, L. (2017). Entrepreneurship and Economic Change. London: McGraw Hill.
- Benjamin, K. (2017). Introduction to Entrepreneurship Development. Lagos: Molofin Nominees.
- Byjus. (2023). Entrepreneurship – Types of Entrepreneurship. Retrieved February 9, 2023, from https://byjus.com/commerce/what-isentrepreneurship/
- Etim, U. (2022). Akwa Ibom Disburses COVID-19 Funds to 1,950 Beneficiaries. Retrieved on February 14, 2023, from https://www.blueprint.ng/akwa-ibomdisburses-covid-19-funds-to-1950-beneficiaries.
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