THE IMPACT OF ENTREPREURSHIP DEVELOPMENTS ON SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
Entrepreneurship, otherwise called small business management is now very popular among people as a strategy of escaping poverty and creating an enabling environment for socio-economic expansion and productivity. The focus on entrepreneurship development in this 21st century is not just a theoretical approach but a development oriented action towards alleviating poverty among rural populace as well as those living in urban slums.
With the deliberation in this write-up, the importance and indispensability of finance with regards to financing every form of business activities including small and medium scale business have been made known. The data collected were analysed using frequency and percentage table for the demographic data gathered in the study, while the chi- square (X2) statistical techniques was used to test the hypotheses, scope of the study, various textbooks, journals were consulted.
TABLE OF CONTENTS
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Question/Hypotheses
1.5 Statement of Hypotheses
1.6 Significance of the Study
1.7 Research Methodology
1.8 Research Instrument
1.9 Scope and Limitation of the Study
1.10 Definition of Terms
1.11 Organisation of the Study
End of the Chapter References
CHAPTER TWO: LITERATURE REVIEW
2.1 Research into Current Literature
2.2 The contribution of Small and Medium Enterprises to Economic Development
2.3 Constrain to SMEs Business Growth
2.4 Role and Importance of SMEs Enterprise
2.5 Small and Medium scale Strategy for Sustainability
End of chapter References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Focus
3.2 Research Design
3.3 Research Instrument
3.4 Research Question/Hypotheses.
3.5 Description of the Population and Sample of the Study
3.6 Source of Data Collection
3.6 Method of Data Analysis
End of the Chapter References
CHAPTER FOUR: DATA ANALYSIS INTERPRETATION
4.2 Presentation of Data Based on Bio Statistics
4.3 Presentation of Data Based on Research Question
4.4 Test of Hypotheses
End of the Chapter References
CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATION AND SUGGESTION FOR FURTHER STUDY
5.4 Suggestion for Further Study
Appendix A: Questionnaire
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1.1 BACKGROUND TO THE STUDY
The complete development of a Nation will only be achieved when all sectors of the economy are well represented and every desire of the populace is being answered. This entails that promotion of skill and functions have to be done and fully supported in order for the economies have a desirable development path with political influential side of the story, without political support development may be hard to attain. In some cases only political authority is only necessary and not necessarily their intense support especially from the national budget. This comes inform of policies at hand. On the other hand, foreign currency is very crucial in the economy as it raises the reserve level and hence stabilizes the local currency. Foreign currency is obtained through the Export Performance rather than being net importers.
Entrepreneurship otherwise called Small business management is now very popular among people as a strategy of escaping poverty and creating an enabling environment for socio economic expansion and productivity. The focus on entrepreneurship development in the 21st century is not just a theoretical approach but a development oriented action towards alleviating poverty among rural populace as well as those living in urban strums. The concept of entrepreneur in an economist perspective is one who brings resources, labour, material and other asset into combination that make their value gather than before. (Hisrich D.R Peter and Shepherd 2008).
Entrepreneur introduces changes, Innovations and a new order to a phenomenon so as to arrive at an alternative possible end. If a good/solid entrepreneurial spirit is not cultivated by people, most of the poverty alleviation/wealth creation programmes of government and private bodies would just be an exercise in futility.
Small and Medium enterprises (SMEs) are considered to be one of the principal driving forces of economic development. SMEs are defined by number of workers employed, capital employed and sales turnover. They stimulate private ownership and entrepreneurial skills: they are flexible and can adapt quickly to changing market demand and supply situations. They generate employment help diversify economic activity and make a significant path of the economy’ in fact SMEs in Hong Kong comprises 98 percent of total manufacturing establishment. The SMEs sector consists of more than 90% of all firms outside the agriculture sector in the region (Wattana pruttipaisan 2003).
The influence of the role of entrepreneurship on economic development has been explained by a number of authors (e.g Audretsch and ACS, 2003; Reynolds 2000). Conditioned by a number of force and factors (ind. Legal, Institutional, cultural, societal etc.) the role of entrepreneurship has been different across countries. Development of new member state can be characterised as a distinctive experience that started 15years ago and where entrepreneurship has been assessed as a driving force of decentralization, economic restructuring and movement in the direction of market economy, statistically, women constitute more than 50% of the Nigerian Population and out of this only about 35% of them are involved in entrepreneurship which can be under the form of micro small medium and large enterprises (Odoemene,2003).These enterprises usually tend to have the flexibility and inactiveness that are critical issues in feminism(Aburdene and Nasbitt 1992, Kerka1993). In Nigeria, regardless of women’s physical population, Education, Economic and Social status, they are not well represented in the policy making process, especially in issues of business and manpower development. The relative importance of small and medium scale enterprise in advance and developing countries has led and would continue to lead to a reconsideration of the role of small and scale enterprises in the economy of nations. The development of many countries is often measure by such indices as the level of industrialization, modernization, gainful and meaningful employment for all those who are able and willing to work income per capital, equitable distribution of income and the welfare and quality of life enjoyed by the citizenry.
1.2 STATEMENT OF THE PROBLEM
Entrepreneurship is concerned with all thoughts relating to the process of starting and operating business as well as getting results in modern enterprises by innovators through and with subordinates. This study therefore, addressed two main question which states that what types of innovation in SMEs.
SMEs usually face higher production cost and hence cannot sell their product at competitive prices, especially in those sectors where large corporations are also into play. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased.
13 OBJECTIVE OF THE STUDY
The broad objective of the research is to evaluate the impact of entrepreneurship development in Nigeria. The specific objectives are:-
i) Evaluate the factors that influence the growth performance and development of entrepreneurship in Nigeria.
ii) Distinguish factors that hinder development of start-up enterprises compare with those face by older enterprises.
iii) To identifies the marketing problems of SMEs and entrepreneurship in Nigeria.
IV) To determines how assistance institutions are contributing to the development of small and medium enterprises.
V). To examine the effect of environmental factors on women entrepreneurship development (WED) in Nigeria.
1.4 RESEARCH QUESTION
The following question shall consider pertinent for the purpose of this research:
a. What are roles of entrepreneurship in Economic Development?
b. How small scale industry does contribute to Nigeria national development?
c. What are the factors influencing small and medium enterprises?
d. To what extend do small business entrepreneurs develop institutions?
1.5 STATEMENT OF HYPOTHESIS
Hypothesis is a conjectural statement of relationship between two or more various. They are also tentative but testable or verifiable statement about the relationship between two or more variables. They are statement of consumption which a researcher makes to enable his / her study phenomenon. The assumption will be validated with date gathered from the field work.
The hypotheses to be tested in this project are as follows:
Ho: Entrepreneurial does not influence the growth performance and development of entrepreneurship in Nigeria.
Ho: There is no significant relationship between the environmental factors on development of entrepreneurship in Nigeria.
Ho: There is no significant relationship between the size of the institution and the level of growth attained.
1.6 SIGNIFICANCE OF THE STUDY
The study is very important because it analysis development and contribution of entrepreneurship in the economic development during the last ten year through SMEs development as well as new firms formation as an important indicator of entrepreneurship activity in Estonia. This is supplemented with the analysis of main constraints hindering new business start-ups. It plays an important role in economic development of a country. Especially information technologies are changing the economy and traditional business become more dependent on new technologies. Compared with traditional business new technologies facilitate an increased interactivity, flexibility, cheap business transactions as well as improve interconnection with business partners and customers.
This study observes the impact of new technologies in SMEs. The focus on is exploring the opportunity that new technologies present to SMEs. It indicates that growth of SMEs and possible solution to the underlying challenges and also depends on endogenous and exogenous variables.
1.7 RESEACH METHODOLOGY
The methodology of the research work is centred on the discussion of the various method and strategies that are to be adopted in carrying out the research study. Fagbamigbe (1996) “research design could be descanted as the blue print that allow a researcher to provide solution to the problem of who to study, what to study and how to generate data in research design population under study sampling frame, sample size, sampling techniques sources of data analysis and method of hypothesis testing.
1.8 RESEACH INSTRUMENT
As earlier stated the main instrument to be used in this study is primary source data, it shall be used for the purpose of drawing conclusion of the study so as to come up with objective findings.
The primary data sources:- the questionnaire shall be put in two part, the respondent characteristics and the questionnaire that will be used to obtain information on the research question and hypothesis. This also can be called interview method that is meeting with some small and medium scale business having oral discussion with them of which positive response were given.
Secondary data source: -Secondary data sources were also used in which some necessary information was gathered from text book, magazine, financial memoranda, and newspaper and so on.
1.9 SCOPE AND LIMITATION OF THE STUDY
The Small and Medium scale business cover a wide range of industrial units and they occupy an important position in the industrial structure of any developing country. The development of small and medium scale industries have therefore being receiving high priority attention in the programme of industrial development of Nigeria and there is a new awareness for increasing the floor of assistance to the sector small and medium scale industry which activities cover different area of human endeavour.
The limitation of the research work was the problem of obtaining data for literature review. The researcher has to extensively and also intensively to obtain the required data, the interview was obtained with difficulty as interviewers were too conscious of sensitive information.
Financial constraint was also a very important difficulty; the cost obtaining both the primary and secondary data from the various sources couple with the cost of producing copies of the study was enormous. It was serious limitation.
1.10 DEFINITION OF BASIC TERMS
ASSET: - Resources with Economic value that an individual corporation or country owns or controls with the expectation that it will provide future benefit.
A balance sheet item representing what a firm owns. Assets are bought to increase the value of a firm or benefit the firms operations. You can think of an asset as something that can generate cash flow, regardless of whether it’s a company’s manufacturing equipment or an individual rental apartment.
DEVELOPMENT: - Is the process of developing or being developed, A specified state of growth or advancement. The act of process of developing, growth, progress, such as Children development, Economic development and Business development.
The process of Economic and Social transformation that is based on complex cultural and environmental factors and their interaction.
ENTREPRENEURSHIP:- It refers to the act of identifying business opportunities and organizing to initiate a successful business activity. It is also the necessary organizing skills associated with the project.
MEDIUM SCALE ENTERPRISE:- These are enterprises which are larger in size than to be described small enterprises, but not as what can be described as large.
SCALE:- Is an instrument for weighing. A graduated range of values forming a standard system for measuring or grading something.
Scale may be broadly classified as:-
CATEGORY SCALE: - Sequence of numbers or words which only serve to identify certain entities or observation and have no quantitative significance e.g. a number or named list or number on the uniforms of the number of a team, also called nominal scale or quantitative scale.
INTERVAL SCALE:- sequence of number in fixed order representing amount or numeric values e.g. a distance.
SMALL SCALE ENTERPRISE:- This is an enterprise on whose total cost, excluding cost of land, but including working capital, and does not exceed Ten Million Naira (N10,000,000).
THE IMPACT:- Is the measure of the tangible and intangible effect (consequences) of one things or entities action or influence upon another.
1.11 ORGANIZATION OF THE STUDY
Chapter one of this study deals with the introduction and under this introduction there were following background to the study. Statement of the problem, Objective of the study, Significance of the study, Research question/Hypothesis, Research Methodology, Research Instrument, Scope and Limitation of the study, Definition of terms and References. The research on the Literature Review will be analysed in chapter two, chapter three will cover a theoretical frame work of Research Design, Research Instrument, Validity and Reliability, Data collection and Method of Data Analysis. Chapter four will be Collection Data, Analysis of such Data and Interpretation of such Data; it will also show the result of the test of hypothesis.
Finally, chapter five will encapsulated the Summary, Conclusion and Recommendation on how Small and Medium Scale Enterprises is now very popular as a strategy of escaping poverty and creating an enabling environment for Socio Economic expansion and productivity in Nigeria.