ENTREPRENEURSHIP AS A VITAL TOOL FOR ECONOMIC GROWTH, DEVELOPMENT, AND SUSTENANCE

PROJECT: ENTREPRENEURSHIP AS A VITAL TOOL FOR ECONOMIC GROWTH, DEVELOPMENT, AND SUSTENANCE

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE PROBLEM

In the early 1960’s some external influence, particularly those of the United Nations called government attention on the need for establishing specific institutions to provide services to the small scale industrial sector of the economy. The reason then was that if the small scale industries were properly developed and assisted, they would form the cornerstone of solid industrialization, thereby accelerating the overall economic development of the country. There was no definite attempt to identify who the entrepreneurs were and where they practiced in the country because Agriculture was the major source of revenue and foreign exchange, joined with the crude oil when was discovered in 1970. But a fall in these sources of revenue exposed Nigerian’s weakness.

          However, Enugu state which is one of the states in Nigeria is not left out in this issue of no definite attempt to identify who the entrepreneurs were and where they practised because Agriculture and coal were its major sources of income or revenue. Later on, the huge set back suffered by coal mines and the neglect of Agriculture in Enugu state led to unemployment, poverty, low income, decline in economic growth and development etc.

          The economic growth and development of Enugu state is not rapid especially at Nsukka urban because people neglect entrepreneurship which is being self reliant. This neglect of entrepreneurship at Nsukka urban brings about the daunting challenges facing individuals, groups, organization etc. This daunting challenge in unemployment joined with poverty and other social vices.

According to Adediran (2004), the unemployment problem which is virtually on the lips of every Nigerian has gotten out of control along with its attendant social and economic effects. The mostly affected people by the plague of unemployment in Enugu state today are young school leavers particularly graduates from tertiary institutions and the bulk of people retrenched from work as a result of socio-economic and political crises.

The twenty first century has been tagged the entrepreneurial age. This is because nations are being shaped by entrepreneurs, men, and women who have taken their destinies in their own hands by risking their resources, especially money, time and energy in establishing and running their own business (Kuye, Oghojafor, Sulaiman, Okonji (2009). Nsukka Urban in Enugu State has not developed because of lack of entrepreneurship development. If not the University of Nigeria which is at Nsukka Urban, the place would have been a bushy area. But if entrepreneurship is emphasized, there will be development and economic growth at Nsukka Urban and this influence Enugu State economy positively.

The small and medium scale industries being the main stream of Enugu State economic activities provide almost 70% of the employment to all grades of people in Enugu State. Most of these industries are owned and managed by the entrepreneurs. Entrepreneurship as a vital tool for economic growth, development and sustenance of Enugu State cannot be over emphasized, since the small, economically based industries are the major sources of product innovation and achievement of full employment. According to Adebayo, Olubela (2009), entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial psychic and social risk, and receiving the result rewards of monetary, personal satisfaction and independence. Entrepreneurship is also the capacity and willingness to develop, organize and manage a business venture along with any of its risk in order to make a profit (Wikipedia, 2013). The most obvious example of entrepreneurship is the starting of new business. It is a vital part of a nation’s ability to succeed in ever changing and increasingly competitive global market.

Bell-Rose and Payzant (2008) state that today’s young people are not ready to work because they lack necessary skills, especially in science and even Mathematics, and even worse, they often lack the ability to work in teams, think creatively or to interact effectively with colleagues or potential customers. If young and adult people are aware of the issues as well as the challenges of becoming an entrepreneur and/or working in small enterprise, they will be better prepared not only with regard to choosing entrepreneurship as a career option, but also to working productively and succeeding in small and medium scale enterprises, (Sasaki, 2006).

Enugu State is blessed with enormous amount of both human and natural resources. If these are well managed and the entrepreneurs are encouraged and motivated, the state can be economically self reliant and self independent which will eventually boom the economy. The business environment in Enugu State especially Nsukka Urban has a lot of entrepreneurial opportunities, be a job creator instead of being a job stecker because entrepreneurs create job. It is in the light of this that the researchers want to examine entrepreneurship as a vital tool for economic growth, development and sustenance in Nsukka Urban of Enugu State.

Statement of the Problem

          The challenges facing individuals, groups, organization and even nations today is unemployment. The mostly affected by the plague of unemployment in Enugu State are young school leavers particularly graduates from tertiary institutions. This problem arises as a result of lack of entrepreneurial skills.

          At Nsukka Urban, graduates are moving around from one place to another, searching for job but none is found. There are many unemployed graduates at Nsukka Urban and this case of unemployment leads to robbery, prostitution, kidnapping, and all other social vices. Also at Nsukka Urban, people are suffering, wallowing in poverty because industries are not enough for graduates to be employed. If not for the University of Nigeria that is at Nsukka Urban, who knows what would have happened. It is in the light of the foregoing that the researchers wish to examine entrepreneurship as a vital tool for economic growth, development and sustenance in Nsukka Urban of Enugu State.

Purpose of the Study

          The general purpose of the study is to the examine entrepreneurship as a vital tool for economic growth, development and sustenance. Specifically, this study intends to find out:

1.     Barriers to entrepreneurship development

2.     Entrepreneurs sources of capital/finance to set up a business

3.     Ways by which government can motivate and encourage entrepreneurship development  

4.     The impact of entrepreneurship in economic development and sustenance

Research Questions

          In pursuance of the research work, the researchers deemed it necessary to pose the following research questions:

1.     What are the barriers to entrepreneurship development?

2.     What are the entrepreneurs’ sources of capital to set up a business?

3.     How can government motivate and encourage entrepreneurship development?

4.     How can entrepreneurship bring economic development and sustenance at Nsukka Urban?

Significance of the Study

          The study will be of great importance to the following groups of people namely: unemployed graduates, government, students, among others.

          Unemployed graduates will benefit from this study through the knowledge they acquire which will as well enable them to be self employed instead of wandering about searching for white collar jobs in our society.

          Government will benefit from this study because it will help to reduce the rate at which people depend on government for everything, more especially job opportunity.

          Students will benefit from this study because through it, they will be serious with entrepreneurship education, thereby acquire entrepreneurial skills and establish their own business after graduation .

Scope of the Study

          The research is on entrepreneurship as a vital tool for economic growth, development and sustenance in Nsukka Urban of Enugu State. It tries to find out the barriers to entrepreneurship development, entrepreneurs’ sources of capital/finance, ways by which government can motivate and encourage entrepreneurship and the impact of entrepreneurship in economic development and sustenance.

Definition of the Basic Concepts

1.     Entrepreneur: An individual who is willing and able to take business risk for the purpose of making profit. A person who is able to identify and exploit business opportunity in order to make profit .

2.     Entrepreneurship: It is the willingness and ability of an individual to seek out an investment opportunity, and exploit it.

3.     Enormous: It means extremely large or huge.

4.     Innovation: The introduction of new things, ideas or ways of doing something. Bringing of new ideas or ways of doing something.

5.     Human Resources: Personal, organization, people’s skill and ability seen as something a company, an organization etc. can make use of to achieve their objectives.

6.     Self Reliance: Depending upon ones effort, and ability, to be self confident, and not depending on others. Having confidence in and exerting one’s own power

CHAPTER TWO

REVIEW OF RELATED LITERATURE

          The review of literature related to this study is organized under the following sub-headings:

1.     Concept of Entrepreneurship

2.     Characteristics of Entrepreneurs

3.     Functions of entrepreneurs

4.     Sources of Capital

5.     Barriers to entrepreneurship development

6.     Roles/impacts of entrepreneurship in economic development

7.     Roles of Government in entrepreneurship development

8.     Review of related empirical studies

9.     Summary of review of related literature.

Concept of Entrepreneurship

          Defining entrepreneurship is not an easy task. There are almost as many definitions of entrepreneurship as there scholar book on the subjects (Byrd WA, 1987:3).

          Although there is no official definition of entrepreneurship, the following one has evolved from work done at Havard Business School and now is generally accepted by authors. “Entrepreneurship is the process of creating or seizing an opportunity and pursing it regardless of the resources currently controlled (Timmons, 1994:7).

          Accordingly, the entrepreneur is one who undertakes to organize, manage and assume the risks of a business. It is derived from French word entreprendre meaning to undertake (Ezedum etal. 2011:1). Business expert Drucker (1909-2005) described entrepreneur as someone, who actually searches for change, responds to it and exploits change as an opportunity. A quick look at changes in communication from type writers to personal computers to the internet-illustrates these ideas (Ezedum, Agbo, Odigbo, 2011:3).

          The entrepreneurs shift economic resources out of an area of lower and into an area of higher productivity and greater yield (Jean Baptise Say cited in Ezedum et al 2011). The entrepreneurship is essentially a creative activity. The  economic activity with a profit motive can only be generated by promoting an attitude toward entrepreneurship. The renewed interest in the development of entrepreneurship to take up new venture should emphasize on the integrated approach. The development of entrepreneurship will optimize the use of the unexploited resources; generate self employment and a self sufficient economy (Ezedum, Agbo, Odigbo, 2011:1-2).

          Ugwu (2008:225), defined entrepreneurship as the ability of a person at identify and exploit business opportunity through the process of initiating, organizing and directing men, money and materials. Ugwu also opined that entrepreneurship entails creation and distribution of goods and services. Entrepreneurship is more than simply “Starting a business”. It is a process through which individual identify opportunities, allocate resources and create value. This creation of value is often through the identification of unmelt needs or through the identification of opportunities for change. It is the act of being an entrepreneur which is seen as one who under take innovations with finance and business acumen in an effort to transform innovation into economic goods, hence entrepreneurship see “problems” “opportunities”, and then take action to identify the solution to those problems and the customers who will pay to have those problems solved.

Characteristics of Entrepreneurs

          Entrepreneurs have several characteristics that cause them to stand out in the Crowd. Some of these qualities are:

·        Entrepreneurs are free thinker (Some call them dreamers). They are people who always think beyond the moment and look for better, unique, or more efficient ways to do things, those that think out of the box.

·        Entrepreneurs are problems solvers. Looking for better, unique, or more efficient ways to do things always lead from the dream to an idea to fulfill the dream. In other words, they are creative.

·        Entrepreneurs are innovative in their approach to change. They subscribe to the definition of insanity that says, “Insanity is continuity to do the same things you have always done, in the same ways you have always done them and expect different result.

·        Entrepreneurs are willing to fail to eventually win. Not everything they consider to be good or right works out in the end. However, the real entrepreneurs learn from failure and move ahead to the nest right project. The  major characteristics of becoming an entrepreneur are the ability to become courageous and not afraid of failure.

·        Entrepreneurs abandon the employee mindset that looks to short term pay cheque to building a powerful money making business that works for 24 hours a day/7days a week. They work as if they do not need the money that is thinking  for the long term goals (Ezedum etal 2011:21-22) .

M.C. Cleland (1961) cited in Nwankwo (2009:13) identifies various levels of trait as an important influence on success of entrepreneurship. Nwankwo asserts that the number one driving force is the need for achievement. Nwankwo went further to say that parental influence is significant in the development of his need for achievement of his aim that the entrepreneurs are likely to have parents who want them to be self reliant at an early stage. This manifest itself in a number of ways like taking risk, confidence of success, desire for independence and energy in goal pursuit.

Functions of Entrepreneurs

          Eundu (1999) cited in Ugwu (2008:125-129) enumerates the function of an entrepreneur as follows:

i.                   Identification of investment opportunities

ii.                 Choice of investment opportunities

iii.              Decision on the form of business ownership

iv.              Factor combination

v.                 Business directionship

vi.              Business directorship

vii.            Risk bearing and

viii.         Innovation

i.                   Identification of Investment Opportunities: The entrepreneur has the intellectual endowment to seek and satisfy the needs and wants of consumers. Identification of needs, desires and wants of potential consumer involves a lot of marketing effort. Marketing research involves intelligent guess, the use of experts and with institutional framework on place only identifying need but also serving the needs competitively.

ii.                 Choice of Investment Opportunity: The entrepreneur often identifies many opportunities requiring exploitation.

iii.              Decision on the Choice of Business: The business form chosen depends on the legal, cultural and technological premises. Also the funds available, ambition of the entrepreneur, skill and talents, capacity to absorb risk and ease in starting a new business inform choice of a form of business. No matter the form of business the decision must be based on factors well known to the entrepreneurs .

iv.              Factors Combination: As a risk bearer, mindful of the unpleasant effect of business failure, the entrepreneur carefully selects the factor inputs. It is the duty of the entrepreneurship to combine land, labour, and capital to achieve the desired objectives. The factors determining location, availability of raw materials, amenities, financial, personal, etc. should be considered.

v.                 Business Directorship: The entrepreneur shows the direction in his establishment. He makes effort to plan, organize, direct and control the activities of the enterprise. The business focus and direction are determined by his leadership abilities.

vi.              Risk Bearing: The entrepreneur is a risk bearer. Business is full of avoidable and unavoidable, insurable and uninsurable risks. Entrepreneur should buy relevant insurance policies to guard against vagaries of business weather .

vii.            Innovation: Innovation involves a personal touch on the firm’s offering, taking cognizance of the fact that competitors are out there to out wit the firm. Product should be packaged in new forms, produced using new processes and modified if the need is justified. The entrepreneur knows and engages in new market and product development.

Sources of Capital/Fund

          Many potential successful enterprises fail due to poor planning and undercapitalization-inadequate fund to procure assets or pay running costs, but the fact remains that both new and thriving businesses need money, either for start-up or to expand operation (Ezedum, Odigbo, 2011:70). They also went further to explain sources of fund as the place where capital can be acquired.

The following sources of fund are available to the entrepreneur:

1.     Personal funds-saved or inherited

2.     Family and friends

3.     Thrift societies

4.     Service contracts

5.     Partnership

6.     Sales or assets or capital stock

7.     Trade credit

8.     Cooperative societies

9.     Commercial bank loans

10.                        Government

1.     Personal Fund: These are funds generated or succeed from entrepreneurial activities including occupation or income-earning assets. It is the entrepreneur’s preferred source of funding since it is interest free and constitutes no liabilities to the enterprise.

2.     Family and Friends: This is mainly, contributions from wealthy members of the family or from ancestral funds. In most cases the fund is given out as soft loan, repayable within a certain period, it is interest free and source of capital for new venture.

3.     Service Contract: This is the form of financial support that a servant or boy receives from his master after successfully, dedicatedly and faithfully completing his period of apprenticeship with the master.

4.     Thrift Societies: These are organized self help bodies of individuals who contribute money from and make some available for members to borrow from, at very low interest rates for the purpose of  starting new business or expand existing ones.

5.     Partnership: An entrepreneur may decide to take on a partner to expand the capital base of new ventures.

6.     Sale of Asset or Stock: The new business promoter can dispose of parts or whole of his personal belongings such as land, building or investments in other companies, etc, to raise funds needed to launch into a new business.

7.     Trade Credit: This is a short term financing, provided by suppliers of raw materials and items or services provided to their potential and current customers where by payment is deferred on agreement to a future date.

8.     Co-operative Societies: People can contribute money to own and manage a company. Co-operative societies give loan to their members for business purposes .

9.     Commercial Banks give Loan and Overdraft to Business Men and Women: Through commercial banks, entrepreneurs can get loan to start business.

10.                        Government also Provides means which People get Money for Business: Government a times provides money for people to start business.

Barriers to Entrepreneurship Development

          According to Ugwu (2008:229-230) Entrepreneurial development is affected by the following barriers:

1.     Low competitive advantage

2.     Inadequate capital

3.     Poor infrastructure

4.     Maladministration

5.     Lack of technical know-how

6.     Inadequate man power

7.     Lack of innovation

1.     Low Competitive Advantage: Trade liberalization policy of government affects the competitive posture of entrepreneurship. The foreign firms with better technology and lower unit costs, price indigenous enterprises out of the market. The quality of locally make goods is often lower than that of foreign goods; this shifts demand in favour of foreign enterprises.

2.     Inadequate Capital: Capital for expansion to take advantages of large-scales production is also a problem. The banks often lend at high interest rates. There is mutual suspicion among entrepreneurs, which affects the establishment of a “pool of funds”. Most business dies due to lack of funds to acquire new technology in the industry.

3.     Poor Infrastructure: What comes readily in mind under infrastructure is the electricity situation in Nigeria, which has increased the cost of doing business. The National Electric Power Authority has been a sick child and a nightmare to small entrepreneurs.

4.     Maladministration: Administrative in-competence has bedeviled entrepreneurship in Nigeria. Considerations are often made without recognizing the economic implications. Poor record keeping, reckless use of funds for purposes other than economic, enthronement of mediocrity and lawlessness are rampant in Nigerian business today, an outright lack of managerial ability, lack of organization and human relations skill etc. are result in maladministration.

5.     Lack of Technical Know-how: Entrepreneurship in Nigeria is replete with entrepreneurs and other workers without the requisite technical knowledge for the job; the right technology most often is missing. These lead to inefficiency in production. Programmes like entrepreneurship development, apprenticeships etc. were at different time embarked by government.

6.     Inadequate Manpower: The most important resources in any organization are the human element. The right quality and number of personnel required in some key sectors or the economy are still lacking. In the automobile industry, engines, filters etc, are still being imported due to inadequate skilled manpower for their production in commercial quality.

7.     Innovation: A business that fails to innovate soon atrophies. The entrepreneur knows this and engages in new market and product development. Innovation involves a personal touch on the firm’s offerings, taking cognizance of the fact that competition should be packaged in new firms. They should be produced using new processes, and modified if the need is justified.

Entrepreneurship activity in Nigeria is equally important, entrepreneurs drive job formation through self employment and small business creation. It is precisely those jobs that pave a route out of poverty. Substantial research supports all those points. It is not surprising to note growing interest among governmental policy makers in the promotion of entrepreneurship and entrepreneurial-friendly conditions. Yet while ample evidence demonstrates the importance  of entrepreneurship for advancing social welfare, there are some barrier that constitute a cog in the wheel of entrepreneurial progress (Ezedum, etal 2011:27-28).

According to Ezedum etal (2011:27-28) it must be acknowledged that entrepreneurship development in Nigeria is faced with the following barriers:

·        The Nigeria infrastructure limits entrepreneurial effectiveness and is a barrier to success

·        The high cost of doing business in Nigeria such as the lack of adequate electricity and basic needs by a large amount of the population stifle entrepreneurial activity.

·        Getting venture capital to finance entrepreneurial endeavour in Nigeria is very difficult because of the political and economic instability.

·        The policies of the Nigeria government entrepreneurial success for many Nigerians.

The government systematically ignores laws that are already in place to promote free enterprise.

·        The lack of enforcement of Nigerian patent laws discourages entrepreneurs from commercializing their ideas and inventions.

·        The constant political turmoil in the country greatly limits foreign investors who would be willing to provide resources for entrepreneurship in the country, which is very rich in natural resources.

·        Political and social movements strongly affect the level of entrepreneurial activity in Nigeria. Religious intolerance and ethnic warfare limit the progress in some area of the country.

·        Female entrepreneurs in Nigeria are often hindered because of cultural barrier such as male/female role definition that label women inherently inferior to men.

·        Although there are a lot of barriers, entrepreneurship in Nigeria is necessary for the country to become a developed nation.

Chukwuma (1999) was not left out when he observed that the reason why people start up their own business is the joy of being their own boss, the satification of building successful company, the chance to earn high money, the independence that comes with making your own decision and indirectly building the economic base of the nation, but the entrepreneurs are faced with chains of  the problems which create risk that can lead to business failure. It is entrepreneur who decides to start or not to start an enterprise depending on a great deal on how the entrepreneur carries out his entrepreneurial functions and on luck (Nwankwo, 2009: 16-17).

The constraints to business failure was identified and revealed by Ude (1999) in Nwankwo (2009:17) as lacks of experience, financial constraints, wrong location, mismanagement of fund and inventory, government policies, poor credit granting practices, poor planning etc.

Role of Entrepreneurship in Economic Development

          According to Nwankwo (2009:44), “Entrepreneurship development plays major role in job creation and reduces unemployment, over dependency and reduction in cause of corruption”. The role of entrepreneurship in economic development involves more than just increasing per capital output and constitute change in the structure of business and society which is accompanied by growth and increased output, Johnson and Earnest (1980). According to word press (2010), role of entrepreneurship allows the economy to grow because it gives people more jobs, creates new inventions and ideas, national income, better standard of living and regional development.

          Economic development is concerned ultimately, with the achievement of better nourishment better reduction, better health, better living conditions and an expanded change of opportunities in work and leisure for the people. Entrepreneurs initiate and sustain the process of economic development in the following ways:

1.     Capital formation

2.     Improvement in per capita income

3.      Improvement in living standards

4.     Economic independence

5.     Backward and forward linkages

6.     Generation of employment

7.     Harnessing locally available resources and entrepreneurship

8.     Balanced regional growth

9.     Reducing unrest and social tension

10.                        Innovation in enterprises (Anil in Wikipedia 2013).

1.     Capital Formation: Through entrepreneurship development, capital is generated by people. This is because the purpose of people to be entrepreneurs is to make profit. Through entrepreneurship development, people accumulate capital of their own and also generate money to the government through tax and other commissions that are paid to government by business men and women.

2.     Improvement in Per Capita Income: Per capita income is the average income of the individual in a given period of time, usually a year. Entrepreneurship development improves per capita income of an individual, (Ande 2008:251).

3.     Improvement in Living Standard: Standard of living is the level of economic well-being or welfare attained by individuals in a country at a particular time. The level of welfare determined by the quantity and quality of goods and services consumed within a given period (Ande 2008:225). Through entrepreneurs, different goods and services are produced, distributed and exchanged for consumption. Entrepreneurship development makes everybody in the country (Nigeria) to be comfortable, thereby improves the standard of living of the people.

4.     Economic independence: Through entrepreneurship development, there is economic independence and sustenance. People struggle on their own in order to get daily bread. Most countries do not depend on advanced country for survival. Masses do not depend on government for survival. Provisions of basic needs of man such as food, shelter and clothing are done by individuals without depending on government or even other people.

5.     Backward and Forward Linkages: Entrepreneurs establish connection between thing that have been existing in business or happening in the business line with the new one which they think that  it will make the business to move higher. Entrepreneurs have foresight and they are creative, through their foresight and creativity, they connect together in other to bring development in their business and thereby bring development in the economy of the nation.

6.     Generation of Employment: Establishment of industries and firms by entrepreneurs generate employment to the masses especially unemployed graduates. People are also employed through skill acquisition and, train other people. Through entrepreneurship, there is generation of employment which reduces people’s dependence on government. Mass employment brings economic development, growth and sustenance.

7.     Locally available Resources and Entrepreneurship are Harnessed by Entrepreneurs: Resources are not left to waste in the country because of the presence of entrepreneurs. Entrepreneurs identify business opportunity, gather resources and work through that resources in order to bring out high yield. Through the effort entrepreneurs in controlling resources for production, there is economic development in the country.

8.     Balanced Regional Growth: Entrepreneurs offer the essential mechanism for overcoming some obstacles to economic development. Entrepreneurship brings balanced regional growth because entrepreneurs accumulate capital which leads to economic growth. Through entrepreneurs, there is balanced growth in the entire region of the country that encourages entrepreneurship development.

9.     Reducing Unrest and Social Tension: Through entrepreneurship, social vices such as cultism, stealing, kidnapping, human trafficking, bribery, corruptions, etc are reduced. Entrepreneurs create employment for people and this reduces high unemployment which leads to social vices.

10.                        Innovation to Enterprises: Entrepreneurship is all about innovation. Entrepreneurs introduce/bring new things into their enterprises that make their business to boom more and more. Entrepreneurs engage in new market and product development because they know that a business that fails to innovate soon atrophies, (Ugwu 2008:229). Innovation involves a personal touch on the firm’s offering, taking cognizance of the fact that competitors are out there to outwit the firm products should be packaged in new forms, be produced using new processes, and modified if the need is justified. Through innovation in enterprises, there is economic growth and development.

Role of Government in Entrepreneurship Development

          In Nigeria, like some other economies, government helps to develop transportation power, financial inducement, subsides and other utilities to encourage entrepreneurship development. Furthermore, the government provides security to safe guard life and property; maintaining law and order and freedom to do business, (Wikipedia 2013).

          The role of government in entrepreneurship development in Nigeria became significant only after the Nigeria civil war (1967-70). Since the mid 1980s there has been increased commitment to development especially after the introduction of the Structural Adjustment Economic Program (SAP) in 1986. Added to this, is the establishment of the National Directorate of Employment (NDE), National Open Apprenticeship Scheme (NOAS). Small and Medium Enterprise Development Association of Nigeria (SMEDAN) (Nigeria Reporters in Wikipedia 2013).

          Fundamentally, Nigerian government promotes entrepreneurial culture through initiatives that build business, confidence, positive attitude, pride in success, support and encouragement of new ideas, social responsibilities, providing technological support, cheap financial resource, free access to market, promotion of entrepreneurial skills acquisition through education and manpower development, prompt registration/advisory services to businesses, production of infrastructure, export incentives, stable political climate etc. (Wikipedia 2013).

          In early 2000’s, entrepreneurship studies have been introduced into the Nigerian education system especially higher institutions as mandatory courses. The centre for Entrepreneurship Development (CED) which has the objective of teaching and gingering students of higher institutions (especially in science, engineering and technology) to acquire entrepreneurial, innovative, and managerial skills was established. This is to make the graduates self employed, create job opportunities for others and generate wealth, (Nigeria reporter cited in Wikipedia 2013).

          Government of Nigeria has brought out different program to encourage entrepreneurship development such as:

·        Entrepreneurship Development Program (EDP)

·        National Open Apprenticeship Scheme (NOAS)

·        Rural Agricultural and Development Scheme (RATD)

·        Rural Handcraft Scheme

·        Environmental Beatification Scheme

·        Women Cooperatives

·        Graduate Attachment Program

·        Community Development Scheme (Eshiobo 2013)

·        School on wheel

·        Start you business etc. (2007 annual statistics pg. 216-226 cited in Eshiobo).

Review of Related Empirical Literature

          Nwankwo (2009) conducted a study research which examines entrepreneurship development as a vital ingredient for economic growth and development in Onitsha Urban of Anambra State. The finding of the research revealed that:

·        Entrepreneurship development play major role in job creation and reduces unemployment, over dependency and reduction in increase in corruption.

·        The research also revealed that most of the entrepreneurs started their business with their capital.

·        It also revealed that inadequate managerial skills by the entrepreneurs hinder the entrepreneurship development.

·        Government is helping in the development but not enough for the establishment of small business.

Apart from lack of management skills, other problems facing entrepreneurs that were revealed include poor planning, inadequate facilities, poor record keeping and lack of fund. The research also revealed that the benefits of entrepreneurship are lower capital intensity, education in rural urban migration, high employment generation, utilization of domestic entrepreneurial talents and utilization of local resources.

          An empirical study of Nigerian entrepreneurs’ success, motivation, problem and stress by (Cynthia and Benzen) in international Journal of business research magazine of international academy of business and economics in (Wikipedia 2013), the study revealed that in order to improve its economy, Nigeria needs to further the development of its private sector. It can be done by creating an environment favourable to the growth of small and medium scale enterprises, strengthening the factors that lead to business success, and addressing the problems threatening the existence and advancement of small and medium scale enterprises. Findings from a study of Nigerian entrepreneurs by Mambula (2002) suggest that besides problem of harassment by the government officials, small business owners face many more constraints. Typical among these is the poor infrastructure including bad roads, poor electricity supply and water shortage. Unsafe location and lack of management training were also included among the critical problems facing entrepreneurs.

Summary of the Review of Related Literature

          In summary, entrepreneurship is the ability of person/individual to organize both human and material resources to achieve his goals for the purpose of making profit. It can be seen as the ability of an individual to identify and business opportunity and exploit it profit making. Entrepreneur is the person who identifies business opportunities and exploits it for the purpose of making profit. Entrepreneur can also be seen as someone who starts his own business, especially when this involves risks, for the aim of making profit. Entrepreneurs have several characteristics that make them to stand out in the crowd such as creativity, risk taking, innovativeness, etc.

          Furthermore, they (entrepreneurs) perform many functions such as identification of business opportunities, decision in the form of business, etc. There are many ways which entrepreneurs can get money to start their business, they are through: Personal savings, through family and friends, loan, etc. There are lots of problems that are facing entrepreneurship development such as inadequate manpower, poor infrastructure, inadequate finance, etc. The role of entrepreneurship in economic development include: Creation of employment, capital formation, improvement in per capita income, improvement in living standards, Economic independence, etc.

          Finally, government plays major role in entrepreneurship development such as encouragement of entrepreneurship programmes, provision of infrastructural facilities and introduction of entrepreneurship education, among others. 

CHAPTER THREE

RESEARCH METHODS

          This chapter deals with the method and procedure used in carrying out the research. It describes the area of the study. Population of the study, sample and sampling technique, instruments for data collection, techniques for data collection, technique for data analysis and validation instrument.

Research Design

          The research design is survey. This is because the researchers used a part of the population for the study.

Area of the Study

          This study is carried out in Nsukka Urban of Enugu State with reference to small and medium scale enterprise. Nsukka Urban is located at Nsukka town in Nsukka Local Government Area which is surrounded by Igbo Etiti, Uzo-Uwani, Igbo-Eze South and Udenu Local Government Area.

Population of the Study

          The population of the study is four hundred entrepreneurs residing in Nsukka Urban.

Sample and Sampling Technique

          The sample for the study is 200 (Two hundred). The sampling technique is random sample technique which is used to obtain the few number of people that are studied in place of the entire population.

          The researchers selected fifty small and medium scale enterprises and four entrepreneurs in each small and medium scale enterprises at random. This brings the total to 200.

Instrument for Data Collection

The instrument used for data collection is the questionnaire. It was organized in two parts, A and B. Part A was for the personal data while Part B was for the research questions which was to source out solutions to the problem that is being  studied.

          The part B of the questionnaire contained twenty (20) items using a 4 points rating scale;

Strongly Agree, Agree, Disagree and Strongly Disagree respectively.

1.     Strongly Agree               (SA)            -        4 points

2.      Agree                            (A)              -        3 points

3.     Disagree                         (D)              -        2 points

4.     Strongly Disagree (SD)            -        1 point

Techniques for Data Analysis

Data obtained through questionnaire distributed and collected was be analyzed using (x). A Mean (x) score values of 2.50 and above is regarded as Agree (A) while mean more values below 2.50 are regarded as Disagree (D).

The formula for the mean is:

=        =        =    (4SA   +  3A  +  2D  +  1SD)

    N                                Total Number of Questionnaire Returned

Where      =  mean score

Summation

Total score (4SA  +  3A  + 2D + 1SD) i.e. Responses  X  Rating points)

Total number of questionnaire returned (Total number of responses)

Validation of Instrument

          The instrument (Questionnaire) was drafted by the researchers and was given to the project supervisor and other two Lecturers in Economics Department of the College of Education Nsukka for validation.

          The lecturers used phase validation in which they strictly studied the questionnaire sample and made useful corrections which helped to improve the quality of the questionnaire.

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

          In this chapter, the researchers presented and analyzed the data collected from the respondents. Out of the two hundred (200) questionnaires that were distributed, one hundred and eighty (180) were returned.

          Data collected were analyzed based on research questions.

Research Question 1

What are the barriers to entrepreneurship development?

Table 1

S/NO	ITEMS	SA	A	D	SD	N			DECISION
1.	Inadequate infrastructural facilities for business	99	71	7	3	180	626	3.47	Agree
2.	Inadequate capital (money) for business	117	62	0	1	180	653	3.63	Agree
3.	Government policies with regards to entrepreneurs	53	81	30	16	180	531	2.95	Agree
4.	Lack of necessary skills to manage business	79	85	11	5	180	598	3.32	Agree
5.	Poor planning among entrepreneurs	81	85	8	6	180	601	3.34	Agree

Data presented in table one (1) above proved that the barriers to entrepreneurship development at Nsukka Urban are inadequate infrastructural facilities for business in adequate capital (money) for business, government policies with regards to entrepreneurs, of necessary skills to manage business and poor planning among entrepreneurs. Based on results in the table 1 above, mean (X) 3.63 and 3.47 in items two (2) and one (1) respectively are the highest, meaning that the most prominent barriers entrepreneurs in Nsukka Urban are facing are inadequate capital to start business and inadequate infrastructural amenities for business.

          Furthermore, government policy is also a barrier but not as such in Nsukka Urban.

Research Question 2

What are the entrepreneurs’ sources of capital to set up a business?

S/NO	ITEMS	SA	A	D	SD	N			DECISION
1.	Entrepreneurs use personal savings	95	69	8	8	180	611	3.39	Agree
2.	Family and friend contribute money for entrepreneurs to start business	55	87	19	19	180	538	2.99	Agree
3.	Government provides money for people to start business	33	23	76	48	180	401	2.23	Disagree
4.	Bank give loan to people for business purposes	47	100	25	8	180	538	2.99	Agree
5.	People contribute money together to start business (partnership)	85	75	13	7	180	598	3.32	Agree

From the table two above, it could be observed that the main sources of capital for entrepreneurs’ are personal savings, partnership, Bank loan and through family and friends. Government which is the least source of capital to entrepreneurs in Nsukka Urban confirmed that support to the entrepreneurship development currently is not encouraging.

          Based on the result in the table two (II), it proved that government does not give entrepreneurs money for business.

          The mean (X) 3.39 and 3.32 in items six and ten above confirmed that the major sources of capital for entrepreneurs in Nsukka Urban of Enugu State are personal savings and partnership.

Research Question 3

          How can government motivate and encourage entrepreneurship development?

S/NO	ITEMS	SA	A	D	SD	N			DECISION
11.	Establishment of support agencies by the government or entrepreneurship programmes	107	63	4	6	180	631	3.51	Agree
12.	Establishment of specialized financial institution that can give loan to entrepreneurs when needed	82	84	9	5	180	603	3.35	Agree
13.	Entrepreneurship education where entrepreneurs can be trained in different skills should be encouraged	75	83	14	8	180	585	3.25	Agree
14	Government should make its policy to be in favour of entrepreneurs	55	89	31	5	180	554	3.08	Agree
15.	Provision of social amenities like good road, electricity and pipe borne water by the government	95	55	17	13	180	592	3.29	Agree

The data analyzed in table III above showed that the respondents agreed that the ways by which government can encourage entrepreneurship development are through the establishment of support agencies or entrepreneurship programmes, establishment of specialized financial institution that can give loan to entrepreneurs when needed, encouragement of entrepreneurship education, making policy to be in favour of entrepreneurs and also through provision of infrastructural facilities .

Research Question 4

How can entrepreneurship bring economic development and sustenance at Nsukka Urban?

S/NO	ITEMS	SA	A	D	SD	N			DECISION
16.	The generation of employment to people	114	60	4	2	180	646	3.59	Agree
17.	Improvement in living standard and per capita income of people	81	81	13	5	180	598	3.32	Agree
18.	Capital is generated/formed	85	91	2	2	180	619	3.44	Agree
19.	Social vices are reduced	66	70	37	7	180	555	3.08	Agree
20.	It makes individual to be self reliant	88	74	12	6	180	604	3.36	Agree

         

From the data presented in table four (IV) above, the mean (X) scores proved that entrepreneurship bring economic development and sustenance at Nsukka Urban through the generation of employment to people, improvement in living standard and per capita income of people, generating/formation of capital, reduction of social vices and making individuals to be self reliant.

          Based on the result in the table, the main impact of entrepreneurship is employment creation and capital generation with the mean (X) scores of 3.59 and 3.44 respectively

CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSION

Summary

          The work examined the entrepreneurship as a vital tool for economic growth, development and sustenance in Nsukka Urban of Enugu State.

          The analysis of data contained in the questionnaire distributed revealed a lot of information.

The Findings of the Study are:

The problems or barriers of entrepreneurship development include inadequate infrastructural facilities, inadequate capital, government policies, poor planning among the entrepreneurs and lack of managerial skills.

          Secondly, entrepreneurs get their capital through personal savings, family and friends’ contribution, bank loan and through contribution of money together to start business. The research also revealed that government does not provide capital for entrepreneurs and that bank does not give loan at such when needed without condition. People (entrepreneurs) at Nsukka Urban mainly use personal savings to set up business.

          Government can motivate and encourage entrepreneurship development through establishment of support agencies and entrepreneurship programmes, establishment of specialized financial institution where entrepreneurs can get loan when needed, encouragement of entrepreneurship education, making policy to be in favour of entrepreneurs and provision of infrastructural facilities. The data analyzed revealed that entrepreneurship programmes and support agencies can help most in entrepreneurship development, if it is established by the government.

          The impact of entrepreneurship in economic growth, development and sustenance as employment generation, improvement in the standard of living and per capita come, capital formation, reduction of social vices and self reliance of people were also revealed.

Recommendations

          Based on the finding of this study, the following recommendations were made:

1.     Owing to the problems or barriers of entrepreneurship such as inadequate capital and inadequate infrastructural amenities, government should provide enough infrastructural amenities such as electricity, pipe borne water and good road. Also government should try their best to give money (provide capital) for those that do not have adequate capital to set up a business.

2.     Government should establish a programme where people can be trained in different skills, on how to manage business and agencies that can support entrepreneurs financially.

3.     Government should establish financial institutions for entrepreneurs, where they can get loan when needed without collateral security,

4.     Entrepreneurship education should be encouraged by the government by providing the equipments/machineries which can be used to teach the students different skills, so that when they graduate, they will not depend on government for employment.

5.     Financial problem could also be solved through the entrepreneurs helping themselves by forming companies or partnership which will make it possible for them to pull their resources together to start business, make big profit and also an opportunity to get loan easily from bank.

6.     Unemployed graduates should not fold their hands waiting for government work; rather they should gather money from their family and friends and start business.

7.     Youth whether educated or not should try to acquire skills that will make them to be self employed.

8.     People should be encouraged by entrepreneurs on the importance of owning and managing a business and also in skill acquisition, so that everybody will have something doing and social vices will reduce.

Conclusion

From the findings, the following conclusions were drawn:

1.     Entrepreneurs are faced with many problems such as inadequate capital, inadequate infrastructural facilities, lack of managerial skills, government policies and poor planning. All these problems mentioned are the main barrier to entrepreneurship development.

2.     Entrepreneurs have many sources of getting capital to set up business with include personal savings, money contributed by family and friends, Bank loan, and partnership.

3.     Government does not provided capital for entrepreneurs to start business .

4.     Government can motivate/encourage entrepreneurship through entrepreneurship programmes and support agencies, establishment of specialized financial institutions for entrepreneurs for getting loan easily, making its policy to be in favour of entrepreneurs and also through provision of sufficient infrastructural amenities .

5.     Entrepreneurship play major roles in economics growth, development and sustenance of people through generation of employment, improvement in living standard and per capita income of people, generation of formation of capital, reducing of social vices and making individual self reliant.

Limitation of the Study

          The following limitations are inherent in the study:

The financial problem is a limitation in this study since the researchers encountered financial constrains in the course of the study.

REFERENCES

Adebayo and Olubela (2009) Entrepreneurship Development cited in http/www/wiki/entrepreneurships/…com.

Adediran A. (2004) Introduction to Entrepreneurship. Kemi Publishers Ltd.               Oshogbo, Osun State.

Ande C.E. (2008): Essential Economics for Senior Secondary School. Second August, 2008. Tonad Publishers Limited Ibafor, Ogun State Nigeria.

Anil A, cited in Wikipedia (2013) Meaning of Entrepreneurship. Http//www/Wikipedia/meaning of Entrepreneurship …com