EVALUATION OF THE CONTRIBUTION OF ENTREPRENEURIAL DEVELOPMENT OF THE NIGERIAN ECONOMY
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ABSTRACT With the current trend in Nigeria micro and macro-economics policies towards a dynamic private sector led economy. The indispensability of entrepreneurial development thus becomes of paramount importance. This study assesses the contribution of entrepreneurial activities to the growth and development of the Nigerian Economy. Questionnaires and ministration and interviews have been carried out on entrepreneurs to obtain primary data and related literatures have also been used. Data have been analyses using tables and percentages and hypothesis have been tested using chi-square. Based on the findings, entrepreneurs were found to be innovative but still find the growth of their company difficult to handle because of inadequate capital, high costs of input and government policies. To this end the study recommended that Government should establish specialise banks that will offer loan to entrepreneurs, develop industrial estate with adequate and reliable infrastructure and provide subsidy on vital raw materials for industrial growth which inturn develops the economy. CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The word entrepreneur was first used in the early 18th century by an Irish man named Cantillon who was then living in France. The word therefore originated from the French word, entrepreneur, which means to start a business. It was used broadly in connection with the innovative modern individual business leaders. The entrepreneur has been described as the person who perceives business opportunities and takes advantage of the scarce resources to use them. He bears the non-insurable risk in his enterprise and directs human business. According to Ndechukwu (2001), an entrepreneur is an individual who takes upon him-self the risk of going into business with the expectation of earning all the profits or losses. He is, in economics, regarded as a special type of labour that assembles all the other factors of production namely, capital, land and labour and endeavor to ensure optimal combination of these resources to maximize profit. The world as we know is becoming a global village; great forces are pursuing the nations to have a dynamic and sound economy. Economic competition and intimidation has become the era of the day, so one is justified if one becomes interested in one of the important factors of a strong and virile economy, the entrepreneur and the entrepreneurship. Many societies placed great values on the entrepreneur. To encourage their activity, they may be offered access to in-expensive capital, tax exception and management advice. An entrepreneur has the greatest chance of success by focusing on a market niche either too small or too new to have been noticed by established business. The practice of entrepreneurship promotes self-reliance. Entrepreneurial skills are translated into practical business activities in the form of both small and medium scale enterprises in private and public enterprises. With this close relationship, entrepreneurial development relates to and also embraces the activities and role of small and medium scale entreprises particularly in the area of reducing the level of unemployment, provision of goods and services and their combination of national economic welfare. The dynamic role of private and public enterprises in Nigerian economy as a mechanism for growth has recognized its effect in achieving macro economic objective such as full employment, income distribution, development of local technology as well as diffusion of management skills and stimulation of indigenous entrepreneurship cannot be over emphasized. At the emerging of a modern day Nigeria in the early 60’s and 70’s, white collar jobs were at the disposal of every fresh graduate, with this idea in mind, the issue of self resourcefulness tending towards entrepreneurial development was at the ebb. The introduction of Structural Adjustment Programme (SAP) in 1986 has a lot of effects in the private and public enterprises of the Nigerian economy which lay off a large number of their work force. This consequently led to economic hardship coupled with unemployment. For this reason, the need for self reliance and resourcefulness and development of new initiative for economic survival has led individuals to set up enterprises of various sizes and structure to meet up with the trend in the economy and to earn a living. This has indeed led to entrepreneurship development in Nigeria. To qualify as an entrepreneur, it is not sufficient to be just managing an enterprise; one has to be an originator of profitable business ideas. According to Schumpeter (1911), the single function, which constitute entrepreneurship is innovation and indeed it creates a resource (the business entrepreneur). It should be noted that, nothing should be considered as resource until man finds a use for it. These resources must be combined, recognized and efficiently utilized by entrepreneurship to achieve a desirable satisfaction for human needs which entrepreneurship readily provides. Entrepreneurial development hold a lot for economic growth and development. A typical example of what it has to offer is seen in the case of Dangote Group of Companies, which grew from a small enterprise into a large conglomerate. Today, it is with several lines of business and diverse product, it is making a tremendous contribution to the development and growth of the Nigerian economy. For a nation to say it is independent, it must be economically independent and these is based upon the development of entrepreneurship spirit. The establishment of a new business involves a thorough understanding of entrepreneurial process. This process does not just involve problem solving but also an entrepreneur must find, evaluate and develop opportunity by overcoming the strong forces that every new ventures faces. Entrepreneurial process has four distinct phases which include ability to identify business opportunities, ability to be able to harness the necessary resources to utilize opportunities identified, ability and the willingness to initiate and sustain appropriate actions towards the actualization of business objectives and managing the resulting enterprise. Some useful sources of business opportunity are consumers existing companies, distribution channels, research and development, as well as the Federal government involvement in promoting entrepreneurship.