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The Problem And Prospects Of Entrepreneurship Development In Enugu State.

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This study was conducted to determine some base line data essential for improvement of poor entrepreneurial development in Enugu south Local Government Area.

To solve the research problem, both primary and secondary data were collected. The researched instrument used in collecting the data was questionnaires the respondent were selected entrepreneurs in Enugu south local government Area.

In organizing and presenting data colleted, tables and percentages were used. Two hypotheses were tested using the chi-square method.

Population for this study was drawn from six (6) communities in Enugu South but for the purpose of this work, the researcher utilized only the registered entrepreneurial business with the revenue unit of Enugu south Local government Area.

 The Population covered is so while the sample size is 67 which 40 of the 67 questionnaires were returned while 27 were not seen.

Data analysis and interpretation were also treated.

Ani Victoria ABM/H2002/142.  


Title page                                                                                          ii

Approval page                                                                                  iii

Dedications                                                                                       iv

Acknowledgement                                                                             v

Abstract                                                                                            vii

Table of contents                                                                              viii


Introduction                                                                            1

1.1            Back Ground of the Study.                                                     1

1.2            Statement of the Problem                                                                  4

1.3            Purpose of the Study                                                               5

1.4            Scope of the Study                                                                  6

1.5            Research Questions                                                                 6

1.6            Significance of the Study                                                         7

1.7            Limitations of the Study                                                                   7

1.8            Definition of the Terms                                                           8

Reference                                                                                 11


Review of Related Literature                                                   12

2.1       Review Related Literature                                                     12

2.2.      Meaning and Scope                                                               15

2.3.         Characteristics of a Successful Entrepreneur                                    17

2.4.           Function of Entrepreneur                                                      18

2.5.          Basic Factors Entrepreneur Should Consider Before  

Embarking on any Business.                                                   20

2.6.         Sources of Fund Available to An Entrepreneur.                     21

2.7.         Problems of Nigeria Entrepreneur.                                          22

Reference                                                                                 25


Research Design and Methodology                                         27

3.1              Research Design                                                                     28

3.2                Area of Study                                                                       28

3.3              Population of the Study                                                                   29

3.4              Sample and Sampling Techniques                                          29

3.5              Sources of Data Collection                                                     30

3.6               Validation of the Instrument                                                           32

3.7              Reliability of the Instrument                                                   32

3.8              Method of Data Collection                                                     33

3.9              Method of Data Analysis                                                       34

Reference                                                                                 36


Data Presentation and Analysis, Chi-Square and

Tables Were Used.                                                                            37

4.1            Presentation and Analysis                                                       37

4.2            Testing of Hypothesis                                                             52

4.3            Summary of Results.                                                               58


Discussion, Recommendation and Conclusions                      59

5.1            Discussion of Results/ Findings                                              61

5.2            Conclusion                                                                              61

5.3            Implications of the Research Findings                                              62

5.4            Recommendations                                                                             63

5.5            Suggestions for Further Research                                            64

          Bibliography                                                                           65

Appendixes                                                                                       68








The entrepreneur plays a vita role in the process of economic growth and development.

          Iwu Eze A. [1986] in a paper presented in on entrepreneurship development in Nigeria said that an entrepreneur is a contractor, an organizer of an enterprise for the public, a resourceful person with a dream. Entrepreneurs are bold men and woman who have initiative and the ability to lead, manage and take the consequences. They are men of action, risk takers, missioners, creative and highly respected of their ability to effectively and efficiently concubine the functions of management to achieve the go alls].

          He also noted that during the colonial period, only few of Nigerians could boast of personal or family capital to start off any meaningful business and hence the next place of call for business and financial was bank. It is a well known flat that banking operations during the colonial era were highly and sparsely limited urban centers. The bank at that time existed to serve the internets of the colonial civil servants who had appreciated incomes to warrant banking transaction Nigerians who had no collaterals or big financials to guarantee their loans could not hope on banks to start off any business.

          During the colonial era, the Nigerian businesses scene was dominated even at the grassroots levels by inclines, Greeks, Ghanaians, Sierra Lonians and others. These foreign nationals had a better exposition from the Nigerians and with this advantages, it was easy to dislodge them when the colonials left the scene in 1960. Then, in other to give Nigerians an opportunity in participating and shaping their country economic future, the federal government introduced indigenization and enterprise promotion dance of 1972 and  it’s revision in 1977. The objective was to foster economic self-reliance and maximize external intervention in politics.

          Against, the national development plans were introduced and also in July 1986 SAP [structural adjustment programme] was introduced. Entrepreneurship constitutes a vital engine in the economic growth and development of nations including Nigeria because it helps in the stimulation of indigenous entrepreneurship, leads to the transformation of traditional industry, creates employment opportunities, generates incomes [locally and externally] contributes to regional activity and co-operation etc.

          According to Ani N.B. [1999,5,7] said that entrepreneurship started when people produced more products than they needed and as such, had who also these surpluses with others who also wanted to dispose of their surpluses.  For instance, if a black smith produced more hoes then he needed, he exchanged the surplus he had with what he specialization. This process is known as trade by barter before the advent of any form of money.

          Modern entrepreneurship in Nigeria started with coning of the colonial masters and during the era, Nigeria was not their own masters. An entrepreneur often needs starting capital, which is normally small and derived from personal savings or from family sources.

          Concrete attempts at encouraging the growth and development of entrepreneurship have led to the establishment of some government agencies as industrial development [I.D], small scale industry corporation [SSIC], Nigerian bank for commerce and industries [NBC], national economic reconstruction fund [NERFUNA] directorate of foods, roads and viral development [DFRRI] etc.

All these have been made to ensure the sustain ace and growth of small and medium scale enterprises in the country.



Entrepreneurship developed which forma the bedrock of all business evolutions and economic miracles of the nation has its peculiars problems, which go a long way in satisfying its growth and development among which are:

a.       The most problems of entrepreneurship development are lack of fund and difficulty in securing loans from banks. Financial limitations constitute a serious set back to the entrepreneurship, they complain that banks are reluctant to grant them credit and even alleged that they often have to offer loans{s}. This inability of an entrepreneur to provide tangible collateral securities for loans make him a misfit in the competitive struggle for limited funds in our snappy economy [Onuoha B.C.1994.183 –184]

B.      The desire for quick returns in business and application of fraudulent practices are inimical to sustain entrepreneurship growth.

C.      Lack of adequate planning, many enterprises do not hire trained and qualified manager to run their business for them.

D.   The absence of infrastructure facilities for smooth running of the business example, regular and electricity supply, a functioning telephone system which could reduce the number of times the entrepreneur is on the road, good roads etc.


1.3            PURPOSE OF THE STUDY

The purpose of this study is to find out the followings:

a.       To determine the various enterprise and their activities in the area of study.

b.       To examine the nature of the management practices and their sources of fund.

c.       To determine area of government assistance and to pinpoint area where assistance is lacking.

d.       To determine major problems on countered by these entrepreneurs.

e.       To make recommendation based on the findings, which will be great help to other entrepreneurs and new aspirants into the business.

1.4            SCOPE OF THE STUDY 

This research intends to consider the problems and prospects of entrepreneurship development in Enugu South local government area. This study will give a broader view of problems and prospects of entrepreneurial development in this area and to make recommendation on findings.



In order to solve the research problems, the following research questions will be asked:

a.       What is the nature and extent of government control assistance over entrepreneurial business?

b.       What problems do entrepreneurs encounter in setting up their business?

c.       What are the various types and activities of entrepreneurial business in Enugu south?

d.       What are the prospects of entrepreneurial business in Enugu South?





Irrespective of the role of entrepreneurs in economic development of Nigeria, enough has not been done in terms of education, awareness and finance assistance.

The study is of great importance to entrepreneurs as a guide in business, in addition the study will as well serve as literature for further studies and will serve as a useful guide in entrepreneurship, the policy makers in business organizations will find it useful also in making decisions.

          In addition, it is expected that the findings will help to bridge the gap that may exist or may have existed and to make entrepreneurship business more effective and efficient in the cause of carrying out the business activities.


This research on the problems and prospects of entrepreneurship development in Enugu south is not an exception to the usual constraints associated with research work. The constraints are:

a. Time: Time has been a major constraint that has militated against the realization of the objectives of the research; especially as the researcher had to carry it out in the midst of academic pressure.

b. Finance: Finance being the life wire of any business and any research work, has posed a major barrier that has immensely militated against the realization of researchers objectives. The researcher faced inadequate finance for the acquisition of the necessary stationeries for the work.

C. Negative attitude of some people interviewed some of the people interviewed were not ready to give out the required information’s needed due to the fact that, they think, the researcher wants to know about their privacy, this issue militated against the realization of researchers objectives.


1.8            DEFINITION OF TERMS:  

For easy and concise understanding of this work, it is necessary that vital terms be defined.

a.       Entrepreneur: An entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk.

Meredith et al [1991] looks at an entrepreneur as an individual who has the ability to see and evaluate business opportunities gather the necessary resources to take advantage of them and initiate appropriate action to ensure success and he is a risk taker.

b.       Entrepreneurship Development:  this is the coming into existence in society of the class of individuals, who are not limited to pace odds.

c.       Small Scale Business: Ejiofor [1989.71] defined  small scale business as those enterprises 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 entrepreneurship functions are used in the proprietor. 

  d.     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 & services] desired by customers to that the organizational goals or objective are accomplished.

e.       Indigenization:  Ejiofor [1989.26] indigenization is the mass transfer of ownership and control of economic organization from 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.

f. Planning: planning can be defined as a process which managers visualize and determine in advance, the objectives of an enterprise or organization and select future cause of action for their accomplishment.



1. ANI N.B.[1999] Entrepreneurial Development, An Overview. J.T.U.Publishers, Enugu, Nigeria page.7. 

2. AKPALA.A.[1990] Management: An introduction department of management, school of business Enugu.

3.                                                                 EJIOFOR, J. [1989], Foundation of Business Administration; African Feb. Publishers ltd, Ontisha.

4.                                                                 IWU E.A. [1996] A paper presentation; on “entrepreneurship Development” in Nigeria.

5.                                                                 AGBO O.G. [2000] Small Scale Business Management; Iyke ventures production, Enugu Nigeria.





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