Assessment Of Indigeneous Entrepreneurs In International Business (a Study Of Coal-camp Enugu)

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This study is on performance of indigenous entrepreneur in international business in Coal Camp Enugu. The survey research design was adopted and a sample size of 171 (one hundred and seventy one) was gotten using Taro Yamani formula. Questionnaire were administered to the respondents and 50 was returned, which was used for the analysis. The data for the study was analyzed using simple descriptive statistics of SPSS. Hypotheses were tested using the Chi-square. The study revealed that indigenous entrepreneur have various modes of entry into international business, there are some constraints confronting the development of indigenous enterprises such as poor management practices constrain the success of indigenous entrepreneur, lack of infrastructural facilities hinders the performance of entrepreneur, financial problems or inadequate capital by indigenous entrepreneurs hinders my improvement, poor management expertise is a problem to my development, to a great extent, government plays some roles towards the promotion and development of international business for indigenous entrepreneur, and it was also noticed that support are given to indigenous entrepreneurs by the government agencies to improve their performance in international business.Based on the research at hand, the researcher made the following recommendations: The government should put more effort in showing support and making it easy for indigenous entrepreneurs to participate in international business, the indigenous entrepreneurs should try and observe the state constraint confronting their performance in international business and also in their domestic trade, the government agencies which sees the affairs of the indigenous entrepreneurs should make sure that they keep to the standard of which any participant most adhere to and the indigenous entrepreneur at Coal Camp should always endeavour to have a good relationship with the government in other to have free trade without inviting law enforcement agencies.



Title page                                                                                                                                i

Certification                                                                                                                            ii

Approval page                                                                                                                         iii

Dedication                                                                                                                              iv

Acknowledgements                                                                                                                v

Abstract                                                                                                                                  vi

Table of contents                                                                                                                    vi


CHAPTER ONE: INTRODUCTION                                                                                1

1.1Background of the Study                                                                                                  1

1.2Statement of the Problem                                                                                                  5

1.3 Objectives of the Study                                                                                                    6

1.4 Research questions                                                                                                            7

1.5 Research Hypothesis                                                                                                         7

1.6Significance of the Study                                                                                                  8

1.7 Scope of the Study                                                                                                           9

1.8 Limitation of the study                                                                                                     9

CHAPTER TWO: LITERATURE REVIEW                                                                  10

2.1 Introduction                                                                                                                      10

2.2       Conceptual Framework                                                                                               10

2.2.1    Concept of Indigenous Entrepreneurs                                                                                    10

2.1.2 Concept of International Business                                                                                 12

2.3       Barriers of entry for indigenous entrepreneurs                                                           13

2.4       Constraints on Capital Experienced by Indigenous                                                   15

2.4.1    Access to financial capital                                                                                          16

2.4.2    Development of Human capital u HuH                                                                                 17

2.4.3    Organisational Physical and Technological capital                                                     18

2.4.4    Access to social capital                                                                                               19

2.6 The role and importance of indigenous enterprise to the Nigeria economy                     23

2.7       Theoretical Framework                                                                                               24

2.7.1    The Cognitive Approach Theory                                                                                24

2.7.2    The Ecological Approach Theory                                                                               26

2.8       Empirical Review                                                                                                        27

2.9       Summary of Review Literature                                                                                  30

CHAPTER THREE RESEARCH METHODOLOGY                                                   32

3.1       Research design                                                                                                          32

3.2       Area of the study                                                                                                        32

3.3       Sources of data collection                                                                                           32       

3.4       Instruments for data collection                                                                                   33

3.5       Determination of population size                                                                                34

3.6       Sampling size and sampling technique                                                                       34

3.7       Method of data collection                                                                                          35

3.8       Validation of the Instrument                                                                                      36

3.9       Reliability of the Instrument                                                                                       36

3.10     Methods of analysis and hypothesis testing                                                               36


4.1       Introduction                                                                                                                37

4.2       Presentation of data                                                                                                    37       

4.3       Analysis of data                                                                                                          37

4.4       Test of hypotheses                                                                                                      49       

4.5       Discussion of results                                                                                                   54

CHAPTER FIVE:    SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS                                                                       56

5.1       Introduction                                                                                                                56

5.2       Summary of findings                                                                                                  56

5.3       Conclusion                                                                                                                  57

5.4       Recommendations                                                                                                     57

5.5       Suggestion for further research                                                                                   58

             REFERENCES                                                                                                         59

             APPENDIX I                                                                                                                        63

             QUESTIONNAIRE                                                                                                  64




1 .1 Background to the Study

The role of indigenous entrepreneurs in developing countries, Nigeria in particular is progressively becoming significant. It is significant in the sense that all available resources in any given situation in the economic wellbeing of a nation must be developed for industrialization and ultimately consumption through the small and medium scale businesses. Hence, the impact and potential contribution of small scale businesses on a broad and diverse base as well as their accelerated effect in achieving macro-economic objectives pertaining full employment, income distribution and the development of local technology, make the existence most inevitable. Therefore, the importance of small and medium scale enterprises in particular to the general economic development of any nation especially a developing one like Nigeria cannot be over emphasized (Osalor 2012).

Indigenous enterprises have been recognized as indispensable components of natural development in both developed and developing economies. This sub-sector of the economy is globally acknowledged to contribute substantially in enhancing employment creation or generation, poverty alleviation,, equitable distribution of resources, income redistribution, technical and technological innovation, entrepreneurial skills development, more uniform industrial and economic region- moreover, they have been touted strategic in ensuring foodsecurity and encouraging rapid industrialization and reversal of rural-urban migration (Balunywa


Although indigenous enterprise are seen as veritable engines of economic development, the growth and development of small and medium scale enterprises in Nigeria have been slow and in some cases even stunted, due to a number of problems and challenges confronting this allimportant sub-sector of the economy. Some of the problems highlighted in the body of literature as being responsible for the slow growth and development of the small and medium scale enterprises include: deplorable infrastructural facilities funding and financing challenges; inadequate managerial and entrepreneurial skills; corruption and lack of transparency arising from government regulation and regulators etc. It had been argued that the most disturbing among these challenging is funding, but concedes that most new small business enterprises are not attractive prospects for banks as they want to minimize their risk profile (Abereijo 2014).

Indigenous enterprise in Africa have therefore been found to rely largely on own savings, not only to grow, but also to innovate, whereas firms often need real services support and formal finance assistance, failing which under investment in long term capabilities (Training, Research & Development) may result on the other hand, indigenous enterprise in Nigeria had been blamed for poor performance on management practices, poor access to funds, low equity participation from stakeholders, poor infrastructural facilities, shortage of skilled manpower, multiplicity of regulating agencies and the over-bearing operating environment, societal and attitudinal problems, little access to markets and lack of access to information. In spite of these problems and challenges, Government and other financial institutions had held out programmes for the prospects of indigenous enterprise in Nigeria (Aigboduwa 2013).

The current economic reform process ongoing in Nigeria aimed at reducing poverty, unemployment and strengthening of basic institutions and sub-sector of the economy target at improving and enhancing the capacity of indigenous enterprise as instrument of economic growth and development. A lot has been said and written about indigenous enterprise in the world. It has also formed the subject of discussion in so many seminars and workshops both locally and internationally. In the same token, government at various level (Local, State and federal levels) have in one way or the other focused on the indigenous enterprise. While some governments had formulated policies aimed at facilitating, empowering the growth, development and performance of the indigenous enterprise to grow through soft loans and other fiscal incentives. International agencies and organizations (World Bank), United Nations Industrial Development Organisation (UNIDO), International Finance Corporation (IFC), United Kingdom, Department for International Development (DFID), European Investment Bank (EIB) etc are not only keenly interested in making indigenous enterprise robust and vibrant in them. Locally, the several non-governmental organizations such as fate foundation, Support and Training Entrepreneurship Program (STEP), the Nigeria Investment Promotion Commission (NIPC), the Association of Nigeria Development Finance Institution (ANDFI), as well as Individual Development Finance Institution (IDFI) have been promoting the growth of indigenous enterprise in Nigeria through advocacy and capacity building imitative and have continued to canvass for better support structures for operator in the indigenous enterprise subsector (World Bank 2011).

In the context of this study, indigenous enterprise has been referred to as SMEs. Small scale could therefore be referred to as cottage industry. And they can be best described based on some of their characteristics:

  • Few numbers of employees
  • Amount of investment and annual business turnovers
  • Small in size within the industry
  • Managers are also owners, etc (Aladekomo 2013).

The 3rd Nigerian National Development Plan (2011) defined small scale industry as a manufacturing establishment that employs less than 10 people and whose investment on machinery and equipment do not exceed N600,000 (six hundred thousand naira). From another perspective, the Central Bank of Nigeria in 2001, in its credit guidelines defined Small Business Enterprises as any business organization with an annual turnover of less than N500,000 (Five hundred thousand naira).

Alawe (2013) defined Small Scale Enterprises as organizations employing a minimum or rive employees and with a minimum initial capital outlay of not less than N5000 five thousand naira). Alas (2011) noted that an additional requirement to be tagged Small Scale Enterprises in Nigeria is that the number of employee is not greater than 50 in any situation and the financial capital outlay is not more than N150, 000 (one hundred and fifty thousand naira).

From the foregoing definitions, it could be seen that different individuals, institutions, or bodies and countries have given definitions to small scale enterprises. Therefore, as with entrepreneurship, it is difficult to have a generally acceptable definition of small scale enterprises, the best one can say is that small scale enterprises may be viewed as a business unit which is independently owned and managed and which does not dominate its relevant market segment of interest (Abriel 2015).

In Nigeria, the recent economic submit recommended the creation of 500,000 entrepreneurs on the assumption that if each entrepreneur employs 100 workers, a total number of 50 million jobs be created with the time frame.

Although, all these developments as commendable, however, the best way to eradicate poverty is not to throw money at if but to grow out of it. The various efforts of the government on the development of small and medium scale enterprises through various initiative and well- structured programs to encourage vocational educational centre in the state, with an interest of setting up those apportioned individuals as independent entrepreneur after successful completion of course proved abortive, the rate of survival of these newly set up enterprises are still very low which makes the effort of the government to result in futility and also making individuals to still became job seekers as against thenormal goal of being an employer of labour and definitely still giving chance to poverty. However, this project work examines the respective strengths and drawbacks associated with the historical trends and efforts at developing indigenous enterprise. It identifies and analyses the opportunities provided for the promotion of indigenous enterprise in international business. Here, this study titled “the performance of indigenous enterprise in international business in Enugu coal camp spare parts”.

1.2 Statement of the Problem

The Nigerian National economy is characterized by mirage of problems which has constituted a sleepless night to developmental oriented governance. The most disturbing problems are that government has not played a favourable role towards the promotion and development of small and medium scale enterprises, in the sense that government creates unfavourable fiscal policy inconsistencies and lack of the infrastructural facilities by the government, which have stunted and stagnated the growth of indigenous enterprise in international business (Arriyo 2010).

Indigenous entrepreneurs are seen as veritable engines of economic development, but the growth and development of indigenous entrepreneurs in international business have been slow and in some cases even stunted, due to a number of problems and challenges confronting this all- important sub-sector of the economy. Some of these problems includes: financial problems, poor management expertise, poor accounting system, lack of materials etc, which the researcher tends to find solution to them. More so, in Nigeria, most small enterprises are folding up or lack competitiveness because they lack the much required financial capacity to prosecute their manufacturing concern. Another challenges facing international business is the use of language. Being an international business person who is not fluent in the local language such as having the ability to directly communicate with employees and customers, understanding the manner of speaking within business in the local area to improve overall productivity, gaining respect of customers and employees from speaking with them in their native tongue.

1 .3 Objectives of the Study

The objective of the study was to ascertain the performance of indigenous enterprise in internationally business a case study of coal camp spare part. The specific purposes of the study are:

  1. To identify the various mode of entry into international business by indigenous entrepreneurs.
  2. To identify the constraints confronting the development of indigenous enterprise in coal camp spare parts.
  3. Assess the role played by government towards promotion and development of indigenous entrepreneurs.
  4. To examine the financial support given to indigenous entrepreneurs by Government to improve their performance in international business.

1.4 Research Questions

The following research question will guide the study:

  1. What are the various mode of entry into international business by indigenous entrepreneurs?
  2. What are the constraints confronting the development of indigenous enterprise in coal camp spare parts?
  3. What arc the role played by government towards promotion and development of indigenous entrepreneurs?
  4. What are the financial supports given to indigenous entrepreneurs by Government agencies to improve their performance in international business?

1.5 Research Hypotheses

H0:       There is no mode of entry into international business by indigenous entrepreneurs.

HI:       There is a mode of entry into international business by indigenous entrepreneurs.

H0:       There are no constraints confronting the development of indigenous enterprise in Coal Camp spare parts.

HI:       There are constraints confronting the development of indigenous enterprise in coal camp spare parts.

H0:       Roles are not played by government towards promotion and development of indigenous entrepreneurs.

H1:       Roles are played by government towards promotion and development of indigenous entrepreneurs.

H0:       Financial supports are not given to indigenous entrepreneurs by Government agencies to improve their performance in international business?

HI:       Financial supports are given to indigenous entrepreneurs by Government agencies to improve their performance in international business?

1.6 Significance of the Study

This study when completed would be a valuable help to various stakeholders for implementations with the concerned efforts of all and sundry including: governments at all levels, SME promoters etc.

Policy makers: It guides them in making policies and regulations that will create enabling environment for indigenous entrepreneurs. SMEs: This study will enable them to identify the problems confronting the development of small enterprises.

Investors/Entrepreneurs: It will enable them to know what they expected of government in the promotion of small enterprises. It will also enable them to know the cost involvement in establishing the small enterprises and the obstacle faced by the indigenous entrepreneurs.

Companies: They will also benefit from this study, since they are interested in the overall success, operational and financial efficiency evaluation of the firm.

Student/Researchers: This study will also be a benefit to them, since there are curious in studying or knowing more about the topic and in their research work.

1.7 Scope of the Study

The study will be focused on the performance of indigenous enterprise in international business in Enugu coal camp spare parts.

1.8 Limitations of the Study

Certain limitations were encountered in the course of this study, key among these includes:

Unavailability of Data

One of the greatest challenges the researcher encountered in this study relates to access to and collection of hard data due to extreme data gaps.

Time and Funds

Another limitation of this study relates to time, funds and logistics constraints, which limited the intensity of the spread or are of coverage of the study.

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Assessment Of Indigeneous Entrepreneurs In International Business