THE IMPACT OF ENTREPRENEURIAL
DEVELOPMENT ON THE ECONOMIC DEVELOPMENT
OF A STATE (ACASE STUDY OF SELECTED FIRMS IN ENUGU URBAN)
This research work has the title, “The Impact Of Entrepreneurial Development on the Economic Development of a State”. This study was embarked upon in order to know the problems militating against entrepreneurship, its source of finance and the roles entrepreneurs play in Enugu Urban area as a test case.
A good number of works already carried out were reviewed, In order to achieve the set objectives; care was taken in collection relevant data using primary and secondary method of collection. Such as interview, questionnaire administered personal interview, and observation.
Target population was appropriately segmented into sample –size. The researcher tried as much as possible to state the impact of Entrepreneurial development on the Economic development of a state bearing in mind the importance of the study.
The date gathered which were subsequently analyzed and interpreted, helped us to know the Impact of Entrepreneurial Development on the Economic development of a state in the area of job opportunities and the importance of national directorate of Employment (NDE) to Entrepreneurs in their firms.
Consequently, the researcher found out that entrepreneurship attributes so much in our Economic development positively such as,
-provision of employment opportunities
-production for exportation
-increase on our foreign exchange earnings.
Finally, the researchers recommended that the government should provide and keep proper watch on the entrepreneurs as checks and balances; they should be increase in the proper utilization of credit facilities to enhance the growth of entrepreneurship in Enugu urbanArea and the like
TABLE OF CONTENT
Title Page - - - - - - - i
Approval Page - - -- - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table OF CONTENT - - - - - - - vii
1.0 INTRODUCTION - - - - - - 1
1.1 Background of the Study - - - - 1
1.2 Statement of the Problem - - - - 4
1.3 Purpose of the Study - - - - - 5
1.4 Scope of the Study- - - - - - 5
1.5 Research Questions - - - - - 6
1.6 Signification of the study - - - - 6
1.7 Limitation of the Study - - - - - 7
1.8 Definition of Terms- - - - - - 8
2.0 Review of Related Literature - - - - 13
2.1 Meaning and Concept of Entrepreneurship - 13
2.2 History of Entrepreneurial Development in Nigeria.- 21
2.3 Economic Effect of Entrepreneurship in Nigeria - 26
2.4 Impact of Entrepreneurial Development
in Enugu- Urban. - - - - - - 31
3.0 Research Design and Methodology - - - 35
3.1 Research Design - - - - - - 35
3.2 Area of the Study - - - - - - 36
3.3 Population of the Study - - - - - 36
3.4 Sample and Sampling Procedure - - - 36
3.5 Instrument of Research - - - - - 37
3.6 Validation of Instrument - - - - - 37
3.7 Reliability of the Instrument - - - - 37
3.8 Method of Data Collection. - - - - 38
4.1 Data Presentation and Analysis - - - 39
4.2 Summary of Results - - - - - 43
5.0 Discussion of Results and Findings - - - 44
5.1 Summary of Finding - - - - - - 44
5.2 Conclusions - - - - - - - 45
5.3 Implication of the Research Findings - - - -46
5.4 Recommendations - - - - - - -46
5.5 Suggestion for the Research - - - - -48
Appendix - - - - - - - - - -50
Bibliography - - - - - - - - 56
1.1 BACKGROUND OF THE STUDY
The world economics fall of the early years cause a quick fall of the Nigeria economic. The output shrank to all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country, this situation of unemployment in the country therefore calls for entrepreneurship in Nigeria economy which will lead to entrepreneurial development in the higher institution. However, at this juncture a brief history of entrepreneurship in Nigeria will give more insight on the study. The actual potential entrepreneurs may not need to be given a fish but rather information on how to catch a fish because information is the greatest asset you need. Statistics have it that African is the poorest in the world and also the less developed continent. Many state owned enterprises (firms) in Enugu urban were created when it was believed that the fastest route to development occurred when the state took on the roles of entrepreneurs Although Enugu urban was at one time characteristerized by such inefficiency, but has recently pursed entrepreneurship encouragement policies. And these policies have been successful. Nigeria is still ploughed by many development problems preliminary evidence suggests a favorable respond by the private sector to the new entrepreneurial opportunity.
Even though there is only limited consensus about the characteristics of entrepreneurship. The concept is now very old as the formal discipline of economic itself early 18th century, French economist named Richard Canadian first introduced the terms entrepreneur in this coritting he formally described the entrepreneur as the agent who buys the means of production at certain prices in order to combine them into new product- A French economist J.B added the definition by including the idea that the entrepreneurs have to be leaders, is also the one who build a single product organism Schumpeter (1951)
The necessity of entrepreneurship for productivity was formally organized by Alfred marshal in (1990) his famous practice principle of economic marital ascertain that there are four factors of production, land, labour capital and organization which are utilized by an entrepreneur.
Entrepreneur can be seen as the willingness and ability of an individual to seek out investment opportunities, establish and run an enterprise successfully. Hence early entrepreneurs were characterized with production and manufacturing. In this case, the producers most often started with trade by barter even before the advent of money however, modern entrepreneurship in Nigeria sated with the coming of the colonial masters, who brought in their wears and max Nigerians their middlemen. In these way modern entrepreneurs was conceived. Most of the modern entrepreneurs were engaged in retail trade or sole proprietorship.
1.2 STATEMENT OF THE PROBLEM
When comparing entrepreneurship development in Enugu urban with other towns started on the same platform as Enugu with trade by barter and then advanced to their present state of economic growth- those towns are faster in their development of entrepreneurship then Enugu urban why this differences?
This research work will find out to these effects
1. The general problem encountered by entrepreneurs in Enugu urban in establishing business
2. To find out the basic orientation that should be given to Enugu urban entrepreneurs
3. To discover the rate of employment and find out the various business opportunities that will be help to the Enugu urban economy through entrepreneurship
4. To also find out how government program has been of help to various entrepreneurs in the city
1.3 PURPOSE OF THE STUDY
1. To know the extent to which firms in the Enugu urban study entrepreneurship
2. To know the problems encountered by entrepreneurs in their firms.
3. To know the important of entrepreneurial development on the two (2) selected firms in Enugu urban.
4. To know the promotional tools used by the firms to improve productivity
5. to know the extent to which lack of research occur in their firm
1.4 SCOPE OF THE STUDY
The scope of this study is restricted to the Impact of Entrepreneurial Development on the economic development of a state with regard to two selected firms in Enugu urban which includes.
1. Innotex global LTD
2. Innson Technical Industrial Company LTD
1.5 RESEARCH QUESTIONS
For the purpose of presenting a good research work, some fundamental questions, bordering on the already fact problem were ask.
1. Do you organize entrepreneurship seminar in your firms?
2. What are the problems you encounter as an entrepreneur
in your firms?
3. What is the important of this entrepreneurship to your economy
4. What promotional tools do you apply to let people know more about your products especially in this urban area?
5. To what extent do you study research in your firms?
1.6 SIGNIFICANCE OF THE STUDY
The importance of the study cannot be over emphasized, since it is expected to affect our economy and also increase the creation of job opportunities in the country especially in Enugu state. How ever, this project when conducted will be of immense benefit to the following:
-The Nigeria economic in general
-The small scale industries
-The general public
-Creation of job opportunities in the state also there will be increase in the managerial skills.
1.7 LIMITIATION OF THE STUDY
The study is limited to the benefits and Impact of Entrepreneurial development with special attention to Enugu urban.
Besides, in the course of conducting the research, there are some hindrances like not having enough materials to research on.
Also, the research is faced with time constraints as it has an effect on our study time in the framework of our school as assignment and quizzes. Also, finance is another limiting factor that will hinder the completion of this research work.
1.8 DEFINITION OF TERMS
The following terms used in this study should be taken to mean the following:
1 SMALL SCALE INDUSTRIES:
This is a manufacture processing or services industry involved in a factory or production type of operations, employing up to fifty (50) full time workers, it also stated, the government are encouraging people to establish their own small enterprises to reduce the problem of unemployment in the state and also reduce the rate of importation of goods, more so to produce exportable products.
2 NATIONAL DIRECTORATE OF EMPLOYMENT (NDE):
They are one of the agencies which provide loans to graduates for the operation of small scale business.
3 PROMOTIONAL TOOLS OF A FIRMS:
Is the combination of one or more of the elements it chooses to use to communicate its offering to the market. Promotion has the objective informing, persuading and reminding. It forms the potential buyer about the alienability and nature of products.
The elements or tools that make up promotional tools are:
b. Personal Selling
c. Sales Promotion
d. Rubric Relations and Publicity
a. ADVERTISING: Advertising is defined as any paid form of non-personal sales presentation of a product services, ideas, by and identified sponsor. The media used in advertising to transmit information include newspapers, magazines, television, direct mail, radio and outboard bill board. Advantages of advertising include the reading a large number of people efficiently and the ability to communicate specific product benefit it’s to prospective buyers.Advertising allows a company to control what it wants to say, how it wants to say it and when to send the message.However, it has the disadvantage of no immediate feedback Edoga (2005, P193) advertising is paid form of non-personal communication about an organization, goods, service or idea by an identified sponsor.
b. PERSONAL SELLING: This is another major element in the promotional tools, it is person to person communication in which immediate feedback is provide to the audience as it is a conversation between two or more parties. Kotler (2000,P 550) personal selling is a face to face interaction with one or more prospective purchasers for the purpose of making presentations answering questions and procuring orders.
c. SALES PROMOTION: This is defend as any promotion activity other than advertising, personal selling, public relation or publicity, direct marketing which is aliened at moving sales above its immediate level. Edoga (2005:194) sale promotion consists of marketing activities other than personal advertising public relations that re-stimulate consumer purchases and dealer effectiveness.
d. PUBLIC RELATION AND PUBLICITY: This is defined as an organization effort aimed at building good will or mutual understanding between an organization and the public.Publicity on the other hand is a tool on public relations.An advantage of publicity credibility. The disadvantages of publicity related to the lack of the user’s control over what is said, to which or when. Adirika (1996:90) public relation is a planned and sustained effort by an organization to create and maintain favorable relationship between the organizations and its numerous public while publicity is news worthy item or event about company and its product.
e. GROSS NATIONAL PRODUCT (GNP): This is one of the needs for entrepreneurship in the growth national of the economy. Is the total naira value or state in a particular year
f. ENTREPRENEUR: This is a person who starts a business and takes the finance risks and personal risks involved in keeping the business going or .An entrepreneur is an individual agent who buys means of production at a certain price in order to combine them into new product.