Contribution Of Business Support System To Entrepreneurial Development
(A Case Study Of Industrial Development Centre, Enugu)
Business Support Systems (BSS) play a crucial role in fostering entrepreneurial development by providing a foundation for efficient and effective business operations. These systems encompass a range of tools and processes, including financial management, marketing support, technology infrastructure, and administrative services, which collectively empower entrepreneurs to navigate the complexities of running a business. BSS helps entrepreneurs streamline their operations, enhance decision-making through data-driven insights, and optimize resource allocation. Additionally, these systems often facilitate access to funding, mentorship, and networking opportunities, fostering a conducive environment for business growth and sustainability. By offering comprehensive support, BSS significantly contributes to the overall development and success of entrepreneurs, enabling them to overcome challenges and capitalize on opportunities in the dynamic business landscape.
Contribution of Business support system in entrepreneurial has highlighted its contribution of business support of small scale business and has helped to trance productivity, increase self reliance and employment opportunities.
Support systems like, the Central Bank of Nigeria (CBN), Nigeria bank for commerce and industry (NBC) National Directorate of Employment (NDE), National Economic Reconstruction Fund (NERFUND), Industrial Development Centre (IDC).
These support system and organization has realty helped in improving the small scale business and has helped to develop entrepreneurial development. In analyzing the research work properly, the researcher analyzed the research chapter by chapter.
Chapter one is all about the introduction of the research of which states the background of the study, significance of study, the scope and limitations of the study and all other organization and Definition of terms, the researcher used in the research.
Chapter two of this research is reviewing the related literature of the work that is enhancing the entrepreneurial developments in the country. The relevant of the small businesses to the Nigeria economy, its contributions to entrepreneurial.
Chapter three, of the research is all about the design and methodology of the research that is the design area of the study, population, sampling and sampling procedure, types of data used, location of data, research instruments, procedure of data gathering, method of data analysis.
Chapter four of the research is about presentation and analysis of data that is how to present the data and analyze all the data collected.
Chapter five, which is the final chapter is about the summary of the researcher findings, recommendation and conclusion of the research works and finally references that was used.
Title Page II
Approval page III
Dedication IV
Acknowledgement V
Abstract VII
Table of contents IX
CHAPTER ONE
Introduction 1
1.1 Background of the study 1
1.2 Statement of the study 4
1.3 Purpose of study 5
1.4 Significance of study 5
1.5 Scope and limitation of study 5
1.6 Research questions 7
1.7 Organisation of study 7
1.8 Definition of terms 8
CHAPTER TWO
Review of related literature
2.1 Preamble 10
2.2 Review of definitions 11
2.3 The relevance of small scale business to the Nigeria economy. 16
2.4 Credit schemes for small scale industries 24
2.5 Problems of small scale businesses 33
2.6 The contribution of business agencies in sourcing for entrepreneurial 39
2.7 Support systems and entrepreneurial development 43
2.8 Industrial development centre (IDC) and entrepreneurial development 54
2.9 The types of support given to (IDC) industrial
development centre 56
2.10 Entrepreneurial development in Enugu state 60
CHAPTER THREE
Design and methodology
3.1 Research design 63
3.2 Area of study 65
3.3 Population 65
3.4 Sample an sampling procedure 65
3.5 Types of data used 66
3.6 Location of data 67
3.7 Research instrument 67
3.8 Procedure for data gathering 68
3.9 Method of data analysis 68
CHAPTER FOUR
Presentation and data analysis
4.1 General information 71
4.2 Presentation and analysis of data 72
CHAPTER FIVE
Summary of findings, recommendations and conclusion.
5.1 Summary of findings 88
5.2 Recommendations 89
5.3 Conclusion 92
5.4 Suggestion for further research 93
BIBLIOGRAPHY 94
Questionnaire 97
INTRODUCTION
1.1 BACKGROUND OF THE
The goal or desire of any nation is to achieve its economic growth and development. For the Nigeria government, employment provision for all and reasonable development of all localities are certainly not feasible within the limited government structures and establishment. The federal government therefore considers the active participation of the private sector especially at the grass root as the most viable means of achieving the development and job provisions. Hence, in its second and third national development plan, the federal government adopted the policy of giving active support to the promotion and development of small and medium enterprises on the country. However, are would want to know what entrepreneurial development is all about. According to some writers, especially in the written work of H. O. Amaechina “entrepreneurship concept of small business management”, entrepreneur. So defined as the willingness and ability of an individual to seek out investment opportunities, establish and run the enterprise successfully. Thus entrepreneurship is associated with different kinds of activities that has to do with the establishment and operation of business enterprises. Such activities may include;
1. Identification of investment opportunities.
2. Deciding what opportunities to exploit for profit.
Promotion and establishment of the business enterprises.
1. Pooling of the various scarce resources needed for production and distribution of good and services.
2.Organisation and management of the human and material resources for the attainment of the objectives of the enterprise, risk bearing and innovation.
On the other hand, entrepreneurial development can be described as the varied programme, and incentives provided by governments and non-governmental agencies aimed at training, promoting and encouraging entrepreneurs toward the attainment of maximum economic returns in any business ventures they embark on.
The importance of entrepreneurial development in the economy aids entrepreneurs to identify a profitability business and how to go about it. It makes the entrepreneur to be aware of how to locate a business. it creates awareness on the area of location and if it can affect their business. Infact, entrepreneurial development helps to avoid business failures.
The small business supports system such as National Directorate of Employment (NDE), Nigeria Bank for Commerce and Industry (NBCI), National Economic Reconstruction Fund (NERFUND), and industrial Development Centre (IDC) are all set up to aid small scale business in the areas of finding development of managerial and technical skills.
Industrial Development Center as one of the small business support systems is set to provide technical services such as;
Technical advice and assistance regarding the selection of the right machinery, equipment and raw materials for the purpose of setting up the business.
Assistance in the installation and operation of the machinery.
On the job training of the artisans in handling of the machines.
Giving advice an assistance to small industrialists to improve the design and quality of their products.
There are other managerial services which include:
Training of proprietors and the supervisory staff of small and medium enterprises in modern management methods and practices.
Supply of economic information needed by prospective investors for making investment decisions.
Financial counseling
Organizing seminars and workshops.
Supply of industrial information
Feasibility studies and market surveys.
To what extent has this organization (IDC) achieved these objectives in the support of small scale business is the focus of this research.
STATEMENT OF THE PROBLEMS
It is a general assumption that small – scale business is imperative for national growth and development. It has been emphasized that Nigeria is entrepreneurial under-developed.
1.3 PURPOSE OF STUDY
The nation is experiencing a lot of economic crises such as decline in business activities, unemployment inflation, and mostly the problem of retrenchment. The purpose of this study therefore is to asses the contribution of industrial development center towards the solving of the unemployment crises and the realization of self reliance on the economy.
1.4 SIGNIFICANCE OF THE STUDY
The importance of this study is to help small scale business entrepreneurs gain awareness into organisation and institution where they can gain aid in terms of finance, managerial and technical assistance in the attainment of successful business ventures.
1.5 SCOPE AND LIMITATION OF THE STUDY
The research project is to cover the industrial development center (IDC) Enugu, which falls under the Owerri industrial development center zone. The research work has some literature as regards to time constraint, fiancé dearth of statistical information and secrecy/privacy.
TIME CONSTRAINTS
The researcher did not reach to all information and places necessary for this research work as a result of limited time available for this research work.
FINANCE
Due to the shortage of financial with the economic hardship, the money needed by the researcher to finance the project was limited.
DEARTH OF STATISTICAL TOOL
This research study was not sufficient due to improper record system of the board. There was also lack of research facilities from the libraries visited many of the textbooks in the library are absolute and current information needed for this research work are not enough.
SECRECY/PRIVACY
Some of the staff in industrial development center did not reveal of all information needed fo this research because of far of losing their jobs
RESEARCH QUESTIONS
Is the performance of small – scale industries dependent on their training?
What is your area of coverage?
Does industrial development centre (IDC) Enugu have adequate facilities to cover its areas of operations?
HYPOTHESIS
The performance of small – scale industrial is dependent on their training.
Industrial development center, Enugu is having adequate coverage in its areas of operations.
ORGANIZATION OF STUDY
The research titled “contribution of business support to entrepreneurial development center Enugu” has given to small scale enterprises. It is divided into five chapter dealing with specific. Chapter one deals with introduction, which consists of background of the study, statement of problem, significance of study, scope and limitation, purpose of the study, research questions and definition of terms. Chapter two deals with review of related literature such as review of definition, small scale business, relevance to the Nigeria economy, small scale industries credit schemes problems of small scale business, contribution of government agencies in sourcing information for entrepreneurs, small scale business support system and entrepreneurial development, industrial development center (IDC) and entrepreneurial development.
Chapter three deals with research design and methodology, which constitutes research design, area of study, data used, location of data, instrument of data collection, methods of data analysis.
Chapter four deals with data presentation and analysis. Chapter five deals with findings, conclusion and recommendations for further studies.
DEFINITION OF TERMS
Entrepreneurial development: is defined as the various programmes and incentives provided by governments and non-governmental agencies aimed at training, promoting and encouraging entrepreneurs towards the attainment of maximum returns on any business ventures carried out.
Entrepreneurship: Defined as the willingness and ability of an individual to seek out investment opportunities, establish and run an enterprise successfully.
Entrepreneur: Defined as an individual who is willing and able to take business risks for gainful poses.
Support system: Is defined as organisation or institution designed to give financial, managerial and technical support to small scale business.
Contribution Of Business Support System To Entrepreneurial Development:
Business Support Systems (BSS) play a crucial role in facilitating entrepreneurial development by providing essential tools, resources, and services that help entrepreneurs start, grow, and sustain their businesses. Here are some of the key contributions of BSS to entrepreneurial development:
- Access to Information and Market Research: Business Support Systems provide entrepreneurs with access to valuable information and market research data. This helps entrepreneurs make informed decisions about their products or services, target markets, and competitive landscapes.
- Business Planning and Development: Business Support Systems often offer services and tools for business planning and development, including templates for business plans, financial projections, and marketing strategies. This support is invaluable for entrepreneurs in the early stages of their ventures.
- Funding and Financial Support: Many Business Support Systems provide information about various funding options available to entrepreneurs, including loans, grants, and venture capital. They may also assist in preparing funding applications and connecting entrepreneurs with potential investors.
- Mentorship and Networking: Business Support Systems can facilitate mentorship programs where experienced entrepreneurs or business professionals guide and advise new entrepreneurs. Additionally, they often host networking events and provide platforms for entrepreneurs to connect with potential partners, customers, and mentors.
- Training and Workshops: Entrepreneurial development programs offered by Business Support Systems often include training sessions and workshops on various aspects of business management, such as financial literacy, marketing, and operations. These programs help entrepreneurs acquire essential skills and knowledge.
- Access to Infrastructure: Business Support Systems may offer co-working spaces, incubators, and accelerators, providing entrepreneurs with physical infrastructure and resources they might not otherwise afford. These spaces foster collaboration and innovation.
- Technology and Digital Tools: In today’s digital age, Business Support Systems can offer entrepreneurs access to technology resources and digital tools that are essential for running modern businesses. This includes website development tools, e-commerce platforms, and software for managing operations.
- Legal and Regulatory Guidance: Entrepreneurs often face complex legal and regulatory requirements. Business Support Systems can provide guidance on issues like business registration, intellectual property protection, and compliance with local laws and regulations.
- Market Access and Export Support: Business Support Systems can assist entrepreneurs in expanding their market reach by providing guidance on entering new markets, navigating international trade regulations, and accessing export assistance programs.
- Monitoring and Evaluation: Business Support Systems may help entrepreneurs track their business performance by offering tools for financial monitoring, customer feedback analysis, and key performance indicators (KPIs) measurement. This allows entrepreneurs to make data-driven decisions.
- Crisis Management and Resilience: Business Support Systems can play a role in helping entrepreneurs navigate through crises, such as economic downturns or public health emergencies, by offering resources for business continuity planning and access to emergency support programs.
- Policy Advocacy: Some Business Support Systems engage in advocacy efforts to promote policies that support entrepreneurship, such as tax incentives, regulatory reforms, and access to funding programs.
In summary, Business Support Systems contribute significantly to entrepreneurial development by providing a wide range of resources and services that help entrepreneurs overcome challenges, make informed decisions, and grow their businesses. These systems create an ecosystem that fosters innovation and economic growth, ultimately benefiting both individual entrepreneurs and the broader economy.