Impact Of Entrepreneurship Activities On The Promotion Of Economic Development In Nigeria

Introduction

1.1 Background of the Study

The contribution of entrepreneurs to the economic development of any country is of immense value, indispensable to the economic growth and development. Their products are valuable to the development of an individual, group of individuals, society and even the nation at large. However, an economy is much dependent upon the performance level of its entrepreneurs. This is because it serves as a mechanism used for raising the national income as well as per capita income of the people. Obviously, it is experienced over the years that the entrepreneurs are very essential to the rapid development of any nation and are also considered as one of the most necessary process of attaining industrialization (Norman 2013). Entrepreneurs around the world are now considered as primary engine of economic growth thereby utilizing an existing resource with their innovative ideas and add value via commercialization of newly products.

In furtherance, evidences have shown that global entrepreneurship monitor indicates that nations with high level of entrepreneurial activities enjoy strong economic stability. In fact, entrepreneurs are the links between new ideas and economic growth (Frese, M. 2000), more to that; empirical evidences indicated that entrepreneurs can be bedrock for meeting the growth and equity objectives of the Nigerian government. Therefore, the improvement of the policies, their effective as well as efficiencies in designed projects can absolutely serve as an essential instrument for ensuring the quietly contribution to the economy from entrepreneurs to economic development and ultimate search for being self-reliant which immensely contribute to Nigeria as a developing country in which industrialization can be achieved in the long run.

In another package, it is established that the entrepreneurs play a vital role for the economic development of a country. The progress of a country will defend upon their skill and talent as well as their hard work to deliver necessary goods and services required by the citizens of the country. This is to say that entrepreneurs stimulate the economy of a country’s investment, employment, diversity in product and services, international trade and also to gross national product (GNP), because the GNP of a country is calculated based upon the total number of products and services available in respective country. Thus, the more products and services are available, the higher the GNP.

This also indicates the prosperity of the country. In addition, entrepreneurs are significantly contributes to the overall growth of a nation’s economy in terms of GDP (by employment generation and exports). It is based on this background the study aimed at assessing the contribution of entrepreneurs in the economic development of Nigeria.

1.2 Statement of the Problem

Entrepreneurs in Nigeria, particularly those operating in Akure, encounter numerous obstacles as they navigate the country’s economic landscape. These obstacles include inadequate capital, poor management and entrepreneurial skills, social pressure, management related impediments, technologically induced constraints, inadequately trained manpower, and infrastructural facilities such as electricity, water supply, and bad roads, to name but a few. These challenges are obstacles to entrepreneurial operations in the state and nation at large and need to be addressed by the government in order to promote rapid economic development.

Ondo State can realise essential and accelerated economic development and sustainable growth if the government designs and adopts a policy that addresses the defined problems, which in turn promotes entrepreneurial activities and results in enhancing the achievement of economic growth and development over time. However, the failure to design such policies and programmes in contrast can translate, as they continue to thrive tremendously even in times of severe difficulties. The entrepreneurs in Akure metropolis are engaged in too many informal economic activities, which form a sizeable proportion of the domestic economy and play a vital role in economic development. The contributions of entrepreneurs are limited with regards to the stated problems currently bedevilling entrepreneurs’ activities in Ondo.

1.3 Objectives of the Study

The broad objective of this study is to examine the impact of entrepreneurship activities on the promotion of economic development in Nigeria.

Specifically, this research set out to:

Determine whether there is a significant relationship between entrepreneurship activities and economic development in Nigeria.

Ascertain the contributions of entrepreneurship activities towards to promotion of economic development in Nigeria.

Find out the factors affecting the effectiveness of entrepreneurship activities in promoting economic development in Nigeria.

Proffer possible solution to the identified problems affecting entrepreneurship in Nigeria.

1.4 Research Questions

The study will be guided by the following questions;

Is there a significant relationship between entrepreneurship activities and economic development in Nigeria?

What are the contributions of entrepreneurship activities towards to promotion of economic development in Nigeria?

What are the factors affecting the effectiveness of entrepreneurship activities in promoting economic development in Nigeria?

1.5 Research Hypothesis

Ho: There is no significant relationship between entrepreneurship activities and economic development in Nigeria.

Ha: There is a significant relationship between entrepreneurship activities and economic development in Nigeria.

1.6 Significance of the Study

This study is significant in that it will help to identify the importance of entrepreneurship development in Nigeria. This study is significant in the sense that it will: Highlights the importance of entrepreneurship training and its impact on unemployment reduction in Nigeria. One of the SDG (Sustainable Development Goal) goals highlights education (training) as a critical factor to reducing poverty and dependency. Allow the identification of the concept and framework of entrepreneurship development and its contribution to Nigeria’s economy. Generate greater awareness among tertiary institutions on the importance of having proper and practical strategies for acquiring entrepreneurial skills. This research work will further serve as a guide and provides insight for future research on the topic and related field for academia’s and policy makers who are willing to improve on it.

1.7 Scope of the Study

The scope of this study boarders on the impact of entrepreneurship activities on the promotion economic development in Nigeria. The study will be delimited to SMEs in Akure, Ondo State.

1.8 Limitation of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that it is a new discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size covering only Jos South Local Government.

1.9 Definition of Terms

Entrepreneurship:

Entrepreneurship could be described as an act of how, by whom and with what effect opportunities to create future goods and services are discovered, evaluated and exploited.

Entrepreneurial Development:

This refers to every activities channeled towards creating and advancing the practice of entrepreneurship.

1.10 Organization of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, abnd selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.