Economic Determinants of Entrepreneurial Success in Nigeria: A Study of Indigenous Furniture Makers in Rivers State

 

ABSTRACT

The research work is on the Economic Determinants of Entrepreneurial Success in Nigeria: A Study of Indigenous Furniture Makers in Rivers State. Data used for the work were collected from both primary and secondary sources. The relevant data collected were analyzed using Spearman Rank Correlation. The result of the analysis revealed that finance is very important for the growth of small and medium scale enterprises and also that entrepreneurs in Rivers and Nigeria in  general would be able to experience growth if the funding was made available.The study concluded that Entrepreneurs have been recognised to engines of growth in many economies around the world. Given this, it is very important that government promote entrepreneurship by providing access to finance for investment. But this has not been achieved in the case of Nigeria, where according to our findings; most entrepreneurs have no access to additional funding. Finally the study recommends among other things that: Information about entrepreneurship promotion in Nigeria should be effectively disseminated amongst interested entrepreneurs. Commercial and micro-finance and institutions should be encouraged to provide not only funding for entrepreneurs but also technical assistance.

 

                                                                                98 Pages       

Project Reference Code: C017

 

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Entrepreneurship success according to Scott and Twomey (1988) is hinged on three factors. These are: Predisposing Factors: Those elements that prepare individuals for entrepreneurship, such as, work experience, education, family background and entrepreneurial traits; Triggering Factors: Those elements that pull individual into entrepreneurship for example, windfall, desire for independence, desire to exploit an opportunity, financial incentives, liberalization, privatization, political, social or economic revolution. On the other hand, some individuals are pushed into entrepreneurship by circumstances like economic hardship, unemployment, retrenchment, disagreement etc.

Business Ideas: These are the concepts that individuals have that when implemented nascent businesses emerge. Thus, if these factors are available there is every likelihood that the individual will want to become an entrepreneur. The presence or absence of the above factors will also play a very important role in the success or failure of the entrepreneur. For example, a good business idea on its own will not necessarily translate into entrepreneurial success unless the individual possesses the drive to become a successful entrepreneur, has the right experience, possesses the financial capacity and incentives, has an opportunity to exploit and desires the independence that comes with working for ones’ self. The absence of any of the above may greatly hamper the success of the entrepreneur.

From the above, it can be seen that the success of the entrepreneur is dependent not only on his desire to become one but also on his ability to develop the right business idea and plan and most importantly raise the required capital. In fact in some cases, the desire to become an entrepreneur may be predicated on the availability of unutilised funds. Thus, if capital is available the willingness to become an entrepreneur and capacity for success will be greatly enhanced for the entrepreneur.

The need to understand the determinants of entrepreneurship is as important as understanding its concept. If the determinants are well understood, supporting institutions and innovative actions can be undertaken to promote innovations and competitive enterprises in the country. Policies and programs designed specifically for entrepreneurship promotion can greatly affect the innovation and the competitiveness of businesses and thus create wealth in the country (Hisrich, 2008; Storey, 1994; Mache and Markley 2003).

According to Macke and Markley (2003), economies with high rates of entrepreneurship are performing well, and this is evidenced by high levels of prosperity. Many authors argue that entrepreneurship is largely a phenomenon of developed and industrialized countries and that, if it was transferred together with western management practices, then the problems of underdevelopment could be solved (Casson, 1982; Hisrich et al 2008 and Deakins and Freel 2003). Entrepreneurship has been seen as a key to economic development in many countries across the globe for many years (OECD, 1998 and 2003). This study therefore seeks to investigate the role of finance (capital) as a determinant of entrepreneurial success and also how successful entrepreneurship can be measured effectively.

1.2      STATEMENT OF THE PROBLEM

Entrepreneurship is relevant in promoting innovation leadership in businesses in different countries. Nigeria vision 2020 emphasizes the need for appropriate entrepreneurship strategy for wealth creation as one of the means to make Kenya a globally competitive and prosperous nation. Nevertheless, economic factors influencing entrepreneurial activities are not clear.

Policy makers need to understand the factors in order to come up with viable policies and development programs to promote entrepreneurship in the country. However, social scientists have not yet agreed on the determinants of entrepreneurial success, yet policy makers need to know the determinants in order to come up with viable policies that create an enabling environment for innovation and business competitiveness.

The establishment of validated determinants of success in entrepreneurship could be of much help to the government to intervene in the economic development. According to McGrath et al (1992), it is important to fully understand what constitutes and drives entrepreneurial success if such activities were to be motivated.

Much previous studies on the factors that determine entrepreneurial success has concentrated on the provision of infrastructure, enabling environment and education/training. Very few studies have focused on the issue of economic determinants. This study is intended to fill this gap in literature by shedding more light on the role that economic endowments (especially availability of finance) play in encouraging entrepreneurial success.

 

1.3      PURPOSE OF THE STUDY

1.4      RESEARCH QUESTIONS

1.5      RESEARCH HYPOTHESES

Ho1:  There is no significant relationship between the availability of finance and business growth among entrepreneurs in Rivers State.

Ho2:  There is no significant relationship between the availability of finance and the volume of sales among entrepreneurs in Rivers State.

1.6      SIGNIFICANCE OF THE STUDY

1.7      DEFINITION OF TERMS

1.8      LIMITATIONS OF THE STUDY

1.9      SCOPE OF THE STUDY

1.10 ORGANIZATION OF THE STUDY

REFERENCES

 

 

 

CHAPTER TWO

REVIEW OF RELEVANT LITERATURE

2.1      THEORETICAL FOUNDATIONS OF ENTREPRENEURSHIP 

Entrepreneurship is a complex phenomenon, as it can be viewed from economic, psychological, sociological cultural and integrative perspectives. These different view points lead to varying definitions of entrepreneurship. Barnett (1993) after studying more than 70 viewpoints of scholars on entrepreneurs and entrepreneurship concluded that, it is not easy to come up with a consensus definition from the literature.

Kilby (1971) refers to entrepreneurs as complex individuals because no one has been able to precisely describe or define what they are. He further states that the ideas in the entrepreneurship schools of thought are not original in the strict sense and therefore, the choice of the working definition of entrepreneurs is scholarly work and hence subjective to the scholars. Jennings (1994) does not find it necessary to define entrepreneurship as the concept has multiple perspectives.

His argument is that the field of entrepreneurship needs multiple paradigms that are different because research in entrepreneurship serves a variety of purposes.  Kapp (2003) suggests that a multidimensional perspective should be used when analyzing entrepreneurship because it is not easy to comprehend the concept from one perspective as it is a multidimensional phenomenon. 


 

2.1.1        Economic perspective

2.1.2        Psychological and Personality perspectives

2.1.3        Sociological and Cultural perspectives 

2.2 ENTREPRENEURSHIP IN THE NIGERIAN ECONOMY

2.3 ENTREPRENEURSHIP AND ECONOMIC GROWTH

2.4   ECONOMIC DETERMINANTS OF ENTREPRENEURIAL SUCCESS (AVAILABILITY OF FINANCE)

REFERENCES

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.0   INTRODUCTION

The research methodology can be described as the method, procedures in embarking on a study. It involves the outline of the research design, method of data collection, and method of data sampling procedures. According to Onuma A. O, research method is defined as the procedures adopted by rational minds In conducting a study which must be in agreement with the nature of study adopted. Such a study could be descriptive, explanative or purely field study depending on the subject matter.

 

3.1 RESEARCH DESIGN

Research design is defined by Baridam (1995) as a framework or plan that is used as a guide in collecting and analyzing the data for a study. Two major types of research design have been identified namely, the Experimental and Quasi - Experimental research design.

By definition the experimental research design is the type adopted in pure and applied science where the study takes place in the laboratory and the researcher is considered to have complete control on the variable of the study. The quasi-experimental research design is the type to be adopted in this study because it does not take place in the laboratory like the experimental research design. It is not subjected to control in respect of the variable under study. Therefore, the quasi experimental research design (field survey) is adopted for this study as its research design.

 

3.3   POPULATION OF THE STUDY

The population of the study consists of all ingenious furniture makers in Rivers State. But it is important to note that it would very difficult to reach the entire population. Thus, we intend to concentrate our study on the furniture makers cluster area within Port Harcourt metropolis. Thus, indigenous furniture makers in Port Harcourt constitute our accessible population.

3.4 SAMPLING PROCEDURES

3.5 QUESTIONNAIRE DESIGN

3.6 DATA ANALYSIS TECHNIQUES

REFERENCES

 

CHAPTER FOUR

DATA AND PRESENTATION ANALYSIS

4.0   INTRODUCTION

In this chapter, we carry out an analysis of the data collected from primary sources with questionnaire (as the data collection instrument) on subjects related to the study. For the purpose of clarification and easy understanding of the analysis, this chapter has been divided into three sections. The first section presents and analyses of the respondents characteristics. The second section examines the responses directly related to the research questions raised for this study while the third section deals with the testing of hypotheses.

Tables showing frequencies and percentages were used for the presentation of the data and the report is structured around these exhibits. The total number of questionnaire distributed was fifty five (55) while the total number of questionnaires returned was forty six (46). This indicates a response rate of about eighty four percent (84%).

4.1   DATA PRESENTATION

4.2   DESCRIPTIVE ANALYSIS

4.3   HYPOTHESIS TESTING

4.4.1 HYPOTHESIS ONE

4.4.1 HYPOTHESIS TWO

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 INTRODUCTION

5.2   SUMMARY

5.3   CONCLUSION

5.4   RECOMMENDATIONS


BIBLIOGRAPHY

Babu, Mohan (2003), "The Many Models of Entrepreneurship," The Business Publication Division of the Indian Express Group of Newspapers, pp 1 - 3 Mumbai - India.

Baridam D. M. (1995). Research methods in administrative sciences, Paragraphics publication, Port Harcourt.

Barnett, C. G. (1993): Defining Entrepreneurship, paper delivered at the 7th annual conference of small business, Southern Africa.

.

Scott, M. G. and Twomey D. F. (1988). The long-term Supply of Entrepreneurs: Students' Career Aspirations in Relation to Entrepreneurship, Journal of Small Business Management, pp26, 35-73.

Storey, D. J. (1994). Understanding the Small Business Sector. London: Rutledge.

Thurik, R. and Sander W. (2001). A Note on Entrepreneurship, Small Business and Economic Growth. Rotterdam: Erasmus Research Institute of Management Report Series.

 

QUESTIONNAIRE

 

Project Reference Code: C017


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