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
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Reference Code: C017
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