THE IMPACT OF ENTREPRENURSHIP ON ECONOMIC DEVELOPMENT IN NIGERIA (A Case Study of Solat Manufacturing Company, Ibadan)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The issue or sustainable development in the third world countries like Nigeria has been a growing concern to both the government and private sector. The huge amount of money the government has being investing on this plat from over the years have not yielded any meaningful result. Poverty is a characteristic of Nigeria house hold or individual, it has been realized in the recent years that there are limits to which government can singly promote development. Most of the traditional function being carried out by the government in most countries ranging from the provision of economic development are becoming increasingly difficult to accomplish. Nigeria as a nation has her own peculiar developmental challenges because of malad ministration corruption infrastructural decay, insecurity of lives and properties, unstable macroeconomic regime and unpredictable fiscal policies by successive administration (Fasua, 2006) thus, both the public and the private sectors of the economic and every segment of the society need to be involved in the industrial development process of the country.

As globalization creates benefits through advanced technologies and expansion of commerce, it also creates challenges for emerging small business enterprises to effectively complete in an environment characterized by multivariate challenges. It is on this basis that governments begin to engage in privatization policy with the view of allowing the private sector to participate in the economic development of the nation.

Consequently, various government of the nation begin to find pathways to involve the private sector in the developmental process of their country’s economy one of the responses to the challenges of development entrepreneurial developing countries. Is the encouragement of entrepreneurial development scheme.

Nigeria had even taken more robust step by including entrepreneurial studies in the academic curriculum of her education system and with the introduction of national Directorate of employment (NDE) scheme. The believe of such policy makers is that such decision will inculcate entrepreneurial spirit in the mind of people so as to prepare them for wealth creation through entrepreneurship (Fasua, 2006). Entrepreneurship is very crucial to the development of a country’s economy, especially countries like Nigeria. Entrepreneurship is sine qua non to national development poverty eradication and employment generation it is the bed rock of any nation’s industrialization. Solat manufacturing company is purely indigenous manufacturing company. The manufacturing company came into existence in 1998 with the aim of purchasing straw, toothpick, and shopping bag.

The company is fully registered with the federal government of Nigeria. The director of the company is fully registered with all the appropriate professional bodies in Nigeria.

Solat manufacturing company also came into being as a result of many years of experience gained by the director and staff in the field of manufacturing industries both local and international.

The company deploys computer application packages in their project design and supervision services. All their staff are computer-competent. 

1.2 Statement of the Problem 

Actually, the role of entrepreneurship in the development of Nigeria economy is a successful story.

In the past, when Nigeria used to import all what she or he needed from which of course had made the country face a lot of instability in all aspects of national like both socially, economically, political and morally.

Moreover, the deficit balance of payment, this has greatly reduced the foreign exchange available to the country.

1.3 Research Question and/or Hypotheses

An hypothesis is an idea that is opened to acceptance or rejection in other words, it can be defined as a belief, opinion or a tentative assumptive statement made about something and which is yet to be emphatically tested and proved either true or false when an assumption is made or an ideal is put towards and it is still under research it means that either true or false results being accepted or rejected.

There are two (2) types of hypothesis, the null or positive hypothesis which makes a positive statement about which is to be investigated. It is represented by (Ho)

The alternative or negative hypothesis makes negative statement and it is represented by an abbreviation.

Ho: - There is no significance relationship between entrepreneurship and economic development in Nigeria

Hi: - there is significant relationship between economic development in Nigeria

Research Question

• • Is there any relationship between employees age and economic development?

• • Does Hierarchical position on the employee significant relationship with the level of economic?

• • Is there any relationship between entrepreneurship and economic development?

1.4 The Purpose of the Study

The main objective of the study is to appraise the effect of entrepreneurship on economic development of the state

1. To examine the significance of these entrepreneurship in solat manufacturing

2. To know and identify the extent to which entrepreneurship in solat manufacturing company

3. To know the rate at which the present economic in the country has affected the growth of these entrepreneurship in solat manufacturing company

 4. To know both the entrepreneurship and consumer reaction to entrepreneurship in Solats manufacturing company

1.5 The Scope of the Study

The project focuses on how entrepreneurship will impact to economic growth and how economic growth will be improved through entrepreneurship.

As a result of the numerical strength, entrepreneurship, the researcher have decided to limit their research to solat manufacturing company as our case study bearing it in mind that entrepreneurship operate system and principle nationwide.

1.6 Limitation of the Study 

A lot of constraints arose. During the course of this study which are likely to affect the result of this research work.

The limitations are stated below.

1. 1. Financial constraints limited financial capacity. The cost of traveling to get adequate, facts, cost of browsing, computer typing and binding of project is too costly.

1. 1. Time: the time assigned allowed for the project work limited to three months which is quite inadequate for the research of this magnitude.

1.7 The Significance of the Study

Categorically, there is failure to ach8ieve the goal of industrial through reliance on entrepreneurship strategy it has done on the economic planner of the less developed countries that the path to economic growth can not be exclusive, if any experience has shown that the goals and aspiration of full employment, self reliance and less developed countries.

The realization of this fact has led to a tradical change in government attitude, and position inclination towards the development of indigenous and entrepreneurship.

1.8 Definition of Terms

Income: - is the reward of his activities and realized as a profit oriented business.

Training: - the operation of entrepreneurship by the proprietor gives limit the opportunity to development his managerial ability toward the management of large entrepreneurship.

Employment: - this is one of the combinations of entrepreneurship to the entrepreneurship particular people to work in the firm or company.

Financing: - the acquiring and use of funds to cover the expenses use in the operation of the business.