Administration Of Entrepreneurship Policy And Employment Generation In South -West, Nigeria (2004 -2014)

Administration Of Entrepreneurship Policy And Employment Generation In South -West, Nigeria (2004 -2014)

Chapter One

Preface

Background to the study

In this period of globalization, entrepreneurship has an important part to play in employment generation. The gests of developed husbandry in relation to the places played by entrepreneurship buttresses the fact that the significance of entrepreneurship can not be over emphasized especially among the developing countries. The quintessence of entrepreneurship is consummate in every frugality that targets profitable growth and development. still, no profitable growth and development may be achieved without changes in factors of product and profitable conditioning. These profitable conditioning are stylish driven by entrepreneurs as agents of profitable growth and development. Without acceptable information and knowledge, the impact of entrepreneurship on generation of employment in any nation may be lower than optimal. The import of entrepreneurship knowledge was linked by Block, Thurik and Zhou( 2012) when they honored that knowledge was “ dispersed ” throughout society with each person having a unique stock of information. Accordingly, individualities or entrepreneurs bringing their varied bents, knowledge and chops to bear on the society would advance the profitable standing of that society. One of the major places of entrepreneurship is job creation, to reduce severance rate in the frugality.

Severance is a universal challenge except that the rate of frequence differs from one frugality to the other. The World Bank reports( 2016) on severance revealed that the rates of severance in some African nations like Cote d’Ivoire(4.0 per cent), Ghana(2.4 per cent), Guinea(1.8 per cent) can compare favourably with some developed husbandry like Spain(24.7 per cent), United States of America(6.2 per cent), United Kingdom(6.3 per cent) and France(9.9 per cent). still, the challenges of severance are more pronounced in the developing husbandry than the developed husbandry where social security and other poverty relief programmes for the jobless are in place. In Nigeria, severance which as reported by the National Bureau of Statistics was31.2 per cent as at the end of September, 2016, against world severance rate of5.8 per cent( ILO, 2016). According to Bassey and Atan( 2012), there has been an intimidating increase in the rate of youth severance as thousands of university graduates are roving the road without jobs. In malignancy of the enormous natural and mortal coffers in the country, severance still remains a challenge. For case, the South- West geopolitical zone is rich in cash crops similar as cocoa, cola nuts, coffee and rubber. The topmost source of wealth for the Northern countries is massive rich land conducive for wide range of agrarian conditioning while the South- South states like Rivers, Delta and Akwa Ibom are blessed in petroleum reserves( Badmus, Olurin, Ganiyu and Oduleye, 2013);( AlabiA. B et.al. 2013), yet there’s high prevalence of poverty and high rate of severance( Yakubu and Akanegbu, 2015; Uzoigwe, 2007). Nigeria is still one of the poorest countries in the world and has one of the loftiest rates of youth severance in thesub-Sahara Africa( Ucha, 2010; Amaghionyeodiwe and Adediran, 2012; Chukwuma, 2013).

The dilemma of Nigeria as a developing frugality with a lack of poignant entrepreneurship policy after over 55 times of independence can be traced to the deficiency that we’ve endured in governance and unfriendly entrepreneurial terrain. The significance of entrepreneurship development wasn’t appreciated until numerous exploitable Nigerians couldn’t find jobs to the embarrassment of the government and at trouble to public security. This situation propelled the government to initiate one form of entrepreneurship policy and/ or job creation scheme or the other.

One of government’s attempt towards policy perpetration to address severance in Nigeria led to the preface of Entrepreneurship Development Programmes( EDP) as a nostrum to profitable development and growth( Osemeke, 2012). These programmes are generally targeted at proprietor- directors of small business enterprises as well as those linked to retain capabilities for tone- employment( Dandago and Muhammad, 2014). For case, actors in Nigeria’s National Directorate of Employment( NDE) and analogous programmes in the country are anticipated to suffer EDP training. This generally includes entrepreneurial tools which range from the medication of a business plan with emphasis on product, operation and marketing, identification of new business openings, indispensable suppliers and request, sources of finance, cash inflow analysis and record keeping to train people to suppose and act like successful entrepreneurs( Amaeshi, 2007).

The significance of entrepreneurship development can not be overemphasized. Its benefactions are relatively egregious and visible in profitable metamorphoses. This is why nearly every consecutive government emphasizes it( Arowomole, 2000). The Civil military government in 1976, under General Olusegun Obasanjo introduced Operation Feed the Nation( OFN) scheme. In 1985, the General Ibrahim Badamosi Babangida administration introduced a programme tagged Mass rallying for Self Reliance and Economic Recovery( MAMSER). All of these were aimed at stimulating profitable growth and boost entrepreneurial spirit among the people.

Toma, Grigorea and Marinescu( 2014), in their studies of profitable development and entrepreneurship, argued that no nation would break the walls of development without a critical mass of entrepreneurs. This exposure has helped numerous developed and developing nations to accelerate their pace of development by fastening on applicable impulses to support entrepreneurship exertion. Mmadu( 2014) argued that the factors of product formed the bedrock of Schumpeterian model and that it’s the entrepreneur who generates the critical instigation an frugality requires for profitable growth by breaking new grounds in mortal bid as a result of the vital characteristics or attributes they retain. Entrepreneurship should be consummate to Nigeria, judging by the number of individualities being certified yearly by colorful Educational institutions. Severance rate among the youths in Nigeria especially the graduates, is put between32.8 per cent and56.1 per cent( National Bureau of Statistics, 2016). People go into one entrepreneurial adventure or another because of that, but unfortunately they aren’t adequately set to face the challenges of venturing into similar enterprise. This underscores the wisdom of expanding entrepreneurial know- style, for case, by accommodating it in the curricular of these graduates whilst in educational institutions. Entrepreneur development should be about helping people to start and grow dynamic businesses that add immense value to the nation’s profitable growth.

still, the Nigerian entrepreneur is constantly faced with daunting challenges; a gadarene look at the Nigerian dilemma throws up ironies. There are abundant mineral deposits that remain largely untapped; about 60 of Nigeria’s pastoralist land is uncultivated but there are over a hundred tertiary institutions turning out further than 200,000 graduates every time. An estimated 17 million largely professed Nigerian professionals live and work outside the country. In malignancy of these coffers, Nigeria remains stagnated. The poverty situation has constantly deteriorated similar that by 2010, the prevalence of poverty was 69 per cent( National Bureau of Statistics, 2010). The absence of acceptable structure compounded by poor conservation and policy summersault present great challenges to arising entrepreneurs in furnishing jobs for the bulging population.

Statement of the problem

The high position of severance in Nigeria has been a major profitable and social challenge to the government. The severance rate in Nigeria was13.4 per cent in 2004 and equaled 14.60 per cent from 2006 to 2011, reaching each- time high of31.2 per cent in May, 2016( National Bureau of Statistics, 2016). In South- West, Nigeria( Lagos, Osun, Ogun, Ondo, Ekiti and Oyo States), the average severance rate was5.82 per cent,14.08 per cent and27.74 per cent in 2004, 2009 and 2010 independently( National Bureau of Statistics, 2012). The numbers revealed easily the rising and worrisome trend in the severance rate in Nigeria and the need for realistic government interventions to abate the drift. The adding rate of severance and poverty isn’t only disturbing, given the country’s enormous capabilities in mortal and natural coffers but has also come a huge security problem across the entire nation.

still, colorful entrepreneurship programs have been put in place ahead and after 2004 to address these challenges National Directorate of Employment( NDE) 1986, Mass rallying for Self- Reliance and Economic Recovery( MAMSER) 1986, The National Economic Reconstruction Fund( NERFUND) 1989, Bank of Industry( 2001), Entrepreneurship Development Centre( EDC) 2003, Small and Medium Enterprises Development Agency of Nigeria( SMEDAN) 2003, Youth with Innovation( YOUWIN) 2011, and National Enterprise Development Programme( NEDEP) 2013. They were concentrated primarily on entrepreneurship development and employment generation. In malignancy of these programs, the rate of severance continues to escalate( Adebayo, 2015). In fact, some jobless youths formed a pressure group known as National Association of Unemployed Graduates in 2013 with the end of drawing government attention to the problem.( Punch journals, 2013).

The high position of severance crowned in the high turnout of a large number of job campaigners in the March 15, 2014 reclamation exercise by the Nigerian Immigration Service. With lower than 4,000 to be employed, over a million aspirants turned up in all the 36 countries and the Federal Capital Territory, Abuja. The scramble for the many vacant positions left over 20 people dead and others seriously injured( Punch journals, 2014). It is, thus, apparent that the nation is submersed with an acute problem of gross severance. In malignancy of the sweats of consecutive government in Nigeria to meliorate this scourge, Nigeria is facing growing situations of severance.

The security challenge posed by the restive, active but jobless youths and the effect of the colorful entrepreneurship agencies similar as Bank of Industry( BOI) and Small and Medium Enterprises Development Agency of Nigeria( SMEDAN) informed this study which examined the administration of entrepreneurship programs in Nigeria and the extent to which they’ve addressed the severance problems between 2004 — 2014.

Ideal Of The Study

The general ideal of this study is to examine the effectiveness of the administration of entrepreneurship programs on employment generation in South- West, Nigeria. The specific objects are to

1. identify the causes of severance in South- West, Nigeria;

2. estimate the goods of Bank of Industry and SMEDAN on the perpetration of the National Policy on Micro, Small and Medium Enterprises in addressing severance in South West, Nigeria;

3. examine the entrepreneurship programs of government aimed at promoting employment generation in Nigeria since 2004;

4. determine the part of entrepreneurship education in addressing severance in South West, Nigeria, and

5. identify the challenges of entrepreneurship development in addressing severance in South- West, Nigeria.

Exploration Questions

harmonious with the problems linked above, the following are the exploration questions addressed in this study

1. What were the causes of severance in South- West, Nigeria?

2. To what extent did the Bank of Industry and SMEDAN’s perpetration of National Policy on Micro, Small and Medium Enterprises address the issues of severance in Nigeria?

3. How did the colorful entrepreneurship programs help in addressing severance?

4. What part did entrepreneurship education play in addressing severance in Nigeria?

5. What are the challenges of entrepreneurship development in addressing severance in South- West, Nigeria?

Suppositions Of The Study

H01 Bank of Industry and SMEDAN have no significant effect in adder ssing issues of severance in Nigeria

H02 The administration of the entrepreneurship development policy has no impact on severance in Nigeria

H03 Entrepreneurship education has no significant effect in addressing severance in Nigeria

Significance of the study

The study would be of backing to policy makers on issues of entrepreneurship development and employment generation and how to avoid the cause of failures of former programs on the issues of severance. The study would help the government, applicable agencies and ministries to estimate the effectiveness of their entrepreneurship programs in promoting entrepreneurship development and addressing severance problems in Nigeria. The study would give being and implicit investors and other stakeholders a better understanding of the need to develop and apply sound and effective entrepreneurship programs that would maximize the rate of employment generation in the country. The study also contributes to being literature on expression and perpetration of entrepreneurship programs that are anticipated to minimize the rate of severance in the Nigerian frugality.

Compass Of The Study

The study focuses on the conditioning of the Bank of Industry and SMEDAN as they affect entrepreneurship development and employment generation in South- West Nigeria. The study covers issues of severance and the significance of entrepreneurship development on the two agencies from 2004 to 2014. The compass of this study covered between 2004 and 2014 because of data vacuity from the two entrepreneurship agencies of the government. The Bank of Industry which was reconstructed in 2001 from the defunct Nigeria Industrial Development Bank didn’t commence full operations until 2003 while SMEDAN that was established in 2003 didn’t commence capacity structure programmes until January, 2004. This period of 10 times gives the study the sufficient period content demanded to make valid compliances.

The South- West, especially Lagos State, is seen as the marketable whim-whams centre of Nigeria which attracts the loftiest number of individualities who are in hunt of employment and a better life. still, the study named three countries in the South- West, videlicet Lagos, Ogun and Ondo. This is because, maturity of businesses are located in Lagos and Ogun States while Ondo is largely endowed with numerous natural coffers that could be gainfully explored to produce employment.

Description Of Terms

The constantly used discipline-specific terms in this study are defined as follows

Administration This is the act of organizing public programs and programmes to achieve specific pretensions of the government

ii. Capacity structure/ Training This refers to purposeful training and charge driven sweats aimed at perfecting an existent’s capability to exploit his or her capabilities in the aspect of mortal bid.

iii. Entrepreneurship This refers to a person’s capacity and amenability to develop, organize, and manage a business adventure along with any of its pitfalls in order to make a profit