AN APPRAISAL OF SUCCESS CRITERIA FOR ENTREPRENUESHIP BUSINESS IN NIGERIA
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Entrepreneurship Management School
According to the management school, an entrepreneur is someone who organizes or manages a business venture, taking on risk for the sake of profit (Webster, 1966). According to this viewpoint, entrepreneurship can be developed through conscious learning. Most failures in entrepreneurial activities are attributed to poor management strategies. As a result, it is claimed that training in management functions can significantly reduce business failure and help an enterprise succeed.
Entrepreneurship Leadership School
According to the leadership school of entrepreneurship, an entrepreneur is someone who relies on others to help him achieve his goals and objectives. According to this school, a successful entrepreneur must be a’people manager,’ an effective leader, a motivator, and a mentor.
directs and leads others to accomplish set tasks.
According to Kao (1989), the entrepreneur must be a leader, capable of defining a vision of what is possible and attracting people to rally around that vision and turn it into reality. This approach has two major components: completing the task and responding to the needs of those involved in the task completion.
Model Based on Personality
Character-based models include both personality- and human capital models. According to the personality-based model, entrepreneurs have specific traits that are expected to have a strong impact on business planning and the selection of strategies and actions during the launching phase, which will determine the entrepreneur’s eventual success in the endeavor.
In Detailed psychological and economic research has been conducted to determine which personality traits are essential for entrepreneurial success. Motivational traits such as ‘need for achievement,’ ‘internal locus of control,’ and ‘need for autonomy’ have been defined as useful in explaining past success and predicting future development of a newly founded business; cognitive skills such as ‘problem-solving orientation,’ ‘tolerance of ambiguity,’ ‘creativity,’ and ‘risk-taking propensity,’ affective personality traits such as’stress resistance,’ ’emotional (Caliendo and Kritikos, 2007). Ex-post empirical research has gone in two directions: it has compared the parameter values of these variables, gathered with the help of psychologically validated questionnaires, and Entrepreneurs and employees, or successful and unsuccessful entrepreneurs. Previous research has also highlighted the limitations of this approach. On the one hand, the size of the firm in terms of employee count has been described as critical for the model’s application. According to this argument, the greater the impact of the owner’s personality on a company’s success, the fewer employees it has. However, there is no agreement on the impact of personality structure on entrepreneurial success. Muller (1999) proposes that these characteristics be used to predict an individual’s development as an entrepreneur. Given the numerous personality variables that could influence entrepreneurial success, a second expectation is that each individual variable will be only a minor influence.
predictor of commercial success (Rauch and Frese, 2000). According to Gartner (1988), no correlations will be found between traits and entrepreneur success.
Model of Human Capital
Human capital theories, like personality structure, are related to entrepreneurial success in the same way: sufficient knowledge and working experience in the relevant fields enable business founders to choose more efficient approaches, such as organizing production processes, developing financial strategies, or analyzing markets for the new product. After the entrepreneurial personality, the second component of the character-based approach is the entrepreneur’s human capital. The knowledge and experiences of small-scale business owners are central to human capital theory. The general assumption is that the founder’s human capital increases the chances of a small firm’s survival (Bruederl, (1992, Preisendoerfer and Ziegler). Human capital can be used as a resource. Human capital allows the founder to be more efficient when it comes to organizing processes or attracting customers and investors. Various operationalizations of human capital were used in various studies. Bruederl et al. (1992) distinguished between general human capital – years of schooling and years of work experience – and specific human capital – industry specific experience, self employment experience, leadership experience, and self-employed father – and found a small positive relationship between human capital and success in general. The human capital theory has a significant implication: Because the theory is concerned with knowledge and capacities, it also implies processes: human capital can be trained and improved. Furthermore, if human capital is used as a resource, it may be worthwhile to assess the implications of human capital. of employees in small businesses as well. It was demonstrated in manufacturing settings that a human resource management (HRM) system was related to performance, particularly when combined with a quality manufacturing strategy (Youndt, Snell, Dean, &Lepak, 1996). Most theoretical studies examining the effects of human capital on the likelihood of success of a new venture are concerned with general human capital (such as years 10 of schooling or working experience), various types of specific human capital (such as experience in leadership, self-employment, or the industry chosen for the new venture), or genetic or sociological relationships (such as self-employed parents or friends). Backes-Gellner and Lazear (2003) discovered that general human capital has a significant impact.
If business founders have already developed a broader knowledge base rather than specialized knowledge of a specific topic, they are more likely to succeed in the future. Relationships between the human capital approach and entrepreneur success rates have also been empirically tested. Chandler and Hanks (1994, 1996) demonstrated that there is a positive impact when entrepreneurs start new businesses in the same industry where they previously worked. The same authors discovered that general human capital had only a minor impact on success rates in terms of years of schooling. Lazear (2004) and Wagner (2004) provide explanations for the latter.
(2003) discovered empirical support for Lazear’s ‘jack-of-all-trades model,’ which is not always correlated with years of education. Dunn and Holtz-Eakin (2000) discovered a
There is a positive relationship between the success rates of business founders and self-employed parents.
Theory of Goal Setting
According to goal setting theory, high and specific targets are the primary motivators and predictors of performance in working organizational settings (Locke and Latham, 1990). The theory also applies to small businesses (Baum, 1995; Frese, Krauss, and Friedrich, 1999). Visionary (orcharismatic, transformational) leadership has recently received attention in leadership theory. According to Collins and Porras (1994), visionary companies have a stronger organizational culture and are more successful than non-visionary companies. Baum, Locke, and Kirkpatrick (1998) discovered that vision attribute, vision content, and vision communication all have direct and indirect causal effects on small business performance. Because of the relative size of entrepreneurial businesses, visions may be more important than in larger organizations.
close interaction between the entrepreneur and the employee (Baum et al., 1998). As a result, goals and visions have an impact on the performance of small businesses.
An Overarching Model of Entrepreneurial Success
The Giessen-Amsterdam model of entrepreneurial success is a general interdisciplinary model for entrepreneurial success. The model demonstrates that all of the influences of personality, human capital, and environment on success must be mediated by action strategies and tactics. This concept stands in stark contrast to the ecological approach’s theoretical stance, which assumes that the environment shapes and selects essentially a random process of actions, including the function of the environment to produce certain failure and success rates.
As a result, the research aims to provide an assessment of success criteria for
Nigerian entrepreneurship business.
1.3 PROBLEM DEFINITION
Entrepreneurship is becoming increasingly important as a source of employment and economic development.
It is necessary for entrepreneurial businesses to be able to grow, profit, and contribute to the nation’s economic development.
Entrepreneurship is the ability and willingness to create, organize, and manage a business venture, including all of its risks, in order to profit. The most visible manifestation of entrepreneurship is the establishment of new businesses. Entrepreneurship combined with land, labor, natural resources, and capital can generate profit in economics. Entrepreneurial spirit is defined by risk-taking and innovation, and it is a critical component of a country’s ability to succeed in an ever-changing and increasingly competitive global marketplace.
However, evidence suggests that many entrepreneurs lack the capacity, traits, and resources to manage their businesses in order for them to grow, profit, and contribute.
To the construction of nations. As a result, many entrepreneurial businesses have started and then failed.
As a result, the issue confronting this research is to provide an assessment of success criteria for entrepreneurship businesses in Nigeria.
Using the Juli Supermarket in Lagos as an example
1.4 RESEARCH QUESTION
1 What is the nature of entrepreneurship?
1 What are the success criteria for an entrepreneur’s business?
2 What are the nature and success factors of Juli Supermarket Lagos
1.5 SIGNIFICANCE OF THE STUDY
The study will provide success criteria for entrepreneurship businesses as well as useful information for new and ongoing businesses.
Businesses that are run by entrepreneurs.
1.6 RESEARCH HYPOTHESIS
1 Ho Juli supermarket’s performance is poor.
H1 Juli supermarket’s performance is excellent.
2 The success criteria for iinjuli supermarket are low.
Hello, success criteria The price of iinjuli supermarket is high.
The impact of the success criteria in Juli supermarket is low.
The success criteria have a high impact in Juli supermarket.
1.7 SCOPE OF THE STUDY
The research focuses on evaluating success criteria for entrepreneurship businesses in Nigeria.
An Overarching Model of Entrepreneurial Success
The Giessen-Amsterdam model is a general interdisciplinary model for entrepreneurial success.
Success in business. According to the model, all of the influences of personality, human capital, and
The environment on success must be mediated by action strategies and tactics. This idea is diametrically opposed to
to the ecological approach’s theoretical stance, which assumes that action is essentially random
shaped and selected by the environment, including the environment’s function in producing certain failure and
Success rates.
Model of Human Capital
Human capital theories, like personality structure, are related to entrepreneurial success: sufficient
working knowledge and experience
Experience in the relevant fields enables business owners to make more informed decisions.
approaches, such as those used in manufacturing process organization, financial strategy development, and market analysis
for the new product. The second component of the character-based approach is the entrepreneur’s human capital.
following the entrepreneur’s personality.
The knowledge and experiences of small-scale business owners are central to human capital theory.
The general assumption is that the founder’s human capital increases the chances of a small firm’s survival.
1992 (Bruederl, Preisendoerfer, and Ziegler). Human capital can be used as a resource. Human capital is what drives the economy.
More efficient founder in organizing processes or attracting customers and investors. Various studies were used
Human capital operationalizations vary. Bruederl et al. (1992) distinguished between general human capital and specific human capital.
-years of education and years
and specific human capital-industry specific experience, self
employment experience, leadership experience, and self-employment father, and the overall trend indicated a small increase
Human capital has a positive relationship with success.
Model Based on Personality
Character-based models include both personality- and human capital models. Depending on your personality
According to the model, entrepreneurs have certain characteristics, and these characteristics are expected to have a significant impact.
on business planning and the selection of strategies and actions during the launch phase, which will result in
In turn, this will determine the entrepreneur’s ultimate success in the venture.
Detailed psychological and economic research has been conducted to determine which personality types exist.
Characteristics are critical for entrepreneurship success. The following characteristics have been identified as useful in
describing the past
motivational success and forecasting the future development of a newly founded business:
Characteristics such as ‘need for achievement,’ ‘internal locus of control,’ and ‘need for autonomy,’ as well as cognitive skills
as ‘problem-solving orientation,’ ‘ambiguity tolerance,’ ‘creativity,’ and ‘risk-taking proclivity,’ affective
Personality traits like’stress resistance,’ ’emotional stability,’ and ‘level of arousal,’ as well as social skills like
‘Interpersonal reactivity’ and ‘aggressiveness’ (Caliendo and Kritikos, 2007). Empirical research with the goal of
ex-post has taken two approaches to underpin theoretical propositions: it has compared the parameter values of
These variables, gathered through the use of psychologically validated questionnaires, are either shared by entrepreneurs or not.
and workers, or between successful and unsuccessful business owners.
Entrepreneurship Leadership School
According to the leadership school of entrepreneurship, an entrepreneur is someone who relies on others.
He thinks he can
Assist him in achieving his goals and objectives. According to this school, a successful entrepreneur must be a
A ‘people manager’ is an effective leader and mentor who motivates, directs, and leads others to complete specific tasks.
According to Kao (1989), the entrepreneur must be a leader who can define a vision of what is possible.
Attract people to rally around your vision and help it become a reality. The two main components of this approach are
are: completing the task and responding to the needs of those involved in the task completion
Model of Human Capital
Human capital theories, like personality structure, are related to entrepreneurial success: sufficient
Knowledge and work experience in the relevant fields enable business owners to make more informed decisions.
approaches, such as those used in manufacturing process organization, financial strategy development, and market analysis
for the new product. The second component of the character-based approach is the entrepreneur’s human capital.
following the entrepreneur’s personality.
The knowledge and experiences of small-scale business owners are central to human capital theory.
The general assumption is that the founder’s human capital increases the chances of a small firm’s survival.
1992 (Bruederl, Preisendoerfer, and Ziegler). Human capital can be used as a resource. Human capital is what drives the economy.
More efficient founder in organizing processes or attracting customers and investors. Various studies were used
Human capital operationalizations vary. Bruederl et al. (1992) distinguished between general human capital and specific human capital.
-years of education and work experience
– as well as specific human capital
– industry specific experience, self
employment
approaches, such as those used in manufacturing process organization, financial strategy development, and market analysis
for the new product. The entrepreneur’s human capital is the second part of the character-based approach experience, leadership experience, and self-employed father, and in general, trend indicated a small increase.
Human capital has a positive relationship with success.