CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Initially, effects of startup business in entrepreneurial development in Nigeria began because individuals created more things than they need, forcing them to trade surpluses. For example, if a blacksmith produces more hoes than he requires, he exchanges the surplus with what he does not possess but requires; for example, if he requires yams or goat, he will seek out someone who requires his products and exchange with them.
Producers realized that by concentrating on their areas of production, they could produce more and then trade for what they needed. As a result of this product interchange, entrepreneurship arose. A typical Nigerian entrepreneur is a self-made individual with a strong desire to achieve, and he may enlist the help of others. Entrepreneurship is recognized as a viable method for quick economic development in both rich and developing countries, not only to address unemployment, poverty, and underdevelopment in poor countries (Schumpeter, 1934; Harper, 1991; Morris & Lewis, 1991; Hamilton, 2000; Clausen, 2006; Praag & Versloot, 2007).
The reliance on large business and mass production that defined the Western economy from the 1970s to 2000 has given way to a so-called entrepreneurial economy, in which knowledge-driven goods and services are more flexibly offered by smaller creative classes (Naude 2011). Naude (2011) saw tremendous growth in emerging economies such as Brazil, Russia, India, and China, and concluded that it was fueled by an entrepreneurial revolution. Entrepreneurial development, in general, is thought to be the way to overcoming poverty.
Furthermore, according to UNIDO Nigeria’s 2012 study, Micro, Small and Medium Enterprises (MSMEs) have the potential to drive the Nigerian economy, with over 17 million MSMEs employing over 31 million Nigerians. MSMEs employ roughly 75 percent of Nigeria’s total workforce, accounting for over 80 percent of all businesses. As a result, formulating and effectively implementing MSMEs-friendly policies represents innovative ways of building the capacity to engage in entrepreneurial activities and create job opportunities, and thus plays a critical and invaluable role in assisting Nigeria in realizing its quantity advantage. Furthermore, the 2012 Global Entrepreneurship Monitor (GEM) identified Nigeria as one of the world’s most enterprising countries. According to the survey, 35 out of every 100 Nigerians (more than a third).
Small business is not synonymous with entrepreneurship. Small businesses are unquestionably an excellent vehicle via which individuals can channel their entrepreneurial goals. The tiny business is an extension of the person in charge (Lumpkin and Dess 1996). Entrepreneurship, on the other hand, is not limited to those who establish or run a (creative) small business. Large-scale entrepreneurs, known as ‘intrapreneurs’ or ‘corporate entrepreneurs,’ also engage in entrepreneurial activities.
Instead of waiting for a white collar career, most unemployed kids in Nigeria now start a soap producing business. Soap production is a low-cost and simple-to-start enterprise, making it appealing to a large number of young people. Many housewives learn how to create soap for personal use, which lowers the cost of soap.
STATEMENT OF PROBLEM
In Nigeria, the establishment of small-scale companies, such as soap manufacture, by unemployed youngsters has made a significant contribution to resolving the country’s unemployment crisis. As a result, research into the impact of new business startups on entrepreneurship growth in Nigeria is required.
OBJECTIVES OF THE STUDY
The study’s goal is to look into the impact of starting a business and making soap on entrepreneurship in Nigeria.
RESEARCH QUESTIONS
What does it mean to be an entrepreneur?
What exactly is soap making’?
What impact does starting a firm have on entrepreneurship growth in Nigeria?
SIGNIFICANCE OF THE STUDY
The importance of startup businesses in Nigeria, as well as their impact on entrepreneurship development in Nigeria, will be examined in this study. Encouragement of new firms in Nigeria has a significant impact on the country’s unemployment rate, which in turn reduces poverty.
SCOPE OF THE STUDY
The research focuses on the impact of new business startups on entrepreneurship development in Nigeria.
REFERENCE
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