ENCOURAGING ENTREPRENEURSHIP AS A WAY OF REDUCING UNEMPLOYMENT IN BAYELSA STATE
abstract
This study looked at how encouraging entrepreneurship can help to reduce youth unemployment in Bayelsa State, Nigeria. The study’s main goal is to determine how encouraging entrepreneurship can help reduce youth unemployment. The study relied on primary data gathered from 500 questionnaires distributed to self-employed youths running their own businesses in Yenagoa, Nigeria’s capital.
The findings show that encouraging entrepreneurship has a significant relationship with youth unemployment. As a result, the study recommends that the Federal Government of Nigeria establish training centers and the necessary equipment where young people can learn entrepreneurial skills, as well as provide funds in the form of loans that young people can easily access in order to start businesses.
CHAPTER ONE
INTRODUCTION
- Background of the study
Entrepreneurship is the study of the why, when, and how of opportunity creation, recognition, and utilization for the purpose of providing goods and services through the formation of new firms (start-ups) and within existing firms for profit and non-profit purposes. Not all opportunity creation is necessarily beneficial to society. A society’s reward structure can also lead to a destructive allocation of entrepreneurial talent. The emphasis here is on profitable entrepreneurial activity. This entails creating, recognizing, and utilizing positive opportunities in such a way that “innovation” or the provision of “new combinations” of products and/or processes is involved. Entrepreneurship is the trait of being an entrepreneur; it emphasizes the risks and efforts made by individuals who manage or own businesses.
a company, as well as the innovations that result from their pursuit of economic success. An entrepreneur is an innovator, someone who comes up with new ideas and business processes. The term entrepreneur was derived from the French word ‘entrepredre,’ which means a person who leads a military expedition voluntarily. It was first used in the seventeenth century during the first military history (Emmanuel, 2008). There is no universal definition of entrepreneurship; it has been defined by numerous authors and individuals.
Every society on the planet faces unique problems and challenges. Nigeria is no different. As a developing country, she has her own set of social, political, economic, and cultural issues that have had a negative impact on the populace’s well-being. Among the issues plaguing the country are: Youth unemployment and a rising tide of crime have serious implications for the nation’s growth. Despite the country’s abundant human and natural resources, the unemployment rate in Nigeria has continued to rise. In Nigeria, chronic youth unemployment is visible. Every year, thousands of graduates are produced, but the vast majority of them are unemployed. Nigerian streets are littered with young hawkers who would otherwise have found gainful employment in some business (Okafor, 2011). The large number of unemployed youths is capable of undermining democratic practice because they pose a serious threat if engaged in underground and criminal activities by the political class (Adepegba, 2011; Ibrahim, 2011; Lartey, 2011; Olatunji and Abioye, 2011; Okafor, 2011). There appears to be agreement on the definition of unemployment. Simply put, unemployment refers to the situation of people who are out of work (Okafor, 2011). The International Labour Organization (ILO) defines the unemployed as the number of economically active people who are unemployed but available and looking for work, including people who have lost their jobs and those who have voluntarily left their jobs (World Bank, 1993). According to the National Bureau of Statistics (2009), a country’s labor force is a group of people or citizens who are willing and able to make available their efforts for gainful employment at any given point in time, whereas the unemployed are individuals who do not have work but are looking for work at the time. of any research. Scholars have identified various types of unemployment. Seasonal, frictional, cyclical, and structural unemployment are examples (Adebayo, 1999; Damachi, 2001; Hollister and Goldstein, 1994; Todaro, 1992). Unemployment is a global trend, but it is most prevalent in developing countries, bringing with it social, economic, political, and psychological consequences. Thus, massive youth unemployment in any country indicates far more complex issues (Okafor, 2009). According to the ILO (2007) report, the proportion of global unemployment is steadily increasing, and the number of unemployed people reached an all-time high of more than 195 million, or 6.3 percent, in 2007. For example, in 2007, the Middle East and North Africa had the highest unemployment rates. The global rate is 12.2 percent, with Sub-Saharan Africa close behind at nearly 10%. The unemployment rate in East Asia remained the lowest at 3.6 percent. According to the report, population growth, particularly in South Asia, the Middle East, North Africa, and Sub-Saharan Africa, is putting a strain on job creation.
- Statement of the Problem
Unemployment is a socioeconomic issue that every country deals with to the best of their abilities. According to individual research reports and other government statements, the situation in Nigeria has gotten out of hand, with approximately 75% of those willing to work unable to find gainful employment in Nigeria, particularly among school leavers and graduates of tertiary institutions (NBS, 2014).
The Bayelsa State Employment and Expenditure for Results (SEEFOR) in Bayelsa received 46,985 applications in 2019 from job seekers in Yenagoa, the state capital, seeking employment as minor public workers.
The training’s goal was to turn the beneficiaries into full-time entrepreneurs at the end of their 12-month participation in the SEEFOR project.
“The intention of the partnering agencies is not to make them lifetime beneficiaries, but entrepreneurs who will soon become well-known employers of labor,” he explained.
He explained that beneficiaries were chosen based on their special needs, which included household size and dependents on the beneficiaries.
Every year, new graduates and school leavers add to the stock of unemployed youth, fueling increased frustration and rage against the society that has failed to provide for them. Several governments have made efforts to combat the problem of youth unemployment, but it persists. It appears that the efforts have had little impact on the level of unemployment in the country, which has continued to rise. Several studies, including (Ekong and Ekong, 2016; Akanwa and Akpanabia, 2013; Anyadike et al, 2012; Emeh, 2012; Ibrahim, 2010; Kaegon and Nwogu, 2012; and Udeorah, 2014), have all recommended entrepreneurship development as a sure way of addressing Nigeria’s rising unemployment rate. In light of this, the purpose of this research is to determine whether encouraging entrepreneurship can help to reduce unemployment in Bayelsa state.
1.3 Aim and Objectives of the study
The study’s main goal is to investigate how encouraging entrepreneurship development can help combat Nigeria’s rising unemployment rate.
However, the specific goals are as follows:
Determine the extent to which the state government encourages and supports entrepreneurship.
Determine whether state government encouragement of entrepreneurship can affect Bayelsa’s unemployment rate.
Examine how the cost of doing business in Bayelsa can stifle entrepreneurship development.
Determine the extent to which government incentives for small businesses can influence the development of entrepreneurship in Bayelsa.
1.4 Research Questions
The following research questions were posed to guide the study’s objectives: 1. To what extent can relevant government institutions and other forms of entrepreneurial training influence Nigeria’s unemployment rate?
2. To what extent can the cost of doing business in Nigeria stifle the development of entrepreneurship?
3. To what extent can government incentives for small businesses influence the development of entrepreneurship in Nigeria?
1.5 Research Hypotheses
The following null hypotheses were developed to guide the study’s objectives and strengthen the analysis:
Ho: Encouraging entrepreneurship will have no effect on Nigeria’s unemployment rate.
Ho: The cost of doing business in Nigeria cannot stifle the growth of entrepreneurship.
Ho: The level of entrepreneurship development in Nigeria cannot be influenced by government incentives for small businesses.
1.6 Significance of the Study
The research will contribute to the body of literature, thereby expanding knowledge in the field. As previous studies in the field have shown, entrepreneurship development has been a popular prescription for reducing Nigeria’s rising unemployment rate. Furthermore, the policy dialogue that will result from the findings will be extremely beneficial to a variety of people, including the government, practicing and prospective entrepreneurs, students, researchers, and the general public.
1. The government: The government would be sufficiently informed about how to make entrepreneurship development have a significant impact on unemployment.
2. Current and Prospective Entrepreneurs: These individuals would be better informed about how to take advantage of government incentives to boost their operations by lowering the cost of doing business.
3.
Students and Researchers: This group will benefit greatly from the outcome because it will serve as a good starting point for those who wish to pursue further studies in the field.
4. The General Public: The general public will benefit because an increase in the number of entrepreneurs will improve the overall welfare of the people.
1.7 Scope and limitations of the study
This project focuses on encouraging entrepreneurship as a means of reducing unemployment in Bayelsa State.
1.8 Definition of Terms
Unemployment: Unemployment is defined as a situation in which a person of working age is unable to find work but wishes to work full-time.
Entrepreneurship is the process of creating, launching, and running a new business, which is usually a small one at first. Entrepreneurship is often referred to as the “Capacity and willingness to develop, organize, and manage a business venture, as well as any of its risks in order to profit.
Youth: The period of one’s life when one is young, often referring to the period between childhood and adulthood (maturity). It is also known as “the appearance, freshness, vigor, spirit, and so on of a young person
The United Nations defines youth as people aged 15 to 24. All UN statistics are based on this range, and the UN cites education as a source for these figures. The UN also acknowledges that this varies without regard for other age groups listed by member countries, such as 18-30.
1.9 Organization of the Study
This chapter introduced the study’s focal point. The chapter also provided the study’s background and identified research problems as well as knowledge gaps for the research. The chapter also examined the specific research questions that guided the investigation. This study also identified the study’s rationale and scope, which is limited to five non-governmental organizations in Nigeria. The definitions of terms used in the research have been included, as has the significance of the study. The second chapter explained previous literature on the study and structured the review around the research questions. The third chapter described the research style used in the study. The fourth chapter addressed the data’s conclusion.
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