THE IMPACT AND ROLE OF ENTREPRENEURSHIP ON THE ECONOMIC GROWTH OF NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The role of entrepreneurship in the growth and development of our dear nation cannot be overstated, and as the level of unemployment and poverty in Nigeria continues to rise, it has become critical for Nigerians to stop looking for white collar jobs that do not exist and start creating jobs for themselves. Entrepreneurial forces are strong in Nigeria because most people see entrepreneurial activities as essential due to the country’s poor economic situation. We don’t seem to understand that entrepreneurship development is the foundation of any nation’s economic evolution. The oil industry currently dominates the Nigerian economy. The workforce
is rapidly expanding, as is the unemployment rate, which is currently at 20%, with millions of workers unemployed. Nigeria has the largest domestic market in Africa, a diverse range of natural resources, and a diverse labor pool. Given these economic realities, the country must constantly create new jobs while diversifying its industrial and commercial sectors in order to capitalize on human and natural resources.
Entrepreneurial activities have been shown to have an impact on a nation’s economy and people’s quality of life through economic growth, job creation, and empowerment of the disadvantaged segment of the population, which includes women and the poor. Small and Medium Enterprises (SMEs) are regarded as a source of pride in virtually every country.
or declare. Because of their important roles in the development and growth of various economies, SMEs have been appropriately referred to as the engine of growth and catalysts for any country’s socioeconomic transformation. SMEs are viewed as a genuine tool for achieving national economic objectives such as job creation and poverty reduction at a low investment cost. Other important advantages of vibrant SMEs include access to infrastructural facilities, the stimulation of economic activities such as providers of various items and distributive trades for items produced and required by the SMEs, the enhancement of the standard of living of the SMEs’ employees and their dependents, as well as those who are directly or indirectly associated with them.
Various levels of government One of the responses to the challenges of entrepreneurial development in developing countries has begun to find solutions on how to involve the private sector in the development process of their country’s economy. Nigeria had even gone so far as to include entrepreneurial studies in the academic curriculum of her education system, as well as to implement the National Directorate of Employment (NDE) scheme. Such policymakers believe that such decisions will instill an entrepreneurial spirit in people, preparing them for wealth creation through entrepreneurship (Fasua, 2006). Entrepreneurship is critical to the economic development of any country, particularly Nigeria. Entrepreneurship is required for national development and poverty eradication.
and job creation is the foundation of any nation’s industrialization.
Alfred Marshall was the first to recognize the importance of entrepreneurship for productivity in 1990. Marshall established four factors of production in his famous book, Practice Principles of Economics: land, labor capital, and organization. An entrepreneur makes good use of these factors. Thus, the entrepreneur creates new commodities or improves the production plan for an existing commodity. Marshal (1994). As a result, early entrepreneurs were defined by production and manufacturing. In situations like this, producers frequently begin with small amounts of capital. Even before the invention of money, early entrepreneurship began with barter trade. As a result, the majority of modern entrepreneurs worked in retail and as sole proprietors.
1.2 Statement of the Problem
With the current challenges in the global economy, new and innovative strategies for stimulating and sustaining growth in national economies are emerging. One model deemed critical to the formulation and implementation of these strategies is entrepreneurship. According to a study conducted by The Global Entrepreneurship and Development Institute, the United States is a world leader in terms of assisting entrepreneurs with business formation, expansion, and growth. They also use venture capital to fund new businesses. This type of funding is given to early-stage, high-potential, riskier start-up companies. According to 2014 statistics, Australia and Sweden came in second and third place, respectively. The economies of some of these countries rank very high because they understand the
Entrepreneurs have a significant impact on the growth of their economy. Their GDP is constantly increasing, resulting in an increase in their economy.
Despite this, little is known about the profile of the Nigerian entrepreneur and how they interact with the ever-changing policy environment. This study aimed to better understand their characteristics, as well as the impact and role of entrepreneurship on Nigeria’s economic growth.
1.3 Research Questions
The following are some of the questions that this research will attempt to answer:
I What is the impact of entrepreneurship on Nigeria’s economic growth?
ii) What are the contributions of Nigerian entrepreneurs to the country’s economic development?
iii) What are the factors that influence entrepreneurs’ contributions to Nigeria’s economic development?
1.4 Objectives of the Study
1.5 Research Hypothesis
The following research hypotheses will be tested:
I There is a significant relationship between entrepreneurship and Nigeria’s economic growth.
ii) There is no significant relationship between low entrepreneurial activity and economic growth in Nigeria.
1.6 Significance of the Study
The study’s findings will be invaluable to the Nigerian government and aspiring entrepreneurs in Nigeria. It will serve as a manual that will instruct them on how to use entrepreneurship to help the country’s economy and raise their standard of living. It will also aid in bridging any gaps that may have existed in entrepreneurial activities.
1.7 Scope of the Study
This study looked into the roles and effects of entrepreneurship on economic growth, as well as how entrepreneurship can improve economic growth. Evaluating entrepreneurship as a tool in the growth and development of the Nigerian economy appears too broad for the time frame of this research work; thus, the scope of this work was limited to the contribution of small and medium-sized businesses to the development of the Nigerian economy.
1.8 Limitation of the study
The impact and role of entrepreneurship on Nigeria’s economic growth was not an exception to the usual problems associated with research in Nigeria. The researcher faced a financial problem because he did not have enough funds to purchase the necessary stationery for the work. Furthermore, the timeframe for completing the work was too short.
1.9 Definitions of Terms
During the course of this research, the following terms were used:
Economic growth occurs when a country’s real per capita income rises over time.
Entrepreneur: A person who starts or organizes a financially risky business.
N.D.E. stands for National Directorate of Employment.