ENTREPRENEURSHIP DEVELOPMENT IN A DEPRESSED ECONOMY
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The need to incorporate the need to be technologically self-reliant into our system cannot be over-emphasized. The first step is to develop our human and natural resources, thus increasing our per capita income. In the past, even years, or more, especially during the administration of Ibrahim Babangida, Nigeria has constantly pursued an economic policy that is geared toward self-reliance for the individual, as shown by such programmes as the National Directorate of Employment (NDE) which is a graduate assistance scheme aimed at helping young school leavers to acquire necessary skills and funds that will help them to start their own business, other programmes with such mission include the people bank, Family Economic Advancement Programme (FEAP) and Nigerian Association of Small-scale Industrialists (NASSI).
The entrepreneur and his activities form an integral part of the development of our economy. It becomes pertinent to define who is an entrepreneur and why we have an insight into his plight to actualize the aims and objectives of its existence.
Nwana, L.E. (1995:32) defined an entrepreneur as an individual willing and able to take business risks for gainful purposes”.
Despite the aspirations of many, only a few people in this country and indeed Enugu, our place of concentration, have carried out their intention of having business established them. Studies have shown that 90% of those who seriously decided to incorporate a company five or more years ago have not yet done so. In Enugu state, our emphasis will concentrate on the Nigerian Association of Small-Scale Industrialists (NASSI) Enugu State chapter, formed in 1978 owing to the creation of Enugu State in 1991; the Enugu office was established to represent the organized small-scale industrialists in the state, thus tries to uplift the status of this sector.
The NASSI has its chapter in all the seventeen (17) local government areas of the state aimed at inculcating into our society the spirit of owning and controlling the business at the grass-root level to facilitate the much-desired self-reliance on our locally made goods and services, self-reliance on the national economy as shown in the policies of banning the importation of certain goods into this country, the Structural Adjustment Programme (SAP) which among other things aims at the sourcing of our raw materials for the industries locally, though many see it as backward integration the maintenance culture is also part of our attempts so self-reliance.
Based on the indigenisation policy that was brought into existence, the Nigerian Enterprises promotion decree of 1972 aims at encouraging and giving Nigerians the skill and knowledge to own and control their own business. However, this dream’s aims and objectives have not come to fruition since about 75% of Nigerians and indeed in Enugu have not realized their dream of owning and controlling a business of their choice (Igboeli J., 1995).
- HISTORICAL BACKGROUND OF CASE STUDY
The Nigerian Association of Small-Scale Industrialists (NASSI) was founded in 1978 by the Federal Military Government of Nigeria through the Centre for Management Development (CMD) to represent the organized small-scale industrialists in the country and thus uplift the status of the industrial sector.
In 1979, the Anambra State chapter was constituted; owing to the creation of Enugu State out of former Anambra State, the Enugu State Chapter came into being in 1991. This association has its office situated at 30 Zik Avenue, Enugu, to oversee the affairs of the members in Enugu State. The Nigerian Association of small-scale industrialists has chapters in all the 17 local governments of Enugu State. The person at the helm of affairs at the state level is called the state chairman, while local government coordinators man local government chapters.
NASA is in the vanguard of Industry Development to enlighten the grassroots entrepreneurs and articulate them for gainful purposes. It also collaborates with foreign bodies to formulate a business plan for members.
- STATEMENT OF THE PROBLEM
The statement of this research work includes the following:
- How developed is the Enugu Entrepreneur, even at the emergence of NASSI?
- With what the government has done so far through NASSI, has it been able to carry along with these entrepreneurs? As regards workforce development, financial and technical aids.
- If developed, to what extent has this development put the Enugu entrepreneur on track of self-reliance?
- Will the shortcomings be ascribed to the government and non-government agencies that support them or the entrepreneurs themselves?
- In such a depressed economy, how is the entrepreneur surviving?
- OBJECTIVE OF THE STUDY
The need to develop entrepreneurship in the Nigerian economy cannot be over-emphasized because our hope for National growth lies therein. The objective of this research includes the following.
- To critically analyze the activities of entrepreneurs in Enugu concerning the overall objective of government programmes and policies.
- To know how the efforts of the government to develop entrepreneurship are progressing.
- To identify the problems that have been militating against entrepreneurship development in Enugu and Prefer solutions.
- SIGNIFICANCE OF THE STUDY
In such a depressed economy like ours, the need to rush paid jobs with or without personal initiative is setting us in the wrong direction. Hence all governmental efforts to provide loans and incentives to persons willing to own and control business.
In the record, this present administration, even though the military has a clear idea of what it will take to put Nigeria on her road to political stability and economic growth. This administration has steadfastly created a good economic and social environment for real economic growth for all. This is borne out of the recent experience of European and American business at large number to discuss business with our private and public agencies. Also, creditors are either cancelling our debts or converting them into long term loans; with these favourable conditions in mind, economic theories of development suggest that rapid growth would occur if the available resources (human and material) are completely and judiciously explored and utilized for the production and distribution of goods and services since our is a free economy, this assignment is passed unto Nigerian Entrepreneurs to bring the dreams to fruition truly.
Therefore, this study aims to focus on this objective and then access the steps so far and what could be done to improve the system. Suppose by giving the job to governmental and non-governmental agencies, participation in the private sector to an organization will not be of advantage. In that case, we can deal directly with the recipients. All the funds are given out through NDE, SAP, and NERFUND were seen by many recipients as their part of the “National Cake”; therefore, we shall strife hard to see if we can bring insanity into the system by giving other organizations like NASSI the chance to directly deal with the entrepreneurs or any other organization to be formed. Apart from poor fund disbursement pattern, to help seek ways to connect the Enugu entrepreneur with other business contacts in the outside world.
This research work is poised towards identifying the entrepreneur’s activities in pursuing the much-desired economic and social self-reliance. The work will be of great help to students of business management scholars; also, the entrepreneurs themselves will learn more and thus make the right step in the right direction by first approaching their businesses with the overall view of being self-reliant.
Secondly, to appreciate the financial aid by giving them a loan to be repaid and not relief packages and finally for the government to bring in their presence in Enugu metropolis by establishing agencies that will be pragmatic in dealing with the entrepreneurs as well as improving the social amenities in the city, like good road network, good sanitary conditions and dull supply of power which forms an integral part in the production of good and services.
- Formulation of hypothesis
Ho: The rate of illiteracy has narrowed the scope of the Enugu Entrepreneur.
Ho: The rate of illiteracy has not narrowed the scope of the Enugu entrepreneur.
Ho: Funds are misdirected, thus going to those who may not utilize Them well.
Hi: Funds are not misdirected, thus going to those who may not utilize them well. Government presence in the city has brought poor assimilation of NASSI policies on business.
Ho: Lack of funds has hampered the expansion of the entrepreneurs.
Hi: Lack of funds has not hampered the expansion of the Entrepreneurs.
- THE SCOPE OF THE STUDY
The scope of this work is just an insight into the activities of the young ideal manager or who may be called an entrepreneur in Enugu. The angle the research is bringing in this entrepreneur is from the activities of the Nigerian Association of the Small-Scale industrialist (NASSI) Enugu State Chapter, Enugu Office. The entrepreneurs we are going to discuss here is an only small-scale industrialists. The office of the NASSI in Enugu was visited, and five more industries involved in small-scale production were visited as well.
- LIMITATION OF THE STUDY
The researcher could not get the required information from the chairman of NASSI thus speaking with the secretary though the correct data was collected.
The time lag was too short for conducting more research on this topic; hence the asocial does not have any library for academic research work. Thirdly funds were a problem; as a result, much was not done in this study.
DEFINITION OF TERMS
Depressed economy: It is an economy where most economic and social activities are made to be less active or sad without enthusiasm.
Scholar: A scholar is a person who studies an academic subject and knows a lot about it.
Poised: This means when an individual is ready or set to take action or strike something at any moment.
Pragmatic: This is a way of dealing with something or problems practically rather than using theoretical or abstract principles.
Metropolis: A metropolis is a very large city containing a very large number of people.
Time Lag: It is an interval of time between one event and another related event that happens after it.
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