ABSTRACT
This study examined entrepreneurship development as a panacea for poverty reduction using selected SMEs as a case study. The study adopted the survey research method while the convenience sampling technique was used to select a sample size of 74 respondents. Instrument for the study was a self-developed questionnaire which was personally administered. Data was analysed with the use of descriptive statistics which involved the use of simple percentages and frequency tables. Findings of the study reviewed that the extent to which entrepreneurship development can be used to reduce poverty in Nigeria include; It encourages the exploitation of untapped opportunities, promotion of effective domestic production, it can be used to enhance regional economic balance, and that the effect of poverty and unemployment includes: political unrest e.g. ethnic violence, human trafficking, social problems, e.g. depression, decay of used skills, increased crime, economic problems e.g. reduction in GDP, psychological and health problems. Based on the findings, it was recommended that, funds should be made readily available to entrepreneurs, market structures and regulations should constantly be reviewed to facilitate entry.
CHAPTER ONE
INTRODUCTION
Background of The Study
Nigeria is naturally endowed with entrepreneurship opportunities; however, the realization of the full potential of these opportunities has been dampened by the adoption of inappropriate industrialization policies at different times. Several policy interventions that were aimed at stimulating entrepreneurship development via small and medium scale enterprises promotion, based on technology transfer strategy, have failed to achieve the desired goals as it led to the most indigenous entrepreneurs becoming distribution agents of imported products as opposed to building in-country entrepreneurial capacity for manufacturing, mechanized agriculture and expert services (Thaddeus, 2012).
Entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes, and raw material through organizing efforts that previously had not existed (Shane and Venkataraman, 2000; Venkataraman, 1997).
The 2012 Global Entrepreneurship Monitor (GEM) has empirically identified Nigeria as one of the most entrepreneurial countries in the world. The study showed that 35 out of every 100 Nigerians (over a third) are engaged in some kind of entrepreneurial activity or the other. It is therefore imperative at this point in time to critically evaluate not just the principles of entrepreneurship but the practice and its crucial role in fostering economic growth and development in a developing economy like Nigeria.
Entrepreneurship is not synonymous with small business. Certainly, small firms are an out- standing vehicle for individuals to channel their entrepreneurial ambitions. The small firm is an extension of the individual in charge (Lumpkin and Dess 1996). However, entrepreneurship is not restricted to persons starting or operating an (innovative) small firm. Enterprising individuals in large firms, the so-called ‘intrapreneurs’ or ‘corporate entrepreneurs’, undertake entre- preneurial actions as well.
According to Falae (2004), the origin of Nigerian economic crisis can be traced to the budgetary crisis of 1978. In that year and for the first time since the oil boom of 1973/74, Nigeria had a deficit on both domestic and external accounts. As part of measures to address the situation, austerity measures were introduced and a World Bank loan of $1,000,000,000 was secured. In spite of the spirited efforts by the successive governments to contain the crisis, the situation keeps on deteriorating up to this moment. Presently, the Nigerian Economy is characterized by low industrial capacity utilization, deteriorating infrastructural facilities, rising level of unemployment and poverty (Abdullahi, 2009).
In 1960, the poverty level in Nigeria covered about 15% of the population. The percentage grew up to 28% in 1980. From that time to date, as the economic crisis worsened, the poverty level in the country continues to also increase, reaching up to 70% (Adeleke, 2012). ”poverty in the midst of plenty”. Nigeria is the 6 largest exporter of oil and at the same time the 28 poorest nation in the World. This is indeed a paradox and a serious anomaly. Successive
government regimes have adopted various measures to address the high poverty incidence in Nigeria. Part of these measures was introduction of entrepreneurship education in the curricular of tertiary institutions comprising universities, polytechnics and colleges of education. The aim of entrepreneurship education is acquisition of entrepreneurial capacities and skills for self-reliance and self-employment (Akudolu, 2010). According to Paul in Araba (2012) Entrepreneurial education is structured to achieve among others poverty reduction/alleviation through self-reliance and self-employment. Therefore this study is undertaken to examine how entrepreneurship development can be used as a panacea to reduce poverty in Nigeria.
1.2 Statement of The Problem
It is a known fact in Nigeria that every successive government has embarked on one form of programmes or the other to promote entrepreneurial activities aim at reducing poverty.
However, what has remained unanswered is the extent to which
these programme have impacted on business or the entrepreneurs. Today, poverty has been addressed as a global problem, especially in places like Africa, Asia, and Latin America. On assumption of office in 1999, president Obasanjo indicated that the poverty situation in which over 60% of Nigerians live below the poverty line, requires more effort to prevent it from getting worst. These resulted to the introduction of NAPEP in Nigeria in the year 2001.
Recently, studied by organization for economic cooperation and development (OECD;2000) on poverty alleviation and its agencies as well as programs indicate that considerable gap exist between the target objectives and achievements. The implication is that either the various government policies are ineffective or nothing much has been done to actualize it. Thus, the alleviation of poverty in Nigeria is not a problem. This problem is first and foremost a political and ideological challenge requiring a recruitment effort for entrepreneurship sustainability (ALIYU; 2001). Also, the lack of continuity in the programs from one administration to the other is one of the problems in the development of entrepreneurship. Therefore, this study attempts to appraise how poverty can be reduced through entrepreneurship development can be used to reduce poverty in Nigeria.
1.3 Objectives Of The Study
The objectives of the study are
To examine the role of entrepreneurship in poverty reduction
To examined the role of entrepreneurship in economic development.
To examined the impediments to entrepreneurship development in Nigeria.
To determine the effect of unemployment and poverty on the Nigerian economy.
To examine how entrepreneurship can be used to reduce poverty in Nigeria.
1.4 Research Questions
To what extent can entrepreneurship be used to reduce poverty in Nigeria?
What are the roles of entrepreneurship development in economic development?
What are the impediments to entrepreneurship development in Nigeria?
What are the effects of poverty and unemployment on the Nigerian economy?
How can poverty be used through entrepreneurship development?
ENTREPRENEURSHIP DEVELOPMENT AS A PANACEA FOR POVERTY REDUCTION IN NIGERIA A CASE STUDY OF SELECTED SMALL AND MEDIUM SCALE ENTERPRISES SMEs IN AKWA IBOM STATE
