ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF MICRO AND SMALL ENTERPRISES)

ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF MICRO AND SMALL ENTERPRISES)

CHAPTER ONE

                                             INTRODUCTION

1.1              Background to the Study

Small and micro scale enterprises constitute indispensable ingredients in the development of any economy. Small and medium scale enterprises (SMEs) have been recognized as main sustenance of the national development because of their capacity in enhancing the economy output and enhancing human welfare (Akingunola 2011). Muritala Awolaja and Bako (2012), posited that there is the greater likelihood that SMEs will utilise labour-intensive technologies thereby reducing unemployment particularly in developing countries and thus have an immediate impact on employment generation. The role of small and medium scale enterprises in the economic and social development of the country is well established. The sector is a nursery of entrepreneurship, often driven by individual creativity and innovation (Ariyo, 2008; Ayozie and Latinwo, 2010).

MSMEs have contributed greatly to Nigerians development by the provision of employment, marketing of goods and services and the growth and development of the rural areas. It has also brought about the growth of indigenous entrepreneurship in Nigeria and is the real engines of growth. According to Awe J. (2012) on E-business Nigeria Small business move faster, are more flexible, more innovative and more daring. Unlike the government official or large corporation executive, small business entrepreneurs focus on wealth creation and driving change rather than fighting bureaucracy Micro, Small and medium-sized enterprises (MSMEs) are non-subsidiary, independent firms which employ less than a given number of employees. This number varies across countries. The European Union places the upper limit designating an MSME as 250 employees. The National Council of Industries defines Micro, Small and Medium Enterprises (MSMEs) as business enterprises whose total costs excluding land is not more than two hundred million naira (N200, 000,000.00) only.

Entrepreneurship is becoming a household name in the economy of Nigeria. This is due to the fact that the so-called white collar jobs that people are clamouring for are no longer there. Even the much touted sectors (banks and manufacturing companies) known to be the longest employers of labour are on the down turn following the consolidation crises and fraudulent practices of the high and mighty in the banking sector. The companies of course are folding up as a result of erratic power supply, insecurity and persistent increase in interest rate which has led to high cost of production and undermines their profit making potentials. This has resulted in massive unemployment which is detrimental to the economic development in the country.

ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA (A CASE STUDY OF MICRO AND SMALL ENTERPRISES)