IMPACT OF EMPLOYEE COMPENSATION ON ENTREPRENEURIAL PRODUCTIVITY

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CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

After the Second World War, concern for economic development became all-pervasive. There was a growing concern for economic development and this strengthened interest in entrepreneurship with primary focus on exploring practical measures to augment the supply of entrepreneurs, i.e. persons with competence and aptitude to initiate, nurture and expand industrial enterprises. This resulted in the belief in education and training to inculcate and develop entrepreneurial capabilities in people so that they could set up their own enterprises. Subsequently programmes directed towards this goal were conceptualized. The nineteen century was a fertile time for entrepreneurial activity, as technological advances during the industrial revolution provided the impetus for continued inventions and innovations. Much of the literature in the field of entrepreneurship is from the USA and Europe, and thus is based upon western values and cultures. The study of entrepreneurship continues to grow as a field of enquiry and remains one of the most attractive areas of research in the management field. Entrepreneurship (small business enterprise) plays a significant role in world economy. Specifically, small business firm constitute majority of the types of businesses in all economies of the world (Hill and McGowan, 1999, Timmons, 1994; Storey, 1994, Culkin and Smith, 2000). Some of the world's multi-national corporations, which have influenced many world economics, started as small business enterprise.  In Nigeria entrepreneurship, (small business enterprise) accounts for substantial part of the total industrial employment, production, and value-added in Nigerian business concerns. Okongwu (2001) explained that small business enterprises generate the industrial wealth of Nigeria in addition to being a major agent in the economic, technological, social and political growth and development of Nigeria, not minding the presence of multinational and other large firms in Nigeria such as Shell, Mobil, NNPC, NITEL, NPA, NPHC, Lever Brothers, Nestle Foods and others.