The Impact of Foreign Capital on Entrepreneurship Development in Nigeria (A Case Study of Enugu State)
OBJECTIVE OF THE STUDY:
The purpose of the study is as follows:
- To examine the nature of entrepreneurships development in Enugu State.
- To examine the institutional arrangements development for entrepreneurship development.
- To determine the role of foreign capital in entrepreneurship development.
- To determine the extent of foreign participation in entrepreneurship activities.
- To examine the challenges of entrepreneurship development in Enugu state.
REVIEW OF RELATED AND RELEVANT LITERATURE
NATURE OF ENTREPRENENRSHIP DEVELOPMENT
When an entrepreneur plans to start an enterprise, the most important aspect is that the potential entrepreneur has adequate first-hand knowledge and skills required for the particular enterprise. Understanding the technical skills and technology is a crucial component in developing a successful enterprise. Entrepreneurs may play an important role in developing and contributing to the economy of a nation. We see more entrepreneurs in comparatively more developed areas. There is problem of unemployed population; seeking wage earners career and unaware about the wide open opportunities for entrepreneurial carrier. This is, by and large, because of the lack of education about entrepreneurship development. In most of the countries, entrepreneurship development has not found any place in the education curriculum. If we talk in terms of agriculture & allied sector all round development, it can be possible only with efective exploitation of entrepreneurial behaviour skills as well as material resources. But, our country is scarce of material resources but abundant of human resources. So, we can identify individuals in all segments of the population, who have the requisite entrepreneurial behaviour skills. The entrepreneur is an economic man, who tries to maximize his profits by identification and adoptions of innovations, however, the entrepreneurs are not simply innovators but they are the persons with a will to act to assure risk and bring about a change through organisation of human efforts.
It plays a key role in economic development of the country. Importance of development of entrepreneurship as an ingredient of economic development has been recognized long time back. It was as early as in 1950 that the need for entrepreneurial behaviour development was first felt and since then substantial amount of research has been done in this sphere.
Entrepreneur is an Economic Agent who plays a vital role in the economic development of a country. Economic development of a country refers steady growth in the income levels. This growth mainly depends on its entrepreneurs. An Entrepreneur is an individual with knowledge, skills, initiative, drive and spirit of innovation who aims at achieving goals. An entrepreneur identifies opportunities and seizes opportunities for economic benefits. Entrepreneurship is a dynamic activity which helps the entrepreneur to bring changes in the process of production, innovation in production, new usage of materials, creator of market etc. It is a mental attitude to foresee risk and uncertainty with a view to achieve certain strong motive. It also means doing something in a new and effective manner.
Concept of entrepreneurship
The word entrepreneur is derived from French word “Entreprendre” and the German word “Unternehmen”, both mean “To undertake”. For a long time there was no equivalent for the term entrepreneur “in the English language. Three words were commonly used to connote the sense the French term carried: ad venture, undertaker and projector; these were used interchangeably and lacked the precision and characteristics of a scientific expression (Gopakumar, 1995). Hence the term “entrepreneur” did not in any prominence in the history of economic thought. The earliest attempt to invest the concept with some economic concept with some economic content could be traced to the works of an 18th century. Entrepreneurship as a concept gathered prominence in economic literature, the concept some analytical treatment and assigned the entrepreneur an economic role by emphasizing on “risk” as prominent entrepreneurial function (Gopakumar, 1995). Entrepreneur means individual response for the operation of a business, including the choice of a product, the mobilization of necessary capital, decisions on product prices and quantities, the employment of labour and expanding or reducing the productive facilities. Entrepreneurs are a product of the particular social conditions in which they live, and it is the society which shapes the personality of individuals as entrepreneurs. Entrepreneur represents an individual or a group of individuals, who conceive, initiate and maintain for a succinctly long period of time, a social institution which produces economic goods (Cole, 1949) or to put it differently, who perceive a business opportunity and create an organization to pursue it (Bygrave & Hofer, 1991). Cole (1959) described entrepreneur as decision maker and indicated the following functions of an entrepreneur.
- The determination of those objectives of the enterprise and the change of those objectives as conditions required or made advantages.
- The development of an organisation including efficient relationship with subordinates and all employees.
- The securing of adequate financial resources the relation with existing and potential investors.
- The requisition of efficient technological equipment and the revision of it as new machinery appeared.
- The development of market for the products and devising of new products to meet or anticipate consumer demand.
- The maintenance of good relationship with public authorities and with society at large.
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine the impact of foreign capital on entrepreneurship development in Nigeria.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information which will aid to examine the impact of foreign capital on entrepreneurship development in Nigeria. 200 respondents were randomly selected randomly by the researcher as the population of the study.
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain the impact of foreign capital on entrepreneurship development in Nigeria.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits examining the impact of foreign capital on entrepreneurship development in Nigeria.
This study set out to examine the impact of foreign capital on entrepreneurship development in Nigeria. The specific objectives examined include the structure of capital inflows into Nigeria, the distribution of the inflows, the contribution of the inflows to economic growth. Finding has revealed that growth pattern of most of the components of capital inflows into Nigeria was unstable. This resulted to decline in contribution of foreign capital to economic growth. Throughout the period investigated, it is apparent that agricultural sector was neglected in the distribution of capital inflows. This was in spite of the vast unused resources available for utilization. However, it is observed that capital inflows have contributed positively to entrepreneurship growth in Nigeria.
In the examination of the role of foreign capital inflows on entrepreneurial development in Nigeria, contribution of the foreign capital to economic growth was the yard stick of measurement. It is found that capital inflows contribute positively to economic growth throughout the period reviewed. This finding affirms the views of the neoclassical economists about the role of foreign capital on entrepreneurial development. The decline in the contribution as noticed in the trend analyzed could be attributed to instability in the trend of the inflows as observed in the study. Also this work has affirmed the positions of various empirical literature in Nigeria as reviewed in this study on the relationship between foreign capital inflows and productivity, entrepreneurship and economic growth.
- It is recommended that government should reemphasize implementation of existing regulations that could attract foreign investments.
- It is also recommended that government should make provision for special package of recognition to foreign investors that have reached a certain target of investment in Nigeria.
- Government should make regulations that could attract inflows into agricultural sector. Tax free policy should be applied for agricultural inputs and outputs.
- Components of inflows such as un-remitted profit; changes in foreign share capital; trade and suppliers‟ credit and external borrowing should be encouraged more than inflows in portfolio investments. Investigation has shown that foreign capital in the form of portfolio investments are easily exposed to danger of being terminated in case of economic crisis in the recipient country.
- Entrepreneurs, particularly, in the informal sector of the Nigerian economy should be assisted by government to obtain loans from international commercial lenders to boast their entrepreneurship.
- Aids and grants to Nigeria for economic development from developed economies should be utilized in financing the informal sector to enhance performance of entrepreneurs’ vis-à-vis economic growth and development of Nigeria.
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