TABLE OF CONTENTS
Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgements v
Table of Contents vii
List of Tables x
Abstract xi
CHAPTER ONE: INTRODUCTION 1
Background of the Study 1
Statement of the Problem 8
Purpose of the Study 9
Significance of the Study 9
Research Questions 12
Hypotheses 12
Scope of the Study 13
CHAPTER TWO: REVIEW OF RELATED LITERATURE 14
Conceptual Framework 14
- Secondary School Education 15
- Small Scale Business in Nigeria 17
- Basic characteristics of small scale enterprise 21
- Types of small business 23
- Entrepreneurship skills needed by secondary school graduates 26
- Management skills for employment in small business 31
- Marketing skills for employment in small business 34
- Accounting skills for employment in small business 38
- Communication skills for employment in small business 44
Theoretical Framework 50
- Psychomotor Theory 50
- Competency Theory 52
- Skills Acquisition Theory 53
- Experiential Theory 54
Related Empirical Studies 55
Summary of Literature Reviewed 61
CHAPTER THREE: METHODOLOGY 63
Design of the Study 63
Area of the Study 64
Population for the Study 64
Sample and Sampling Technique 64
Instrument for Data Collection 65
Validation of the Instrument 65
Reliability of the Instrument 66
Method of Data Collection 66
Method of Data Analysis 67
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA 68
Research Question 1 68
Research Question 2 69
Research Question 3 71
Research Question 4 72
Hypothesis 1 74
Hypothesis 2 75
Hypothesis 3 76
Hypothesis 4 76
Findings of the Study 77
Discussion of Findings 81
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 90
Re-statement of the Problem 90
Summary of Procedure Used 91
Summary of Findings 92
Implications of the Study 94
Conclusion 94
Recommendations 95
Suggestions for Further Studies 96
REFERENCES 97
APPENDICES
A: Population 102
B: Validation of Research Instrument 103
C: Letter to Respondents 104
D: Questionnaire 104
E: Reliability Analysis 107
F: Analysis Result 109
G: t-test Analysis 114
LIST OF TABLES
Table Page
1. Mean ratings of respondents on the management skills needed by
secondary school graduates for employment in small business 68
2. Mean ratings of respondents on the marketing skills needed by
secondary school graduates for employment in small business 70
3. Mean ratings of respondents on the accounting skills needed by
Secondary school graduates for employment in small business 71
4. Mean ratings of respondents on the communication skills needed
by secondary school graduates for employment in small business 73
5. t-test analysis of the mean responses of secondary school graduates
and owners of small scale business on the management skills needed by the graduates 74
6. t-test analysis of the mean responses of supervisors and the employed
secondary school graduates on the marketing skills needed by
the graduates for employment in small business 75
7. t-test analysis of the mean responses of supervisors and employed
secondary school graduates on the accounting skills needed by
the graduates for employment in small business 76
8. t-test analysis of the mean responses of supervisors and secondary
School graduates on the communication skills needed by the
graduates for Employment in small business 77
Abstract
The major purpose of this study was to determine the
entrepreneurial skills needed by secondary school graduates for employment in
small businesses in Enugu state. Four
research questions were answered and four null hypotheses were tested at 0.05
level of significance. The target population for the study was 85,608. These
comprise 3240 supervisors of registered small and medium scale enterprises with
the corporate affairs commission, Enugu, Enugu State, plus 82368 secondary
school graduates in the state, bringing the total population to 85608. The
sample for the study was 712 comprising of 313 supervisors of small scale
enterprises and 399 secondary school graduates.
Structured questionnaire was used to generate data for the study. The instrument was face validated by three
experts: two from Vocational and Technical Education and one from Science
Education Department, all from University of Nigeria, Nsukka. The Instrument was trial tested on 30
respondents comprising of 10 supervisors of small business enterprises in
Anambra state and 20 secondary school graduates in Anambra state outside the
study area. Cronbach Alpha reliability
method was used to determine the internal consistency of the instrument and
this yielded a reliability coefficient of 0.84.
Data were analysed using mean statistic for the research questions and
t-test was used to test the null hypotheses at 0.05 level of significance.
Secondary school graduates were influenced by the ability to set appropriate
business goals. Based on the findings,
it was concluded that, many of such skills were found as management,
accounting, marketing and communication skills.
The graduates are therefore required to undergo training to enable them
grow and develop their own enterprises.
The establishing of the enterprise will reduce unemployment and create
job for the youths and other people in the society. It was recommended that,
federal government and non-government organization (NGO) should join in the campaign
for the relevance of entrepreneurial skills to secondary school graduates for
employment in small scale business; principals of secondary schools in Enugu
state should embark on entrepreneurship capacity building of the teachers to
ensure better understanding of entrepreneurial skills and the operations in
business. The curriculum planners should fully integrate entrepreneurship
education into secondary schools curriculum.
CHAPTER ONE
INTRODUCTION
Background of the Study
Business in Nigeria has been classified as small, medium and large. In the developed and developing countries, the government is turning to small scale enterprises as a means of solving economic problems. It is also the bedrock of innovation, inventions and employment. According to Kochadai (2012), small scale business is a type of business that is independently owned, operated and organized for profit, and is not dominant in its field with a small number of employees and a relatively low volume of sale. Ayozie and Jacob (2013) defined small scale business as a manufacturing establishment employing less than ten people, or whose investment in machinery and equipment does not exceed two hundred thousand naira. They further stated that small scale business represents a statistically significant proportion of the world economy.
In Nigeria to day, small scale business assists in promoting the growth of the country’s economy. Small scale businesses are sources for economic growth and development for every nation, because as they grow, their economy grows too (Olowu & Aliyu, 2015). Since the development index of nations are measured basically on their achievement in terms of provision of welfare to their populace, small scale businesses play, a role as employment providers in a way that ensures equitable income distribution (Kuratko, 2005). Thus, Ayanda and Laraba (2011) described small businesses as “mighty minors”, that functionalize market economics and remove or minimize imperfection factors that impede adaptation to change. Small scale business is generally believed to be the most appropriate scale of business for developing economics like Nigeria. Small scale business helps to diversify economics and at the same time create employment (Abuka, 2014). Abuka further stated that for a small scale business to survive in an increasingly competitive environment like Nigeria, a skilled entrepreneur is required.
An entrepreneur is a person that is involved in the management of all activities in business. Sunday (2012) defined an entrepreneur as an enterprising individual who bulds capital through risk and for initiative. Entrepreneur, according to Binuomote and Okoli (2015), is a person who creates and manages business undertaking, bearing the risk for the sake of profit. In the view of Etuke (2004), an entrepreneur is the person who holds the key to entrepreneurship, he is the visioner who must have a clear conception of what he has envisaged and who must be in a position to translate it into a workable project. Agomuo (2002) submitted that entrepreneurship is a process of brining together creative and innovative ideas, combining them with management and organization skills in order to combine people, money and resources to meet an identified need and thereby create wealth. It is the willingness and ability of an individual to seek out investment opportunities, establish and run a business successfully. Entrepreneurship is thus, the process of learning the skills needed to assume the risk of establishing a business.
Skill is a person’s ability in performing a given task well as a result of training and practice. Obi (2005) defined skill as manual dexterity acquired through repetitive performance of operations. Osinem and Nwaoji (2005) stated that skill is the proficiency displayed by someone in the performance of a given task.
According to Sethi and Saxena (2008), skills referred to the ability of a person to perform an act expertly. Continuing, the authors stated that, it is therefore expertness, practiced ability or proficiency displayed in the performance of the task. In the context of this study, skills are those abilities that are required by secondary school graduates for employment in small business.
Secondary school graduates are those who have successfully completed six years in secondary school education. Elizabeth (2008) defined secondary school graduates as those who have completed their secondary education and are trying to gain admission into higher institutions. This is in line with Abuka (2014) who stated that the broad goal of secondary education is to prepare students for useful living and also to gain admission into higher institutions after graduation. In the context of this study, secondary school graduates are those students who have passed through three years of junior secondary school and three years of senior secondary school, and have sat for the required qualifying examination (West African Examination Council and National Examination). These graduates are expected to possess necessary entrepreneurial skills for employment in small business. Akpotowoh and Amali (2006) posited that these graduates need to be equipped with requisite entrepreneurial skills to establish and run small businesses of their own.
Entrepreneurial skill is the ability to choose appropriate business to raise their economic status and enhance success in business. According to Ademiluyi (2007), entrepreneurial skills are simply business skills which individuals acquire to enable them effectively function in the turbulent business environment as an entrepreneur or self employed. Erhurum (2007) noted that most entrepreneurial skills come by learning and practicing. Entrepreneurial skills enable individuals to exploit an idea and create an enterprise not only for personal gain but also for social and development gains (Oko, 2012). The author further stated that secondary school graduates need entrepreneurial skills for them to be successfully employed in small business. These entrepreneurial skills are needed in the area of management, marketing, Accounting and Communication.
Managerial skills are needed for effective management of small scale business. According to Olaleye (2007), managerial skills are the type of skills required by individual entrepreneur to formulate and execute policies of an enterprise which constitute management. Nwachukwu (2008) described management as the coordination of all resources of an organization through the process of planning, organizing, directing and controlling in order to attaining organization objectives. Secondary school graduates need management skills for planning, organizing, supervising, directing, controlling and coordinating the business enterprise. This is in line with Ile (2001) who noted that students need these skills in order to be successful in business. He posited that these skills help to check and monitor performance against set goals and plan while harmonizing individuals and group efforts to achieve business goals.
Another essential skill require by the graduates for employment as entrepreneurs is the marketing skills. Marketing skill are the skills required to market goods and services produced by an enterprise. Osinem (2008) explained marketing skills as the skills which an individual acquires and which enables him keep a job. Marketing skills involves identifying relevant markets accurately, communicate effectively with potential customers, users, or donors, and maintaining a sensitively to the marketing place. Osuala (1990) in Agada (2014) identified some marketing skills to include: Being familiar with various aspects of sales and sale techniques, determining the cost of advertisement, determining the storage facilities, and determining the extent of the market. These marketing skills will enable secondary school graduates to run successful enterprises.
Similarly, secondary graduates needs accounting skills to be successful entrepreneurs. Accounting skill promote good financial management, which is aimed at ensuring that there is adequate cash on hand to meet the necessary current and capital expenditures as well as to assist in maximizing growth and profits. Accounting is the systematic recording of financial transactions (Ezeani, 2008). It is a service activity, the function of which is identifying, measuring, recording and communication quantitative information, primarily financial in nature, about economic entities. These accounting skills, according to Akinola (2001), enable one to understand the financial matter of an organization. It involves where to find capital, how to secure it, hold to plan cash flow, how to keep effective financial and how to foresee future financial needs.
Furthermore, the possession of communication skill will help the production to excel as entrepreneurs. Communication skills are the knowledge and ability required by individuals to transfer information from one place to another. These skills involve written, oral, visual and non verbal communication. According to Longman (2005), communication skills are ways and abilities for expressing oneself well so that others can understand communication skills enable one to create sound awareness about the products of an enterprise (Agada, 2014). Good communication skills, in terms of oral and written are essential for successful business. Communication skills are very important for secondary school graduate for employment in small business in Enugu State to enable them communicate in business transaction fluently with their customers.
If secondary school graduates in Enugu State are therefore equipped with the appropriate entrepreneurial skills, they will excel in their businesses and also contribute meaningfully to society in which they live. Unfortunately, in Nigeria and especially in Enugu state, the owners of small scale business complain that most secondary school graduates have not been able to perform satisfactorily (Chukwunta, 2015). Chukwunta further stated that these students are graduating from secondary schools without the necessary skills and entrepreneurial competencies. Furthermore many of these students do not posses entrepreneurial skills that will enable them establish and manage a small business enterprise so as to become self-employed and self reliant on graduation (Okoli, 2008).
Similarly, the high rate of unemployment among secondary school students has been attributed to lack of skills required in the world of work. Ifedi (2009) in his reaction agreed that one of the main causes of unemployment among college students is lack of employable skills. Thus, we are faced with the burdens of surplus unemployed manpower as a result of the wide gap created by absence of entrepreneurial skills by secondary school students. This calls for the acquisition of entrepreneurial skills which is a prerequisite for employment in small business. Therefore, this study seeks to determine the entrepreneurial skills needed by secondary school graduates for employment in small business in Enugu State.
Statement of the Problem