SKILL ACQUISITION AMONG YOUTHS: A PANACEA TO UNEMPLOYMENT AND ECONOMY GROWTH IN NIGERIA (A CASE STUDY OF AKWA IBOM EMPLOYMENT AND ENTERPRISE SCHEME, AKEES)

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Nigeria the most populous nation in Africa and the second-largest economy in the continent is endowed with both human and material resources but years of unbridled corruption, mismanagement and sheer waste have hindered economic growth in the country. Consequently, the nation’s resources have been left under-utilized leading to unemployment and abject poverty (Bakare, 2013). The importation of foreign policies that were workable in developed economy failed to improve the economic system with soaring rate of unemployment of our able-bodied youths.

Nigeria with a population of over 160 million and 250 ethnic groups with diverse background of equally diverse individuals with youth demographic approximately 75% (Business Day, (2013) continue to witness more than 150,000 graduates churn-out annually and available jobs remain inadequate to keep pace with the ever expanding army of jobseekers (Bakare 2013). At such, the unemployment rate continues to increase, an unhealthy situation for a developing nation. Nigeria as a nation has been witnessing drastic and frantic security challenges for some years now and the insecurity situation has been partly attributed to unemployment in the country. The position was confirmed by the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi (2013) in his speech at the 1st Ochendu Youth Empowerment Lecture Series held in Umuahia, Abia State. He affirmed that insecurity can be triggered and fuelled by factors such as unemployment among others. He gave the statistical rate of unemployment to be 20% in 2009 – 2011 as against 15% in 2002 – 2008 and Bakare (2013) but the recent World Bank statistics, revealed youth unemployment rate at 38 per cent. Realistically, she opined, 80 per cent of Nigerian youths are unemployed, with secondary school graduates mostly found among unemployed rural population accounting for about half of this figure.

Though, the crisis surfaced in forms of communal, religious, political and social economic resulted in loss of lives and properties. Judging from the happenings it is seen as phantom sectarian violence that is responsible as it started in the regions. Today in Nigeria, we live in fears, a position corroborated by Clark & Ausukuya (2013) that we live in absolute suspicion and constant presentiment of an impending disaster as most economic activities have been grounded and crippled resulting the inability of employers to pay their employees thereby exacerbating the already tensed atmosphere of joblessness. It is against this backdrop that BusinessDay in collaboration with the ministry of industry, Trade and Investment, as well as small and medium enterprise development agency of Nigeria (SMEDAN) chose the maiden edition of university entrepreneurship development programme (UNEDEP) initiative as a platform to promote entrepreneurship across Nigerian universities and to create in students the hope about the opportunities within the country.

The then Minister, Mr. Olusegun Agagu stated that his ministry stretched the mandate on entrepreneurship to the university level with UNEDEP because of the need to cultivate the culture amongst Nigerian youths. The minister revealed further that there is a global focus on MSMEs adding that more countries are making the development of this sector a priority because it is the only sector that continues to employ while larger corporations are making staff redundant. He enjoined the students to take advantage of the various discussions as it will give them the necessary guidance in developing their business ideas. The aim of this initiative is to empower undergraduates for job and wealth creation as well as poverty alleviation (BusinessDay, 2013).

In another training programme organized for unemployed graduates by the Centre for Human Security, Olusegun Obasanjo Presidential Library in collaboration with Kwara State University in Ilorin, the former Executive Secretary of the Nigerian Universities Commission (NUC), Professor Peter Okebukola said that Nigerian Universities have been asked to make entrepreneurship compulsory for all graduates of tertiary institutions in order to help in reducing graduate unemployment in Nigeria, in the nearest future, the measure would have prepared graduates for entrepreneurship towards moving Nigerian forward (Nigerian Tribune, 2013).

1.2   Statement of Research Problem

Unemployment has been identified as a major factor affecting the economic development of Nigeria today. These youths constitute greater fraction of Nigeria’s economically active population. Awogbenle and Iwuamadi (2010), revealed that the statistics from federal bureau of statistics indicated that Nigeria has a youth population of 80 million which represents 60 percent of the total population. Also, 64 million of them are unemployed, while 1.6 million are underemployed. This implies that a lot of energies that would have been used to generate revenues and improve the economy are being wasted. Youths, like other classes of the population have needs to meet (Nnabuife, 2009), but since 1980’s the important roles of the youths have continued to suffer some set back as they can hardly engage themselves in meaningful work (Davies, 2006). The consequence is frustration expressed through various vices that constitute insecurity in the country. The need for this study is to show how different skills acquisitions by the youth can save them unemployment that they found themselves with of government intervention through making loan accessible to them. This study will therefore investigate skill acquisition among youths: a panacea to unemployment and economic growth in Nigeria; a case study of Akwa Ibom Employment and Enterprise Scheme, AKEES.

1.3   Research Objectives

The general objective or main objective of this study is to investigate skill acquisition among youths: a panacea to unemployment and economic growth in Nigeria; a case study of Akwa Ibom Employment and Enterprise Scheme, AKEES. The specific objectives are:

i)             To examine the effects of skill acquisitions on the economy in Nigeria

ii)           To evaluate the steps taken by Akwa Ibom Employment and Enterprise Scheme, AKEES to promote skill acquisition among the youths for the development of the Nigerian economy

iii)         To understand the reasons for the encouragement of skill acquisition by the government in Nigeria

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the effects of skill acquisitions on the economy in Nigeria?

ii)           What are the steps taken by Akwa Ibom Employment and Enterprise Scheme, AKEES to promote skill acquisition among the youths for the development of the Nigerian economy?

iii)         What are the reasons for the encouragement of skill acquisition by the government in Nigeria?

1.5   Research Hypothesis

The research hypotheses to be tested include:

i)             There is a significant correlation between skill acquisition and the Nigerian economy

ii)           there is a significant influence of skill acquisition on unemployment among Nigerian youths

1.6   Significance of the Study

This study will be beneficial to the general public, the government and policy makers in educating them on the need to encourage entrepreneurship. The public need to be well informed that gone are the days when Nigerians sit and wait for the government to create jobs; now is the time for private individuals to create jobs in other to enhance economic growth. Also, the government has a part to play in promoting entrepreneurship. The government can embark on meaning projects; enact policies that will support entrepreneurship in Nigeria. The government equally needs to see to it that funds allocated to empower such programmes are well utilized.

In addition, the government needs to enforce entrepreneurship education in schools, in other for our students to be educated on the need to acquire skills to enhance job creation in the country.  However, policy makers need to add this study to their work in other to educate upcoming generations about entrepreneurship. This study will be of immense benefit to other researchers who intend to know more on this topic and can also be used by non-researchers to build more on their work. This study contributes to knowledge and could serve as a guide for other work or study.

1.7      Scope of the Study

This study is restricted to examining Skill Acquisition among Youths: A panacea to unemployment and Economic growth in Nigeria; a case study of  Akwa Ibom Employment and Enterprise Scheme, AKEES.

1.8   Limitations of study

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9      Definition of terms

The following terms were used during the cause of the study.

Economic growth: This refers to as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base.

Entrepreneurship: This is the willingness to take risks and develop, organize and manage a business venture in a competitive global marketplace that is constantly evolving. 

Entrepreneurs are pioneers, innovators, leaders and inventors.

Panacea: This is an answer or solution for all problems or difficulties.

Economic development: This is the process and policies by which a nation improves the economic, political, and social well-being of its people. It is also referred to as the quantitative and qualitative changes in an existing economy.

SKILL ACQUISITION AMONG YOUTHS: A PANACEA TO UNEMPLOYMENT AND ECONOMY GROWTH IN NIGERIA (A CASE STUDY OF AKWA IBOM EMPLOYMENT AND ENTERPRISE SCHEME, AKEES)

EFFECTS OF SKILL ACQUISITION ON ENTREPRENEURSHIP DEVELOPMENT AMONG NASARAWA STATE UNIVERSITY

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Education is the process of learning and training; it is an instrument for change and development. Education is the springboard to socio-economic growth and development of every nation. It prepares an individual to live in a dynamic or constantly changing society and contribute to such changes and constantly advance the survival, growth and development of the society (Nwaham, 2010). Education generally, is a social process that helps to maintain a dynamic society since the creation of human beings. Observing this, Onyeachu (2006) noted that it is through education that the cultural heritages are transferred from generation to generation. Education is the most powerful instrument in the world because no nation has ever attained fame or a particular height in terms of development without education as its bedrock, which is engendered by sound educational ideals. Thus Onwumere (2006) saw education as the springboard for socio-political, economic and cultural development that enhances the production of skilled manpower for national development. There are informal and formal system of education, the formal structure of education should be encouraged. On the other hand, obtaining certificate alone without a corresponding creative and mental power have no serious bearing on the purpose of education (Uloko, 2010). Education as parameter, registers the tempo of change and as well the rapid transformation of any society (Akpojena, 2010). There is high increase in the demand for education at all levels in Nigeria that promotes skills acquisition for survival in the society; by the same token, it is through such education that the acquired skills can be transferred into business development, which will in turn contribute to economic growth and development in Nigeria. And such education is entrepreneurship education.

However, despite the recognition of entrepreneurship as having the potential to curb unemployment among Nigerian youth and the introduction of entrepreneurship education in Nigerian universities, about 80% of the Nigerian youth are unemployed and about 10% are under employed with 7 out of 10 graduates remaining unemployed or underemployed (Dike, 2009). As the former minister of labour and productivity Adelokunbo Kayode has asserted, “the greatest challenge confronting government today remains massive unemployment which has served as a breeding ground for anti-social vices” in Nigeria (Olayinka, 2010).

In today’s competitive and challenging global world with diverse demands, many countries are facing serious problems of graduate unemployment (Adesina, 2013). As a result, the higher education sectors are under immense pressure from governments, employers and parents to produce quality graduates that can be economically engaged at the individual, national and global level (Teichler, 2007). Such graduates should possess a combination of attributes that will enable them to take an adaptive and proactive approach to their careers (Bezuidenhout, 2011). While there is consensus worldwide on the importance of addressing employability within higher education, there remains some debate on how best this can be achieved (Harvey, and Morey, 2002). This paper will suggest initiatives to be taken by the to make sure that every stakeholder (including the government, higher education institutions, industry and commerce, employers, professional bodies, parents and the students) play its part in ensuring that graduates are able to find or create employment sustainably.

Although many countries are faced with problems of unemployment in general (Adesina, 2013), the scope of this paper is limited to graduate employability. A graduate here refers to someone who has a bachelor’s or higher degree from a higher education institution (HEI). The rationale for focusing on graduate employability arises from the realisation that governments, employers and communities are increasingly interested in what HEIs have to offer as a source of recruitment and for the development of existing employees (Keech, 2006). In part, this has been driven by a growing awareness of the potential of HEIs in the development of knowledge based economies and driving innovation and national development (Escrigas 2008).

Ayodele, 2006 Unachukwu (2009) identifies the challenges to entrepreneurship education in Nigeria to include: finance, manpower and education, data, inadequate infrastructures and entrepreneurial attitude. She advocates the need for entrepreneurial education for the youth. The government at all tiers; the Nigerian Universities Commission (NUC), professional bodies like Institute of Chartered Accountant of Nigeria and the academia have been attracted to it. In particular, some universities are redesigning their curricula and the ways they operate to create opportunities for the training of their students in practical entrepreneurial skills. The Federal Government of Nigeria issues directive through the Nigerian Universities Commission (NUC) to all Universities in the country to establish Centres for Entrepreneurship Development to coordinate the offering of a benchmark entrepreneurship course to all students in Nigerian universities.

Therefore, the NUC has made course on entrepreneurship development (CED) to be mandatory for all Nigerian graduates irrespective of their disciplines since year 2000.The strategic objectives of the national policy are to: (1) improve the capacity of youths to develop positive independent and innovative thought process and overall entrepreneurial mind-set and (2) the development of vocational skills to stimulate future graduates towards venture and wealth creation. A recent survey of university undergraduates on their perception of CED by one of the authors reveals these objectives might be far from being achieved given the present traditional model. However, due to the way entrepreneurial programmes have assumed a global proliferation and dimension, it was suggested by Volkmann (2004) that entrepreneurship will become “the major academic discipline for business education in the 21st century”.

1.2      Statement of the Problem

Nigerian tertiary institutions produce millions of graduates annually into an economy which is already overpopulated, thereby raising the level of unemployment. It is on this note that the government in conjunction with its agencies tends to introduce skills acquisition programme in order to correct this anomaly and also ensure that these newly graduated students become self-reliant and prepare for them a future which will in turn devoid the economy of miscreants.

Experience over the years has revealed that seventy percent of these graduates end up roaming about the streets as a result of lack of job opportunities. The unemployment rate in the country (Nigeria) keeps escalating as each year comes by as a result of continuous injection of graduates who have no jobs to do at the end of the day. This situation has become so pathetic because job seekers/applicants end up going back to their aged parents who have invested in them, hoping that someday, they will get back the dividends of their investments but all to no avail. This cankerworm (unemployment) which has eaten deep into the fabric of the society must be reversed to avoid national crisis. Entrepreneurship education is just becoming a popular course in most of the Nigerian higher institutions as it was introduced in 2006 effective from 2007/2008 academic sessions and this has made the acquisition of relevant skills for employment and self-employability more theoretical than practical. This calls for critical survey of entrepreneurship education as the key to solving graduate unemployment (Oyebola, 2010). Entrepreneurship skill acquisition programme initiated by the National Youth Service Corps in its activities as also avail the newly admitted youth Corpers the opportunity to partake in diverse entrepreneurial skill acquisition programmes during their first three weeks at the camp. This study will empirically examine the effect of skill acquisition on entrepreneurship development among Nasarawa State University, Nigeria with a view to providing recommendations that will improve graduate entrepreneurship and hence reduce the level of graduate unemployment rate in Nigeria.

1.3   Research Objectives

The study has both general objective and specific objectives. The general objective or main objective of this study is to examine the effect of skill acquisition on entrepreneurship development among Nasarawa State University, Nigeria. The specific objectives are:

i)             To understand the impact of skill acquisition on entrepreneurship development on the students of Nasarawa State University

ii)           To identify the reasons for the introduction of skill acquisition programme in the higher institutions of learning in Nigeria

iii)         To examine the challenges facing skill acquisition and entrepreneurship development in the higher institutions of learning in Nigeria

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the impacts of skill acquisition on entrepreneurship development on the students of Nasarawa State University?

ii)           What are the reasons for the introduction of skill acquisition programme in the higher institutions of learning in Nigeria?

iii)         What are the challenges facing skill acquisition and entrepreneurship development in the higher institutions of learning in Nigeria?

1.5   Research Hypothesis

The research hypotheses to be tested include:

i)             there is no significant correlation between entrepreneurship education and self employability

ii)           there is a significant relationship between entrepreneurship education and unemployment reduction

1.6   Significance of the Study

        This study will be beneficial in highlighting the importance of entrepreneurship education and its impact on unemployment reduction in Nigeria. One of the SDG (Sustainable Development Goal) goals highlights education (training) as a critical factor to reducing poverty and dependency. Allow the identification of the concept and framework of entrepreneurship. It will also be beneficial in the area of development and its contribution to Nigeria’s economy as well as generating greater awareness among tertiary institutions on the importance of having proper and practical strategies for acquiring entrepreneurial skills.

1.7   Scope of the Study

This study will be carried out among the students of Nasarawa State University, Nigeria. Information collected from these workers shall be subjected to further analysis and the results got from it shall be final.

1.8   Limitation of the study

The study will be faced with a lot of challenges and one it the problem of finance. There is not going to be enough funds to print questionnaires and to also transport the researcher to meet the desired respondents. Another one is time; the researcher is currently busy with the demand of his academics. A lot of assignments are available for the researcher to do and coupled with his desire to read and learn at the same time. These are the major challenges of this study.

1.9   Definitions of Terms      

The following terms were used in the course of this study:

Entrepreneurship education: seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety of settings. Variations of entrepreneurshipeducation are offered at all levels of schooling from primary or secondary schools through graduate university programs.

Job creation: the process of providing new jobs, especially for people who are unemployed: the government’s job creation strategy.

Skills acquisition:  the ability to learn or acquire skills. It involves the development of a new skill, practice of a way of doing things usually gained through training or experience

EFFECTS OF SKILL ACQUISITION ON ENTREPRENEURSHIP DEVELOPMENT AMONG NASARAWA STATE UNIVERSITY

THE IMPACT OF TAXATION ON PROFIT LEVELS OF SMALL SCALE BUSINESS ENTERPRISES

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Business growth and tax policies enormously rely upon each other for survival of changes lately. With the assistance of different studies and research done by tax specialists, tax laws are being checked on with the point of repulsing obsolete clauses and simplifying the primary ones. The desire to have an enlightened state with strong as well as sound economy is a fantasy for most nations including Nigeria. Tax instalment is the show of such longing, though some income workers view it as techniques for abuse by the decision powers. Tax Payment is a required duty forced by the organization on singular wage labourers, associations, money related authorities, exporters, and merchants (Murphy, 2005). Income got from tax gathering is an imperative wellspring of income to the legislature of Nigeria, and everything considered is fundamental instrument used as a piece of change of Nigeria and her economy. A country’s tax approaches and frameworks are immensely related with the business wanders in the country. An economy that sanctions good and dynamic tax laws and strategies will breed productive and finance strong business affiliations (Coso, 2002).

When business thrive, the economy prospers also, as there is no speedier method for mixing up the issues of economy without help of associations that move administrations, merchandise, cash and ventures from those with and products (Baurer, 2005). Basically, Small business enterprises are for the most part perceived as imperative drivers of monetary achievement. They are key element of a solid economy, as job creators, sales generators and source of tax income. In Nigeria, the significance of small ventures as job creators, especially for those with low skills level, is broadly perceived. SMEs contribute significantly to the Nigeria’s gross domestic product (GDP) and utilize around 98% 0f the workforce in the private sector. In the course of the most recent couple of years the development of SMEs work has surpassed the development in their commitment to the GDP the motivation behind why the Nigerian government has been strikingly supporting them through monetary organizations credit lending (ROK, 2015).

Taxation is now considered to be the key source of revenue that the Nigerian government is now using to provide public services to its citizenry since the dwindling price of oil in the international market. Due to its importance, tax policy debates and decision making becomes a critical issue to the public, to businesses and the economy at large owing to the varied impact that it will have on each of these entities (Mutua, 2011). Regulations and tax policies are accounted for to be one of the hindrances of expansion of small enterprise in Nigeria and globally. Nonetheless, these undertakings like the rest of businesses in Nigeria are obligated to various types of taxes paid at various phases of the business. For purposes of this study, the emphasis is put on how the tax rates, tax policies and various types of taxes affected growth of small and medium sized enterprises in Nigeria. Therefore the design and performance of the tax system has implications for inequality and as such it is the role of the government to ensure that it pursues a fair tax system for equitable distribution of income and welfare of the citizens. The other important benchmarks for assessing the tax system include simplicity, adequacy and neutrality.

1.2   Statement of the Problem

Income tax rates that are charged on small and medium enterprises are not accurate. In many instances, the tax rates are computed with lack of assessment of the actual revenue of an entity, despite these entities making losses. In addition, business rates have been enhanced since the introduction of devolved government hence increasing the tax burden to most small and medium sized enterprises. Profit maximization is the major goal of every small scale enterprise. However, this is not always the case as big percentages of them are not able to attain this goal (Patricoff, 2005). Income tax administration contributes greatly with regard to revenue collection and profitability of all entities. In a bid for the state to improve its tax base, the tax burden for majority of organizations increases. In spite of this, the tax administration system is often poor, the tax liability is based on mere estimates, incomplete record of SMEs, with some missing out completely, a situation that lead to tax overcharge and penalties. In return, this has a direct impact on the growth of the enterprise and may threaten its survival because taxes are paid out of profits (Murphy, 2008).

Kazemy (2011), evaluated the effective factors on survival of SME’s, a case study of

Iran. Their findings showed that human, marketing and financial factors were effective for the survival of the SME’s in the studied population. As evidenced above, other researches have focused on several other factors. Studies have shown that the SMEs sector in Nigeria is a strong contributor to the national Gross Domestic Product. (McCormick & Dorothy 1988). However most studies in the past on SMEs and their growth have focused on accessibility to credit and inflation in the country as the main factors inhibiting growth and development of SMEs in Nigeria. It should be noted that the current government has promised to provide millions of jobs to the many unemployed youths since the beginning of their tenure in the next years and the government has identified the SME sector as the one to provide these jobs. This promise comes at the back drop of a similar promise by the previous government and out of which nothing much was achieved. However, there exists an academic gap in that while it is indisputable that these studies are important since they address factor that influence growth of SME’s, they do not address whether taxation affects the profits and growth of Small and Medium Enterprises in Nigeria.

1.3   Research Objectives

The general objective or main objective of this study is to investigate the impact of taxation on profit levels of small scale business enterprises. The specific objectives are:

i)             To evaluate how the rate of taxation affects the rate of investments in the economy.

ii)            To investigate the rate of expansion by small business relative to the different rate of taxation

iii)          To examine the general desirability of the firms and individuals for investment purposes as a result of taxation

iv)          To determine the various measures introduced to boost industrial production and its financing and how this has affected the realization of the set goals.

v)            To establish the impact of taxation on the small business with the relevant data collected from some firms.

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             How has the rate of taxation affects the rate of investments in the economy?

ii)            What is the rate of expansion by small business relative to the different rate of taxation?

iii)          What is the general desirability of the firms and individuals for investment purposes as a result of taxation?

iv)          What are the various measures introduced to boost industrial production and its financing and how this has affected the realization of the set goals?

v)            What are the impacts of taxation on the small business with the relevant data collected from some firms?

1.5   Research Hypotheses

The following will be the research hypotheses to be tested for this study

i)             There is no significant effect between tax rates and the growth of SMEs in Nigeria

ii)           There is no significant effect between tax policy and the growth of SMEs in Nigeria

iii)         There is no significant effect between types of taxes and the growth of SMEs in Nigeria

1.6   Significance of the Study      

One of the most frequent discussed issues in Nigeria now is how to solve the economic hardship in the country and how to create an industrial base that can guarantee self sustaining growth. Nevertheless, the country which is richly endorsed with the necessary human and material resources has turned from an agricultural resources economy to a “mono prominent” Economy dependent on the petroleum for the foreign exchange earnings. Unfortunately too, the country has achieved only a fragile industrial development after adopting strategy based on large industries, which tend to be capital intensive and mapropriate, given the nation’s resources endowment. But it is important to note that with the supporting role of the government, small businesses are capable of pulling Nigeria out of the present economic malaise, especially if the raw materials are sourced locally. This research is significant in the sense that it seeks to find out the reasons that make small scale business not easily able to diversity or expand as well as offer solution to this problem.Again, this research is of academic significance to the extent that it will serve for better understanding of the impact of taxation on small scale business in a developing economy like Nigerian.

1.7   Scope of the Study

The scope of this research covers a critical examination of the impact of taxation on small-scale business enterprises in a developing economy. It will also analyse the function of taxation.

1.8   Limitation of the study

There were a lot of difficulties encountered in obtaining information for this study. Most of the respondents were unwilling to release useful and reliable information in a study of the nature. Some persons who were around were skeptical to which use the data supplied would be put. Most of the small-scale business outfits used do not keep accurate accounts and records of the amount of taxes they pay. It was not possible for the researcher to go round the while state in the country to gather information.

1.9   Definition of Terms

Tax: this is a compulsory financial charge or other levy upon and individual or legal entity by a state or the functional equivalent of the state such that failure to pay is punishable by law. It is not a voluntary contribution, payment or donation but rather, it is imposed by government under t6hthe name of import duty, exercise, etc.

Tax rate: taxes are most often levied as a percentage. Thus, tax rate is the percentage of income or profit of individual paid as tax.

Small scale enterprise: This is sometime called small scale business. It is a business that employs small number of workers and does not have a very high volume of sales.

THE IMPACT OF TAXATION ON PROFIT LEVELS OF SMALL SCALE BUSINESS ENTERPRISES

THE IMPACT OF ENTREPRENEURSHIP DEVELOPMENT STUDIES AMONG STUDENTS TERTIARY INSTITUTION IN NIGERIA (A CASE STUDY OF OBAFEMI AWOLOWO UNIVERSITY

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Entrepreneurship is considered to be an individual’s capacity to turn ideas into action. The concept of entrepreneurship is broken down to mean creativity, innovation and the ability to achieve set objectives and become self-reliant or independent. This is in line with everyone in day-to-day activities in the society. Entrepreneurship has become a word of the day. Academic institutions like monotehnics, polytechnics and universities in Nigeria have adopted it as a course of study to prepare their students for the outside world. In addition to this, lectures, symposia, conferences and workshops are being organised at every nook and crannies of Nigeria to emphasise the importance of entrepreneurship to the economy the nation, community as well as individual growth and development (Béchard and Toulouse (1998); Schaper and Volery (2004); Matlay and Westhead 2005).

A number of studies have been conducted to answer questions such as “Why do some university students do better than others? These studies have revealed that academic factors have influence on academic performance (Noble 2001;Callender 2008; Chee et al. 2005, Russell and Lehman 2008). While considerable research has been conducted to assess factors affecting academic achievement as measured by GPA, previous research has given little attention to the effect of student employment (working hours) on students’ academic achievement as measured by cumulative GPA. In addition, prior studies concerning the impact of college student employment and working hours on GPA either used first-year college GPA’s as a success measure (Bleyaert 2010; Paszczyk 1994; Stumpf and Stanley 2002) and were criticized for low validity [for many less outstanding students take many lower level courses during the first year which likely increases their GPA (Stumpf and Stanley, 2002) or used a small sample size. In addition, the most recent studies reveal that students’ prior academic achievement (e.g., ACT scores), which could moderate the effect of student employment (working hours) on GPA was not controlled.

The correlation between work and study was studied from the different perspectives (Lang, 2012), always taking into account that the main desire of the university students is to obtain their degree and finish their studies: the time and energy available for the external work the primary orientation of each student for studying or working the primary orientation to work for economic survival (Froment, 2012). But there is a practical consensus that students working more than 16 hours per week (equivalent to 2 days a week with an 8 hour schedule) experience negative impacts on academic performance because they have less time to study or to do other activities and necessities such as co-curricular activities, social activities, spending time with family or sleeping. Other variables were taken into consideration in the studies such as age, sex, ethnicity, academic year, social class, workplace and the difficulty in finding a job (Lang, 2012; Riggert et al., 2006; Golden & Baffoe-Bonnie, 2011). Universities have also been studied under this topic, in regards to tuition costs (different among countries and between public and private universities), pedagogical systems, programs and extracurricular activities (or co-curricular events) in order to determine their contributions in the process of learning and socializing. A systematic review and meta-analysis show the influences on academic performance from the following factors: personality traits, motivation factors, self-regulatory learning strategies, students’ approach to learning, and psychosocial contextual influences (Richardson, Abraham & Bond, 2012).

Guzmán (2004) found that in the UK and USA, research focused on the characteristics of individuals and work; while in France, articles looked at broader issues such as living conditions when studying, student labor, and other aspects, such as the overcrowding of universities; and in South America, research focuses on socio-economic conditions, labour market participation and the relationship between the education system and the work force. There is no research in Nigeria on the effect of entrepreneurship on the academic performance of students in the faculty of social sciences in the Nigerian university and this is what this study will focus on. There have been studies conducted regarding the impact of work-study on academic performance in England, Ireland, Australia and the USA (Moore, 2008). Several findings suggest that the impact of work is negative, when work schedules are intense (many working hours). A study in Northern Ireland showed that students working in clinical activities had advantages in clinical practice compared to those who did not work (Hasson, McKenna & Keeney, 2012).

1.2   Statement of the Problem

A major concern in undergraduates’ entrepreneurship is the number of hours per week that students spend on the job. King and Bannon (2002) indicated that of all full-time students who also worked in the 1999-2000 academic year, 46% worked 25 or more hours per week and 20% worked 35 hours per week or more almost the equivalent of full-time employment. Despite the amount of time that college students devote to work, King and Bannon (2002) indicate that 84% of those who work still identify themselves primarily as students working to meet college expenses, in contrast to employees who enroll to take credit classes. While less information is available about how college student employment may vary across institutional type, the high numbers of undergraduate students working while in school is common at all institutions. Although working has long been a part of the experience of community college students, the greatest increase in student employment has been at public and private four-year universities (Stern & Nakata, 1991).

The trend which finds an increasing number of college students on the job, in some cases for long hours, suggests that the work experience of college students should be of interest to both administrators at institutions of higher education and policymakers. College students’ work experience is an important topic not only because work has increasingly become an essential part of an undergraduate’s life but also because the type of job students hold, and the amount of hours they work, may affect the quality of the student’s experience in college and their chances of success.

The decision by an individual to become an entrepreneur is at the core of entrepreneurship. Harvey and Evans (1995) posited that there are unique times in ones’ career life cycle when the opportunity to become an entrepreneur is most favourable, considering one of the first ‘strategic windows’ to be the ‘college experience’. Tertiary students are typically contemplating career options leading-up to and after graduation. Gorman, Hanlon and King (1997) reviewed a decade of the literature in entrepreneurship education confirming that preliminary evidence suggests entrepreneurial attributes can be influenced through entrepreneurship education however stated that a stronger empirical focus was required in future research. It is in the light of this that study aims to investigate the impact of entrepreneurship development studies among students of tertiary institution in Nigeria by using Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria as a case study.

1.2      Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the reasons for entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University?

ii)           What is the prevalence of entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University?

iii)         What are the effects of entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University?

1.3      Objectives of the Study

The main objective of this study is to investigate the impact of entrepreneurship development studies among students of tertiary institution in Nigeria by using Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria as a case study. However, the specific objectives are:

i)             To determine reasons for entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University

ii)           To study the prevalence of entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University

iii)         To assess the effects of entrepreneurship development among students of tertiary institution in Nigeria by using Obafemi Awolowo University

1.5   Research Hypotheses

The research hypotheses to be tested include:

i)             There is no significant relationship between entrepreneurial involvement and academic performance of undergraduate students of Obafemi Awolowo University

ii)           There is a significant correlation between socioeconomic status of undergraduate students of Obafemi Awolowo Universityand academic performance

1.6   Significance of the Study

The study is highly significant in enabling parents, educationist and educational stakeholders in measuring the effect of undergraduate entrepreneurship on the academic performance. The findings of this study will help determine the relationship undergraduate entrepreneurship and student academic performance and also this study will be of benefit to educationist who are interested in knowing how non classroom factors/variables affect student academic performance.

This study is also germane to parents who are interested in the educational performance of their students most especially in social science and parents who are tending to mould their children to become social scientists in the future as this study tends to access the effect of school variable and student academic performance.

Also, this study will be of immense contribution to professional social science bodies who programed of catching the best social scientists young in their fields as this study will explain the relationship between the variables and such student performance in the field of social sciences and other related courses and as such enable them to make proper plan of hunting the best student in social science and also understand the cause-effect of school variable and student academic performance.

1.7   Scope of the Study

The study will be conducted among the students of Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria. This study is aimed at investigating investigate the impact of entrepreneurship development studies among students of tertiary institution in Nigeria. This study is also limited to the identified variables used in the study.

1.8   Limitation of the study

The study will be faced with a lot of challenges and one it the problem of finance. There is not going to be enough funds to print questionnaires and to also transport the researcher to meet the desired respondents. Another one is time; the researcher is currently busy with the demand of his academics. A lot of assignments are available for the researcher to do and coupled with his desire to read and learn at the same time. These are the major challenges of this study.

1.9   Definition of Terms

The following terms were used in the course of this study:

Academic Performance: Scores attained by students in form one end of year examination.

Entrepreneurship: The capacity and willingness to develop organize and manage a business venture along with any of its risks in order to make a profit. 

Undergraduate: student in a university or college who has not received a first, especially a bachelor’s, degree.

THE IMPACT OF ENTREPRENEURSHIP DEVELOPMENT STUDIES AMONG STUDENTS TERTIARY INSTITUTION IN NIGERIA (A CASE STUDY OF OBAFEMI AWOLOWO UNIVERSITY

THE EFFECT OF FORMAL EDUCATION ON ENTREPRENEURSHIP IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

There is an on-going debate as to whether an entrepreneur is born or can be created through entrepreneurial education (Henry, Hill and Leitch, 2005). Vivarelli and Santarelli (2007) stated that the entrepreneurial personality can be described as follows: “innovative, flexible, dynamic, risk-taking, creative and growth-oriented”. Drucker (1985) on the other hand argued that the viewpoint that one is either born with or without an entrepreneurial personality is false. Instead he concludes that all successful entrepreneurs had made a “commitment to the systematic practice of innovation” (Drucker, 1985). The belief that the entrepreneur can be created is furthered with the idea that this systemic approach can be fostered through entrepreneurial education.

In Europe, policymakers have indentified education as an instrumental factor in developing entrepreneurship. The European Commission in 2006 published the “Oslo Agenda for Entrepreneurship Education in Europe” to ensure that EU members were focused towards increasing entrepreneurial education. According to the European Commission (2008), “Entrepreneurial programmes and modules offer students the tools to think creatively, be an effective problem solver, analyse a business idea objectively, and communicate, network, lead, and evaluate any given project.” By encouraging entrepreneurship in this manner, there is an underlying assumption that policy makers believe that entrepreneurial skills can be taught.

Government backed entrepreneurial programs are also increasing, which demonstrates that there is a belief at an administrative level that this type of education has positive social and economic results. As Edelman, Manolova and Brush (2008) stated, entrepreneurship is a “major public policy concern because of [its] impact on economic growth, particularly job creation.” The society and the business world require and demands entrepreneurial competencies, which place more stress on the individual’s attitudes and skills than before (Taatila, 2010) and that it is of interest to study how entrepreneurial education affects the attitudes and motivations of those undertaking this types of programs. It is now widely recognized in education that it is important to promote entrepreneurial attitudes and behaviour. Moreover that Europe must stimulate the entrepreneurial mindset and encourage innovative business and new start-ups (European Commission, 2009). Attitude and motivation have an important role as they have been reported as the most critical factors for success in learning (Ushida, 2005). There is also widespread perception that motivation is the most important factor in educational success in general (Dörnyei, 2001 cited in Ushida, 2005).

Entrepreneurial development is a key focus on any government’s agenda due to the fact that it has been shown to provide solutions for a country’s social and economic problems. Empirical data shows that the development of enterprise within a country can create wealth for the country by lowering unemployment levels, reducing the dependence on welfare and generate tax revenue for the country (Carter and Wilton, 2006). Governments can take direct policies to promote entrepreneurship within their country ranging from financial initiatives to educational training (Dana, 2000). Carter and Wilton (2006) discuss the importance of entrepreneurial education in government policy citing the example that “just making finance available without the training on its proper management is inadequate”. It can therefore be seen that there is a growing desire not only for entrepreneurship within a region but also entrepreneurial education.

Entrepreneurial education is continually increasing in developed countries with the level of courses provided at higher educational institutes greater than ever (Matlay, 2008). According to Chell and Allman (2003), “over the last two decades there has been an increase in the number of courses and programmes aimed at entrepreneurship and enterprise.” There has also been an increase of entrepreneurial education in developing nations with focus on using entrepreneurship as a method of economic development in these regions (van der Sluis, van Praag, and Vijverberg, 2005). As Falkäng, Kyro and Ulijn (2000) state, the past twenty years have witnessed an enormous growth in the number of entrepreneurship courses at different educational levels.‟ There are many forms of entrepreneurial education ranging from pre-university entrepreneurial education at both a primary and secondary level and also both publically funded and privately funded entrepreneurial programs at both a local and national level (Peterman and Kennedy, 2003).

This paper focuses on entrepreneurial education in a university environment as there is existing literature in this field from which we aim to add to this knowledge. In addition one of the main objectives of university based entrepreneurial programs is to increase the desirability of students to initiate their own enterprise. From Gorman, Hanlon & King’s (1997) 10 year review of university based entrepreneurial programs, they concluded that “there is preliminary evidence that entrepreneurial attributes can be positively influenced by educational programs and that many entrepreneurship programs and courses are able to build awareness of entrepreneurship as a career option and to encourage favourable attitudes toward entrepreneurship”. However the literature has not moved forward from this preliminary evidence in the following thirteen years. The European Commission have acknowledged that there is a consensus that entrepreneurship education has a major role to play in the development of entrepreneurial attitudes (Li, Zhang and Matlay, 2003), but this is on a broader level rather than just a university level. Therefore, this study shall investigate the effect of formal education on entrepreneurship in Nigeria.

1.2   Statement of the Problem

While the practical importance of entrepreneurship and its relation to entrepreneurial education is evident, there is clearly a knowledge gap when it comes to the theoretical perspective on this. The literature to date focuses mainly on what characteristics an entrepreneur needs to be successful. It also discusses the importance of entrepreneurship for the society and its need for economic growth. Entrepreneurial education is being used as a tool to increase the level of entrepreneurship but at present little literature exists showing how the attitudes and motivations of the students taking the program are affected when it comes to assessing their desirability of starting their own organisation.

1.3   Research Objectives

The objective of this study is to investigate the effect of formal education on entrepreneurship in Nigeria. However, the specific objectives are:

i)             To investigate the importance of formal education on entrepreneurship in Nigeria

ii)           To study the relationship between entrepreneurship education and entrepreneurship intention

iii)         To examine the prevalence of formal education on entrepreneurship in Nigerian Universities

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the importances of formal education on entrepreneurship in Nigeria?

ii)           What is the relationship between entrepreneurship education and entrepreneurship intention?

iii)         What is the prevalence of formal education on entrepreneurship in Nigerian Universities

1.5   Research Hypotheses 

The following shall be the research hypotheses to be tested:

i)             There is no significant relationship between formal education and entrepreneurship development.

ii)           There is no significant correlation between formal education and entrepreneurship intention.

1.6   Significance of the Study

The findings of this study will help determine the relationship between formal education and entrepreneurship. This study will be beneficial in highlighting the importance of formal education on entrepreneurship and its impact on unemployment reduction in Nigeria. One of the SDG (Sustainable Development Goal) goals highlights education (training) as a critical factor to reducing poverty and dependency. Allow the identification of the concept and framework of entrepreneurship. It will also be beneficial in the area of development and its contribution to Nigeria’s economy as well as generating greater awareness among tertiary institutions on the importance of having proper and practical strategies for acquiring entrepreneurial skills.

1.7   Scope of the Study

This study will be carried out among the undergraduate students of University of Lagos. Information collected from these workers shall be subjected to further analysis and the results got from it shall be final.

1.8   Limitation of the study

The study will be faced with a lot of challenges and one it the problem of finance. There is not going to be enough funds to print questionnaires and to also transport the researcher to meet the desired respondents. Another one is time; the researcher is currently busy with the demand of his academics. A lot of assignments are available for the researcher to do and coupled with his desire to read and learn at the same time. These are the major challenges of this study.

1.9   Definitions of Terms      

The following terms were used in the course of this study:

Entrepreneurship: The capacity and willingness to develop organize and manage a business venture along with any of its risks in order to make a profit. 

Entrepreneurship education: it seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety of settings. Variations of entrepreneurship education are offered at all levels of schooling from primary or secondary schools through graduate university programs.

THE EFFECT OF FORMAL EDUCATION ON ENTREPRENEURSHIP IN NIGERIA

THE CHALLENGES OF HOTEL BUSINESS IN LAGOS STATE BY USING DANSAKY HOTEL AND SUITES, IFAKO IJAYE, LAGOS STATE AS A CASE STUDY

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

The hospitality industry is a ubiquitous one which spans hotels, bars, restaurants, theme parks and a host of other related businesses. Globally, it is a money spinning industry with billions of dollars to its credit even though in this part of the world, we are still grappling with putting the industry on the right pedestal so as to wholly benefit like other countries. Just like any other business running in Nigeria, there are areas of concentration, accommodation and restaurants which seemingly, is the ‘honey pot’ for practitioners in Nigeria. 

In recent times, the Nigerian economy has witnessed tremendous ‘growth’ in the hospitality industry leading to the emergence of hotels, fast food restaurant chains, and night clubs and cruise lines. These positive trends in no small measure are clearly helping to re-define the face of the hospitality industry in Nigeria. Information on the street shows that the industry is booming. Nonetheless, the writer believes every Tom, Dick and Harry with adequate funds, is investing into the business with limited knowledge of the expertise required to run such business. Most of them forget that the industry requires investors that are aware of the fact that investment in this area requires long term commitment. Hence, they expect returns as soon as possible at the peril of their poorly remunerated staff.

The hospitality industry in Nigeria is variegated depending on the location. Some of the outfits found in big cities boast of ‘reasonably’ high quality of service like Dansaky Hotel and Suites, Ifako Ijaye, Lagos State while those in the outskirts offer a lower standard. It is therefore not surprising that since the industry has become an ‘all comers affair’, there is in reality, no true classification of restaurants and hotels as obtainable in other countries. Consequently, most hotels have taken a bold step of prescribing their own grading leading to confusion amongst their clientele.

The Nigerian hospitality industry is faced with a myriad of challenges ranging from poor energy supply and insecurity to misconstrued internal perception, cynical global perspicacity, flawed hotel classification, poor customer service, little or no standardisation in operations, inconsistent regulatory environment and skilled labour shortages caused by a few entrepreneurs with little knowledge of the workings of the industry who hijack the process to perpetuate plans for their own personal aggrandisement Chukwudi Njoku (2015).

Indeed, the industry operates in a country whose growth rate is estimated at about 7.4% per annum. The challenges cascades from the ineffective top echelon in government down to the least of employees in the industry. Arguably, the industry has not recorded much progress in terms of achievements from its past precedence. Notwithstanding, more than ever before, it has become more lucrative depending on which side of the divide you find yourself i.e. employer or employee.

The world over, the hospitality industry has provided high yield in returns on investments. Whether or not this has trickled down to the employees is a story for another day. Not long ago staff of about three ‘self-acclaimed’ international hotels embarked on a strike in Lagos State which disrupted the operations of the hotels. According to them, this was owing to the poor working environment and employee packages of these organisations, although their employers were not in agreement with these claims.

The Nigerian market has seen an influx of international brands. However, this is still not reflected in the quality of services rendered. They seem to have fallen into the abyss of ideological quagmire by forgetting to recognise the fact that the industry thrives on service. Take away the services from the hospitality industry then there is nothing to build on. Even in Japan, where plans are ongoing to replace humans with robots. Practitioners have asked if robots will be as intelligent as humans. Others have tagged it as klutzy according to the Guardian UK particularly because humans still outperform robots in terms of dexterity on the job and balance. Although the hotels in Nigeria offer different services to all classes of customers yet they suffer from a culture that is alien to supporting good customer service. Indeed, it is a difficult time to be a stakeholder in the industry but in all, there is always light at the end of the tunnel. It is against this background that the study seeks to examine the challenges of hotel business in Lagos State by using Dansaky Hotel and Suites, Ifako Ijaye, Lagos State as a case study.

1.2   Statement of the Problem

The businessman who fails does not know himself, does not know his market, does not know his business and does not know what is going on around him. Conceivable, everyone wants to succeed in his personal, his social and his economic goals but very few do. The key to success is not the wish for the desire to be successful. It is easy for anyone to wish for a million dollars in business, but to succeed, the individual needs many things. Above all, for the need to be a definite goal there must be energy, drive, and the plan to work for it and the recruitment of people dedicated to the same goals. Many people of course settle for less (Campbell, 1993).

        Anything can indicate an economic need. The need may be for better or different food, faster service, new convenience, increased status, or a new product. The only way to prosper is to think, not only to see the various facts, but to understand each fact independently to understand the significance when the facts are put together, and to understand the significance, scope, magnitude, complexity, and completeness of this relationship. Disregard an individual’s potential ability in resolving complex problems of food quality, service, atmosphere, price and competition and look only at this dynamic relationship between emotion and success. However, can anyone succeed who is bored, indifferent, lazy, stubborn, and in-service? How far can the aggressive, crude, tasteless, impulsive, arrogant, and hostile individual climb?

        Another major cause for business failure is the lack of detailed understanding and knowledge of the product. Although the inability to plan, direct, and control the various functional areas associated with food is an extremely serious management deficiency. Also, the failure to really understand the nature of the product sold can be equally catastrophic. The potential restaurant operator is exposed to two major problems that he definitely will not encounter if he elects to enter any other field of endeavour. The two specific problems he must resolve are the perish ability of food and the control of inventory.

        Most people are aware that food spoils. However, they don’t understand how serious this fact can be. Spoilage begins from the moment a food item is ordered and continues through receiving, dry and refrigerated storage, preparation, production and service, on the delivery truck, food items are thawed, bumped, mishandled, bruised, or robbed off their freshness. In other functional areas, frozen food spoils because it is not stored immediately. Milk source, banana over-ripen, lobsters die, fish rotten, meat dehydrates, lettuce wits, oil becomes rancid, food is cooked too long, high temperature, too early , and the list is endless (Mintzberg, 1975). Therefore, this study will examine the challenges of hotel business in Lagos State by using Dansaky Hotel and Suites, Ifako Ijaye, Lagos State as a case study.

1.3   Research Objectives

The study has both general objective and specific objectives. The general objective or main objective of this study is to examine the challenges of hotel business in Lagos State by using Dansaky Hotel and Suites, Ifako Ijaye, Lagos State as a case study. The specific objectives are:

i)             To examine the challenges facing hospitality industry in Lagos State

ii)           To examine the factors responsible for slow growth of hospitality industry in the study area

iii)         To determine the factors that can enhance the growth of hospitality industry in Lagos State

iv)         To proffer possible solutions to the development of hospitality industry in Lagos State

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the challenges facing hospitality industry in Lagos State?

ii)           What are the factors responsible for slow growth of hospitality industry in the study area?

iii)         What are the factors that can enhance the growth of hospitality industry in Lagos State?

iv)         What are the possible solutions to the development of hospitality industry in Lagos State?

1.5   Research Hypotheses

The following will be the research hypotheses to be tested for this study

i)             There is no significant influence on the challenges facing hotels in Lagos and their performance.

ii)           There is no significant correlation between organizational policy and its performance.

1.6   Significance of the Study

This study focuses on the assessment of hotels in Lagos. This will enhance the development of hotels since they act as tourist attraction centres. The overall consideration of the significance of the study will be summarized in the following statements. It will also help to fill the gap in the literature in the areas of hospitality and tourism. It become not a primary but a secondary source of information for researchers, academicians and practitioners, It as well serve as guiding documents for policy makers for the adaption, formulation and implementation of a genuine urban development strategies, efficient urban management, migration policy, through hotel establishment and so on. Lastly, it will give insight for the town administrators about the existing and emerging socio-economic challenge of the migrants in relation with the socioeconomic services provided by the town administration

1.7      Scope of the Study

This project is designed to target waiters, reception staff, and room maids in small scale Hotel in Adamawa State. However, Dansaky Hotel and Suites, Ifako Ijaye, Lagos State will be our focus as case study. Also the study will be limited to the personnel in the food and beverage service, reception and housekeeping departments.

1.8   Limitation of the Study

This research was faced by limited research materials as the research material available to the researcher was insufficient, thereby limiting the study. Also, time was another limitation for this study as the time frame allocated to the study did not enhance wider coverage as the researcher had to combine other academic activities and examinations with the study. Organizational privacy also limited this study because there was limited access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities  

1.9   Definition of Terms

The following terms were used in the course of this study:

Challenges: the situation of being faced with something that needs great mental or physical effort in order to be done successfully and therefore tests a person’s ability.

Hospitality: the friendly and generous reception and entertainment of guests, visitors, or strangers.

Tourism: is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.

THE CHALLENGES OF HOTEL BUSINESS IN LAGOS STATE BY USING DANSAKY HOTEL AND SUITES, IFAKO IJAYE, LAGOS STATE AS A CASE STUDY

AN EVALUATION OF BANK CONTRIBUTION TO ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA A CASE STUDY OF GTB ANAMBRA STATE

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Entrepreneurship development is a core factor that contributes to the economic growth and development of a nation if such a nation wants to move being undeveloped or developing to developed nation. The Small and Medium Scale Enterprises are important engines that drive economic growth, jobs and social cohesion. SMEs play an important role in the economies of many developing countries including Nigeria. Thus, governments throughout the world focus on the development of the SMEs sector to promote economic growth Finlayson, (2003). However, the creation, survival and growth of SMEs are often hampered by access to finance. Thus, access to SMEs finance has become a key priority in developing countries like Nigeria. Therefore, Non-availability of debt finance to ensure smooth operations and expansion is one of the major causes of failure for SMEs in Nigeria. According to Global Entrepreneurship Monitor (GEM) Survey in 2008; financial constraint is the primary exit reason for most SMEs failure in Nigeria. However, the need for SMEs growth in Nigeria is beyond question, but access to finance is a major factor stagnating the way of its growth, as a financing tool, debt financing has a distinct advantages over equity financing for the development of SMEs, but debt financing in Nigeria presently comes with significant challenges as can be seen from low responses of commercial banks to finance SMEs.

There is evidence that most SMEs in Nigeria with low capital formation raise capital through loans from family and friends because at the initial stage, majority of young budding entrepreneurs lack laudable forms of collateral, business plans and feasibility studies to actually meet the requirement and convince banks to grant them loans Ebube, (2011). This implies that a vast majority of SMEs depend on internal finance (contribution from the owners, family and friends etc). Internal financing is often inadequate for SMEs in Nigeria to survive and grow, as it is increasingly difficult to keep the costs within the constraints of self-financing. Therefore SMEs need capital from external sources (or Debt Financing). Because of this Nigerian Government over time introduced Small and Medium Enterprises Equity Investment scheme (SMEEIs) as an initiatives through Commercial banks by the CBN to solve financing problem of SMEs and the creation of (Small and Medium Enterprises Development Agency of Nigeria) SMEDAN as an agency to enhance the development of SMEs.

The Banking sector is very essential for any nation because it is the foundation of socio-economic growth of any economy Terungwa, (2011). This implies that commercial banks have active developmental roles to play in the economy such as mobilizing fund from the surplus to the deficit spending units. Commercial banks are considering as the main source of finance for SMEs or rather entrepreneurs in Nigeria. Akabueze, (2002) assert that Finance has been seen as a critical element in the growth and development of SMEs. That is to say that the beginning and efficient and effective performance of any industrial enterprises irrespective of the size (small, medium or large) will require availability of funds for its capitalization, working capital and rehabilitation needs, as well as for the creation of new investments. Availability and provision of capital to the organizational sector, most importantly, for the SMEs has therefore, been of prime interest to policy-makers in both the public and private sectors. It is a known fact that firms depend on a variety of sources for their finances. These include external and internal, formal and informal sources Aruwa (2004). According to Demirguc-Kunt, Maksimovic, Beck and Laeven, (2006) External finance makes many SMEs developed, they depends on bank loans and overdrafts and suppliers credit for early stage financing. Despite the dependence of SMEs on debt finance, paradoxically access to debt finance is very limited for SMEs in Nigeria. Mambula (2002) revealed that Small and medium scale enterprises dominate the private sector of the Nigerian economy, but almost all of them lack access to credit finance from commercial banks. This implies that Commercial banks and trade creditors hesitate to lend to SMEs. However, only few SMEs in Nigeria are able to access bank loans. Past studies have lamented the limited access to external financial resources available to smaller enterprises compared to larger organizations and the consequences for their growth and development (Hossain, 1998; Wattanpruttipaisan, 2003; Berger and Udell, 2004; Ogujiuba et al., 2004 ;).

Valverde et al (2005) shown that bank credit play a crucial role in providing for external financing to SMEs, but in Nigerian context, this crucial source of finance for SMEs is apparently non-functional Kadiri, (2012). This is evident in the ratio of loans to SMEs to Commercial banks’ total credit, which shows that a meager 0.13% of commercial banks’ total credit was granted to SMEs in the year 2012 (CBN 2012). More worrisome is the fact that this ratio has been falling over the years Iorpev, (2012). On the other hand, internal sources include personal savings, loans from family and friends, retained earnings and disposal of the enterprise assets and Esusu Contribution. It is on this foundation that this study aims to evaluate bank contribution to entrepreneurship development in Nigeria by using Guaranty Trust Bank in Anambra State as a case study.

1.2   Statement of the Problem

SMEs does not only have the capacity for self-independent and self-reliant in an industrial making use of local raw materials, but also have the potential to boost employment and as well guarantees even distribution of industrial development and facilitate the growth of non-oil exports Fabayo (1989). Thus, promotion of such enterprises in developing nation like Nigeria will bring about great distribution of income and wealth, economic self dependence, entrepreneurial development and a host of other economic uplifting factors. Small and Medium Enterprises are core factors to be considered to meet up with the national objectives in terms of employment generation at low investment cost, development of entrepreneurial capabilities and indigenous technology. They reduce the flow of people from rural to urban and can easily be established with minimum skill. They also contribute substantially to the country’s gross domestic product, export earnings and development of employment opportunities.

With the continuous policy strategies aimed at attracting credits to the SMEs, most SMEs in Nigeria have remained unattractive for bank credits supply. For instance, as indicated in central Bank of Nigeria (CBN) reports, almost throughout the regulatory era, commercial bank’s loans and advances to the SMEs sector deviated persistently from prescribed minimum. Furthermore, the enhanced financial intermediation in the economy following the financial reforms of the 1986, credits to SMEs as a proportion of total banking credits has not improved significantly. Afolabi (2013) asserted that one of the problems faced by SMEs operators in Nigeria is that government does not give chance or consider them when making policy in which priority is given to large organizations. This makes financing the main constraining factor to SMEs growth and hinders their potentials for enhancing economic growth in Nigeria. Available information from CBN (2012) shows that, as at 1992 commercial bank loan to SMEs as Percentage of total credit was 27.04% in 1997 and decreases to 8.68%, 0.85% and 0.14% in 2002, 2007 and 2010 while 2012 recorded 0.15%. As a result of this, many SMEs in Nigeria are now relying on internally generated funds, which have tended to limit their scope of operation.

1.3   Research Objectives

The study has both general objective and specific objectives. The general objective or main objective of this study is to evaluate bank contribution to entrepreneurship development in Nigeria by using Guaranty Trust Bank in Anambra State as a case study. The specific objectives are:

i)             To investigate the impacts of entrepreneurship development on the Nigerian economy

ii)           To identify the different sources of finance available for entrepreneurs in Anambra State, Nigeria

iii)         To determine the problems encountered by entrepreneurs in Anambra State, Nigeria

iv)         To proffer possible solutions to the problems encountered by entrepreneurs in Anambra State, Nigeria

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What are the impacts of entrepreneurship development on the Nigerian economy?

ii)           What are the different sources of finance available for entrepreneurs in Anambra State, Nigeria?

iii)         What are the problems encountered by entrepreneurs in Anambra State, Nigeria?

iv)         What are the possible solutions to the problems encountered by entrepreneurs in Anambra State, Nigeria?

1.5   Research Hypotheses

The following will be the research hypotheses to be tested for this study

i)             There is no significant relationship between the loans granted to entrepreneurs by commercial banks and its impact on the Nigerian economy.

ii)           There is no significant correlation between entrepreneurship and self-reliance.

1.6   Significance of the Study      

This study will highlight problems associated with the contributions of commercial banks in development of entrepreneurship in Nigeria. It will give information on the possible areas for improvement. Furthermore, the study will help commercial banks to assess their role in financing small scale industry in Nigeria. Moreover, suggestions and recommendations made in this paper will help policy makers formulate new economic policies to maintain or modify the existing one. It will equally serve as a guideline to researchers who may wish to research this study in the future. It will also help entrepreneurs to make sufficient preparation in their request for credit assistance. It will guide the entrepreneurs in making credits demands that are in compliance with government monetary policy. This study will be of significance to monetary authority, policy maker, government, academia and the general public. The findings of this study will help government and the monetary authorities to see the effectiveness of monetary policy in the management of the Nigerian economy interns of credit demand and supply to entrepreneur which have a spill over effect on Nigeria economic growth. This research work further serves as a guide and provides insight for future research on the topic and related field for academia’s and policy makers who are willing to improve on it. The study will also contribute to knowledge by appraising the impact of bank contribution on the growth of entrepreneurship in Nigeria.

1.7   Scope of the Study

This study seeks to evaluate bank contribution to entrepreneurship development in Nigeria by using Guaranty Trust Bank in Anambra State as a case study. Therefore, the study will be carried out among Guaranty Trust Bank officials and entrepreneurs in both Awka and Onitsha cities. This is because the two cities are regarded as the commercial centres of the state. It is believed that there will be large concentration of entrepreneurs there, which will be suitable for this study.

1.8   Limitations of the Study

        This study entailed investigation into a variety of issues to be able to achieve a comprehensive study of the problems; a lot of constraint were encountered in form of data collection, lack of adequate information from the respondents. The main limitation of this survey was the difficulty in getting accurate information from the small, medium and large-scale entrepreneurs as well as unemployed and underemployed individuals in the country.

1.9   Definition of Terms

The following terms were used in the course of this study:

Economic development: is the growth of the standard of living of a nation’s people from a low-income (poor) country to a high-income (rich) economy. When the local quality of life is improved, there is more economic development. When social scientists study economic development, they look at a lot of things.

Entrepreneurs: is an individual who, rather than working as an employee, founds and runs a small business, assuming all the risks and rewards of the venture. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services and business/or procedures.

Entrepreneurship: is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs.

SMEs: Small and medium-sized enterprises (SMEs) are non-subsidiary, independent firms which employ less than a given number of employees.

AN EVALUATION OF BANK CONTRIBUTION TO ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA A CASE STUDY OF GTB ANAMBRA STATE

THE IMPACTS OF ICT ON THE GROWTH AND DEVELOPMENT OF SMALL BUSINESSES IN URBAN CITIES IN NIGERIA A CASE PORT HARCOURT

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

Small to medium-size enterprises are an integral part of innovation and growth in a dynamic economy; thus, SMEs have a vital role in job creation (Dermol & Tavčar, 2012; Gagliardi, 2013). In developed countries such as the United States and United Kingdom, SMEs account for over 99% of employers and contribute over 50% to the country’s gross domestic product (Gbandi & Amissah, 2014). In developing countries such as Ghana, SMEs contribute approximately 70% to the GDP and account for approximately 92% of business (Asare et al., 2012). In Nigeria, SMEs conduct 90% of business in the country but contribute less than 10% to the GDP (Gbandi & Amissah, 2014). Bringing SMEs up to speed with the digital revolution is not just a matter of improving their quarterly profits, but also about creating growth and jobs. In the digital age, no business can thrive without better use of technology. Jeronimo and De Medeiros (2012) emphasize that SMEs grow two to three times faster when they embrace technology.

A study by BMG et al., (2015) found that almost all SMEs used the internet for business purposes but the intensity of the use varied with increasing size. The most common use of internet was being in touch with customers. While the use of e-commerce was increasing it was still much less prevalent: only 20 per cent of the turnover was delivered from this source in 2013and only 22 per cent of the businesses had e-commerce sales. A quarter of the SMEs reported that they did not possess basic digital skills; there was a positive link between digital skill level and turnover growth. SMEs have an attitudinal barrier towards developing an online presence, there is lack of awareness about the benefits and opportunities available and a lack of understanding about online security threats.

Embedding digital learning throughout the education system is a long-term solution but there is also clear need to enhance digital capabilities in the shorter term. A key to increasing capacities to take advantage of digital opportunities is through providing digital courses, awareness-raising initiatives through existing local private and third sector networks and improving cyber security. In a competitive and changing environment, SMEs have changed their way of working by improving the quality of doing business so that they can compete in regional and global markets. Therefore, digital technologies play a significant role in SMEs’ growth. Growth in ICT adoption within both large and small businesses in developed countries had been significant (Al-Debei & Al-Lozi, 2012). However, the ICT adoption rate within SMEs in developing countries has remained relatively low (Asare et al., 2012; Mokaya, 2012). Innovation in ICT has contributed to the improvement of organizational performance and the achievement of competitive advantage for organizations within developed and developing countries (Al-Debei & Al- Lozi, 2012). Global competitiveness and the need to stimulate growth are compelling reasons why leaders of SMEs need to adopt ICT (Ghobakhloo & Tang, 2013). Researchers have conducted studies on the factors that affect ICT adoption by SME leaders in developing countries such as Nigeria (Apulu & Latham, 2011; Asare et al., 2012; Mokaya, 2012). However, not many studies exist on the factors that influence SME leaders to adopt ICT as a business strategy to achieve competitive advantage in the global market. Therefore, this study shall examine the impacts of ICT on the growth and development of small businesses in urban cities in Nigeria by using Port Harcourt, Rivers State, Nigeria as a case study.

1.2   Statement of the Problem

The Nigerian Government has been making efforts to evolved an empowering environment to support SMEs and has attracted players with good local, regional and international experience in using innovations and technology to expand business activities and increase economic growth. However, a majority of the SMEs are struggling to increase productivity, organizational effectiveness, sustained competitive advantages and satisfactory rates of return on investments. To increase SMEs’ competitiveness in global markets, they should be financially sound and should be well connected to markets. This, however, is not going to be easy in an economy where traditional and informal practices of business management are still applied. It is evident from research that innovative technological strategies are a key resource for gaining competitive advantages, but this is challenging because some enterprises lack entrepreneurship and innovative skills. Consequently, many small businesses fail and close a few days after they start (Ndikubwimana, 2016). Many SMEs are realizing the benefits of using new digital technologies but some are late adopters or need specific support and guidance before they adopt digital technologies.

Although the government and other development partners have rolled out a number of initiatives as far as digital technology is concerned, there seems to be a huge gap in awareness among SMEs about the changes that are inevitably brought about by technology in terms of business growth and how they should adapt to this shift. The focus has shifted from whether or not to use technology to understanding which technologies can be used for what specific business purposes and also on investigating how they can best be applied in a range of contexts.

While SMEs in Nigeria are excited about the changes brought about by the use of technology in business there are also many challenges including lack of network infrastructure and slow or unstable wireless access. Some SMEs do not have the bandwidth to support internet activity in their businesses. This provides a great challenge in the communication process between staff members and the management. The other challenges are poverty, not enough knowledge and lack of training on how to use digital technology. In addition, ensuring that technology is used to enable and to advance effective business practices is also a big challenge. Hence, there is a need to investigate the effects of digital technology adoption in SMEs in Nigeria. However, this study shall examine the impacts of ICT on the growth and development of small businesses in urban cities in Nigeria by using Port Harcourt, Rivers State, Nigeria as a case study.

1.3   Research Objectives

The main objective of this study is to examine the impacts of ICT on the growth and development of small businesses in urban cities in Nigeria by using Port Harcourt, Rivers State, Nigeria as a case study. However, the specific objectives to:

i)             To evaluate the relationship that exists between information technology and the profitability of SMEs in Port Harcourt, Rivers State, Nigeria

ii)           To examine the major constraints of information technology adoption by SMEs in Port Harcourt, Rivers State, Nigeria

iii)         To determine the effect of information technology system on the growth of SMEs in Port Harcourt, Rivers State, Nigeria

1.4   Research Questions

The following are some of the questions which this study intends to answer:

i)             What is the relationship that exists between information technology and the profitability of SMEs in Port Harcourt, Rivers State, Nigeria?

ii)           What are the major constraints of information technology adoption by SMEs in Port Harcourt, Rivers State, Nigeria?

iii)         What are the effects of information technology system on the growth of SMEs in Port Harcourt, Rivers State, Nigeria?

1.5   Hypotheses of the Study

The following are some of the questions which this study intends to answer:

i)             Evaluate the relationship that exists between information technology and the profitability of SMEs in Port Harcourt, Rivers State, Nigeria

ii)           There is no significant relationship between information technology system and the profitability of SMEs in Port Harcourt, Rivers State, Nigeria.

iii)         SMEs in Port Harcourt, Rivers State, Nigeria are not faced with any constraints in the adoption of information technology system. 

iv)         There is no significant relationship of information technology system on the growth of SMEs in Port Harcourt, Rivers State, Nigeria.

1.6   Significance of the Study

Quite a number of researches have been carried out related to this study such as Adewole and Akanbi (2004) in which they examined the role of information and communication technology investment on the profitability of small medium scale industries – a case of sachet water companies in Oyo state, Nigeria. Similarly, Rufai (2014) studied the impact of communication technologies on the performance of SMEs in a developing economy, a case study of Nigerian SMEs. However, this research is distinct from various similar researches such that it examines the impact of ICT on growth of small and medium enterprises. This research tends to be very beneficial to small and medium enterprises, stakeholders in the country, Nigeria economy as a whole and also adds to the existing literature concerning this topic.

1.7   Scope of the Study

Due to financial constraints, time and mostly academic workload, this research will not be able to cover the entirety of SMEs in Nigeria. Hence, this study deals with SMEs operating in Port Harcourt State, Nigeria only within the last five years.

1.8   Definition of Terms

The following terms were used in the course of this study:

Small and Medium Scale Enterprises (SMEs): The Central Bank of Nigeria defined Small and Medium Scale Enterprises in according to asset base and in number of staff employed. The criteria are an asset base of ₦5Million and ₦500Million and a staff strength base of 20 to 300 employees.

Business Growth: This is the process of improving some measure of an enterprise’s success. Business growth can be achieved either by boosting the top line or revenue of the business with greater product sales or service income, or by increasing the bottom line or profitability of the operation by minimizing costs.

Information and Communications Technology (ICT): This is an umbrella term that includes any communication device or application, encompassing radio, television, phones, and computer hardware and software satellite systems and so on, as well as the various services and applications associated with them, such as videoconferencing and distance learning. ICTs are often spoken in a particular context such as ICTs in SMEs, ICTs in Health care or libraries and so on.

THE IMPACTS OF ICT ON THE GROWTH AND DEVELOPMENT OF SMALL BUSINESSES IN URBAN CITIES IN NIGERIA A CASE PORT HARCOURT

IMPACT OF ENTREPRENEURSHIP CENTRES ON JOB CREATION IN NIGERIA (A CASE STUDY OF UNIVERSITY OF UYO ENTREPRENEURSHIP CENTRE)

ABSTRACT

 The issues of entrepreneurship development and employment generation continue to receive high attention because of their impact on unemployment and poverty reduction in many parts of the world. The National Directorate of Employment was introduced by government in its efforts toward employment generation. This study investigated the impact of entrepreneurship centres on job creation in Nigeria, a case study of university of Uyo entrepreneurship centre. It has the following as its objectives:to survey the effects of entrepreneurship centres on job creation in Nigeria, to inquire the factors that constitute to unemployment in Nigeria and to investigate the benefits of entrepreneurship centres on the people of Uyo.

CHAPTER ONE

 INTRODUCTION

1.1      Background to the Study

Human economic development through a well planned education and training initiatives will help toheavily contribute to promotion of individuals’ interest and ambition within the nation (Egwu, 2009). Helping individuals to be gainfully employed, technical and vocational education and training (TVET) can have positive impact on the economic development, achieving full employment and promoting social inclusion. TVET programmes are defined as those skill based programmes mainly to help prepare students for straight entry into desired or interested occupations. The successful completion of the programme leads to a technical and vocational qualification which is very relevant in the labour market and well recognized the Ministry of Education (MoE) and employer’s associations in Nigeria in where it is obtained (UNESCO, 2007).

Entrepreneurship activities on the other hand has been beneficial because the Nigerian private sector comprising of small and medium enterprises provides diverse employment opportunities for over 50 percent of the country’s population and 50 percent of the industrial output (Ariyo, 2005; Oyelola et al, 2013). Many other countries have been able to strengthen and transform entrepreneurship centres that are available within their jurisdictionsto vibrant and exciting onesand with the help of that, unemployment and poverty have been reduced to a minimal level. Unfortunately, reverse is the case here in Nigeria. The Report released by The World Bank on the Nigerian Economic in 2011 revealed that unemployment rate worsened from “12% of the working population in 2006 to 24% in 2011”. Being among the top richest states in terms of crude oil production and large federal allocation in the country, unemployment rate in Akwa Ibom State is also increasing at an alarming rate. This is not only in Akwa Ibom State but it is a common phenomenon throughout the whole country. According to the National Bureau of Statistics (NBS) as at 2010, the unemployment rate of Akwa Ibom State was the second highest in the south-south zone with 36.1%. Available records clearly show that in the last two decades of the independence of Nigeria as a sovereign nation (1960s and 1970s), unemployment and its attendant consequence: poverty, were not of national concern as they are today.

The rate at which graduates entering the labour market in the country in this recession yearsis uncontrollable and this is bringing unemployment, under-employment and the stress of social hazards associated with joblessness and prolonged inactivity.”According to the international labourcentre, the collective frustration among youth had been a contributing factor to protest movements around the world this year, and this has led to a difficulty for graduates and young people to find only part-time, menial and temporary work.Governments across the globe are struggling to find innovative solutions through labour market interventions such as addressing skills mismatches, job search support and entrepreneurship training.This study investigated the impact of entrepreneurship centres on job creation in Nigeria, a case study of university of Uyo entrepreneurship centre.

1.2      Statement of the Problem

Unemployment as it is called has been a bordering issue in Nigeria. This has grown large that the situation cannot be addressed by mere campaign or words of mouth (Nwankwo&Ifejiofor, 2014). It requires the combined efforts of both individuals and the government of the country in particular and the world at large to formulate a lasting strategy to curb this menace. Unemployment in Nigeria has affected the youth and the economic development of the country from a broad spectrum of socio-economic perspective. It is obvious that the situation especially that of youth unemployment affected Nigeria’s progress in several ways. Apart from the economic waste it brought to the nation, it also constitutes political unrest for the country (Ipaye, 1998). This situation has resulted in the continuous increase in crimes and other social vices experienced in our society in recent time. To salvage this ugly situation, several strategies have been developed in all spheres of human endeavours. These strategies are all found in entrepreneurship.

1.3   Research Questions

The following are some of the questions which this study intends to answer:

i)              What are the effects of entrepreneurship centres on job creation in Nigeria?

ii)            What are the factors that constitute to unemployment in Nigeria?

iii)          What are the benefits of entrepreneurship centres on the people of Uyo?

1.4   Objectives of the Study

The objective of this study was to investigate the impact of entrepreneurship centres on job creation in Nigeria, a case study of university of Uyo entrepreneurship centre. The specific objectives are:

i)              To survey the effects of entrepreneurship centres on job creation in Nigeria.

ii)            To inquire the factors that constitute to unemployment in Nigeria.

iii)          To investigate the benefits of entrepreneurship centres on the people of Uyo.

1.5   Research Hypotheses

The research hypotheses to be tested include:

i)              There is no significant correlation between entrepreneurship centres and unemployment.

ii)            There is a significant relationship between entrepreneurship and unemployment reduction.

1.6   Significance of the Study

        This study will be beneficial in highlighting the importance of entrepreneurship training and its impact on unemployment reduction in Nigeria. One of the SDG (Sustainable Development Goal) goals highlights education (training) as a critical factor to reducing poverty and dependency. Allow the identification of the concept and framework of entrepreneurship. It will also be beneficial in the area of development and its contribution to Nigeria’s economy as well as generating greater awareness among tertiary institutions on the importance of having proper and practical strategies for acquiring entrepreneurial skills.

1.7   Scope of the Study

This study will be carried out among the workers of university of Uyo entrepreneurship centre, Akwa Ibom State. Information collected from these workers shall be subjected to further analysis and the results got from it shall be final.

1.8   Limitation of the study

The study will be faced with a lot of challenges and one it the problem of finance. There is not going to be enough funds to print questionnaires and to also transport the researcher to meet the desired respondents. Another one is time; the researcher is currently busy with the demand of his academics. A lot of assignments are available for the researcher to do and coupled with his desire to read and learn at the same time. These are the major challenges of this study.

1.9   Definitions of Terms     

The following terms were used in the course of this study:

Entrepreneurship centre:

Job creation:the process of providing new jobs, especially for people who are unemployed: the government’s job creation strategy.

Skills acquisition: the ability to learn or acquire skills. It involves the development of a new skill, practice of a way of doing things usually gained through training or experience

Unemployment:Unemployment or joblessness, as defined by the International Labour Organization (1982) occurs when people are without jobs and they have actively sought work within the past five weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a%age by dividing the number of unemployed individuals by all individuals currently in the labour force. According to the National Bureau of Statistics (2011), unemployment rate is the proportion of those who are looking for work but could not find work for at least 40 hours during the reference period to the total currently active (labour force) population.

IMPACT OF ENTREPRENEURSHIP CENTRES ON JOB CREATION IN NIGERIA (A CASE STUDY OF UNIVERSITY OF UYO ENTREPRENEURSHIP CENTRE)

EFFECT OF DIGITAL MARKETING ON PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS

CHAPTER ONE

                                     INTRODUCTION

1.1      Background to the Study

The emergence of globalisation has brought about a development in Information Communication and Technology which brought about the use of the internet which has consequently led to the emergence of social media. The use of social media by business owners has become an important platform for marketing their products and services to consumers in recent times (Paquette, 2013). The media have become part of the marketing strategy now used by some organisations to connect with their potential customers and this trend has continued to bring dramatic changes to how business is done now compared to what obtained about three to four decades ago. It must be stated that though social media are primarily created as an avenue to socialise, some marketers have realised the business opportunities that they offer and have decided to utilise them to grow their businesses. According to (Neti, 2011), social media represent a marketing opportunity that transcends the traditional middleman; it connects companies directly to consumers. The social media have, therefore, changed how consumers and marketers communicate and engage in business transactions (Balasubramanian, 1997).

In Nigeria the assumption is that government has the responsibility to provide employment for the people, create an enabling economic environment for business to thrive as well as to drive economic growth. But the economic reality as shown that government alone cannot generate full employment for the entire population of those who are willing to work. However, government has the economic machinery to stern the rate of unemployment by formulating policies which stimulate individuals to embark on small scale business. Nigerian government’s response to stemming unemployment has therefore being the promotion of entrepreneurial activities and support for the establishment and promotion of small and medium scale enterprises. Nevertheless, it is necessary for the entrepreneur to have a passionate marketing view of the entire entrepreneurial functions. He needs to look at marketing not as a business function but as a comprehensive view of the entire business process. Entrepreneurs should be more marketing- oriented, more concerned with the booming and buzzing conditions of the external world, to which the enterprise ultimately addresses itself. This is because marketing is on the firing line where the impact of change is greatest for the organisation.

The Internet has also enabled customers to survey, select, and purchase products and services from businesses around the world. Peer communication through social media has become a new form of consumer socialisation which is having a profound influence on consumer decision making and, thus, marketing strategies. The consumer socialisation theory predicts that communication among consumers affects their cognitive, affective, and behavioural attitudes (Al Kailani and Kumar, 2011; Ward, 1974). The internet, therefore, might be considered as an important agent of consumer socialisation. In Ghana, both large and small business owners have also joined millions of internet users, to reach out to customers and new shoppers by promoting and offering their products and services to them. This study attempts to examine what motivate these business owners to shift from the traditional marketing to online shopping.

1.2   Statement of the Problem

The wide acceptance and popular usage of Digital Media has made it possible for anyone who is interested in to set up business of different types at anytime. However, different forms and big corporate are reaping benefits of so many diverse types while the SMEs are still lagging far behind in adaptation of this innovative technology of the present century. It is an alarming issue that SMEs are held below the bottom in the competing world regarding earning of profits compared with multinational companies mainly because of not employing modern techniques like Digital Marketing in the business activities, marketing and the advertising campaigns. Consequently, it is important that a study be undertaken to identify and highlight the probable benefits, attached deficiencies and managing options for the potential disadvantages of Digital Marketing so that SMEs could join the economic and business competition with the rapidly growing companies. This study will take a look at the effect of digital marketing on performance of small and medium scale enterprises in Lagos.

1.3   Research Objectives

The general objective or main objective of this study is to investigate the effect of digital marketing on performance of small and medium scale enterprises in Lagos. The specific objectives are:

  1. To identify the impact that online marketing application has on on business process in small and medium enterprises
  2. To establish the nature of the relationship between digital marketing and small and medium- sized businesses’ productivity
  3. To determine the effect digital marketing has on business process in small and medium enterprises
  4. To find out the marketing strategies used by SMEs in Lagos to make their products and services appeal to customers

1.4   Research Questions

The following research questions will guide the study:

  1. Does online marketing application have a significant and positive impact on business process in small and medium enterprises?
  2. What is the nature of the relationship between digital marketing and small and medium- sized businesses’ productivity?
  3. Does digital marketing have a significant and positive impact on business process in small and medium enterprises?
  4. What are the marketing strategies used by SMEs in Lagos to make their products and services appeal to customers?

1.5   Research Hypotheses 

The following research hypotheses will guide the study.

  1. There is a significant impact between online marketing application and business process in small and medium enterprises
    1. There is significant influence of digital marketing on business process on small and medium enterprises

1.6   Significance of the Study

The findings of this study will be beneficial to organizations as well as firms especially on the need to focus generally on digital marketing, individual, group/team and organizational creativity. Also, the findings of this study will serve as a medium of awareness and enlightenment on the many environmental trends affecting organizations in recent years and proffer possible panacea to such problems as they rear heads. Not only this, but also, its findings will serve as platform mostly for professional manager, chief executives and all personnel involved in the staff training, administration and management on how to drive their staff for maximum human creativity and innovation. By so doing, several organizations would be better equipped to develop a repertoire of techniques (management control systems) to improving performances of average employees and at the same time improving the efficiency in management by enforcing cooperation of workers and standardization of work methods especially in creative organizations. In conclusion, the outcome of this study will provide a contribution to the management of national culture as regards cultural individualism, collectivism, uncertainty avoidance, multiple cultural dimensions as may affect an individual employee’s preferences for, and reaction to management control systems in interactive ways; and it will be a systematic knowledge base for researchers.

1.7   Scope of the Study

The scope of this study will be all the Small and Medium Enterprises in Lagos metropolis which are using online marketing applications and own internet websites.

1.8   Definition of Terms

Medium-sized Enterprises: These are defined as enterprises which employ fewer than 250 persons, and whose annual turnover does not exceed N50 million or whose annual balance-sheet total does not exceed N43 million.

Small Enterprises: These are defined as enterprises which employ fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed N10 million.

Micro Enterprises: These are defined as enterprises which employ fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed N2 million.

Digital Marketing: This refers to all forms of internet advertising, internet payment system, internet marketing, internet customer support service and internet order and delivery.

EFFECT OF DIGITAL MARKETING ON PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS