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Entrepreneurial training as an effective tool for economic development: (a study of Awka south local government area in Anambra state)

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ABSTRACT

This research examined how entrepreneurship training will enhance economic development of Awka South Local Government Area. Entrepreneurship training seeks to prepare people particularly the youths to be responsible, enterprising individual who became entrepreneurs or entrepreneurial thinkers by immersing them in real life learning experience whereby they can take risks, manage result and learn from the outcome. A sample of 399 respondents was selected from the population of Awka South LGA using simple random sampling. Data was collected from both primary and secondary sources presented in tables and analyzed using percentages and frequencies. Hypotheses were formulated and tested using Chi square method. It was discovered among other things that, youths and graduates are not equipped with the right entrepreneurship skills to exploit opportunities that abound in Nigeria. It was also observed that our educational institutions have failed to inculcate our youths and graduates with the needed entrepreneurial skills and knowledge. Following the above findings, the researcher has recommended that Youths and graduates should be encouraged to utilize every entrepreneurships opportunity made available to them, government should try to equip them with the right skills to exploit the different opportunities open to them in the different sectors in the economy. Government should try to inculcate entrepreneurship education in the curriculum of tertiary schools, not just theory but practical education, in other to prepare our graduates to explore the different opportunities available to them.

TABLE OF CONTENTS

Title page ……………………………………………………………………………………..i

Certification ………………………………………………………………………………….ii

Approval ……………………………………………………………………………………..iii

Dedication ……………………………………………………………………………………iv

Acknowledgement …………………………………………………………………………vi

Abstract ……………………………………………………………………………………….vii

Table of contents …………………………………………………………………………..viii

CHAPTER ONE

1.0 Introduction …………………………………………………………………………………1

1.1 Background of the study…………………………………………………………………1

1.2 Statement of the problem………………………………………………………………..6

1.3 Objectives of the study …………………………………………………………………..7

1.4 Research Questions ……………………………………………………………………….8

1.5 Research Hypotheses …………………………………………………………………….8

1.6 Significance of the Study ……………………………………………………………….9

1.7 Scope of the Study ……………………………………………………………………….10

1.8 Limitation of the Study…………………………………………………………………10

1.9 Definition of Terms………………………………………………………………………11

CHAPTER TWO

2.0 Literature Review ………………………………………………………………………..13

2.1 Conceptual Framework ………………………………………………………………..13

2.2 Review of Empirical Literature ……………………………………………………..19

2.3 Gap-in-Literature…………………………………………………………………….38

2.4 Theoretical Framework………………………………………………………………..43

CHAPTER THREE

3.0 Research design and methodology………………………………………………….45

3.1. Area of study………………………………………………………………………………45

3.2 Research Design ………………………………………………………………………….45

3.3 Sources of Data …………………………………………………………………………..45

3.4 Population of Study …………………………………………………………………….46

3.5 Sample and Sampling Technique ………………………………………………….47

3.6 Validity and Reliability of Data Instrument……………………………………49

3.7 Methods of Data Collection …………………………………………………………49

3.8 Method of Data Analysis……………………………………………………………..50

 

CHAPTER FOUR

4.0 Data Presentation and Analysis…………………………………………………….51

4.1 Presentation of Data……………………………………………………………………55

4.2 Test of hypotheses………………………………………………………………………68

4.3 Discussion of Results ………………………………………………………………….77

CHAPTER FIVE

5.0 Summary of Findings, Recommendations and Conclusion……………79

5.1 Summary of Findings…………………………………………………………………..79

5.2 Conclusion………………………………………………………………………………….80

5.3 Recommendations………………………………………………………………………..82

References………………………………………………………………………………85

Appendix/questionnaire……………………………………………………………89

Entrepreneurial training as an effective tool for economic development: (a study of Awka south local government area in Anambra state)

ABSTRACT This research examined how entrepreneurial training will enhance economic development of Awka South Local Government Area. Entrepreneurial training seeks to prepare people particularly the youths to be responsible, enterprising individual who became entrepreneurs or entrepreneurial thinkers by immersing them in real life learning experience whereby they can take risks, manage result and learn from the outcome. A sample of 399 respondents was selected from the population of Awka South LGA using simple random sampling. Data was collected from both primary and secondary sources presented in tables and analyzed using percentages and frequencies. Hypotheses were formulated and tested using Chi square method. It was discovered among other things that, youths and graduates are not equipped with the right entrepreneurship skills to exploit opportunities that abound in Nigeria. It was also observed that our educational institutions have failed to inculcate our youths and graduates with the needed entrepreneurial skills and knowledge. Following the above findings, the researcher has recommended that Youths and graduates should be encouraged to utilize every entrepreneurships opportunity made available to them, government should try to equip them with the right skills to exploit the different opportunities open to them in the different sectors in the economy. Government should try to inculcate entrepreneurship education in the curriculum of tertiary schools, not just theory but practical education, in other to prepare our graduates to explore the different opportunities available to them.

 

CHAPTER ONE  Entrepreneurial training as an effective tool for economic development

 

  • Background of the study to Entrepreneurial training as an effective tool for economic development

One of the major concerns of most societies in the modern time is how to stem the ever rising tide of unemployment and achieve appreciable success in wealth creation and poverty reduction and foster socio-economic development. In Nigeria and other African countries, poverty is described as a socio-economic problem that affects growth and development in the region. The government of these countries have designed and embarked on several measures to reduce the degree of poverty and improve the social well-being of the people. In Nigeria, the federal government has initiated several measures and policies to reduce the level of poverty among the masses. Entrepreneurship is one the measures embraced by the government to reduce mass poverty and unemployment in the country. The development process of any country is determined by the way the production forces in and around the economy is organized. For most countries the development of industry had depended a great deal on the role of private sector. Entrepreneurship has played a major role in this regard. This opinion is supported by Ogundele (2007) that the promotion and development of entrepreneurial activities would aid the dispersal and diversification of economic activities and induce even development in a country. Similarly, Osuagwu (2002) added that entrepreneurial development in Nigeria should be perceived as a catalyst to increase the rate of economic growth, create job opportunities, reduces import of manufactured goods and decrease the trade deficits that result from such imports In addition, Ariyo (2008) noted that if Nigeria wants to reach its full potential in terms of economic and social developments, it cannot afford to ignore the importance of its indigenous entrepreneurs and the contributions that they make to the country‟s economy. Entrepreneurship remains the gateway to sustainable wealth creation in Nigeria (Ogundele, 2000). In view of Matanmi and Awodun (2005), if Nigeria desire to move out of the disturbing high level of unemployment and ravaging level of poverty, adequate attention must be given to the growth of entrepreneurship. This is why Alam and Hossan (2003) see entrepreneurship as playing a key role in the process of economic development through creation of employment, increasing investment and consumption of a nation. In similar vein, Chigunta (2001) notes that entrepreneurship has received increasing recognition as a source of job creation, empowerment for the unemployed and economic dynamism in a rapidly globalizing world. Furthermore, Garavan and O’Cinneide (1994) in their contributions maintain that entrepreneurship is often used for developing enterprising people and inculcating an attitude of self-reliance using appropriate learning processes. In Nigeria before the advent of colonial government, unemployment was a rare phenomenon because the people were highly entrepreneurial and productively engaged. This entrepreneurial engagement is prevalent in western, northern and the eastern part of Nigeria. It is on record that Yoruba and Hausa ethnic groups are great entrepreneurs in pre and post independent Nigeria. The Igbo ethnic group particularly is recognized internationally for its culture of entrepreneurship and enterprise development (Dana, 1995). This is why Ananaba (1969) asserts: “The economy of the various states which make-up modern Nigeria was basically a subsistence economy and customs had established the practice that people serve their parents, village heads and the community without remuneration. On a given day, people went and
work for a particular individual. Through the day, the man they serve was responsible for their food and drink. On another day, the man returned the service and it went on until everybody in the group was served.”

This method encourages communal wealth creation and productive use of human resources, thus forestalling unemployment. However, the emergence of administration in Nigeria introduced formal education which enabled people to have the opportunity of being employed in the civil service after graduation. As such, the system destroyed self-reliance, self-employment and entrepreneurial skills of Nigerians as they became permanently dependent on the colonial masters (Nicks, 2008; Raimi and Adeleke, 2010). This led to massive unemployment and craze in the contemporary times for ready-made jobs. It is on this breastplate that the study seeks for the development of entrepreneurship in order to sustain an economy of high level unemployment reduction. In Nigeria and the whole world at large, entrepreneurship is being seen as a key to economic and developmental process. When people are exposed to entrepreneurship, it is evident that they would be opened to opportunities that will enable them to become creative and productive. This will enhance job creation and improve the standard of living of an individual in the society. Entrepreneurship training is an indispensable ingredient for job creation. Sanda (2010) asserts that Nigeria and other countries of the world are seeking to increase the entrepreneurship capacities of their citizens with the understanding that it will contribute to economic growth and development. Therefore, there is a need for Quality entrepreneurship education if the recipient is to acquire appropriate knowledge, attitude, abilities and skills that would make them to be job creators instead of job seekers. Quality according to Hornby (2000) is the standard of something when it is compared to other things like it. That is, to make the standard better so as to meet the targeted goals. The recipient should be able to acquire the essential knowledge and experience needed to meet life challenges. Entrepreneurship education seeks to prepare people particularly the youths: to be responsible, enterprising individual who became entrepreneurs or entrepreneurial thinkers by immersing them in real life learning experience whereby they can take risks, manage result and learn from the outcome (Suleiman2010). Entrepreneurship training is teaching people that they can either take or create a job. This will enable them to be self-employed and not relying on other job security. Often, it creates new job for others at the same time. Entrepreneurship education training could be given to interested individuals both adults and students through workshops, classes, and conferences thereby learning basic ideas of starting their own businesses and keeping it running. Entrepreneurial training is a specialized training given to students of vocational and technical education to acquire the skills, ideas and managerial abilities and capacities for self-employment rather than being employed for pay. Osuala (2010) defines entrepreneurship education as a programme or part of a programme that prepares individuals to undertake the formation and or operation of small business enterprises which also includes franchise operations for the purpose of performing all business functions relating to a product or service with emphasis on social responsibilities, legal requirement and risks for the sake of profit involved in the conduct of private business enterprises.

The need for entrepreneurship education started emerging in the mid 1980s. This is because before this period, unemployment and poverty were not a national concern as it is currently. However, political instability and inconsistencies in the social economic policies of successive government led to the emergence of high level unemployment in Nigeria. In the mid 80s, the Nigeria economic collapsed while youth and graduate unemployment hit the roof. There was large-scale layoff of workers and early retirements as a result of structural adjustment policies and bad economic trends in the country. In the face of this situation, entrepreneurship, which would have salvaged the situation, was not encouraged. It has been observed that tertiary education has not been properly include philosophy of self-reliance such as creating a new cultural and productive environment that will promote pride in primitive work and self-discipline, encouraging people to take part actively and freely in discussions and decisions affecting their general welfare, promoting new sets of attitudes and culture for the attainment of future challenges.

  • Statement of Problems (Entrepreneurial training as an effective tool for economic development)

The failure of tertiary education to inculcate the above philosophy in students has led to wastage in terms of both human and natural resources. This is because the youth and graduate from tertiary institutions are not equipped with the skills with which to exploit the natural resources that abound in Nigeria. These factors have rendered the pursuit of self-reliance among our graduates difficult to retain. Another problem identified is inadequate/lack of access to capital which is the principal factors hindering entrepreneurship training in the country.

Other problems identified include irrelevant education that is bookish, theoretic and “white-collar job” oriented. Also Nigeria’s macro-economic environment is unhealthy and unstable for a virile entrepreneurship development. Another problem is the fear of failure by the people to take risk on entrepreneurial activities. In addition, Government programmes are not designed to promote entrepreneurship training, looking at the country Nigeria, and the level of infrastructural development provided by the government is still very low and this has been affecting to a very high extent the level of productivity and entrepreneurial activities in the country. This problem is coupled with the fact that government have adopted a nonchalant attitude towards entrepreneurship training, this is one of the greatest challenges of entrepreneurship activities. Non availability of funds from the Government has also hampered the success of entrepreneurship training. Governments most times fail to make adequate funds available, and at times even delay the little fund they map out for entrepreneurship programmes.

Also, the high rate at which many of the small scale business enterprises fail quickly has become a source of discouragement to youths who wants to embark on entrepreneurship activities. Consequent upon this, employable and unemployable youths and adults idle away. It is against this backdrop that this paper set to look into entrepreneurship training as an effective tool for economic development and self reliance.

  • Objectives of the Study

This study is designed to show clearly how entrepreneurship training will enhance economic development, self reliance, socio-economic and political development of Awka South Local Government Area. Thus the specific objectives are as follows:

  1. To examine the attitude of government and other institutions that are involved in the training and development of entrepreneurs and the overall effect that they had on entrepreneurs development in Awka South Local Government Area.
  2. To ascertain whether adequate financial resources are made available for training programmes in Awka south Local Government Area.
  3. To investigate the reason why unemployed youths from Awka South Local Government Area shy away from entrepreneurship activities.

1.4. Research Question

An attempt has been made in this research study to provide answers to the following research questions.

  1. What is the attitude of government towards entrepreneurship training programs in Awka South Local Government Area?
  2. Does Government adequately fund entrepreneurship training programs in Awka South Local Government Area?
  3. Why do unemployed youths from Awka South Local Government Area shy away from entrepreneurship activities?

1.5. Research Hypothesis

In a bid to facilitate this research and make it more purposeful, the study will test the following hypothesis;

Hypothesis 1

Hi: Governments have a nonchalant attitude towards entrepreneurship training programs in Awka South Local Government Area.

Ho: Governments do not have a nonchalant attitude towards entrepreneurship training programs in Awka South Local Government Area

Hypothesis 2

Hi: Adequate funds are not made available by government for entrepreneurship training in Awka South Local Government.

Ho: Adequate funds are made available by government for entrepreneurship training in Awka South Local Government.

Hypothesis 3

Hi: Youths from Awka South Local Government Shy away from entrepreneurship activities.

Ho: Youths from Awka South Local Government do not shy away from entrepreneurship activities.

1.6. Significance of Study

Entrepreneurship training is an important tool for economic development and self reliance. There are many concrete reasons for conducting reason for conducting a research on entrepreneurship training and many potential uses for the information generated.

Thus, the significance of this study is to call the attention of the Government of Awka south Local government and other public level of Government, who needs help to assess the problem involved in the lack of entrepreneurship training and entrepreneurship spirit, identify the causes of these problems, how to handle these problems, so that economic development and self reliance, improved standard of living, employment opportunities, etc, will be achieved.

Furthermore this study will aid scholars to contribute immensely in the academic circles in carrying out proper research and formulation of relevant theories. Without much ado and will help me to obtain a B.Sc degree.

Finally, the study will serve as a data base for future research to be carried out on entrepreneurship training.

1.7. Scope of Study

This study is focused on Entrepreneurial training as an effective tool for economic development and self reliance, using Awka South Local Government Area as my area of study. The researcher was able to look into all the major areas of these local governments in other to assess the extent of Entrepreneurial training received by entrepreneurs.

1.8. Limitations of Study

In the course of carrying out this study, the researcher encountered some difficulties, the researcher discovered that the resources needed to carry out this research was limited, moving from one library to another. Also the questionnaire had to be typed and administered to selected respondents of the organization not as one thought process, it required the personal involvement of the researcher to motivate the worker to fill the questionnaire, explain certain words and answer. Another constraint is lack of total cooperation from the respondents in Awka South Local Government Area, who was unwilling to cooperate with the researcher because they felt that they had nothing to gain from the study. Another serious constraint is finance, because of economic difficulties Nigeria is passing through, it was difficult to get enough money to achieve ones crucial desires. A research of this nature involves a lot of fund e.g For typing, distributing and collecting the questionnaire, and other necessary data for the study.

In spite of all these limitations, however, data collected were able to provide enough insight into the extent of entrepreneurship training and development process in Awka South Local Government Area.

1.9     Definition of Terms

  • Entrepreneurial : having the spirit, attitude or qualities of an entrepreneur
  • Training: the activity of imparting and acquiring skills.
  • Entrepreneur: a person who organizes and operates a business venture and assumes much of the associated risk.
  • Program: a set of structured activities.
  • Obstacle: something that impedes, stands in the way of, or holds up progress
  • Government: the body with the power to make and enforce laws to control a country, land area, people or organization.
  • Fund: a sum or source of money.
  • Economic: pertaining to an economy.
  • Programmes: a set of structured activities.

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