FACTOR INFLUENCING BEHAVIOR AND PERFORMANCE OF INDIGENOUS ENTREPRENEURS IN LAGOS STATE
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FACTOR INFLUENCING BEHAVIOR AND PERFORMANCE OF INDIGENOUS ENTREPRENEURS IN LAGOS STATE
Chapter one
INTRODUCTION
1.1 Background of the Study
One of the primary goals of a responsible government is to ensure a high level of living. The post-independence administration implemented import substitution; large-scale enterprises by investing in massive capital projects based on the premise that “big is better” and “small is bad”.
Small and medium-sized businesses were regarded as obsolete and associated with technological backwardness. (Nnanna 2001). Even the Structural Adjustment Programme (SAP),
which was implemented to restructure and diversify the Nigerian economy’s production and consumption patterns, had a negative impact on small and medium-sized businesses, forcing many to close their doors (Oni 2002).
After many years of neglect, most developing countries recognise the link between technology and the role of indigenous entrepreneurs (i.e. small businesses). In Nigeria, national and international entities help to promote this subsector.
Despite the substantial assistance provided by these institutions and the various restructuring programmes implemented by successive Nigerian governments, little progress has been made in improving the standard of living; many Nigerians have yet to escape poverty;
Nigeria’s per capita income has been growing at a 20% annual rate, implying that it would take 35 years for the capita income to double from US$400 to USD800 (Lawal 2003).
The federal government’s decision to withdraw from the International Monetary Fund (IMF) in the interests of democracy, accountability, and good governance has necessitated that the government look inward and capitalise on the opportunities provided by these indigenous entrepreneurs through various programmes initiated and supported by them.
Meanwhile, research on micro, small, and medium-sized businesses has shown that entrepreneurs in these sectors are a viable means of promoting self-reliance economic development as well as accelerating the pace of industrial technology (Anyanwu 2000; Obitayo 2001; Lawai and Kio., 2001).
According to the Federal Office of Statistics (FOS)’s 1988 Business Census, 70%4 of the 220,000 industrial entities questioned were small and medium-sized businesses, accounting for 70% of industrial employment and 10-15% of manufacturing input.
According to Fadahunsi (1992), SMEs account for 90% of all firms in ACP countries. They also provide 70% of employment chances to locals and promote indigenous technology.
Kurattko and Hodgetts (200 I) also highlighted that small businesses employ 530/0 of the private workers, accounting for 47% of sales and 51% of the private sector’s GDP.
All of this demonstrates the importance of SMEs in the economies of both developed and developing countries. This raises the question of what types of businesses should be classified as SMEs.
In the context of this study, indigenous entrepreneurs are referred to as SMEs. As a result, cottage industry could be used to describe small-scale operations. And they can be best described by some of their features:
· Few employees.
· Amount of investment and yearly business turnover
· Small scale within the industry.
According to Ogundele (2007), managers can also be business owners.1.2 Statement of Problem
Despite government initiatives to promote entrepreneurship in Lagos State, such as the National Directorate of Employment (NDE Lagos Chapter) Vocational and Acquisition Centre, success remains limited in comparison to expectations due to personal and environmental factors that influence the performance and behaviour of indigenous entrepreneurs.
The study aims to examine the impact of environmental and personality factors (e.g. age, work experience, education level) on the success of indigenous entrepreneurs.
1.3 AIM AND OBJECTIVES OF THE STUDY
The current study seeks to analyse many aspects that influence the performance and behaviour of indigenous entrepreneurs (i.e., small-scale businesses) in Lagos State. However, the elements have primarily been classified as environmental and personality factors.
The content of economic, technological, and social-cultural factors will be examined under environmental factors, and the content of age, level of education, and work experience will be examined under personality factors, thereby removing the problem of a narrow scope of determinants to be covered.
However, supporting objectives that might aid in the achievement of the above are stated below:
i. Investigate the important success criteria required to promote the development of indigenous entrepreneurs in Lagos State.
ii. Determine whether particular factors are responsible for improvements in both the performance and behaviour of indigenous entrepreneurs.
iii. To identify the particular environmental elements that influence the behaviour and performance of indigenous entrepreneurs (small-scale firms) in Lagos State.
iii. Determine whether certain personality traits can influence the performance and conduct of indigenous entrepreneurs.
v. To investigate whether various assistance provided by the Lagos State Government to improve the performance of indigenous entrepreneurs has been fruitful.
1.4 RESEARCH QUESTIONS.
By the end of this study, the following research questions must have been answered:
a. Are environmental and personality factors accountable for the increase in profits of indigenous entrepreneurs?
b. To what extent does technology affect the sales and turnover of indigenous enterprises in Lagos State?
c. To what extent does job experience as a personality characteristic influence the behaviour of indigenous entrepreneurs?
d. Why has the Lagos State government’s varied efforts to improve the performance of small-scale firms proven ineffective?
e. How may social and cultural elements be used to increase the turnover of indigenous entrepreneurs in Lagos State?
f. How much does an economic aspect influence the success of indigenous entrepreneurs?
1.5 RESEARCH QUESTIONS.
The null and alternative hypotheses are as follows:
Ho: There is no substantial association between technological factors and the performance of indigenous entrepreneurs in Lagos state.
Hello: There is a considerable association between technological factors and the performance of indigenous businesses in Lagos State.
Ho: There is no substantial association between amount of education and the attitude of indigenous entrepreneurs in Lagos State.
HI: There is a considerable association between level of education and the attitude of indigenous entrepreneurs in Lagos State.
1.6 Significance of the Study
In light of the role of indigenous entrepreneurs in economic development of a country in terms of creation of gainful employment opportunities, increase in Gross Domestic Product (GDP),
improvement in the level of per capita income and standard of living, provision of material inputs for large industries, reduction of regional economic balance, enhancement of self-sufficiency, alleviation of poverty, etc.,
it definitely becomes of paramount importance to promote the Also, given the rate of economic development in industrialised countries, it is vital for Nigeria to be economically and socially sound, and small-scale firms must be given appropriate attention.
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