IMPACT OF ENTREPRENEURSHIP ACTIVITIES ON THE PROMOTION AND THE DEVELOPMENT OF ECONOMIC GROWTH
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IMPACT OF ENTREPRENEURSHIP ACTIVITIES ON THE PROMOTION AND THE DEVELOPMENT OF ECONOMIC GROWTH
Chapter one
INTRODUCTION
1.1 Background of the Study
To comprehend the impact on the promotion and development of Nigeria’s economic growth, we must first understand the notion of entrepreneurship. To be most appropriate to the people of the nation, an entrepreneur must consider the skills that will be required to increase individuals’ quality of life while also maintaining a healthy economy and environment.
Entrepreneurship activities and new business formations are definitely seen as engines of economic growth and innovation, with entrepreneurs serving as the ultimate determinant of the significant regional disparities in economic performance.
According to the Global Entrepreneurship Monitor Report (2012), over 70% of an area’s economic success in Nigeria is determined by its entrepreneurial status.
This produces jobs and economic value for a region while also keeping rare resources within the country. Entrepreneurship is thus recognised as a phenomenon that continues to pique the interest of students who want to pursue occupations that need them to adapt to fast changing settings.
Also, inventors looking for ways to commercialise their findings should consider entrepreneurship as a phenomenon. The same applies to CEOs of huge corporations attempting to remain competitive in a global market.
Since the early 1980s, when entrepreneurship was identified as a driver of economic growth, the term and field of study have grown significantly.
According to Allen (2011), entrepreneurship is not a domain exclusive to any country, gender, race, age, or socioeconomic sector; it may be found in any country, at any age, and (increasingly) in women as well as men.
The entrepreneurial fever therefore distinguishes between the rich and the poor; in truth, it affects anybody with the passion and vision to work for themselves, anyone who is motivated to be independent and take control of his life.
Entrepreneurs’ mindsets may be studied and practiced, as can their talents and behaviours. The single essential feature of an entrepreneur is their will to succeed. Passion cannot be thought or practiced. It simply exists when the appropriate elements combine.
According to Allen (2011), entrepreneurship is defined as a mindset or method of thinking. That is opportunity-driven, inventive, and growth-oriented.
Allen (2011) also states that:
Entrepreneurs are people who recognise opportunities, assemble the resources needed to act on them, and see them through to completion.
Entrepreneurship is fundamentally about entering a new market and capitalising on new or current products and services. However, the primary goal of entrepreneurship in every given country is to alleviate poverty, create wealth and job opportunities, promote and expand the nation’s economic growth, and improve new products and services.
According to Anyanwu in (Abasiakama) 2012, entrepreneurship is the ability and attitude of a person or group of people to engage in initiatives with the possibility of success or failure.
This means that, in addition to being highly innovative, an entrepreneur must be willing to take on a respectable level of risk. A well-developed entrepreneur, such as Aliko Dangote, is widely regarded as the key to every country’s economic development and prosperity, and Nigeria is no different.
Many seminars and conferences have focused on how entrepreneurs can have an impact on the nation’s economy; it is a well-known fact that a nation’s economy may not grow without competent and capable entrepreneurship characteristics such as innovation, risk-taking, and perseverance. In national and sometimes social growth because it defined the citizen’s level of living as well as the nation’s viability.
According to Abasiakama (2012), entrepreneurship is currently regarded as the most effective means of introducing innovations to the market. Individuals or organisations start new businesses and introduce new products and services to the market, which helps to widen the economy by providing jobs.
Some of Nigeria’s most pressing concerns now include job creation and increased income opportunities. Although the promotion and development of economic growth, as well as the creation of employment prospects in Nigeria, are dependent on the investment decisions of a private sector comprised primarily of entrepreneurs.
In addition, entrepreneurship engagement must be a key component of any plan aimed at reducing unemployment and poverty in Nigeria. Initially, the growth of business in Nigeria was delayed when compared to the growth of business activities in Asia and most European and American countries.
Some of the factors that contributed to Nigeria’s poor business growth included a lack of sufficient capital, low savings, and inadequate means of transportation and communication.
However, in Nigeria, some entrepreneurs are venturing into logistics, telecommunications operations, and the management of microfinance banks in order to strengthen the country’s economy through the development of contemporary technology.
Efficient communication and transportation, insurance, and the establishment of financial institutions to promote and build the Nigerian economy. Finally, the best method to encouraging and developing Nigeria’s economic growth rests mostly with the governments that are accountable for creating a climate conducive to corporate success.
On the one hand, entrepreneurs must follow the laws of the game (production) in order to assure full development of economic growth. This basically indicates that the researcher intends to investigate the methods and procedures used by entrepreneurs to promote and improve Akwa Ibom State’s economic growth.
One should not forget that without solid entrepreneurs and their activities in the state, the economy will be unable to grow, and as a result, the cost of living will be high due to the state’s population.
As a result, the government should provide additional incentives to entrepreneurs, such as increased industries, dependable electricity supplies, and security.
1.2 Statement of Problems
A well-developed entrepreneur is widely regarded as the key to any country’s economic prosperity. It is also acknowledged that the nation’s economy may occasionally stagnate in the absence of competent and capable entrepreneurs, as well as their actions and traits such as tenacity, risk-taking, and invention.
So the researcher aims to illustrate some of the fundamental issues that confront the nation’s entrepreneurs in terms of the expense of making the country economically viable. Some of the issues are:
Logistic Issues: This occurs when there is a bad road transport system, which can be caused by soil topography, road excavation, or flooding, and there is a delay in delivery, i.e. insufficient delivery services.
Shortage of Supply: This occurs when there is an interruption in supply, which might be caused by a raw material shortage.
Disagreements between religious groups, boundary conflicts between governments, communities, and so on, as well as disagreements between political parties, can produce disruption and poor turnover among distributors, potentially leading to inadequate service.
Inadequate Management Ability: A lack of management ability manifests itself in poor planning and a lack of abilities in keeping track of business transactions, resulting in a high rate of theft and difficulties determining who is to blame.
Government Policy: This is when the government imposes high taxes, as well as policies on the importation of foreign goods and lending interest rates. Investing more money may negatively impact the organisation and may lead to inflation
1.3 PURPOSE OF THE STUDY.
The Akwa Ibom State economy is characterised by rising raw material and finished goods prices, as well as high purchasing costs.
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