Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development A Study of Selected Small Businesses in Anambra State

Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development

Project / Seminar Material
Reference ID: PS-13847-TM

DEDICATION

This research material titled “Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Business Administration and Management (BAM), Book Authors and Profound Scholars of existing or related project material on “Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development (A Study of Selected Small Businesses in Anambra State)

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

Introduction

  • 1.1 Background of the Study
  • 1.2 Problem Statement
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypotheses
  • 1.6 Significance of the Study

CHAPTER TWO

Review Of Related Literature

  • 2.1 Introduction
  • 2.2 Conceptual Review
  • 2.3 Theoretical Framework
  • 2.4 Empirical Review

CHAPTER THREE

Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.4 Determination of the Sample Size
  • 3.4 Method of Data Collection
  • 3.5 Validity of the Instrument
  • 3.6 Reliability of the Instrument
  • 3.7 Method of Data Analysis

CHAPTER FOUR

Results

  • 4.1 Introduction
  • 4.2 Analysis of Research Questions
  • 4.3 Test of Hypotheses
  • 4.5 Discussion

CHAPTER FIVE

Summary

  • 5.1 Summary of Findings
  • 5.2 Conclusions
  • 5.3 Recommendations
  • REFERENCES

ABSTRACT

This study examined entrepreneurship development as a means of reducing unemployment in Nigeria, using selected small scale businesses in Anambra State as the study area. The study which was designed as a descriptive survey evaluated the role of government in trying to make the process an effective means of tackling the menace of unemployment. An item structured instrument designed to reflect the options of strongly agree, agree, disagree, strongly disagree and undecided popularly referred to as the five (5) points modified Likert scale, was used to elicit information from the respondents who were predominantly practicing entrepreneurs.

The data generated in the study were analyzed in two sections namely; answer to the research questions and test of hypotheses. Whereas summary statistics of percentages were used to answer the research questions which were already in Likert scale format, Chi- Square (2) inferential statistics was used to verify the claims of the null hypotheses. All tests were carried out at a significance level of 0.05 and 16 degrees of freedom (df). The study revealed that tertiary institutions and other entrepreneurial training centers can be reformed to make them responsive to the needs of the trainees.

It was found also that the cost of doing business in Nigeria negatively affect entrepreneurship development in Nigeria. In the light of these findings in the study, it was recommended among others that the government should reform and sufficiently equip the relevant institutions and other entrepreneurial training centers across the nation to make them responsive to the needs of the trainees so that they can acquire the necessary skills and knowledge needed to start up a business venture and manage it successfully.

Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development (A Study of Selected Small Businesses in Anambra State)

CHAPTER ONE

Introduction

1.1 Background of the Study

In the mid 1970s, Nigeria was quoted among the richest 50 countries of the world and just a few years after, she became one of the 25th poorest countries in the World (United Nations Development Programme Report on Nigeria, 2006). Nigeria, as the sixth largest exporter of petroleum products in the world, it is hard to believe that more than 60 percent of her citizens live below US$2 (about N700) a day, going by the current naira exchange rate, with the majority of the people living in the rural areas where access to electricity, clean water and sanitation, good roads, other government essential services, etc, are almost non-existent.

Also, despite the alleged strong economic growth, Chukwubuikem (2008) observes that youth’s full-time unemployment rate has continued to increase rapidly. Similarly, a recent United Nations Human Development Report for Nigeria (2012), indicates that poverty persists in Nigeria because past Nigerian leaders, instead of focusing on how to deliver essential services to the people assumed control of major sources of national income to the advantage of only a few. Thus, researchers and other scholars have started prescribing

entrepreneurship development as the feasible and permanent solution to the extreme hunger and poverty which accompanies unemployment in Nigeria. In the opinions of Anyadike, Emeh and Ukah (2012), the great need for entrepreneurship development in Nigeria today, more than ever is necessitated by the rate of unemployment and its effect on both the people and the nation and the need for micro and small scale enterprises. To Idemobi (2015), as an employment strategy, entrepreneurship can lead to self-sufficiency and economic buoyancy for the people. He reiterates that self-employment provides entrepreneurs and their families with the potential to create and manage businesses in which they function as the employer or boss, rather than merely being an employee.

1.2 Problem Statement

Unemployment is a socio-economic problem and every nation deals with it within their respective capacities. As could be seen from individual research reports and other government statement, the situation in Nigeria has gone out of hand as about 75 percent of those who are willing to work cannot find gainful employment in Nigeria, especially among the school leavers and graduates of tertiary institutions (NBS, 2014). As a result, many youth have taken to various crimes including robbery, kidnapping, drug and child trafficking and all kinds of armed banditory all in a bid to earn their living. It does not matter any more whether the means is legitimate or not. The situation appears to have gone beyond remedy (Ideyi, 2010).

Every year, new sets of graduates and school leavers add to the stock of unemployed youth; resulting to increased frustration and aggression against the society that have refused to provide for them. Successive governments have made several efforts to combat the menace of youth unemployment but it appears that the efforts have not impacted significantly on the level of unemployment as it has continued to be on the increase in the country. Studies such as (Ekong and Ekong, 2016; Akanwa and Akpanabia, 2013; Anyadike et al, 2012; Emeh, 2012; Ibrahim, 2010; Kaegon and Nwogu, 2012 and Udeorah, 2014), have all prescribed entrepreneurship development as a sure means of tackling the growing rate of unemployment in Nigeria. However, the prescriptions are devoid of the specific roles the government is expected to play to make the intervention effective and result oriented. This study is aimed at prescribing the specific roles government can play to reduce unemployment rate in Nigeria, specifically outline and discuss in great details the role of government in making the prescription effective towards the realization of the objectives.

1.3 Objectives of the Study

The broad objective of the study is to examine how entrepreneurship development can be used to combat the rising rate of unemployment in Nigeria. However, the specific objectives are to:

  1. Determine the level at which educational institutions and other entrepreneurial training can affect the rate of unemployment in Nigeria.
  2. Examine the degree at which the cost of doing business in Nigeria can hinder entrepreneurship development.
  3. Ascertain the extent in which government incentive on small businesses can influence entrepreneurship development in Nigeria.

1.4 Research Questions

The following research questions were raised to guide the objectives of the study:

  1. To what level can relevant institutions and other entrepreneurial training affect the rate of unemployment in Nigeria?
  2. To what degree can the cost of doing business in Nigeria hinder entrepreneurship development?
  3. To what extent can government incentive on small businesses influence entrepreneurship development in Nigeria?

1.5 Research Hypotheses

The following null hypotheses were formulated to guide the objectives of the study and strengthen the analysis:

  1. Relevant educational institutions and other entrepreneurial training centers cannot affect the rate of unemployment in Nigeria.
  2. Cost of doing business in Nigeria cannot hinder entrepreneurship development
  3. Government incentives on small businesses cannot influence the level of entrepreneurship development in Nigeria.

1.6 Significance of the Study

The study will enrich the body of literature thereby expanding knowledge in the area. As could be seen from past studies in the area, entrepreneurship development has been the popular prescription for reducing the increasing rate of unemployment in Nigeria.

Also, the policy dialogue that will arise from the findings would be of immense benefit to different categories of people and they include the government, the practising and prospective entrepreneurs, the students, researchers and the general public.

1. The government:

The government would be sufficiently enlightened on how to make entrepreneurship development impact unemployment significantly.

2. Practising and Prospective Entrepreneurs:

These categories of people would be better informed on how to access government incentives to boost their operations by reducing cost of doing business.

3. Students and Researchers:

This group will find the result very useful because it will serve as good starting point for those who might want to carry out further studies in the area.

4. The General Public:

Members of the public will be better-off because increase in the number of entrepreneur’s will enhance the overall welfare of the people.

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

CHAPTER FIVE

Summary

5.1 Summary of Findings

The study examined the effectiveness of entrepreneurship development in reducing the rising rate of youth unemployment in Nigeria. Through the administration of questionnaire to micro and small scale business operators in Anambra State, the role of government in the process was reviewed. It was found that when government reforms and equip the institutions and training centers, they will become more responsive to the needs of the trainees. Also, it was found that many new businesses will emerge when the government reduces the high cost of doing business in Nigeria. This it can do by providing the enabling environment in the areas of provision of infrastructure, especially electricity, removal of double taxation, giving access to credit facilities and start-up capitals as well as offering of tax incentives to local firms. It is our firm belief that through such policies, enough businesses that can give employment to millions of people would be created in Nigeria within a short period of time.

5.2 Conclusions

From the findings made in this study, it is quite safe to conclude that entrepreneurship development can be a solution to the problem of youth unemployment in Nigeria if the government can play the leading roles that can make the process as effective as possible. The multiplier effect of the policy leaves us without doubt that it is a preferred option against others. Entrepreneurs drive every economy including job creation and we need to help them succeed in Nigeria to create the jobs that we badly need. The government, surely, should play the leading role but at the same time cannot do it alone. It requires the support of all and sundry, especially the youth who must show sufficient interest through a conviction that acquisition of entrepreneurial skills is many steps towards the solution to the unemployment problem in the country.

5.3 Recommendations

From the findings made and the conclusions reached in the study, we made the following policy dialogues:

  1. The need to reform and equip the institutions and other entrepreneurial skills acquisition centers to make them more responsive to the needs of the trainees cannot be overemphasized. This is because many of the training centers including the tertiary institutions do not have what it takes to produce the would-be entrepreneurs that can later establish and manage business concerns successfully.
  2. Many entrepreneurs have been forced to close down because of high cost of doing business in Nigeria. The government should step in and make policies that will lower the cost of doing business so that both the moribund and the new ones can get up and begin to add value to the economy.
  3. There is also the need for the government to structure some incentives that will ameliorate the problems being faced by entrepreneurs in the country. Problems of multiple taxation by government and those who claim to be her agents, non-supply of electricity, high interest rates and collaterals are some of the areas that the government need to consider to make things easier for business operators in Nigeria.
  4. Entrepreneurship development have been found to be a viable solution to the problem of unemployment in Nigeria. Government need to be holistic in its approach. There is need for huge capital expenditures to improve the business environment, especially the power sector, provision of unhindered access to finance to all practicing and prospective entrepreneurs, either as start-up or top-up to boost entrepreneurial activities in the country.
Summary Headlines for Reducing Unemployment Rate in Nigeria Through Entrepreneurship Development