1.1 Introduction
Entrepreneurship is the teaching of knowledge and a skill that enables the students to plan, start and run their own business (Ebele, 2008). Similarly, entrepreneurship as the identification of the general characteristics of entrepreneurs and how potential entrepreneurs can be trained in management techniques needed for effective performance of persons for long time service of an organization after the acquisition of occupational skills (Nwabuama, 2004). The role of entrepreneurship in the growth and development of our dear nation cannot be overlooked and as a result of the consistent rise in the level of unemployment and the upward increase in the level of poverty in Nigeria, it has become crucial for Nigerians to quit searching for white collar jobs that are not available and start creating employment for themselves.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
The current emphasis on entrepreneurship development is informed by the protracted economic downtown which has not Only retarded economic growth but aggravated unemployment situation in the country (Ugbaja, 2001:22). Hitherto, everyone looked at the government as the provider of employment opportunities.
Many Nigerians did not think of self determination as an attempt to government employment but the worsening unemployment situation currently playing the country has changed this thinking, shot of alternatives, many graduates and school leavers as well as other Nigerians are now moving in quest of self determination by launching themselves into various business venture (Eze, 2007).
In recognition of the need of foreign capital to enhance entrepreneurship development in Nigeria, the federal government has introduced a series of policy that are designed to attract foreign investment in Nigeria. In an attempt to diversify the economy and stimulate foreign private enterprise development government agencies and private institutions are liaising with international organizations to enhance the letters participation in different entrepreneurship development activities in Nigeria (Onyishi, 2001:19). There are international organizations such as the international Labour organization (ILO) involved in promoting small business entrepreneurship in different part of the world (Afolabi; 2001:22).
With current challenges in the global economy, new and innovative strategies are emerging in the bid to stimulate and sustain growth in national economies. Entrepreneurship is one model that is deemed critical to the formulation and implementation of these strategies. According to a research by The Global Entrepreneurship and Development Institute, it was found that USA is a world leader when it comes to supporting its entrepreneurs in respect to business formation, expansion, and growth. They also finance new businesses through venture capital.
Early entrepreneurs were characterized with production and manufacturing. In a situation like this, the producers often started with small capital. Early entrepreneurship began with trade by barter even before the advent of money. Therefore most of the modern entrepreneurs were engaged in retail trade and also sole proprietorship. In addition to providing foreign capital, these international organizations also provide technical assistance for African countries. It is against this background that this study is set to examine the impact of foreign capital in entrepreneurship development in Nigeria.
1.3 Statement of Problems
Investigation revealed that entrepreneurship development is at providing self employment opportunities for millions of unemployed Nigerians. However, this has not been effectively achieved in Nigeria because of the following inadequate financing from local financial institutions.
The lack of foreign investment in the economy is low and cannot adequately provide foreign capital to supplement the available domestic capital for entrepreneurship development.
The presence of international organization through which foreign capital can be channeled into the economy is low. All these are the constraint to the rapid growth of entrepreneurship development in Nigeria.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Foreign Capital on Entrepreneurship Development in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:
- To determine the extent of foreigner’s participation in entrepreneurship activities;
- To identify the challenges of entrepreneurship development in Delta State;
- To determine the roles of foreign capital in entrepreneurship development;
- To find out the nature of entrepreneurship development in Delta State; and
- To examine the institution arrangements in the development of entrepreneurship in Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the nature of entrepreneurship development in Delta State?
- What is the institutional arrangement for entrepreneurship development?
- What are the roles of foreign capital in entrepreneurship development?
- To what extent do foreigners participates in entrepreneurship activities?
- What are the challenges and prospects of entrepreneurship development in Delta State?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant contributive factor that inhibits the utilization of foreign capital on entrepreneurship development
- H1: There is a significant contributive factor that inhibits the utilization of foreign capital on entrepreneurship development
1.7 Significance of Study
This research will be useful as it will serve various purposes which are stated as follows:
- Firstly, graduates and school leavers will be encouraged by this study to take the existing opportunities to entrepreneurship development to be self determinant. In this way, they can stop wasting time for non-existent jobs in the public sector.
- Secondly, the study will enable all potential entrepreneurship and how they can be overcome.
- Thirdly, private institutions and government agencies and Nigeria business men with international connections will also benefit from this study. They will understand from this study, the need for them to attract or bring foreigners into Nigeria to form participation.
This will be a very significant way of making foreign capital to flow into the country for the purpose of entrepreneurial activities. Foreign capital will enable the local entrepreneurs to acquire or procure adequate equipments and infrastructures required for small business or entrepreneurial operations.
- Fourthly, the government will also benefit from the study. The role of foreign capital in entrepreneurial development cannot be over emphasized. The government will see in this study the need to enter into agreement with government of Western and Eastern Europe as well as the far East and America on the funding of entrepreneurial programmes in Nigeria. Not only foreign government should be involved, but national organizations.
- Fifthly, all well meaning Nigerians will also benefit from the study. This is because it will make them understand the need for increased emphasis and explanation into entrepreneurial ventures and how sustained entrepreneurship activities will enhance industrial purposes.
It will provide useful data and information for all those who will carry out related studies in the future. Besides, the research findings can provide for further studies.
1.8 Scope of the Study
The scope of this research is focused on the impact of foreign capital on entrepreneurship development in Nigeria using Delta State as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research Material: availability of research material is a major setback to the scope of the 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).
- Lack of Initial Cooperation from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definitions of Terms
Entrepreneur:
This refers to any individual who creates new business and manages it until it succeeds.
Entrepreneurship:
This is the process of creating a new business and managing it until it succeeds.
Business Environment:
This includes all the physical facilities, regulation, opportunities and risk there in.
Entrepreneurship Development:
This is the coming into existence in society of the class of individuals who are not limited to pace odds.
Capital Investment:
That produces in small quantities and as a result controls a small share of market that employ not more than fifty workers (50) and in which management marketing and entrepreneurship functions are used in the proprietor.
Small Scale Business:
Ejiofor (2009) defines small scale business as those enterprises that have relatively little capital investment.
Venture Capital:
This is the funds which investment institutions loan not for investment purpose.
Business-Up Capital:
This is the capital needed for initial take off of business.
Business Opportunities:
This is a potentially profitable event.
Innovative:
This is the development of a new product from an old one.
Entrepreneur:
An entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk. Meredith et al (2001) looks at an entrepreneur as an individual who has the ability to see and evaluate business opportunities, gather the necessary resources to take advantage of them and initiates appropriate action to ensure success and he is a risk taker.
