SUSTENANCE AND MAINTENANCE BUSINESS GROWTH AND DEVELOPMENT

SUSTENANCE AND MAINTENANCE BUSINESS GROWTH AND DEVELOPMENT

QUESTION

As a business man for about 7 years experience, invalidating, planning and implementation to see the light of your business success, but still suffering from certain constraints, explain way and manners in which you can sustain and maintain business growth and development

INTRODUCTION

Businesses organization of any type and size look for ways to expand their market share and increase revenues. Organization often choose to implement specific growth strategies to overcome several challenges faced and advance their business. Business growth and development is a phenomenon that occurs when business owners, employees and outside factors influence the success of a company. A business grows when it expands a customer base, increases revenue or produces more product.

Growth and development is the goal of most businesses and is the reason behind many decisions that affect the daily workings of a company both internally and externally. Business growth is impacted by consumer trends, market opportunities and decisions made by company leadership.

Growth and development of a business organization takes planning and concentrated efforts that fall into these main categories: Organic growth which happens when a business creates the right conditions for expansion. This includes physically expanding office space to allow for company growth or increasing product offerings;A strategic approach which focuses on long-term growth through specific initiatives. Businesses often move into this growth stage after a period of organic growth. Companies may try to gain a share in untapped markets or plan to produce new inventory; Partnership/merger is growth and development strategy which occurs when a company joins with another business to create more market opportunities and finally an internal growth strategy that works to maximize internal processes to increase business and revenue.

WAY AND MANNERS THAT CAN SUSTAIN AND MAINTAIN BUSINESS GROWTH AND DEVELOPMENT

For business organization to surmount their challenges, the need to focus on planning. A business plan is a written document of research proposing business activities before a business owner begins developing a product. Planning should begin with the development of a forecast for profits, income, and cash flow for five years.

Chaudhry et al. defined strategic planning as the process of awareness on business environment, documentation about the future course of action, and awareness of short and long-term implications of strategies.

Therefore, business organization need to face the challenge of developing strategies which will add value for sustainable growth and development. Thus, strategic planning is a process aimed at documenting strategies which may result in a positive performance of the business. 

There for the business organization to be sustained and maintain business growth and development the following must be put into consideration

1. Market penetration: Market penetration occurs when a business tries to generate further growth within their current market. To do this they may try to lower prices or increase marketing efforts to gain more market share. Increasing brand awareness can be an effective way to implement this strategy.
2. Product development: Businesses may choose a growth strategy that involves innovating current products or creating new ones to increase revenue. Some companies choose to take existing inventory and add new features to attract more customers. Investing in the design and creation of new products is one way businesses foster growth.
3. Market expansion: In the market expansion method, a business tries to expand in their current market by reaching untapped customer bases. For example, an office supply company may try to gain market share by selling to educational institutions, healthcare organizations and government agencies instead of strictly selling to corporate office clients.
4. Vertical integration: Companies who decide to growth through vertical integration strategies take on another part of the manufacturing or distribution process. This may mean that a company begins to produce their own packaging materials or buys a factory that produces a key item for a product.
5. Productivity and efficiency: Some businesses grow by changing their processes to increase productivity. Efficient production methods can help cut costs and increase revenue. A business may choose to conduct an audit of their manufacturing processes, distribution methods and other parts of their production chain.
6. New geographies: Investing marketing efforts into expansion in other locations can also be a growth strategy for businesses. This can mean regional, national or even worldwide expansion of product offerings and distribution. Offering products outside of a current geographical area can generate new revenue streams if distribution is also handled effectively.
7. Share of wallet: By focusing on customer retention and quality service, companies can initiate growth by expanding sales to current customers. Selling to existing customers typically costs less than other marketing efforts. This strategy can be effective for companies with excellent customer service practices and a loyal customer base.
8. Diversification: Companies that choose to grow through diversification create new products for a completely new market. This kind of growth may mean moving into international markets or areas where the company has no prior sales history. Some companies do this by looking for areas of large-scale expansion, hoping to gain market share. Diversified companies may own a stake in multiple industries through a range of product offerings.
9. Acquisitions: Companies may implement a growth strategy by buying another business. A company might buy out a competitor to absorb their market share and acquire their assets. The parent company will then experience growth in sales and revenue. This strategy encourages more immediate growth because a business is essentially buying into a market instead of having to invest time in organic growth methods.
10. New channels: Offering products through new distribution channels is another way for businesses to expand. For example, a company may decide to offer product in retail stores after operating exclusively online. A company may also decide to work with consumers instead of selling just business to business.
11. New business models: Changing the way you do business can affect growth patterns in a company. When a business decides to make operational changes, they have the chance to create more growth opportunities using other strategies.
12. Investment: Owning shares and investing in other companies may be a way to expand business growth. When a company uses their revenue to increase the assets of another business, they have the opportunity to receive benefits as a stakeholder. This may include dividends, stock options or other investment earnings.
13. Market segmentation: By focusing on a small segment of industry and growing specifically in that area, businesses often find growth opportunities. Small businesses can benefit from this strategy in markets where big businesses already dominate a large portion of the market share.
14. Business partnerships: Strategic partnerships can increase business growth by leveraging the key elements of two or more brands. In this strategy, businesses often create a contract with clear terms outlining the agreement for both parties. Companies from different industries or markets benefit from gaining the attention of another consumer group.

CONCLUSION

Business intelligence including the technologies, processes, and applications needed to provide complete data to enable productive decisions by managers is one area explored by business organization to overcome the challenges of sustaining growth and development. Thus is believed that adopted the strategies outline above the any business organization can sustain growth and development.

REFERENCES

1. Crals, E., and Vereeck, L. (2004). Sustainable Entrepreneurship in SMEs. Theory and Practice. Research Gate Journals. Retrieved from https://www.researchgate.net
2. Erhum, M.O. (2015). A Sustainable Approach to Economic Development in Nigeria. A Legal Perspective. Journal of Economic and Sustainable Development 6(14); 1-6.
3. Okpara, J. O. (2011). Factors constraining the growth and survival of SME in Nigeria: Implications for poverty alleviation. Management Research Review, 34, 156-171. doi:10.1108/01409171111102786

ASSESSING ENTREPRENEURSHIP DEVELOPMENT AS FISCAL POLICY OF GOVERNMENT

ASSESSING ENTREPRENEURSHIP DEVELOPMENT AS FISCAL POLICY OF GOVERNMENT IN OFU LOCAL GOVERNMENT AREA OF KOGI STATE

ABSTRACT

Generally this study seeks to assess entrepreneurship development as fiscal policy of government in Ofu local government area of Kogi State. To find out if there is significance in the role played by entrepreneurship in Nigeria, also to emphasize the need for entrepreneurship in an economy, examining the participation of government in the development of entrepreneurship  through fiscal policy of the government in the country. This review the deliberate act or policy of government at all level in the federation initiated and executed, aiming at promoting the growth and development of entrepreneurship in the society. The researcher used both primary and secondary data collection to gather information for analysis. Base on statistical test carried out using X,² hypothesis shows that the inconsistency of the government to provide serious support for business sectors has contributed to the underdevelopment of the economy. Recommendations were made that government should at all level establish a strong support to small scale industries in the society.

CHAPTER ONE

INTRODUCTION

1.       Background of the Study

Entrepreneurship is generally described as the ability of an individual or a group of individuals to create or discover an opportunity and utilize it to the benefit of the society, which will yield success to the innovators and their organization. According to Dau and Cuervo-Cazurra (2017), the authors take a legalistic view of entrepreneurship and define it ‘as the creation of fresh businesses a stable collection of people who coordinate their efforts to produce new value-added economic activity’. The relationship between entrepreneurship and economic growth of a country has increasingly gained a lot of interest from economists and policy makers over the years.

The dynamic role of entrepreneurs and small business owners in emerging economies has contributed to vast development opportunities in these markets. Over the past decade, the evolution of entrepreneurs has been at the heart of Africa’s growing economy. The International Monetary Fund (IMF) Regional Economic Outlook for Sub-Saharan Africa (SSA) indicates that small and medium-sized enterprises (SMEs) create over 80% of the region’s employment. Thus revitalizing the working-class population and encouraging opportunities for robust economic interactions across borders. Hence, entrepreneurs are increasingly recognized as seeds of economic revival within the African region (Bouazza, 2015).

Entrepreneurship development performs a vital role on the growth and development of any modern economy. Entrepreneurship is viewed as the engine of economic growth and a main thrust of economic restructuring, decentralization and development toward market economy. In Nigeria, government of every states and local government embarks on policies and programs aimed at influencing the direction of economic progress towards a rapid and sustainable economic growth through entrepreneurship development (Ogundele et al., 2012; Sule, 2014).

The use of fiscal policy is very paramount in every society most especially in the less developed countries (LDCs) as a major tool for stabilization and for development to be sporadic. Fiscal policy as in many texts and literatures could mean the government actions affecting its receipts (revenue) and expenditure which is taken as ordinarily a measure by the government’s net receipts, its surplus or deficit. The government may offset undesirable variations in private consumption and investment by anti-cyclical variation of public expenditure and tax revenue. Simply put, when the government uses government revenue and expenditure policies to regulate and stabilize the economy toward development, the action is fiscal policy. It thus serves as an economy’s “shockabsorber” in specific areas of development.

Fiscal policy is essentially concerned with manipulating the financial operations of the government with a view to furthering certain economic policy objectives. In other words, it consists of government decisions to vary certain fiscal aggregate such as total government spending and tax revenues as opposed to some other aspects of public finance which are primarily concerned with the effect of specific government expenditures and taxes (Stein 1968). Fiscal policy is majorly measured in terms of government expenditure, tax revenue, government investment, budgeting and debts.

Fiscal policy fosters economic growth and development through a number of different channels. These include the macroeconomic (influence on budget deficit on growth) as well as micro (influence on efficiency of resource use).  While in the developing economies, the economic policy objectives of fiscal policy have been pursued to a greater or lesser degree, the one and overriding objective, the furtherance of which has relied greatly on fiscal policy, is economic development, defined not only as a continuous and sustained growth in total output as well as in output per head, but also as the structural transformation from the basically underdeveloped agricultural economies to fully industrialised ones. The reliance on fiscal policy in developing economies for the achievement of the economic development objectives in particular and other objectives in general, has been particularly great in relation to the use of other policies such as monetary policy in the entrepreneurship development (Olaloku, 1987).

 Ojo (2009) put forth one of the solutions to the problems of entrepreneurship development in Nigeria is the promotion of entrepreneurial development scheme through fiscal policies. A veritable way to do this is government promotion of small scale businesses. Entrepreneurship has been identified as vital for the continued vitality of the modern market for more businesses to emerge; hence, competition and economic growth are improved (Klapper & Love, 2011). Efforts have been taken by the Nigerian government for the development of small scale businesses over the years. The realisation of the Millennium Development Goals (MDGs) and the vision of the Nigerian Government to be rated among the top 20 economies in the world is considerably determined by how government has recognised SSBs as drivers of economic growth and key strategy for poverty alleviation. However, the over-reliance on natural resources especially crude oil as the mainstay of the economy is capable of making the attainment of their desires an illusion. Government, through its actions may be a hindrance or promoter of small scale businesses; thus, this study seeks to assess entrepreneurship development as fiscal policy of government with particular reference to Ofu Local Government Area of Kogi State

1.       Statement of the Problem

The policy uncertainty and related decline in entrepreneurship development and small business startups is taking a toll not only on the traditional lower wage occupations, but on college graduates as well. According to Sum (2013) 36% of college graduates were working in jobs that did not require a college degree. The business environment is dynamic and competitive in such an environment an organization can be best achieved it’s good through a well established leadership style and good managing director that will manage business organization such as; Entrepreneurship development. The small scale business would have been a source to Nigeria economic development. But today, entrepreneurship development are not yielding positive result due to poor performance and lack of government intervention. Therefore, this project will source for various solutions to these problems that militate against entrepreneurship development. These are Entrepreneurship development which includes:

1. Poor Management:

The most critical problem affecting of almost all indigenous enterprise in Nigeria is poor management. The lack of efficient organizational structure and the practice of modern management techniques. If enterprises could be ascribe to two factors, first, if the limited understanding modern management practices by owners managers could be with their strong desire to run the business alone.

• Lack of Management Skills:

Also the problem facing entrepreneurship development include stress primarily arise from the need of hire skilled and qualified personnel to assist in the running of the industries demands the greatest problems of entrepreneurship development is lack of necessary skill in the management group. In every entrepreneurship development, the entrepreneur is one person management team. This makes it difficult for the effective operation of the enterprises.

• Individualism of management of entrepreneurship development:

This is the characteristics of individualism among entrepreneurs. The owner bears the management burden alone. The jobs varies and likes managerial responsibilities are few, if any. The managers are called “Jack of all trades and master of none”.

• Difficulty in services of qualifies personnel: Another factor which leads to managerial problems with entrepreneurship development is difficulty in securing the services of qualified personnel.
• Lack of training and development of personnel: Lack of training and developments of personnel is another factor which compounds the managerial problems of entrepreneurship development in Nigeria. Training provide employees change in job requirement and new technology. It equally serves as motivation of incentive for the existing employees, which increase their productivities. In essence, lack of training and development for the existing workers made replacement of vacant for the existing position difficult.
• Financial Problem: The capital for entrepreneurship development industries are very small. This is because most Nigerian business men and women operate in a low income economy. They are unable to generate sufficient funds through personnel savings which involved huge capital equipment or other fixed assets.

1.       Objective of the Study

The general objective of this study is to assess entrepreneurship development as fiscal policy of government in Ofu Local Government Area of Kogi State.

The specific objectives include:

1. To find out the significant role of entrepreneurship in economic development of Ofu Local Government Area of Kogi State.
2. To ascertain the extent that government policies have improved entrepreneurship development in Ofu Local Government Area of Kogi State.
3. To identify the challenges of entrepreneurship development in Ofu Local Government Area of Kogi State.
   1.       Research Question   

The following research question will serve as a guide to the researcher in attempt to achieve the objective of this study.

1. Does entrepreneurship play significant role in economic development of Ofu Local Government Area of Kogi State?
2. To what extent do the government policies improved entrepreneurship development in Ofu Local Government Area of Kogi State?
3. What are the challenges of entrepreneurship development in Ofu Local Government area of Kogi State?

1.       Research Hypothesis

H₀₁: Entrepreneurship does not play any significant role in economic development of Ofu Local Government Area of Kogi State.

H₀₂: Government fiscal policies does not have significant impact on entrepreneurship development in Ofu Local Government Area of Kogi State.

H₀₃: There are no challenges of entrepreneurship development in Ofu Local Government Area of Kogi State

1.       Significance of the Study

The study is significant in a number of ways to the following people:

• Students: The study would be of immense significant to the students of management, economics/political economy and sociology as the findings of the study will serve as source of secondary data for further studies.
• Entrepreneur: Entrepreneurs will find the findings of this study to be very useful as it will educate them on the role of entrepreneurship development to the development of Nigeria Economy. This will also enable government agencies and policy makers to make favourable policies that encourage the development of entrepreneurship in Nigeria.
• Academicians: The study is significant in that it would contribute to the growth of literature in the area of entrepreneurial culture/entrepreneurship and it will be very useful for all those who want to carry out research in the same area.

1.       Scope of the Study

The scope of this study is limited to assessing entrepreneurship development as fiscal policy of government in Ofu local government area of Kogi State. The study will cover the role entrepreneurship development plays in economic development of Nigeria, the extent that government policies have improved the performance of entrepreneurial organization in Ofu local government area of Kogi State and finally identified the challenges of entrepreneurship development in Ofu local government area of Kogi State.

1.       Definition of Terms  

For easy and concise understanding of this work, it is necessary that vital terms be defined.

1. Entrepreneur: An Entrepreneur means a person who starts, organize a commercial enterprise especially one having financial risk. Meredith et al (2018) look 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 initiate appropriate action to ensure success and he is a risk taker.
2. Entrepreneurship Development: This is the coming into existence in society of the class of individuals, who are not limited to pace odds.
3. Small scale business: Ejiofor (2017) defines small scale business as those enterprises that have relatively little capital investment, that produce in small quantities and as a result of controlling a small share of market that employs not more than fifty workers (50) and in which management marketing and entrepreneurship functions are used in the proprietor.
4. Economic Development: The improvement of the individuals, society well being, such that the GDP of such people/societies equals or greater than the United Nations standard.
5. Fiscal Policy: Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions, including aggregate demand for goods and services, employment, inflation, and economic growth.

EFFECT OF MICROFINANCE BANK LOAN SCHEME ON THE ENTREPRENEURSHIP DEVELOPMENT IN NASARAWA LGA OF NASARAWA STATE

EFFECT OF MICROFINANCE BANK LOAN SCHEME ON THE ENTREPRENEURSHIP DEVELOPMENT IN NASARAWA LGA OF NASARAWA STATE

ABSTRACT

The study examined the effect of microfinance bank loan scheme on the entrepreneurship development in Nasarawa LGA of Nasarawa State. The specific objectives include; to find out the effect of microfinance bank loan scheme on the income of entrepreneurial activities in Nasarawa LGA, find out the extent at which microfinance bank loan scheme impact on the poverty of entrepreneurs in Nasarawa LGA and to find out the impact of microfinance bank loan scheme on operational pattern of entrepreneurship development in Nasarawa LGA. The researcher used primary data collection to gather information for analysis. Base on statistical test carried out using X,² hypothesis the study shows that microfinance loan scheme have a significant effects on entrepreneurship development in Nasarawa LGA of Nasarawa State. The study recommends that the microfinance institutions should put more effort in financing entrepreneurs and small and medium scale business in general and that the government should make laws and policies that improve the services of microfinance banks thereby removing the various problems militating against the effectiveness of microfinance banks in rural areas.

CHAPTER ONE

INTRODUCTION

1. Background to the study

Empowering the poor and small scale enterprises economically and liberating them from poverty is the major reasons for the establishment of micro finance institutions. According to Ehigiamusoe (2005), access to Sustainable access to microfinance operations helps alleviate poverty by generating income, creating jobs, allowing children to go to school, enabling families to obtain health care, and empowering women socially to make the choices that best serve their needs.

Microfinance activities encompasses the provision of financial services to poor and low income people who are normally excluded from traditional financial systems as they are considered uncomfortable due to lack of collateral, steady employment and a verifiable credit including market women (Egyir, 2010). The situation that envisions the poor and low income people of having permanent access to an appropriate range of financial services that include credit, savings, and insurance and fund transfers is the core business of microfinance (Westover, 2008).

Microfinance does not only mean providing poor families with small loans to help them engage in productive activities or grow their small businesses, but over time, microfinance operations has come to provide a broader range of services such as credit, savings, insurance, money transfer facilities for all. This is because developers have come to realize that the poor who lack access to traditional formal financial institutions require a variety of financial products to help them grow their businesses, support their households and to engender sustainable livelihoods (Hagen, 2004).

Entrepreneur tend to operate in an environment with low investment, low potential growth, cheap and home-based premises and endure harassment on issues concerning licensing (Stevenson and Onge, 2005). Researches support the fact that entrepreneurs, mostly in developing countries, do not have easy access to credit for their entrepreneurial activity; likewise, women entrepreneurs tend to have little or no education and often lack confidence (Gakure, 2003). This has necessitated a research of this kind in order to assess the effect of microfinance bank loan scheme on the entrepreneurship development in Nasarawa LGA of Nasarawa State.

1. Statement of the Problem

Despite the crucial role of women entrepreneurs in the economic development of their families and countries; it is, however, discovered that women entrepreneurs have low business performance compared to their male counterparts (Akanji, 2006; Gakure, 2003); and this is caused by lack of access to finance. The microfinance banks from studies have proved to be the only recognized institution strategically positioned to eradicate poverty. Berg (2001) argues that, most of the businesses in developing countries lack access to basic financial services that would help them manage their assets and generate income. Studies finds that participation in microcredit programs results in economic and socio empowerment (Mayoux, 2001), most entrepreneurs in microfinance institutions fall under informal sector with most of them involved in small business to earn income to support their families. In developing country like Nigeria, entrepreneurship play a major role in household production (Mayoux, 1995; Ledgerwood, 1999; Pitt and Khandker, 1998). These are researches conducted on the impact of microfinance on the development of women entrepreneurs, however, the situation is different in Nigeria and none of these researchers provided sufficient justification for the effect of microfinance bank on entrepreneur thus there is need for this study to assess the effects of microfinance bank loan scheme on entrepreneurship development in Nasarawa LGA of Nasarawa State.

1. Objectives of the Study

The main objective of this study is to assess the effects of microfinance bank loan scheme on entrepreneurship development in Nasarawa LGA of Nasarawa State

The specific objectives will include;

1. To find out the effect of microfinance bank loan scheme on the income of entrepreneurial activities in Nasarawa LGA.
2. To find out the extent at which microfinance bank loan scheme impact on the poverty of entrepreneurs in Nasarawa LGA
3. To find out the impact of microfinance bank loan scheme on operational pattern of entrepreneurship development in Nasarawa LGA

1. Research Questions

The following research questions will guide the researcher towards achieving the set objectives of the study:

1. What effect do micro-finance bank loan scheme have on the income of entrepreneur activities in Nasarawa LGA?
2. Do micro-finance bank loan scheme impact on the poverty of entrepreneurs in Nasarawa LGA
3. What effect do micro-finance bank loan scheme have on the operational pattern of women entrepreneur in the study area

1. Statement of Hypotheses

Ho: Micro-finance bank loan scheme does not have significant effect on the income of entrepreneur in Nasarawa LGA.

H₁: Micro-finance bank loan scheme has significant effect on the income of entrepreneur in Nasarawa LGA.

1. Scope and Limitations of the Study

The scope of the study shall cover the effects of microfinance bank loan scheme on entrepreneurship development in Nasarawa LGA. However, owing to shortage of literature and financial data, raw data shall be generated from selected small business operators in Nasarawa LGA.

The researcher encountered problems at the time of carrying out this research. The following limitations are inherent in the study:

1. Time: Since there is no time set aside for writing this project, researcher has to combine the writing of the project with her normal academic and other commitment in the academic environment.
2. Finance: Finance hinder the researcher from expanding the scope of this study beyond Nasarawa LGA as this will involve more money which is not at the disposal of the researcher.
3. Lack of adequate materials: Arising from inadequate reading materials and uncooperative attitude of a few respondents.

1. Significance of the Study

Given the fact that literature on effects of microfinance bank loan scheme on entrepreneurship development in Nasarawa LGA, the importance of this study is that it adds to the literature, and can also provide a basis for further research. As such, the study will contribute to recent debates on the roles of social capital and economic empowerment on Nigerian entrepreneurs and other small and scale medium business.

The findings of this study will benefit the Government of Nigeria and its agencies, Microfinance banks, and entrepreneurs. Moreover study revealed the importance of such institutions and furthers the understanding of its importance to society. Understanding its importance, the government will also be able to provide support services and strategies to enforce the micro-finance industry in order to reach the economically active entrepreneurs in Nasarawa LGA and the country at large.

Furthermore, it is expected that this study will be beneficial to MFIs, policymakers, small and medium enterprises operators and the community at large. It is further expected that the study will explore and recommends potential areas that MFIs needs to put more efforts when delivering their services. On the other hand, policymakers will also benefit in the sense that, the findings will provide informed suggestions on how policies can be improved.

1. Historical Background Of Nasarawa Microfinance Bank

Nasarawa Microfinance Bank Limited formerly known as Nasarawa Community was incorporated in Nigeria under the Companies and Allied Matter Act as a Private Limited Liability Company on the 8th March 1993 with RC No: 217845.

Nasarawa Microfinance Bank is located at  17, Umaru Makama Dogo Road, Nassarawa, Nasarawa LGA of Nasarawa state with sole aim of providing financial services effectively and sustainably to women, youth, and MSMEs in the community and beyond through the motivated human and requisite material resources so as to improve their standard of living.

The Nasarawa Microfinance presently operates from three location with corporate head office at N0 17 Umaru Makama Dogo Road, Nasarawa Local Government area of Nasarawa State and Lafia branch office at Block K1 shop No. 1 Lafia Modern Market and Toto branch office located at Opposite Central Pilot Primary School, Toto Abaji Road, Nasarawa State.

The bank presently offers several services among which accounts and loans services

Types of accounts services offered by the bank

1. Personal savings account
2. Individual current account
3. Fixed deposit account
4. Weekly / daily adashi saving account
5. Target Savings Account
6. Remittance account
7. Infant orphans savings account

Types of loan services offered by the bank

1. Microcredit loan
2. No worries loan
3. Assets acquisition loan
4. LPO finance loan
5. Joint venture loan
6. Lets go to farm loan
7. Self help loan
8. Adashi microcredit loan
9. Staff loans

1.9       Definition of Key Terms

Small Scale Business: Small and medium scale business as used in this project refers to any form of business which is private own and operated with a small number of employees, relatively low volume of sales and small capital based (Akanji, 2006)..

Microfinance: Microfinanceare small-scale financial services which are primarily credit and savings provided to entrepreneurs or rural dwellers such petty traders which is targeted at improving their businesses thus enhancing social economic wellbeing (Marguerite, 2001).

Entrepreneur: An entrepreneur is a person who sets up a business with the aim to make a profit. In the concept of this study, entrepreneurs are women who engaged in petty trades such as sales of food stuff, vegetables, clothes, provision store etc (Baba, 2013)

Microfinance Bank (MFBs):  Microfinance are financial institutions licensed to carry on the business of providing microfinance services such as savings, loan, domestic funds transfer, and other financial services that are needed by the active poor, micro, small and medium enterprises to conduct or expand their businesses (Marguerite, 2001). Micro- credit: In the light of this study, micro-credits are loans given out small and medium scale business especially women entrepreneurs to development and improvement their business (Hagen, 2004).

THE IMPACT OF ENTREPRENEURSHIP ON ECONOMIC DEVELOPMENT IN NIGERIA

THE IMPACT OF ENTREPRENEURSHIP ON ECONOMIC DEVELOPMENT IN NIGERIA

ABSTRACT

The study centered on the impact of entrepreneurship in economic development in Nigeria. The study aims at pursuing the following objectives: to find out the significant role of entrepreneurship in economic development of Nigeria; to ascertain the extent that government policies have improved the performance of entrepreneurial organization in Nigeria; to examine the extent to which macroeconomic policies foster entrepreneurship culture in economic development of Nigeria, and to identify the challenges of entrepreneurship in economic development in Nigeria. The study had a population size of 1100, out of which a sample size of 293 was realized using Taro Yamane’s formula. The study employed a survey research design. The instrument used for data collection was the questionnaire which was structured in line with likert five point rating scale and was validated. A total number of 293 questionnaires were distributed while 285 copies were retrieved. The data from the responses were presented using frequencies, simple percentages and cumulative percentages. The hypotheses were tested using the chi-square (X2) and F-test statistical tools. The study found out that: entrepreneurship plays significant (X2 ccal = 33.125 > X2 t0..5 = 7.962); there are positive significant impact of entrepreneurship in economic development of Nigeria State (X2cal = 15.965 > X20.5 = 7.962); government policies to an extent improve the performance of entrepreneurial Organization in Nigeria (Fc -test = 8.08 > Ft1 = 2.87); macroeconomic policies positively foster entrepreneurial culture (Fc -test = 8.08 > Ft1 = 2.87) entrepreneurship is challenged by finances in economic development of Nigeria. The study, based on the above findings, concluded that a comprehensive approach to the promotion of entrepreneurship rested on favourable economic policies, entrepreneurial skills/culture and improvement of entrepreneurial framework condition. The study recommends that there should be a strict policy framework that can enhance entrepreneurs-government partnership in area of finance, skill development and alliance.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The socio-economic impact of entrepreneurship on the sustainable economic growth of the Nigerian economy is difficult to accurately measure or estimate, but it is believed to be highly dynamic and significant (Oyelola, Ajiboshin, Raimi, Raheemi, Igew 2013). However, a study estimated that between 45 and 60 percent of the urban labour force work for small private enterprises or what is otherwise called small businesses Nwaka, (2005). Another study suggests that entrepreneurship has been beneficial because the Nigerian private sector comprising of small and medium enterprises provides diverse employment opportunities for 50 percent of the country’s population and 50 percent of its industrial output, Ariyo (2005).

Entrepreneurship may not be regarded as the sufficient condition for the growth and development activities, but it is surely a necessary condition. This perhaps informs why Adeyemi (2012:2) avers that “entrepreneurship is the livelihood of any economy”. It is in line with this position that entrepreneurship is looked at as being imperatives for the economic development of Nigeria. Nigeria, the most populous country in Africa, is naturally endowed with millions and millions of acres of durable land, 38.5 bullions barrels of stated oil reserves, vast gas reserves, a variety of unexploited minerals, and a wealth of human capital by virtue of its estimated population of 150 million (Oteh, 2009:1).

Entrepreneurship also creates goods and services that are capable of satisfying needs. The multiplicity of this creation enlarges productivity. Agbaeze (2007:36) cites John Kendrick as informing that higher productivity is chiefly a matter of improving production techniques and this is entrepreneurial functions per excellence. Two keys to higher productivity are research and development (R and D) and subsequent investment in the plant and machinery.

Furthermore, entrepreneurs are usually, thirsty for innovation and creation in a bid to have competitive advantage over each other’s inventions, new technologies and development. A single creation may lead to a number of other creations and subsequently new products. In the 18th century, James Watt, in England, developed and perfected the steam engine, in a bid to ease the production processes in the factory (Agbaeze; 2007). To take advantage of this intervention and remove some of the bottlenecks associated with it in the mid 1960s, James Hargreaves invented the spinning jenny, an invention linked to the steam engine. Further in 1785, an English clergy man invented the power loom-a weaving machine powered by the steam engine.

Agbaeze (2007:36) cites Zoltan as describing small business, created by entrepreneurs as agents of change in the market economy. Two possible types of technological changes associated with products/services in the market place include quantum technological change that result into quantum product innovation (a shift or jump from the existing product to entirely new product), and incremental technology change – that is change that refines an existing technology and leads to gradual improvements or refinements in products and services overtime. In any of the cases, competition is rejuvenated. Firms are worked up and competitions are renewed. Relay-race is investigated by changes in innovations and counter innovations

From the forgoing, therefore, the assumption and/or hypotheses that entrepreneurship is linked to economic growth finds it’s most immediate foundation in simple intuition, common sense and pure economic observation: activities to convert ideas into economic opportunities lie at the very heart of entrepreneurship. Entrepreneurship is a source of innovation and change, and a such spurs improvement in productivity and competitiveness (Agbaeze, 2007:36 cites Zoltan).

On account of encouraging entrepreneurial initiatives, the country has experienced exponential growth in the number of private firms. However, majority of these businesses are very small when their operations are measured in terms of capital, employment and revenues (Attahir and Minet, (2000). Added to the above is difficulty confronted by small businesses in accessing bank credits, but the most serious and damaging problem threatening the state of entrepreneurship in Nigeria is the poor government interest and support for micro, small enterprises Chu et al., (2008). Besides, entrepreneurship and small and medium enterprises development is hampered by surplus of challenges like bad roads, bribes by government officials, multiple taxes, epileptic power supply and rising overhead costs on transportation and communication. All these challenges and similar others have attracted the interest of the researcher, therefore, this study seek to examine the impact of entrepreneurship on economic development of Nigeria.

1.2     Statement of the problem

Entrepreneurship is often seen as a process of creation with a view to identifying gaps in need, and mobilizing the necessary factors of production to close the gap(s) with a view to profiteering, if not immediately, later. By so doing so many societal problems are solved. The above notwithstanding, in Nigeria over half of the Nigerian’s population lives on less than a dollar a day. Nigeria is one of the top three countries in the world that have the largest population of poor people. In addition, Nigeria remains off track on achieving the millennium development goals (MDGs) especially in alleviating a number of people who live in extreme poverty through entrepreneur ideas. The economic reforms have not been sufficient to reverse years of economic decline, deteriorating capacity, weakened institutions and inadequate infrastructure investment while the recent drama in stock market decline and banking crises and the global economic crises have accentuated the situation.

The enormity of the challenge is corroborated by Nigeria’s low score on human development index (HDI) – an index that measures the average achievement of a country in terms of the welfare and quality of its people. Consequently entrepreneurial development in Nigeria appears to have not performed creditable well and hence not played the expected vital and vibrant role in the economic growth and development of Nigeria. This situation has been of great concern to the government, citizenry, operators and practitioners of the organized private sector. It is thus, against this background problem that this seek to examine the impact of entrepreneurship in the economic development of Nigeria.

1.3     Research Questions

The following research question will serve as a guide to the researcher in attempt to achieve the objective of this study.

1. Does entrepreneurship play significant role in economic development of Nigeria?
2. To what extent do the government policies improved the performance of entrepreneurial organization in Nigeria?
3. To what extent do macroeconomic policies foster entrepreneurship culture in economic development of Nigeria?
4. What are the challenges of entrepreneurship in economic development in Nigeria?

1.4     Objectives of the Study

The general objective of this study is to examine the impact of entrepreneurship on economic development in Nigeria. The specific objectives include:

1. To find out the significant role of entrepreneurship in economic development of Nigeria.
2. To ascertain the extent that government policies have improved the performance of entrepreneurial organization in Nigeria.
3. To examine the extent to which macroeconomic policies foster entrepreneurship culture in economic development of Nigeria.
4. To identify the challenges of entrepreneurship in economic development in Nigeria.

1.     Statement of Hypotheses

H_i1: There are positive significant roles of entrepreneurship in economic development of Nigeria

H_i2: Government policies to an extent improve the performance of entrepreneurial Organization in Nigeria.

1.     Significance of the Study

The study is significant in a number of ways: First, it is hoped that the findings of this study would be of immense importance to government and economic policy makers. On the government side, the study would help government to develop and implement policies that would foster entrepreneurial culture.

Secondly, the study would be of immense significant to the students of management, economics/political economy and sociology. The researcher will use this study as a source of secondary data for further studies.

Thirdly, the study is significant in that it would contribute to the growth of literature in the area of entrepreneurial culture/entrepreneurship and it will be very useful for all those who want to carry out research in the same area.

1.      Scope of the study

This study focused on the impact of entrepreneurship on economic development of Nigeria. Basically the study concentrated on some selected small and medium enterprises in Lokoja town.

1.     Limitations of the study

Certain limitations encountered in the course of the study include:

Attitude of the Respondents: This study was further limited by the attitude of the respondents. Owing to high level of ignorance, many respondents were reluctant to fill the questionnaire and also felt indisposed to provide vital information. The constraints notwithstanding, the researcher successfully overcame and did a good research work.

1.9     Definition of Terms

Business: Is the planned activities of individuals or groups of people aimed at producing and selling, for a profit, the goods and services that satisfy the need of consumers.

Economic Development: The improvement of the individuals, society well being, such that the GDP of such people/societies equals or greater than the United Nations standard.

Economic Structure: Institutional arrangement for deciding on what, how and for whom goods and services are to be produced.

PRODUCTION OF A PHENOLIC GERMICIDE IZAL AND ITS ECONOMIC IMPORTANCE

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PRODUCTION OF A PHENOLIC GERMICIDE IZAL AND ITS ECONOMIC IMPORTANCE

ABSTRACT

Phelonic germicide (IZAL)  is a trade mark of a disinfectant used in homes and public building for cleaning and washing. IZAL is used as a disinfectant both in the homes and hospitals. It is splashed on concrete walls and floors of which the homes and hospital are made. This project was undertaken to produce phenolic germicide (IZAL) and to determined its economic importance. Ten procedures were followed or carried which starts from mixing of the ingredients to packaging.  Necessary precautions where followed to ensure a safe production which includes use protective wears as the chemicals for making Izal are harmful to humans and spillage into the eyes or inhalation into the lungs can cause severe damage. Therefore, there is a need for eye goggles and nose masks as well as the use of plastic hand gloves to protect the hands against corrosion or irritation.

CHAPTER ONE

INTRODUCTION

1. Background of the Study

Every year globally billion of dollars are spent on disinfectant bleaches alone and much more on other kinds of disinfectants. In general, these products have been thoroughly tested and their activity demonstrated by standard laboratory tests and in many cases by simulated ‘in use’ tests. In addition there are reports indicating correlation between disinfectant usage and the reduction of environmental contamination, and between disinfectant use and control of infection, although the majority of these are concerned with hospitals.

Disinfectants are antimicrobial agents that are applied to non-living object to destroy microorganisms that are living on the objects. Disinfection does not necessarily kill all microorganisms, especially resistant bacteria spores; it is less effective than sterilization, which is an extreme physical and or chemical process that kills all types of life. Disinfectants are different from other antimicrobial agents such as antibiotics which destroy microorganisms within the body and antiseptics, which destroy microorganisms on living tissue. Disinfectants are also different from biocides-the latter are intended to destroy all forms of life, not just microorganisms. Disinfectants work by destroying the cell wall of microbes or interfering with the metabolism. Sanitizers are substances that simultaneously clean and disinfect (Cleaning and disinfecting, 2009).

Disinfectants, which are chemicals used as germicides are targeted at preventing pathogenic microorganisms from contaminating livestock and their products. Regrettably, the application of these disinfectants sometimes does not seem to achieve the purpose for which they are used (Onah, 2004). However, according to Block (2001) and Chima et al. (2011) proper disinfectantion practice targets the reduction of the number of pathogens in the farming environment thereby reducing the frequency and intensity of disease occurrence in poultry. The mode of action of the disinfectant chemicals is usually to disrupt significant cellular structures or processes in order to destroy and eliminate the micro organisms (Allen et al., 2006).

Commercially available disinfectants that usually exhibit excellent results against microbes during standard laboratory tests may not show the expected efficacy against disease causing pathogens, especially under tropical small scale farming conditions (Corlett, 1998). There are many reasons for this which may include the fact that the carefully controlled conditions of the standard test methods are not usually the same in the farm environment and also the variations in the disinfection practices at different the poultry farms, especially at the small scale level in many developing countries.

Disinfectants are frequently used in hospitals, dental surgeries, kitchen and bathrooms to kill infectious organisms; among such disinfectants is izal. Izal is a germicidal disinfectant made from oil that was patented in 1893. This product can be available in liquid form, powdery form and as soap, cream, or oil. Izal contain about 0.2% of phenol and 0.7% of phynyl-phenol. Phenol has an aromatic ring with an OH group. Phenol is a caustic  poisonous crystalline acidic compound C₆H₅OH present in coal tar and wood tar that in dilute solution is used as disinfectant (Thompson, 2002).

1.2       STATEMENT OF PROBLEMS

The current increase in the prevalence of infections within the hospital environment and homes despite adequate cleaning and disinfection is due to ineffectiveness of the various disinfectant formulations used in infection control and development of resistance to the various chemical disinfectant formulations being used.  Disinfectants which are ideal for the killing of this microorganism at homes, hospitals and other public places in recent times have become too expensive and out of the reach of common man.  It is therefore very important for every house hold or individuals to learn how produce or disinfectant such as phenolic germicide (izal) which are cheaper and very effective.

1.3       OBJECTIVES OF THE STUDY

The general objective of this study include

1. To produce a phenolic germicide (Izals)
2. To test the Physical characteristics of the product
3. And determine the economic importance of Izal

1.4       SCOPE OF THE STUDY

Due to financial constraints and time, this research work is limited to the production of Phenolic germicide (Izal) among other disinfectant.

1.5       SIGNIFICANCE OF THE STUDY

This study will contribute to healthy living by giving orientation to students studying in the higher institutions or skill acquisition centres, and enlighten the general public on the effectiveness, areas of application and the advantage of disinfectants such as Izal among others.

It will help to proffer solutions to the problems associated with  contamination, transmission, prevention and control of some deadly diseases and infections.

The result of this research work would be useful in the production of cheap and effective disinfectant.  Finally it will serve as a reference material for subsequent researches; the finding and recommendation will be a source of useful information to other researchers.

PRODUCTION OF A MULTIPURPOSE LIQUID SOAP AND IT’S ECONOMIC VALUE

PRODUCTION OF A MULTIPURPOSE LIQUID SOAP AND IT’S ECONOMIC VALUE

ABSTRACT

Liquid soap is becoming a very popular product in the country today. Many use it for domestic purposes at home to wash clothes and kitchen utensils; restaurants and eateries are not left out too; thus project is an attempt to produce a multipurpose liquid soap which is aimed at reducing the cost of purchasing the conventional soap in the market and enhancing its cleansing effectiveness. Materials needed for this production were locally sources from the market and normal or laboratory procedures followed to produce the desired products. The multipurpose liquid soap produced proved to very cost effective and efficient and has economic advantages or value over the conventional detergents or soap.

CHAPTER ONE

1.0       Introduction

Soaps are water soluble sodium or potassium salts of fatty acids. Soaps are made from fats and oils, or their fatty acids, by treating them chemically with a strong alkali. The soap industry in Nigeria is at the high growth rate and many new entrants are planning to launch their product in this category. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for around 30% of the soap market by value.

Liquid soap is becoming a very popular product in the country today. Many use it for domestic purposes at home to wash clothes and kitchen utensils; restaurants and eateries are not left out too. One interesting thing that makes the demand for liquid soap to be  very high  is the fact that it is easier and cheaper to use than every other washing substances. Little wonder a lot of people are now venturing into the business. Capital for production is usually very low and one may not require any further teaching since internet has made everything beautiful in this generation of ours.

Soap may be defined as a chemical compound or mixture of chemical compound resulting from the interaction of fatty acids or fatty glycerides with a metal radical (organic base). It is any water soluble salt of whose fatty acid which contains eight or more carbon atoms. Soap is class of product that serves for cleaning of human, property and surrounding. Hence, soap in its various forms, is in high demand. In all society, for generation its use has increased until its manufacture has become an industry essential to the comfort and health of civilized man. Soap is known for its laundry and cleaning purpose, though calcium soap has been used in animal feed formulation (Desal, and Joseph, 1991).

Soap depends for its washing action on the fact that its molecules possess one ionic (polar, water-attracting or hydrophilic) end and one covalent (non-polar, water repelling or hydrophobic) end which attracts oils and greases (Namiesnik. et al., 2011) Thus, soap molecules can make water and oils come into an emulsion which can be washed away. Soaps are essentially the sodium or potassium salts of various fatty acids.

Soaps also contain additives for some desired qualities. These include salt; soda ash, colour, citric acid, sodium silicate, sodium bicarbonate, perfume, borax trisodium phosphate and magnesium sulphate. A combination of inexpensive builders, example soda ash with more effective (an expensive) tetrasodium pyrophosphate or sodium triphosphate, is sometimes superior to the phosphate used alone.

Basically, all soaps are made by saponification (Karl, 1991).Hydrolysis of naturally occurring fat and oil by sodium hydroxide (caustic soda) or potassium hydroxide (caustic potash).. Various additives have been used to impact some specific characteristics to the product. The quality and properties affecting soap and also the processing depends on the factors such as the nature and the type of oil used, the type of Alkali and the proportion of mixture of both major raw materials.

1. Objective of the Study

The objective of this research is the production of multipurpose liquid soap and its economic value.

1. Limitation of the Study

This research is limited to the production of a multipurpose liquid soap and its economic value. This is due to lack of fund and time.