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Tag Archives: WHO IS AN ENTREPRENEUR?

Enterpreneur (Part Two)

INTRODUCTION

Many scholars have written widely on entrepreneurship and its potency, thus, underscoring the quintessence, significance and relevance of this sub-sector in the development of any given economy. The experiences of developed economies in relation to the roles played by entrepreneurship buttresses the fact that the importance of entrepreneurship cannot be over emphasized especially among the Developing Countries, in order to highlight its significance in relation to the growth and development of a given economy.

This is because Entrepreneurial activities have been found to be capable of making positive impacts on the economy of a nation and the quality of life of the people. Studies have established its positive relationship with stimulation of economic growth; and empowerment of the disadvantaged segment of the population, which include women and the poor, and also examines the major problems of entrepreneurship and thus proposing some plausible. Strategies that can promote effective entrepreneurship.

The concept of entrepreneurship

Entrepreneurship is more than simply “starting a business.” It is a process through which individuals identify opportunities, allocate resources, and create

Value. This creation of value is often through the identification of unmet needs or through the identification of opportunities for change. Entrepreneurial success is simply a function of the ability of an entrepreneur to see opportunities. Entrepreneurship is known as the capacity and attitude of a person or group of persons to undertake ventures with the probability of success or failures. It demands that the individual should be prepared to assume a reasonable degree of risks, be a good leader in addition to being highly innovative.

Binks and Vale (1990) defined entrepreneurship as an unrehearsed combination of economic resources instigated by the uncertain prospect of temporary monopoly profit. Entrepreneurship development has also led to growth of the economy and sustainable development.

Problems of entrepreneurship in Nigeria

The key roles of entrepreneurship include mobilization of domestic savings for investment, significant contribution to Gross Domestic Product (GDP) and Gross National Income (GNI), harnessing of local raw materials, employment creation, poverty reduction and alleviation, enhancement in standard of living, increase in per capital income, skills acquisition, advancement in technology and expert growth and diversification.

Prospects of entrepreneurship development  in Nigeria

All the above cited problems not withstanding plausibility of entrepreneurship development abound, hence the government fully appreciates the opportunities entrepreneur, contributes to economic growth and development as well as the constraints and difficulties in their operating environment. The government has established various support institutions and relief measures specially structured to render assistance and succor to minimize the constraints, which entrepreneurship typically face if not to eliminate them. The support institutions established by the government range from specialized banks designed to focus on the funding of Small and Medium Enterprises to agencies and departments all meant to give a flip to the Fortunes of Enterprises. The comfort is that the governments (local, state and federal) are neither relenting nor giving up in their bid to revamp and invigorate the fortunes as to enable them play the expected role in Nigeria’s economic growth and development.

CONCLUSION

As a result of finance being a major constraint of small business in fulfilling its developmental roles, any initiatives by the government and other stakeholders must be geared at improving SMEs’ access to finance and lowering the cost of finance. As obvious as it is that entrepreneurship is the magic Wand that can change the story overtime, yet it has not

been duly explored and many scholars, commentators and observers have argued that lack of capital is what drives very many people and  hence inadequate access to loan schemes couple with the issue of collateral and high interest rate on loan from financial institutions, and others arguing that the problem is lack of managerial prowess and the zeal and will to take risks.

 
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Posted by on July 17, 2012 in Management Science

 

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Entrepreneur

ENTREPRENEUR

Entrepreneurship is a process of using available capital in any form for business endeavor in any open and free-market economy for the soil purpose of making profits.

Udu, udu, and Eze (2008) also defined entrepreneurship as the act of creating a new combination that ends one economics order and clears the way for a new one. It is a process by which economic and commercial activities necessary for the improvement of the standard of living of the society are created by entrepreneur individual, institutions. Corporations and governments. Entrepreneurship bridges the gap between science, technology, and the market. The market here is conceptualized as consumers or persons who have genuine need for goods and services offered by the entrepreneurs and are willing to pay for them. However, scientist are known as inventors whose inventions have economics values that need to be commercialized. The responsibility of commercializing the inventions of the scientists lies within the realm of entrepreneurship.

WHO IS AN ENTREPRENEUR?

An entrepreneur is a person who develops a new idea and takes the risk of setting up an enterprise to produce a product or service which satisfies consumer needs. All entrepreneur are business persons, but not all business persons are entrepreneurs. Think of a woman who sits by the roadside leading to your home and who has been selling type of food, from the same size of saucepan or pot, from the same table top, and may not have been able to change her standard of living to any appreciable extent. Such a woman may be a business person but not an entrepreneur, on the other hand is the business person not an entrepreneur. The entrepreneur on the other is the business person who is not satisfy with his/her performance and therefore always finds characteristics or some special qualities and strength which makes an entrepreneur different from business person. It is important for us to note that a successful entrepreneur possesses the following characteristics.

  1. Initiative
  2. Opportunity Seeking
  3. Persistence
  4. Information seeking
  5. Demand for quality and efficiency
  6. Risk taking
  7. Goal setting
  8. Commitment to work
  9. Systematic planning and monitoring
  10. Persuasion and networking
  11. Independence and self-confidence.

PROBLEMS OF ENTREPRENEURSHIP AND NIGERIA ECONOMIC DEVELOPMENT.

  1. No Policy at the National Level: Though Government of Nigeria is fully aware about the importance of entrepreneurial development, yet we do not have a national policy on entrepreneurship. It is expected that the government will formulate and enforce a policy aimed at promoting balanced regional development of various areas through promotion of entrepreneur.
  2. Poor Response of Financial Institution: entrepreneurs are not able to offer collateral security for the grant of loans. Banks are not prepared to play with the public money and hence they impose various conditions  for the grant of loans those entrepreneurs who fail to comply with the conditions are not able to get loan and hence dream of setting up their own enterprises is shattered. Helpful attitude of lending institutions will go along way in stimulating entrepreneurial climate.
  3. Inaccesable market: The majority of our people don’t have access to markets, and in order for them to stand the requirements of the markets. So this is one area where we are lacking. For instance, if you want to have access to the U.S market, you must know of the regulations, what it takes and all those things until we are able to create that very well and let people understand it, and produce to be able to meet the needs of the market, then will not be enabled to move forward.
  4. Lack of Infrastructure: a major one again is “infrastructure”. This is basically (true) in all developing countries, but more so in Nigeria. Thirty percent of our not being competitive is based on infrastructure. Power, just power, public supply and power, interestingly enough, there has been a study which the world Bank has carried out in the last 10 years or so, so if they are able to remove power as a bottleneck, Nigeria will gain at least 30% competitiveness in production.
  5. Unstable Political System: the various crisis rocking the various government at the three-tier of government causes uncertainty and increases the risk associated with investments.
  6. Energy Crisis: This need no further explanation, so many manufacturing firms have shut down due to their inability to compete with foreign products. The reason far-fetched, it expensive tuning a factory with generators. In organized societies, the generators are used as back-up plants to avoid disruption in production process whenever there is power failure. The reverse is the case of Nigeria. Generators are the main source of electricity for all and sundry. Constant electricity supply is still a fairy tale.
  7. Poor Transportation System: The transportation system in Nigeria is quite poor. The roads are full of potholes, the railway system is not functioning anymore, the waterway is undeveloped while the air transport system is in crisis. It is therefore expensive moving both raw materials as well as finished products from one place to another.

PROSPECTS

Augustine Ahiauzu in his article, Entrepreneurship and economic development in Nigeria; the way forward, recommends that to tackle the problems of Nigeria’s economic development, concerted effort be made to fashion out a truly Nigerian economics ideology, and that the Nigerian Government should improve the entrepreneurial framework conditions to galvanize Nigeria’s total entrepreneurial activities towards improved national economics growth and development.

Ehis added that the issues to solve is how to engage the unemployed Nigerians in different fields of endeavor to complement or augment different skills they have acquired in the university in their various disciplines or their God talents and creative thinking.

Small and medium-scale enterprises (SMES) especially entrepreneurial activities have played important roles in the development process in most of the developed economies, and proved to be one of the most viable sectors with economics growth potentials. SMES have such a crucial role to play in the development of an economy that they cannot be ignored by the government.

According to him, the government must develop policies to remove the problems of entrepreneurship and Nigeria’s economic development and enhance the growth of the economy. Since Nigeria’s political independence in 1960, the country has been working tirelessly to achieve economic independence. Several policies aimed at capacity building and utilization has been introduced by both civilian and military regimes in the country.

Another focus in the liberation programme is the ongoing massive privatization campaign of public institution, which is again aimed at attracting foreign investment with the hope that this would help increase economic activity and bring in much-needed revenue to accelerate economic growth.

The roles the entrepreneurship plays in a developing society can be summarizes as follows:

  1. It generates employment
  2. Increases  productivity through innovation.
  3. Facilitates the transfer/adaptation of technology.
  4. Ensures increased resource utilization
  5. Stimulates growth in those sectors which supplies it with inputs
  6. Re-invigorates large-scale enterprises
  7. Encourages and sustains economic dynamism that enables as economy to adjust successfully in a rapidly changing global economy.
  8. Enables individual to use their potentials and energies to create wealth, independence and status for themselves in society and
  9. Increases private sector participation t=in the manufacturing sector.
  10. The developed economies of the world are evidences of the role entrepreneurship plays in economic development.

REFERENCES

Acs ZJ, Storey DJ (2004) ‘Introduction: Entrepreneurship and

Economic Development’, Adejumo G(2001).entrepreneurship development in Nigeria: characteristics, problems and prospects. Minniti M, Lévesque M (2008) ‘Recent developments in the

economics of entrepreneurship’, J. Bus. Vent. 23: 603-612.

 

 
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Posted by on July 16, 2012 in Art, Management Science

 

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