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.
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.