ABSTRACT
This project work principally addressed impact of entrepreneurship activities on economic growth and development, a case study of some selected small and medium enterprises in Kaduna metropolis, Kaduna. (Ostrich Fast Food, T/Wada Branch Kaduna South, Home Fresh Yoghurt, Kaduna North LGA, Kaduna. Nanet Nigeria Ltd, Igabi Local Government Area, Kaduna) chapter one form the introduction, here brief changes in economy that have caused economic growth and development is mentioned. Chapter two addressed the study. It first of all took a look at the concept of entrepreneurship and its effect on economic growth and development. These aspects expressed the views held by different personality’s management of entrepreneurial organization interference. The next chapter which is the third deals with the various methods used in gathering and collecting information for the research work. It treats the sources which deal with survey and sampling which dealt with population size. Others are the data collection instruments, which are questionnaires, and interviews and written document. The chapter four deals with analysis and presentation of Data objectives of the research were tabulated analyzed and interpreted with the aid of statistical tools like simple percentage. Finally, the chapter five comprises of summary of findings, conclusion and recommendations.
TABLE OF CONTENTS
Title page - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Approval page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vii
Table of Content - - - - - - - - - vii
CHAPTER ONE
1.0 Introduction - - - - - - - - - 1
1.1 Background of the study - - - - - - - 1
1.2 Statement of the problem - - - - - - - 3
1.3 Objectives of the study - - - - - - - 4
1.4 Research hypothesis - - - - - - - 5
1.5 Significance of the study - - - - - - - 5
1.6 Scope of the study - - - - - - - - 6
1.7 Historical background of the case study - - - - - 6
1.8 Definition of terms - - - - - - - 11
CHAPTER TWO
2.0 Literature Review - - - - - - - - 12
2.1 Relevant concepts and theories - - - - - - 12
2.2 Characteristics of entrepreneurship - - - - - 14
2.3 The functions/roles of entrepreneurship in economic
Growth and development - - - - - - - 18
2.4 Importance of entrepreneurship activities to the Society - - 19
2.5 Types of entrepreneurship - - - - - - - 21
2.6 The influence of entrepreneurship activities on
Economic growth and development - - - - - 22
2.6.1 Decline of business ownership - - - - - - 24
2.6.2 Problem of the Trend - - - - - - - 25
CHAPTER THREE
3.0 Research Methodology - - - - - - - 31
3.1 Introduction - - - - - - - - - 31
3.2 Population and sample size - - - - - - 31
3.3 Sampling Techniques - - - - - - - 32
3.4 Sources and Method of data collection - - - - - 32
3.5 Method of data analysis - - - - - - - 32
3.6 Justification for the choice - - - - - - - 33
CHAPTER FOUR
4.0 Data Presentation and Analysis and Interpretation - - 35
4.1 Introduction - - - - - - - - 35
4.2 Data presentation and Analysis - - - - - 35
4.3 Testing of Hypothesis - - - - - - - 41
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendations - - - 44
5.1 Summary - - - - - - - - - 44
5.2 Conclusion - - - - - - - - - 45
5.3 Limitations of the Study - - - - - - - 46
5.4 Recommendations - - - - - - - 47
References
Appendices
CHAPTER ONE
1.0 Introduction
- Background of the Study
Entrepreneurship is the art or science of innovation and risk-taking for profit in business, the quality of being an entrepreneur. New and unique combinations are the result of Entrepreneurship (Schumpeter, 1934). Successful and right futures are forecast by Entrepreneurship (Knights, 1921). Effects of entrepreneurship have the following characteristics: an individual entrepreneur focus on process through which those actions affect the economic growth and environment. Due to innovative feature entrepreneurial are responsible for economic improvement in the society. It distinguishes between the roles of investors, the manager and the entrepreneur. The creation of small businesses under the light of entrepreneurship is helpful for economic growth. Most of the entrepreneurship studies moves to focus on the participants in their locally entrepreneurial setup. These studies are linked with the role of entrepreneurs in innovations, new business ventures, and economic development of their home countries (McDougall and Oviatt, 1996). Pakistan‟s main problem is less entrepreneurial activity and I strongly believe that Pakistanis have more entrepreneurs than “employees” and our Young Entrepreneurs gives new ideas that are based on New Business Models and Emerging Technologies. “Our lacunae in the field of entrepreneurship needs to be taken seriously because there is mounting evidence that the key to economic growth and productivity improvements lies in the entrepreneurial capacity of an economy” (Romano Prodi, 2002). Macro economics has mostly used to control the Economic growth (Romer, 1990; Krugman, 1991). In early studies Schumpeter (1911) clearly stated that “Entrepreneur act as an innovator”. It is the most important way of economic development in a society. Joseph Schumpeter, is the pioneer who creates the major relationship between entrepreneurship and economic growth (Schumpeter (1934) Entrepreneurship is the Baronial ability and willingness of an entrepreneur, within and outside the existing organizations to identify and create new economic opportunities like new products, new production methods, and new product-market combinations and to introduce their innovative ideas into the market” (Wennekers and Thurik, 1999). Entrepreneurs have a very important role in development of technological structure. Technology provides the solution of the problems that is generated by innovation. Technology based entrepreneurship involves in an innovative process which identifies the unique opportunities through joint work. A technological change comes from the new and innovative ideas and the firms implemented those ideas into reality on international level. Through empirical research you can generate new and creative ideas about products and processes.
Entrepreneurship is an instrument through which through which entrepreneur converts valuable and technological information into products and services (Kirzner, 1997). Economic growth have generally been controlled to the area of macro economics (Romer, 1990)
- Statement of Problem
In spite the numerous contributions been given by small scale industries to the economic development of Nigeria. The sub-sector has faced some forms of neglect which arises from the fact that Nigeria’s economy was largely dependent on the oil sector of economy thereby most efforts and resources of the government are been channeled towards the oil sector which only sources revenue for the government in the short run and only having impact on meager of the population of the country. This has caused the neglect of other sectors of the like the Agriculture which was the bedrock of the economy before the advent of oil and other sectors such as the small and medium scale enterprise whose effect may not been seen in the short run because of their sizes but has tremendous effect in the long run as it has the prospect of growing into larger industries, thereby creating more employment opportunities, increasing the level of local manufactured exports, etc.
Some other problems that could be said to be faced by the small scale industries can also be said to be part of government negligence towards the sub sector. These problems as the inability to access credit facilities and the lack of capital to start-up the business. Many people have the initiative, but the underlying factor is how to implement such initiative by the means of lack of capital to start or to run such small scale business.
Moreso, one may say that due to the governments neglect and the relatively small size of such industries, they cannot raise or source for fund through financial institutions who see them as not credit worthy
- Objective of the Study
- To identify the importance of entrepreneurship activities on economic growth and development of Kaduna State.
- To examines the roles of entrepreneurship activities on economic growth of Kaduna State.
- To investigate the effect of entrepreneurship on the economic growth and development of Kaduna State.
- Statement of Hypothesis
The following hypothesis has been formulated for the purpose of the research work.
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- Significance of the Study
The significance of the study is to educate entrepreneurial organization on its importance activities and its influence on economic development.
It is hoped that after this research work it would enlighten the individual entrepreneurs and also serve as a model for them to know their roles in relation to economic growth and development.
It will serve as a point of reference to those who will take up research on this topic in future. It will also serve as a source of information or reference to outsiders. This study is also important because it is a requirement for the award of Higher National Diploma (HND) in Accounting.
1.6 Scope of the Study
In order to carry out this study, the researcher restricted the study to some selected small and medium enterprises (SMEs) in Kaduna state (Ostrich fast food, Tudun Wada branch Kaduna South, Home fresh Yoghurt, Kaduna North Local Government Area, Kaduna. Nanet Nigeria Ltd, Igabi Local Government Area, Kaduna), the area of coverage of this study is Kaduna metropolis consistency of the Kaduna South, Kaduna North and Igabi Local Government Areas located within the state Capital.
The extends to which this project have been found useful depended on the scope of the project. The scope is based on available publication in journals, periodicals, newspapers and other personal interviews and use of questionnaires.
More specifically, it has restricted its educational space of coverage to the concept of entrepreneurship activities on economic growth and development.
1.7 Historical Background of the case study
Ostrich Fast Food Company was formally known as Oasis Bakery and confectionary, which was located at number 122 Ahmadu Bello Way Kaduna and was later changed to Ostrich fast food Kaduna. Ostrich fast food was incorporated as a private limited liability company in 2002. The company’s registration number is RC 625483. The authorized share capital was N2,000,000 issued and fully paid.
Ostrich Fast Food Company Limited started production in the year 2002 (same year of its incorporation). It has over 23,000 workers and projected that by the year 2015 it (the company) would have been able to employ over 1.3 million Nigerians (as its workforce). The objective of the company is to provide fresh and quality product to the consumers of Northern, Southern and Central part of the nation.
It has branches scattered across the country including the Federal Capital Abuja the braches are as follows:
Kano office: 17A House, Sabon Sakinzo Road Kano No. 14 300 Road Kano.
Abuja office: Plot 2229 Addis Ababa Crescent Wuse Zone 4 Abuja, Rahama Complex
Jos office: No. 13/15 Yakubu Gowon Way Jos, Plateau State
Lagos office: Plot 437, Wamco Road Ikeja Lagos State
Maiduguri office: No. 5/17, Sir Kashim Ibrahim Road, Maiduguri
Home Fresh Yoghurt
The Home Fresh Yoghurt was established in 1998 as a private limited liability company and is registered with Corporate Affairs Commission. Its head office is located at No21 Ahman Pategi road Ung/Sarki Kaduna, and it farm is located at Niyya farms limited KM 3 Abuja express way Kaduna. The head office is headed by a manager and assisted by two deputy managers; one is in charge of Administrative (operation) and the other in charge of finance and supplies. The head office also has one clerical staff two assistant, two sales girls, one receptionist a messenger and daily cleaner.
Home fresh Yoghurt produces about 2,500 tones of yoghurt daily and has about 500 cows, chicken (layers) 300 goats, 200 turkeys and cultivated land of about 1380 sgkm. The firm is divided into 3 sections each headed by a worker who is in charge of his section and a manager responsible of the farm on a daily basis.
Home Fresh Yoghurt produces 10,000 tones of fresh milk per day, 200-217 crates of egg, 200-400 kg poultry meat per day raw materials needed on the farm include feeds of concentrate which are brought from premier seeds and ECWA seeds pullets.
Roughages and hay stock are for the cows, goats and layers are also from the same supplier. One major problem of the farm is the outbreak of disease hence the animals are always visited once in every two weeks by doctors from ministry of agriculture and natural resources. Livestock control unit and again they are vaccinated against livestock and animal disease such as Rinderpest, cattle foot and mouth disease, high fever and other epidemics.
Niyya farms ltd is the parent company of Home Fresh Yoghurt i.e. Home Fresh Yoghurt Ltd is a subsidiary of Niyya farms their turn over in output (profit) cannot be revealed due to some strategic reasons.
Nanet Nigeria Limited
Nanet Nigeria Limited started as a restaurant in Kaduna in the 1970’s among the first generation restaurant in Kaduna. Gradually, it went into fast food business. Within the space of time with the enthusiasm and the skill of property management and Hotel, Nanet took over the management of NAF Club (Nigeria Air Force) been among others, the first hospitality industry called to be managed in Kaduna.
Being a visionary in the industry and with the creative expertise gotten from managing NAF Club, industry in its full force. Her first Hotel was established here in Kaduna with the location along constitution road by Kigo Road in the Heart of Kaduna.
In 2008, the chain expanded with yet another Hotel Nanet suite in the Federal Capital Territory, with their focus on Nollywood. Apart from the Hotel in Kaduna, Nanet Nigeria Limited has other Hotels in Benue, Abuja and other in Abakaliki, Bayelsa and Ebonyi.
Nationwide, Nanet Nigeria Limited has a strength staff running to thousands.
Structurally, the Nanet Nigeria Limited is made up of directors who heads various units under them, followed by General Manager and Managers, Supervisors, and followed lastly by other Junior Staff. Nanet, as part of their corporate social responsibility has rebranded itself as a tourist hotel and have been hosting top actors/actress very with the importance of Nollywood Industry.
In the next ten year, they have a vision of operating in all the thirty six states owned Nanet Hotels and Nanet-run hotels combined.
1.8 Definition of Terms
Entrepreneurship: This can be defined as the willingness and ability of an individual or group of persons to search for investment opportunities, establish and run a business unit successfully.
Management: The act of achieving goals through effective utilization of resources. It is also the process of planning, organizing, and directing of both material and human resources to achieve organization goal and objective.
Creativity: This refers to the generation of new ideas and innovation
Economic Growth: This refers to the increasing capacity of the economy to satisfy the wants of the members of society.
Activity: This refers to the measurable amount of work performed to convert inputs into outputs.
Business: Can be defined as an organization engaged in the trade of goods and services.
