CHAPTER ONE

INTRODUCTION

1.1       Background of the Study 

There is no country in the modern world where an improvement in the material level of living is not regarded as a desirable goal by rulers and citizens alike. The growing acceptance of the need to do something for the poor, can be noticed in the numerous poverty alleviation programmes in Nigeria, the average Nigerian still lives subsist below the absolute poverty line. Amongst the challenges that confront Nigeria, a major contributory factor was the style and expectations of the development strategy that was pursued and faced with this failure; the need for a meaningful national development is not only necessary but also imperative.  To this end, a lot of economic reform programmes or strategies have evolved but recently special emphasis is being made on self-reliance via entrepreneur and its numerous small and medium enterprises. The economic success of the countries of south east, Asia, and America is traceable to the contributions made by self-reliant individuals (entrepreneurs), through their numerous small medium development depend on the entrepreneur who makes a living by creating new business new jobs and new ideas. 

Entrepreneur means different things to different people. In other to appreciate this study more, some concepts that are associated with this study will be explained. 

According to Oxford advanced Learner”s dictionary it defines entrepreneur as a person who starts or organizes a commercial enterprises, especially one involving financial risk. To an economist, entrepreneur is one who brings resources, Labour, materials and other assets into combination that make their value greater than before and who introduce changes, innovations and a new order. Entrepreneurs are the risk takers who create businesses; they assemble all the factors of production in an effort to start and operate a business and to make a profit. For Schumpeter “the whole process of economic change hung ultimately on the person who makes it happen–the entrepreneurs”. Entrepreneurship involves combining to initiate changes in production hence it is essentially the promotion of economic change, it is a process involving the entrepreneur and an entrepreneurial career. Hirsch and Peters in their text entitled entrepreneurship: describes this process as one of creating something difficult with value by devoting the necessary time and assuming the accompanying financial, psychic and social risks and receiving the resulting, the rewards of monetary and personal satisfaction. 

In Nigeria, many policies are constantly being implemented to ensure their survival which will in turn enable them contribute maximally to  economic development but there challenges were intensified more by the perennial energy crisis, weak infrastructure, poor import and export policies, tariff structure among others, which have prevailed in the country for sometime now. These have, inevitably led to the near collapse and failure of the small medium enterprises. The government of this country should look into the modalities of solving these challenges. It is therefore against this background that this work sets out to evaluate entrepreneurship development in Imo state: issues and challenges. 

1.2 Statement of The Problem 

It has been observed that some of the problems associated with entrepreneurship development in Imo state include but not limited to:

In Competence of Management: The major hazard of an entrepreneurship business is the incompetence of management. A small business owner may know will may know all the management principles and theories, his management practice may Jeopardize his business. He may not possess the leaderships qualities, be unwilling to delegate authority, lack of appropriate human relations ability and may not possess the appropriate skills of management, such a business operated by this business owner is

likely to fail. 

Inadequacy of Infrastructural Facilities: Water, electricity, accessible roads, and other means of communication is are sine quanon to the efficient performance of entrepreneurship enterprise. Their absence or inadequacy affects negatively the efficient performance of entrepreneurial businesses. 

Disaster: There are certain circumstances over which small scale business owner may have little or no control. Natural disaster such as thunder, product or accident or sudden death of the owner may adversely affect the operation of  the small scale business enterprise.  

High Rate of Loan Diversion and Defaults:  Both loans obtained from government, banks and individual persons are used to promote personal aggrandizement instead of the corporate objective of the business and hence failure to repay the loan plus interest affect the business. 

Inadequate Credit Control: A common problem facing entrepreneurial business owner is whether or not to extend credit. Some small scale business enterprise possesses credit granting practices, credits extended to friends and relations are often times too hard to collect in times of need.

This therefore, increases the financial predicament of the business owner. 

Inadequate Planning: Planning a business begins with gathering and evaluating data  on resources requirements, operating costs, potential markets and sales, competition,  supplies, relevant government regulations, etc.  Unfortunately, however, many eager business owners push ahead impulsively, without paining attention to planning, and thus business failure sets in. Lack of the use of modern method of  gathering and analyzing data constituted a weak point in the small business

strategies planning effort.

Poor Business Accountability: The financial problem of small scale enterprises is rarely only financial. Often it is only a symptom, the diagnosis of which reveals other weaknesses. Business finance and stress are mixed up with personal finance and stacks required for personal needs cash and slacks are taken at will for personal use whenever the need arises with out accounting for such withdrawals. This makes is difficult to assess the operating results of the business and at times starves the forms of its liquid resources.     

1.3 The Objectives of The Study

 The aim of this topic is to recall the pivotal role, which entrepreneurs and the small medium enterprises are expected to play in modern economics. Therefore the study will make every effort to reveal the various ways to encourage entrepreneurship development in Imo state. 

The expectations can be achieved by the following:

(1)        To identify the constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcomes.

(2)        To determine the level of awareness of people towards

entrepreneurship developments in Imo state. 

(3)        To examine various ways that will be employed to develop

entrepreneurship in order to get the desired result. 

(4)        By extension and implication, the study shall provide how the government both state and national and also the society will influence positively on entrepreneurship

1.4       Research Questions 

 Having established the appropriate framework within which this research study is being conducted, it becomes necessary to raise some pertinent questions which are considered to be at the care of the subject matter of this research effort. 

1)         What are the major constraints inhibiting entrepreneurs in Imo state from carrying out their roles as catalysts of economic growth and how these challenges can be overcomed?

2)         In what practical ways can the government and educators via education assist in entrepreneurship development?

3)         What identifiable and specific roles (Financial, economic, social, motivational, psychological) do entrepreneurs in Imo state play in order to get the desired result (advancement of the nations economy).

4)         In what ways can both the government (state and national via their policies and programmes and also society influence

entrepreneurship development?

1.5       Significance of The Study 

 The research work will be of great significance to students, prospective and practicing entrepreneurs, co-operators, chief executives and other practicing managers of business and non–business organizations. The research work will serve as a background and catalyst to any future researchers and scholars who may wish to venture into the areas of promoting entrepreneurship development in Imo state. Again the outcome of the research could be significance to the people with different occupations and professions. The conclusion which this research may expose, could lead to improvement and efficiency in Imo state as regard to entrepreneurship. The confidence level on embarking on entrepreneurship development in Nigeria will improve, and more people or the general public will agree to venture in that business. To researcher, the topic is a partial fulfillment for the award of post graduate   master in management (MBA). 

1.6       Scope of The Study 

The study extends its interest on entrepreneurship development in Imo state, issues and challenges, Osaze (1996).