CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Prior to the 1970s, the view that large firms were the cornerstone of a modern economy dominated the literature (Nnanna, 2003). The theory of economies of scale, which is predicated on the advantages of large scale operations prevailed. Thus, entrepreneurial business was seen as belonging to the past; out-moded, and a sign of technological backwardness. More recently, however, this view has shifted due to the important role played by relatively small entrepreneurial business firms in promoting industrialization and facilitating sustainable economic growth and development.
The concept of entrepreneurship evokes varying meanings or interpretations, depending on the perspective of the user. However, as Duke (2006, p.1), puts it, “an individual who pioneers a new technology or introduces a new method of doing business typifies entrepreneurship. He also is a person that carries on with an existing technology or method, but in an innovative way. The entrepreneur usually undertakes and operates a new business venture and assumes some accountability for the inherent risks”. Thus, an entrepreneur is an integrated person who brings about some changes through innovation for both personal and societal benefit. As such the entrepreneur is a critical factor in driving socio-economic change as he seeks new opportunities, and brings about new techniques, new products and co-ordinates the activities required to manage an enterprise.
In Nigeria, the development of entrepreneurial activities has manifested in virtually all aspects of the economy including micro finance, personal services, food, clothing, ICT, telecommunications, entertainment and hospitality, and agriculture/agro-allied business. These entrepreneurial efforts have contributed to the attainment of some of the nation’s economic development objectives. Such contributions include employment generation for the growing rural and urban labour force, production output expansion, income redistribution, utilization of local raw materials and technology, increase in revenue base of government, as well as production of intermediate goods that help to strengthen inter and intra industrial linkages (Osuji, 2005). Similarly, developed countries such as United States of America, Japan, Germany, Italy, and Britain, have been found to owe their overall economic development to entrepreneurship (Fasua, 2006).
The development and growth of entrepreneurship in Nigeria, has remained a major concern for the government. The importance of a private sector-driven economy can best be described and appreciated from its potential for facilitating food security, employment generation, service delivery, wealth creation and economic empowerment of the citizenry. These are outcomes that are also aligned with the goals of the National Policy on Micro, Small and Medium Enterprises (MSMEs), National Economic Empowerment and Development Strategy (NEEDS), State Economic Empowerment and Development Strategy (SEEDS) and the Millennium Development Goals (MDGs).
