ENTREPRENEURIAL DEVELOPMENT ANDITS IMPACT IN OUR ECONOMY (A CASE STUDY OF EBOYI STATE)
1.1 BACKGROUND OF THE STUDY
The worldwide economic depression of the early 80’s caused a rapid deterioration of the Nigeria economy. The output shrank to an all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country. Therefore, by the end of 1985, the unemployment situation in Nigeria had increased its proportions and as such most Nigeria graduates were faced with hardship due to unemployment in the country. This situation therefore calls for entrepreneurship in Nigeria economy which also leads to entrepreneurial development in the higher institution.
However, at this juncture a brief history of entrepreneurship inNigeriawill give more insight on the study. Statistics have it thatAfricais the poorest and less developed continent in world. Many state-owned enterprise in Africawere created when it was believed that the fastest route to development occurred when the state took on the role of entrepreneur.
AlthoughNigeriawas at one time characterized by such inefficiency, but has recently pursued entrepreneurship encouragement policies. And the initial indications suggest that the policies have been successful. InNigeria, the state-owned enterprises traditionally clogged business opportunities and restructure private entrepreneurs from entering the market. However, in the mid 1980’sNigeriaabolished it’s marketing board, which prevented entry into certain industries and it’s market to competition from domestic entrepreneurs.
Although Nigeriais still ploughed by many development problems preliminary evidence suggest a favourable response by the private sector to the new entrepreneurial opportunities. Although there is only limited consensus about the characteristics of entrepreneurship, the concept is almost as old as the formal discipline of economics itself. Early 18thcentury French economist named Richard Canadian first introduced the term entrepreneur. In his writings he formally described the entrepreneur as the agent who buys the means of production at certain prices in order to combine them into new product. (Schumpeter,1951) short after that the French economist J. B. added to the Castilian definition by including the idea that entrepreneurs has to be leaders. That an entrepreneur is one who build a single product organism. (Schumpeter, 1951)
The necessity of entrepreneurship for productivity was formally recognized by Alfred Marshall in 1990. In his famous practice principle of economics,Marshallascertains that there are four factors of production; Land, Labour Capital and organization. These factors are properly utilized by an entrepreneur. Thus entrepreneur creates new commodities or improve the plan of producing an old commodity. (Marshall1994).