EVALUATE THE ROLE OF ENTREPRENEURSHIP IN THE ECONOMIC DEVELOPMENT OF AKWA IBOM STATE
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The emergence and development of entrepreneurship is an important phenomenon in contemporary economies (Stefanovic et al, 45). (Chandler 8) defines
entrepreneurship as dealing with uncertainty, making a distinction between risk, which can be calculated, and uncertainty, which cannot. (Schumpeter 66)
describes the entrepreneur as the bearer of the mechanism for change and economic development, and entrepreneurship as the undertaking of new ideas
and new combinations, that is innovations. Drucker (93) describes the entrepreneur as a person who is willing to risk his capital and other resources in new
business venture, from which he expects substantial rewards if not immediately, then in the foreseeable future. Okpara (3-4) sees the entrepreneur as an
individual who has the zeal and ability to find and evaluate opportunities. He further observes that they are calculated risk-takers, who enjoy the excitement
of challenges, not necessarily gamblers. The role of entrepreneurship has been dierent
across countries but this research is beaming its search light on the
economic development in Akwa Ibom State of Nigeria. Holcombe (60) claims that, “the engine of economic growth is entrepreneurship.” Entrepreneurship
has been assessed as a driving force of decentralisation, economic restructuring and movement in the direction of market economy (Smallbone, et al., 16).
Entrepreneurship is strongly linked to small and medium sized enterprises (SMEs), which are the main developing force of the developed market economies
(Stefanovic et al, 29) that provides the spring board for industrial development and economic growth.
Apart from entrepreneurs having the potentials for ensuring a self-reliant industrial development, in terms of ability to depend on local raw materials, they
also generate more employment per unit of investment and guarantee an even industrial development, including the rural areas (Roy & Wheeler, 36).
Consequently, governments at all levels in Nigeria including Akwa Ibom state government are stepping up eorts in promoting the development of
Entrepreneurship through increased establishment of schemes that render financial and technical assistances to entrepreneurs. In Nigeria as a whole,
Entrepreneurship provide over 90% of employment opportunities available in the manufacturing sector and account for about 70 % of aggregate
employment created per annum (Onwumere, 20). In fact, SMEs have the potential to serve as engine for wealth creation, employment generation,
entrepreneurial skills development and sustainable economic development of Nigeria as the creativity and ingenuity of entrepreneurs in the utilization of the
abundant non oil natural resources of this nation will provide a sustainable platform/spring board for industrial development and economic growth as is the
case in the industrialized and economically developed societies (Schmiemann, 78). Accordingly Van Praag & Cramer (21) observed that more jobs are created
worldwide through SMEs than large scale enterprises per unit of energy consumed. Also, it is interesting to note that the United States of America, China,
Germany, Japan etc (the large industrialized economy), significantly focus on entrepreneurship and SMEs as engine of industrial development and economic
growth (Robichaud et al, 51). Therefore, the same should hold true for every developing country such as Nigeria. In fact the success stories of India, Malaysia,
Indonesia, Korea Republic, Brazil, and Singapore etc in entrepreneurship development and the attendant erects on their rapid industrialization (Ebiringa,
211) should serve as incentive to the less developed countries of Africa, especially Nigeria. The need to unmask the potentials and roles of the
entrepreneurship sub-sector to Nigeria’s industrial and economic development still remains an issue of that deserve scientific research, hence the need for
this study to ascertain the role of entrepreneurship in the economic development of Akwa Ibom state.
