The fact that entrepreneurship in Nigeria as a whole entails taking risks and reaping the reward at a later date requires support by the government. This, been the fact that the Nigerian entrepreneurs were virtually neglected in the development plan until recently, when the government came up with measures in encouraging them.
In the 1981 – 1983 plans, the increasing recognition by government of the need to boost – not – oil sector, made the government to focus attention on the entrepreneurship development. The result of this reduction, is importing more than their export, hence huge debts will then be incurred, leading to balance of payment problems in the Nigeria Economy.
This partly explains the wide interest In the development of the entrepreneurship business in our time of production in the various Nigeria government. It must be understood by the vigorous Nigeria that are in pursuit of the development of entrepreneurship manufacturing industries, which greatlyaccounts for the great wealth of developed countries like Japan, U.S.A, Germany and France. In any economy therefore (both developed and developing) that contain many business units of all type and sizes from observation, one will find out that entrepreneur firms are fast growing nowadays, as they can be found everywhere, especially in urban areas. There are not much restriction or establishing them as they are in large scale firms. Beside, they also grow and developed relatively fast, although,, this development growth may not be exhibited in the size, structure or other outside factor. Rather, their developments are exhibited internally.
In order to assist the growth of entrepreneurship development, most countries especially the advanced nation often make such provision like bank loan facilities, development.
1.2 BACKGROUND OF THE STUDY
At one time, it was felt that the commanding heights in the private sectors of the economy should cease to be the opportunity to play their rightful roles towards the development of their economy. The underlying spirit was that only Nigerians can develop Nigeria and that foreigners were in Nigeria for their ownbenefits and not directly for the benefit of the country. In this context therefore, indigenization should be viewed to mean policy initiatives, designed to accelerate the greater participation of Nigeria in the ownership and management of business enterprises in Nigeria. Under indigenization, individual Nigerians within the private sector either hold the majority shares or they are only share holders.
The first attempt to ensure that Nigeria control and run tr-b business enterprises of their country was made with the promulgation of the Nigeria’s enterprise promotion Decree 1972. The decree reserved for Nigeria citizen the whole ownership of small scale business enterprise and for large scale business, 40percent participation.
The small scale enterprises mentioned in schedule of the decree are reserved exclusively for Nigerians. These include advertising agencies, pool betting, casinos and cinemas blending and bottling of alcoholic drinks, assembling of radios of black brick and tiles, clearing and forwarding, manufacturing of ordinary garment services and travels, hairdressing, retail trade and rice milling. If a foreigner or alien owned any such enterprises, he was required by the Decree to transfer the ownership of the enterprises to Nigerian citizen or association by March, 1974.After about two decades of adopting an indigenization policy on medium and small scale enterprises mostly of the assembly plant, Nigeria has achieved only a fragile industrial development. The indigenous enterprises which set up technical to capital intensive and inappropriately the country’s resource endowment.
Their capital equipment and technical man power have continued to be largely imported. As a result, the triple objective of setting up plant which are the achievement of high level local resources, added foreign exchange saving and acquisition of transferred technology have not materialized. For example, the assembly plants have not achieved up to 15 percent in local raw-materials sourcing. Instead, they are more or less systematic foreign guzzlers with neither they will nor have the capacity to transfer any meaningful technology beyond the primitive type in response to the weakness of indigenous enterprises, government has sought to promote them as a strategy for achieving self-reliance, The indigenous entrepreneurs have potential worth given for Tm promoting self-reliance in a developing economy, like Nigeria”. But this in particular, has not been fully developed in Nigeria. Thus, in the second development plan 1964 to 1974, both the Federal and State government were to actively support and promote the development of entrepreneurship.