ABSTRACT
This study is on performance of indigenous
entrepreneur in international business in Coal Camp Enugu. The survey research
design was adopted and a sample size of 171 (one hundred and seventy one) was
gotten using Taro Yamani formula. Questionnaire were administered to the
respondents and 50 was returned, which was used for the analysis. The data for
the study was analyzed using simple descriptive statistics of SPSS. Hypotheses were
tested using the Chi-square. The study revealed that indigenous entrepreneur
have various modes of entry into international business, there are some
constraints confronting the development of indigenous enterprises such as poor management practices constrain the
success of indigenous entrepreneur, lack of infrastructural facilities
hinders the performance of entrepreneur, financial problems or inadequate
capital by indigenous entrepreneurs hinders my improvement, poor management
expertise is a problem to my development, to a great extent, government plays
some roles towards the promotion and development of international business for
indigenous entrepreneur, and it was also noticed that support are given to
indigenous entrepreneurs by the government agencies to improve their
performance in international business.Based on the research at hand, the
researcher made the following recommendations: The government should put more
effort in showing support and making it easy for indigenous entrepreneurs to
participate in international business, the indigenous entrepreneurs should try
and observe the state constraint confronting their performance in international
business and also in their domestic trade, the government agencies which sees
the affairs of the indigenous entrepreneurs should make sure that they keep to
the standard of which any participant most adhere to and the indigenous
entrepreneur at Coal Camp should always endeavour to have a good relationship
with the government in other to have free trade without inviting law
enforcement agencies.
CHAPTER ONE
INTRODUCTION
1 .1 Background to the Study
The role of
indigenous entrepreneurs in developing countries, Nigeria in particular is
progressively becoming significant. It is significant in the sense that all
available resources in any given situation in the economic wellbeing of a
nation must be developed for industrialization and ultimately consumption
through the small and medium scale businesses. Hence, the impact and potential
contribution of small scale businesses on a broad and diverse base as well as their
accelerated effect in achieving macro-economic objectives pertaining full
employment, income distribution and the development of local technology, make
the existence most inevitable. Therefore, the importance of small and medium
scale enterprises in particular to the general economic development of any
nation especially a developing one like Nigeria cannot be over emphasized
(Osalor 2012).
Indigenous
enterprises have been recognized as indispensable components of natural
development in both developed and developing economies. This sub-sector of the
economy is globally acknowledged to contribute substantially in enhancing
employment creation or generation, poverty alleviation,, equitable distribution
of resources, income redistribution, technical and technological innovation,
entrepreneurial skills development, more uniform industrial and economic
region- moreover, they have been touted strategic in ensuring foodsecurity and
encouraging rapid industrialization and reversal of rural-urban migration
(Balunywa 2010).
Although
indigenous enterprise are seen as veritable engines of economic development,
the growth and development of small and medium scale enterprises in Nigeria
have been slow and in some cases even stunted, due to a number of problems and
challenges confronting this allimportant sub-sector of the economy. Some of the
problems highlighted in the body of literature as being responsible for the
slow growth and development of the small and medium scale enterprises include:
deplorable infrastructural facilities funding and financing challenges;
inadequate managerial and entrepreneurial skills; corruption and lack of
transparency arising from government regulation and regulators etc. It had been
argued that the most disturbing among these challenging is funding, but
concedes that most new small business enterprises are not attractive prospects
for banks as they want to minimize their risk profile (Abereijo 2014).
Indigenous
enterprise in Africa have therefore been found to rely largely on own savings, not
only to grow, but also to innovate, whereas firms often need real services
support and formal finance assistance, failing which under investment in long
term capabilities (Training, Research & Development) may result on the
other hand, indigenous enterprise in Nigeria had been blamed for poor
performance on management practices, poor access to funds, low equity
participation from stakeholders, poor infrastructural facilities, shortage of
skilled manpower, multiplicity of regulating agencies and the over-bearing
operating environment, societal and attitudinal problems, little access to
markets and lack of access to information. In spite of these problems and
challenges, Government and other financial institutions had held out programmes
for the prospects of indigenous enterprise in Nigeria (Aigboduwa 2013).
The current
economic reform process ongoing in Nigeria aimed at reducing poverty,
unemployment and strengthening of basic institutions and sub-sector of the
economy target at improving and enhancing the capacity of indigenous enterprise
as instrument of economic growth and development. A lot has been said and
written about indigenous enterprise in the world. It has also formed the
subject of discussion in so many seminars and workshops both locally and internationally.
In the same token, government at various level (Local, State and federal
levels) have in one way or the other focused on the indigenous enterprise.
While some governments had formulated policies aimed at facilitating,
empowering the growth, development and performance of the indigenous enterprise
to grow through soft loans and other fiscal incentives. International agencies
and organizations (World Bank), United Nations Industrial Development
Organisation (UNIDO), International Finance Corporation (IFC), United Kingdom,
Department for International Development (DFID), European Investment Bank (EIB)
etc are not only keenly interested in making indigenous enterprise robust and
vibrant in them. Locally, the several non-governmental organizations such as
fate foundation, Support and Training Entrepreneurship Program (STEP), the
Nigeria Investment Promotion Commission (NIPC), the Association of Nigeria
Development Finance Institution (ANDFI), as well as Individual Development
Finance Institution (IDFI) have been promoting the growth of indigenous
enterprise in Nigeria through advocacy and capacity building imitative and have
continued to canvass for better support structures for operator in the
indigenous enterprise subsector (World Bank 2011).
In the context of this study, indigenous enterprise has been referred to
as SMEs. Small scale could therefore be referred to as cottage industry. And
they can be best described based on some of their characteristics:
·
Few numbers of
employees
·
Amount of
investment and annual business turnovers
·
Small in size
within the industry
·
Managers are
also owners, etc (Aladekomo 2013).
The 3rd
Nigerian National Development Plan (2011) defined small scale industry as a
manufacturing establishment that employs less than 10 people and whose
investment on machinery and equipment do not exceed N600,000 (six hundred
thousand naira). From another perspective, the Central Bank of Nigeria in 2001,
in its credit guidelines defined Small Business Enterprises as any business
organization with an annual turnover of less than N500,000 (Five hundred
thousand naira).
Alawe (2013)
defined Small Scale Enterprises as organizations employing a minimum or rive
employees and with a minimum initial capital outlay of not less than N5000 five
thousand naira). Alas (2011) noted that an additional requirement to be tagged
Small Scale Enterprises in Nigeria is that the number of employee is not
greater than 50 in any situation and the financial capital outlay is not more
than N150, 000 (one hundred and fifty thousand naira).
From the
foregoing definitions, it could be seen that different individuals,
institutions, or bodies and countries have given definitions to small scale
enterprises. Therefore, as with entrepreneurship, it is difficult to have a
generally acceptable definition of small scale enterprises, the best one can
say is that small scale enterprises may be viewed as a business unit which is
independently owned and managed and which does not dominate its relevant market
segment of interest (Abriel 2015).
In Nigeria,
the recent economic submit recommended the creation of 500,000 entrepreneurs on
the assumption that if each entrepreneur employs 100 workers, a total number of
50 million jobs be created with the time frame.
Although, all
these developments as commendable, however, the best way to eradicate poverty
is not to throw money at if but to grow out of it. The various efforts of the
government on the development of small and medium scale enterprises through
various initiative and well- structured programs to encourage vocational
educational centre in the state, with an interest of setting up those
apportioned individuals as independent entrepreneur after successful completion
of course proved abortive, the rate of survival of these newly set up enterprises
are still very low which makes the effort of the government to result in
futility and also making individuals to still became job seekers as against
thenormal goal of being an employer of labour and definitely still giving
chance to poverty. However, this project work examines the respective strengths
and drawbacks associated with the historical trends and efforts at developing
indigenous enterprise. It identifies and analyses the opportunities provided
for the promotion of indigenous enterprise in international business. Here,
this study titled “the performance of indigenous enterprise in international
business in Enugu coal camp spare parts”.
1.2 Statement of the Problem
The Nigerian
National economy is characterized by mirage of problems which has constituted a
sleepless night to developmental oriented governance. The most disturbing
problems are that government has not played a favourable role towards the
promotion and development of small and medium scale enterprises, in the sense
that government creates unfavourable fiscal policy inconsistencies and lack of
the infrastructural facilities by the government, which have stunted and
stagnated the growth of indigenous enterprise in international business (Arriyo
2010).
Indigenous
entrepreneurs are seen as veritable engines of economic development, but the
growth and development of indigenous entrepreneurs in international business
have been slow and in some cases even stunted, due to a number of problems and
challenges confronting this all- important sub-sector of the economy. Some of
these problems includes: financial problems, poor management expertise, poor
accounting system, lack of materials etc, which the researcher tends to find
solution to them. More so, in Nigeria, most small enterprises are folding up or
lack competitiveness because they lack the much required financial capacity to
prosecute their manufacturing concern. Another challenges facing international
business is the use of language. Being an international business person who is
not fluent in the local language such as having the ability to directly
communicate with employees and customers, understanding the manner of speaking
within business in the local area to improve overall productivity, gaining
respect of customers and employees from speaking with them in their native
tongue.
1 .3 Objectives of the Study
The objective
of the study was to ascertain the performance of indigenous enterprise in
internationally business a case study of coal camp spare part. The specific
purposes of the study are:
1. To identify the various mode of entry into
international business by indigenous entrepreneurs.
2. To identify the constraints confronting the
development of indigenous enterprise in coal camp spare parts.
3. Assess the role played by government towards
promotion and development of indigenous entrepreneurs.
4. To examine the financial support given to indigenous
entrepreneurs by Government to improve their performance in international
business.
1.4 Research Questions
The following
research question will guide the study:
1. What are the various mode of entry into
international business by indigenous entrepreneurs?
2. What are the constraints confronting the development
of indigenous enterprise in coal camp spare parts?
3. What arc the role played by government towards
promotion and development of indigenous entrepreneurs?
4. What are the financial supports given to indigenous
entrepreneurs by Government agencies to improve their performance in
international business?
1.5 Research Hypotheses
H0: There is
no mode of entry into international business by indigenous entrepreneurs.
HI: There is
a mode of entry into international business by indigenous entrepreneurs.
H0: There
are no constraints confronting the development of indigenous enterprise in Coal
Camp spare parts.
HI: There
are constraints confronting the development of indigenous enterprise in coal
camp spare parts.
H0: Roles are
not played by government towards promotion and development of indigenous
entrepreneurs.
H1: Roles are
played by government towards promotion and development of indigenous
entrepreneurs.
H0: Financial
supports are not given to indigenous entrepreneurs by Government agencies to
improve their performance in international business?
HI: Financial
supports are given to indigenous entrepreneurs by Government agencies to
improve their performance in international business?
1.6 Significance of the
Study
This study
when completed would be a valuable help to various stakeholders for
implementations with the concerned efforts of all and sundry including:
governments at all levels, SME promoters etc.
Policy makers: It guides them in making policies and regulations
that will create enabling environment for indigenous entrepreneurs. SMEs: This
study will enable them to identify the problems confronting the development of
small enterprises.
Investors/Entrepreneurs: It will enable them to know what they expected of
government in the promotion of small enterprises. It will also enable them to
know the cost involvement in establishing the small enterprises and the
obstacle faced by the indigenous entrepreneurs.
Companies: They will also benefit from this study, since they
are interested in the overall success, operational and financial efficiency
evaluation of the firm.
Student/Researchers: This study will also be a benefit to them, since
there are curious in studying or knowing more about the topic and in their
research work.
1.7 Scope of the Study
The study will
be focused on the performance of indigenous enterprise in international
business in Enugu coal camp spare parts.
1.8 Limitations of the Study
Certain
limitations were encountered in the course of this study, key among these
includes:
Unavailability of Data
One of the
greatest challenges the researcher encountered in this study relates to access
to and collection of hard data due to extreme data gaps.
Time and Funds
Another
limitation of this study relates to time, funds and logistics constraints,
which limited the intensity of the spread or are of coverage of the study.
================================================================
Item Type: Project Material | Attribute: 69 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
================================================================
No comments:
Post a Comment