IMPACT OF FOREIGN CAPITAL ON ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA
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IMPACT OF FOREIGN CAPITAL ON ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA
ABSTRACT
His dissertation’s objective and goal is to investigate the impact of foreign money on the development of entrepreneurship in Nigeria.
The data for this study was gathered by distributing questionnaires to the entrepreneur. The responses were provided by the reply ees and were analysed using simple percentage and chi square to draw conclusions and provide recommendations based on the findings.
Finally, the findings indicate that:
(1) Organisations that work on multiple levels Foreign government and private investors offer foreign funding for the development of entrepreneurship in Nigeria.
(2) Foreign capital increases loanable money for Nigerian entrepreneurs and provides funding for foreign machinery imports.
(3) Nigerian entrepreneurship can also attract foreign cash from international capital markets, which multinational corporations can use to indirectly fund entrepreneurship development in Nigeria.
THE IMPACT OF FOREIGN CAPITAL ON ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA, CHAPTER ONE
BACKGROUND OF THE STUDY
The current emphasis on entrepreneurial development is informed by the country’s protracted economic downturn and unemployment, Eugbaja, 2001:22. Previously, everyone turned to the government as a source of job possibilities.
Many Nigerians did not consider self-determination to be a viable alternative to government employment. However, the country’s rising unemployment situation has modified this attitude short of attaining lives.
Many gradualists and school dropouts, as well as other Nigerians, are now moving in guest of self-termination by lunching themselves into numerous business failures. (Eze 1997:34)
Recognising the need for foreign capital to boost entrepreneurship development in Nigeria, the federal government has implemented a number of policy packages aimed at attracting foreign investment in Nigeria’s small and medium enterprises sub-sector.
In order to diversify the economy and stimulate the development of foreign private firms, government agencies and private institutions are collaborating with international organisations to increase letters engagement in various entrepreneurship development programmes in Nigeria (ENYISA 2001:19).
There are worldwide organisations interested in fostering small business and entrepreneurship in various regions of the world (ATOLABI,2001:22). These international organisations, in addition to supplying foreign cash,
also provide technical help to these African countries. Against this backdrop, the purpose of this research is to investigate the impact of foreign money on the development of entrepreneurship in Nigeria.
1.2 STATEMENT OF THE PROBLEM
Adebusriyl (1997:51) listed the following issues as impeding the development of entrepreneurship in Nigeria.
1. Lack of an infrastructure base:
One of the most significant limitations for businesses is the high cost of providing basic infrastructure such as access roads, water, power, and other utilities. According to a World Bank research from 1989,
the cost of infrastructure such as roads, water, electricity, communication, and security accounted for 15-20% of the cost of establishing a manufacturing firm in Nigeria.
II INADEQUATE EDUCATIONAL BACKGROUND:
Many small and medium-sized business owners lack essential educational backgrounds, expertise, and industrial exposure. As a result, many of them are insufficiently imaginative and dynamic to meet developing and expanding business issues.
III. INABILITY TO OBTAIN INSTITUTIONAL CREDIT:
The banking sector has shown a reluctance to give credit to many Nigerian entrepreneurs for the following reasons.
a) Inadequately prepared project proposal
(a) Inadequate cash flow documentation
(a) Inadequate collateral, including the inability to raise the minimum equity commitment.
(d) The lack of a succession plan in the case of the entrepreneur’s death.
PROCUMBENT PROBLEMS (IV):
These issues are one of the most significant impediments to increasing capacity utilisation among Nigerian entrepreneurs. This problem can be traced back to the previous years’ unskilled macroeconomic policy environment,
which resulted in an increase in customer duties and pool charges, high cost of foreign each engaged as a result, and back on imported raw materials supplied. Related to this is the inaccessibility and high cost of equipment.
(v) IMPOSSIBILITY TO A (V) IMPOSSIBILITY TO ADJUST PRICE
Inability of some entrepreneurs to modify pricing to reflect higher costs as a result of the significant depreciation of the naira exchange rate. This is primarily due to the fact that doing so makes them uncooperative with large-scale enterprises. Those who manufacture for specialised industrial consumers face the additional challenge of being price takers.
1.3 OBJECTIVE OF THE STUDY:
THE OBJECTIVES OF THE SHUDY
A. To investigate the nature of entrepreneurship development in Enugu State.
B. To investigate the establishment of institutional structures for entrepreneurial growth.
C. To ascertain the function of foreign capital in the development of entrepreneurship.
D. To ascertain the amount of foreign engagement in entrepreneurial activity.
E. To investigate the barriers to entrepreneurship development in Enugu State.
1.4 SCOPE OF THE STUDY
In this regard, the scope of the study encompasses the nature of entrepreneurial development and the influence of foreign capital; however, the study was contracted in Enugu state.
1.5 SIGNIFICANCE OF THE STUDY
Their research will be beneficial because it will serve several goals. First, this study will encourage graduates and school leavers to take use of existing chances for entrepreneurial growth in order to be self-sufficient. In this way, they can avoid wasting time looking for non-existent positions in the public sector.
Second, the research will help all potential entrepreneurs understand the problems of entrepreneurship and how to overcome them.
Third, this study will help private institutions, government organisations, and Nigerian businessmen with worldwide links. They will comprehend the need of attracting or bringing foreigners into Nigeria to form participation from this study.
This will be a very significant way of bringing foreign capital into the country for the purpose of entrepreneurial activities. Foreign capital will enable local entrepreneurs to acquire or procure adequate equipment and infrastructures required for small business or entrepreneurial operations.
Fourth, the study will assist the government. The importance of foreign money in entrepreneurial development cannot be overstated.
The government will recognise in this study the necessity to enter into investor and easterm Europe as well as far east and American agreements on the support of entrepreneurial programmes in Nigeria. This should involve not only foreign governments but also national organisations.
Fifth, Nigeria will be included in the study as well. This is because it would help students realise the importance of putting more emphasis and exploration into entrepreneurial projects, as well as how continuous entrepreneurship activities can help Nigeria’s industrial development.
Finally, the study will provide valuable data and information to anyone who conducts similar research in the future. Furthermore, the research findings may be useful for future research.
1.6 DEFINITION OF TERMS
ENTREPRENEUR: A person who starts a new business and manages it until it succeeds.
ENTREPRENEURSHIP: The process of starting a new business and seeing it through to success.
VENTURE CAPITAL: This is a fund that accepts loans from investment institutions but does not invest in them.
BUSINESS OPPORTUNITIES: This is artistically expressed.
PROFITABLE EVENT INNOVATION: This is the creation of a new product from an existing one.
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