CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY

Entrepreneurship is pertinent to the analysis of how new ideas or ‘recipes’ for reconfiguring objects in the material and social world can be harnessed to enhance a nation’s wealth.  In the longer term, a country’s economic progress depends on its ability to increase the value of what it produces with its resource base (people, land and capital). The point cannot be emphasized too strongly, however, that neither the ends to which these resources are put nor the means for achieving these ends (i.e. the set of resources and how they are used) are given or fixed. They are the result of entrepreneurial choices and are open to entrepreneurial initiative. Individual entrepreneurs and entrepreneurial teams bring to light the resources, technologies and trading opportunities that make economic development possible. Indeed, whenever entrepreneurs are the first to discover the availability and potential economic value of new resources, they are in effect bringing those resources into existence in economic terms (Kirzner 1989).

Nigeria as a country  has  numerous  business  and  investment  potentials  due to the  abundant,  vibrant  and dynamic human and natural resources it possesses. The performance and effectiveness of entrepreneurs in the country as an instrument of economic growth and development has long been under scrutiny. This intense scrutiny has been  against  the  backdrop  of  the  low  performance   and  inefficiency  that  characterized   small  business particularly  in assessing  its role  on economic  growth  and  development.  Tapping the country’s resources require the ability to identify potentially useful and economically viable fields of endeavours.

Nigerians have equally   made   their   marks   in   diverse   fields   such   as   science, technology, academics, business and entertainment. Entrepreneurship activities and innovative ingenuity in Nigeria have developed enterprises in areas such as agriculture/agro-allied, solid minerals, transportation, information and telecom, hospitality and tourism business, building and construction etc. According to Anyadike, Emeh and Ukah (2012) these human and natural resources notwithstanding, Nigeria is still one of the poorest countries in the world and has one of the highest rates of youth unemployment in  sub-Sahara  Africa,  and  despite  its  alleged  strong  economic growth. In respect of the above sad and deplorable situation, the government has done little to reduce the misery and frustrations of the citizenry. This has foisted a state of hopelessness on majority of young and old people who have resorted to any means including crime to succeed in life. They resort to vices because they are not gainfully engaged.  In other words, they are unemployed; unemployed, not because  they lack the qualification  but because  the system  has been crippled  politically,  economically,  socio-culturally  and even religiously  Anyadike,  Emeh and Ukah (2012).

1.2 STATEMENT OF PROBLEMS

A nation’s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Good Entrepreneur can create a strong economy. They are an important facet of industrial growth and development of a nation. According to Harper (2003) entrepreneurship is the main mechanism that creates wealth, explanations of economic growth and development often ignore (or fail to acknowledge explicitly) the entrepreneurial forces of change and adaptation that underlie economic performance.   Surprisingly, the role of entrepreneurship in economic   development   has attracted less professional interest than the role of other factors, such as the accumulation of physical capital, expansion of the labour force, R&D, technological progress and education.  Entrepreneurship is something we ignore at our peril.

In the last decade more Nigerians have attended entrepreneurial trainings, taken courses in entrepreneurship than ever before. Virtually all young graduates have been tutored or received some form of tutoring on the topic, thanks to the National Youth Service Corps orientation programme.  With all this in place, however, the success rate of small and medium enterprises has been very low; businesses have barely survived, let alone thrived beyond incubation period.  Some have  down-sized  to  the  barest  minimum;  others  press  on  in anticipation of a better tomorrow, yet many more have been frustrated to closure. Government regulations and policies, insecurity and a seemingly irredeemable power sector haven’t made it any easier.

1.3 PURPOSE OF THE STUDY

The main purpose of the study is to examine the relationship between entrepreneurship and economic growth in Rivers State.

1. To examine the extent to which entrepreneurship development enhance economic growth in rural communities in Rivers State.
2. To find out whether entrepreneurship support agency contribute and attach importance to entrepreneurship development.

iii. To examine the extent to which entrepreneurship growth in Rivers State help to reduce the level of poverty in the State.

1. To investigate the major challenges and prospects of entrepreneurship in Rivers State.
2. To propose some plausible strategies that can promote effective entrepreneurship that will help develop the Nigerian economy.

1.4 RESEARCH QUESTION

This research seeks to investigate the relationship between entrepreneurship development and economic growth in Rivers State and therefore tries to answer the following research questions:

1. To what extent does entrepreneurship development enhance economic growth in rural communities in Rivers State?
2. To what extent does entrepreneurship support agency contribute and attach importance to entrepreneurship development?

iii. What is the extent to which entrepreneurship growth in Rivers State help to reduce the level of poverty in the State?

1. What are the major challenges and prospects of entrepreneurship in Nigeria.
2. Are there plausible strategies that can promote effective entrepreneurship that will help develop the Nigerian economy?

1.5 RESEARCH HYPOTHESIS

The following research hypothesis are postulated to guide the study:

HO: There is no significant impact of entrepreneurship on economic growth in Rivers State.

HI: There is a significant impact of entrepreneurship on economic growth in Rivers State.

1.6 SIGNIFICANCE OF THE STUDY

The study will serve as guide to entrepreneurial support agencies in particular and the Nigerian entrepreneurs as a whole in determining the best way of getting the best output from their businesses  who  are  presently  demoralized  in  the  face  of  the prevailing socio-economic hardship.

The study is also aimed at contributing to the literature in entrepreneurship development programmes with reference to rural communities in Nigeria. Also, this work on completion will broaden the essence for entrepreneurship development in rural communities in Nigeria.

1.7 SCOPE OF THE STUDY

This research focuses on some selected entrepreneurs in Port Harcourt River State, Nigeria. It further tries to provide a solution to basic problems by testing some of the prepositions of Nigerian situation.

1.8 LIMITATION OF THE STUDY

The major challenge in this project is the in ability to get enough information or data. This is because of the nature of the research which has been stated above. Also, there was no enough time for a comprehensive research work but with limit time available, it was not possible to gather so much data and information as required.

Time: The time allocate for the research work was not enough to allow adequate research work and comparisons.

Accessibility: One of the major problem encountered was access to information concerning the area of study.

Finance: Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

1.9 DEFINITION OF TERMS

Development: This is a gradual growth of something so that it comes more advances, stronger. It is also process of producing or creating something new.

Economic: This is the study of the production and consumption of goods and transfer of wealth to product.

Entrepreneurship: This is a person who assumes the risk of organization and managing a business in the hope of making a profit is earned, it is received by the entrepreneur.

Growth: This is defined as an increase in the Gross Domestics Product or per capital income of a country.