Entrepreneurship and Nigeria's Industrialization Policy

Entrepreneurship

• Entrepreneurship is crucial for economic progress, not just for small businesses, but for national advancement.
• Successful economies like the USA, France, Japan, and Germany effectively utilize entrepreneurial concepts for job creation, capital efficiency, and essential goods production.
• Many developing nations, including Nigeria, have underutilized entrepreneurial approaches, leading to slower economic progress.

Nigeria's Industrialization Policy (1962-1968)

• Nigeria's first national development plan prioritized large-scale, capital-intensive industries, aiming for import substitution.
• This strategy was flawed, creating negative impacts:
  • Heavy reliance on imported raw materials, machinery, and equipment (45% of annual import bills by 1998).
  • Limited job creation due to high capital requirements.
  • Limited use of local raw materials, reducing economic benefits.
  • Manufacturing's contribution to GDP fell to 8.5% by 1993.
  • Poor integration between agriculture and industry.
  • Neglect of exports hindered local technical development.
  • Overlooking the potential of local resources.
  • Insufficient focus on local innovation and supporting indigenous entrepreneurs.
• The 1980s oil glut and global recession highlighted the flaws in this approach, pushing Nigeria among the world's poorest nations.

A Shift Towards Indigenous Entrepreneurship

• Nigeria shifted its focus from large-scale industrial policy towards small-scale entrepreneurship as a sustainable path to economic development.
• The Third National Development Plan (1975-1980) prioritized:
  • Mobilizing local resources effectively.
  • Creating more job opportunities.
  • Spreading enterprises across Nigeria.

Entrepreneur and Entrepreneurship

• An entrepreneur identifies and exploits business opportunities, manages risks, allocates resources effectively, and ensures venture success.
• Key definitions include:
  • McClelland (1966) - entrepreneurs discover opportunities, manage operations, provide leadership, and adapt to dynamic environments.
  • Amit et al. (1993) - entrepreneurs create opportunities, combine resources, and innovate for profit in uncertain environments.
  • Ogundele (2000) - entrepreneurs are innovators who initiate and grow businesses, navigating early struggles.
  • Kuratko & Hodgetts (2001) - entrepreneurs identify opportunities amid chaos and confusion, driving economic and industrial growth.
  • Fadahunsi (1992) - entrepreneurs are "path-breakers" who drive economic and industrial growth.

Key Elements of Entrepreneurship Development

• Identifying and pursuing opportunities.
• Establishing a business.
• Taking calculated risks.
• Earning rewards from entrepreneurial activities.

Entrepreneurial Functions

• Search for and discover new information
• Translate information into markets, products, and techniques
• Identify economic opportunities
• Evaluate identified opportunities
• Mobilize necessary financial resources
• Establish and manage time-sensitive plans
• Manage the enterprise effectively
• Motivate the workforce
• Lead and coordinate the workgroup
• Take responsibility for risks and uncertainties

Characteristics of Entrepreneurship

• Key traits include long-term commitment, self-confidence, total involvement, persistence, goal-orientation, calculated risk-taking, courage, strong organizational skills, initiative, personal responsibility, decision-making, leadership abilities, and achievement-drive.

Factors That Promote Entrepreneurship Development

• Free enterprise systems, diverse investment options, environmental choices conducive to decision-making, and incentives for innovation.

Types of Entrepreneurships

• Routine entrepreneurship.

Entrepreneurial Needs

• Need for Power (n/PWR).
• Need for Affiliation (n/AFF).
• Need for Achievement (n/ACH).

Role of Entrepreneurs in Society

• Develop new skills, ideas, and products.
• Provide leadership, motivation, and direction.
• Take responsibility for organizational structures and operations.

Entrepreneurship and Intrapreneurship

• Refers to creating new ventures within existing organizations.
• Emphasizes internal innovation, competition, and satisfying human needs.