Premium Essay

Roles of Entreprenurship in the Nigeria Economy

In: Business and Management

Submitted By aderonke
Words 11129
Pages 45
CHAPTER ONE
INTRODUCTION
1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3.
Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985
Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000
Total food 1,820,215 1,642,245 1,296,714 843,246 946,567
Wheat 159,422 79,629 255,717 243,067 327,870
C/o of total 9% 5% 20% 29% 35%`
Source: Federal Office of Statistics, Lagos Given the above circumstances, there was a clear need for government action to check the outflow of the nation’s declining foreign exchange earnings through what important. Besides, it can also be argued that there were suitable local substitutes of wheat flour for bread baking; rice, cassava, maize and sorghum have been mentioned as such suitable substitutes. To some people these…...

Similar Documents

Premium Essay

The Role of Accounting Information in Assessing Corporate Performance in Nigeria.

...The Role of Accounting Information in Assessing Corporate Performance in Nigeria. May,2012. Table of content. Abstract. Section 1: Introduction 1.1 Background to study 1.2 Problem Analysis 1.3 Aims and Objectives of the study 1.4 Significance of the study. 1.5 Research Questions 1.6 Hypothesis 1.7 Scope and limitation of the study. Section 2: Literature Review 2.1 General Review of Relevant Literature. 2.2 Theoretical framework 2.3 Conceptual Scheme/ Model Section 3: Methodology 3.1 Data and Statistical Tools for Analysis. Section 4: Presentation of Data Analysis Section 5: Discussion of Findings Section 6: Summary and Conclusions References. ABSTRACT. This study is an attempt to examine the role of accounting information on corporate performance. We critically examine the relevant literature that investigates the role of financial accounting information as the direct and indirect use of externally reported financial accounting data in performance assessment. Specifically, we focus on the role of accounting data in prevalent control mechanisms (primarily in executive compensation contracts) and the underlying causes that led to the shift of contracts towards option awards. Accounting information are among the most effective tools to reduce the incidences of corruption, from its supply side, because they promote values such as accountability, transparency, fairness and responsibility...

Words: 4873 - Pages: 20

Premium Essay

Roles of Enterpreneurship in the Nigeria Economic

...United Kingdom; and South Africa. There is a major concentration of Nigerians in the following cities United States of America (USA) · · · · · New York Maryland Houston Atlanta Texas United Kingdom · · · · London Ireland Birmingham Manchester · Essex Africa - South Africa · 1.1 Johannesburg OBJECTIVES The objective of the Diaspora team is as follows: · · · To provide Nigerians in Diaspora an opportunity to maintain operative accounts in FirstBank Nigeria To provide Nigerians in Diaspora with facilities to finance investments in real estate in Nigeria Provide Nigerians in Diaspora an interface for operating their accounts in First Bank and thereby bridging the geographical barriers to the delivery of banking services to Nigerians abroad. Each Diaspora customer will have an RM he/she can talk to at all times. · · · · · · To provide non-resident Nigerians with facilities for effecting domestic and international funds transfer. Offer Nigerians abroad the opportunity to build and grow their individual net worth in Nigeria through provision of investment advisory services. Grow the bank s retail customer base thereby generating a large pool of stable deposits for the bank. Grow the bank s fee income from banking transactions initiated by Nigerians in Diaspora. To prevent loss of potential Diaspora customers to competition. To give opportunity for Nigerians in the Diaspora to open Nigerian Bank accounts without being in the country. PRODUCTS BOUQUET PROFILE A. DISPORA......

Words: 3204 - Pages: 13

Premium Essay

Roles of Enterprenuership in Nigeria Economy

... CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of......

Words: 11129 - Pages: 45

Premium Essay

The Role of Entrepreneurship in Economic Development of Nigeria

...Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 www.iiste.org The Role of Entrepreneurship in Economic Development: The Nigerian Perspective Dr. Mrs Ann Ogbo AGU CHIDIEBERE NWACHUKWU Dept. Of management, University of Nigeria, Enugu Campus. PMB 011 *E mail of the correspondence author: annogbo@yahoo.com brightchidi@yahoo.com Abstract The aim of the paper is to develop and analyse the contributions of entrepreneurship in the economic development through SME development in Nigeria. A total of 100 SMEs were randomly selected from a cross section of a population of all SMEs spread around some states of Nigeria and covering virtually all forms of enterprise. Participants were selected through a simple random sampling. The responses to the questionnaires were complemented with personal interviews of some SMEs operators. The responses of the participants were analyzed using the statistical package for social sciences (SPSS), which generated the frequency distributions, means, standard deviations, chi-square statistics, analyses of variance, etc of the responses. The hypotheses of this research which were tested at 0.05 level of significance using chi-square statistics hinged on identifying the greatest problem which SMEs face in Nigeria, the identification and ranking of the top ten problems or challenges of SMEs in Nigeria and the relationship between the form and nature of the business enterprise and its sources of funding for its......

Words: 7375 - Pages: 30

Premium Essay

A Term Paper on the Role of Entrepreneurship in Economic Development of Nigeria

...andy chuks Role of business in Economic Development in Nigeria[->0] Share This, Tweet, +1 or Recommend &&&&&&&&&The role of business or entrepreneurship in economic development in Nigeria is very crucial and forms the backbone of National development. Below are some of the roles played by business in developing the economy of Nigeria. - Employment Generation: In Nigeria privately own small, medium and large scale business has come to be known as major source employment creation, unlike pre independence era where government was the major employer. By doing this business has helped in reducing the rate of unemployment. Businesses employs people to help them achieve their aims and objectives, with the establishment of businesses in Nigeria unemployment rate have fallen to some extent. - Direct Creation of Wealth by Contribution to the Gross National Product (GNP): GNP is the total monetary value of all goods and services produced in a country within a particular year. Businesses contributes directly to this because with more businesses the GNP will increase, also as businesses grow GNP increases. A country's level of economic development in determined by its GNP. - Provision of Technical Innovation: Innovations has been engineering by businesses seeking to improve their products and services. These innovations has brought tremendous improvement in the economy of countries. - Providing Competition: Businesses compete among themselves to perform better, this......

Words: 292 - Pages: 2

Premium Essay

Role of Globalization in Modern Economy

...THE ROLE OF GLOBALIZATION IN THE MODERN ECONOMY GLOBALIZATION DEFINED Over the past several decades, the economies of the world have become increasingly linked, through expanded international trade in services as well as primary and manufactured goods, through portfolio investments such as international loans and purchases of stock, and through direct foreign investment, especially on the part of large multinational corporations. At the same time, foreign aid has increased much less in real terms and has become dwarfed by the now much larger flows of both private capital, and remittances. These linkages have had a marked effect on the developing world. But developing countries are importing and exporting more from each other, as well as from the developed countries, and in some parts of the developing world, especially East Asia but also notably Latin America, investments have poured in from developed countries such as the United States, the United Kingdom, and Japan. Globalization is one of the most frequently used words in discussions of development, trade, and international political economy. As the form of the word implies, globalization is a process by which the economies of the world become more integrated, leading to a global economy and, increasingly, global economic policymaking, for example, through international agencies such as the World Trade Organization (WTO). Globalization also refers to an emerging “global culture,” in which people consume similar goods......

Words: 5326 - Pages: 22

Premium Essay

Role of Banking in Economy

...Essay on the Role of Banking in India's Developing Economy One of the major considerations that led to the nationalization of the fourteen major commercial banks of India in 1969 was the fact that banks, in general, had been negligent of the vital priority sectors of the economy, viz., agriculture and small-scale industries. The commercial banks had remained largely indifferent to the credit needs of the farmers for agricultural operations and land improve¬ment. A handful of people were able to exploit the bank finance to serve their own individual interests and convenience. Very often, they used bank funds for the hoarding of essential articles and for specialization, thus nurturing anti-social elements. Nationalization brought about a major policy shift in the working of these banks. The economic development of our country depends more on real factors like the industrial development, modernization of agri¬culture, organization of internal trade and expansion of foreign trade, especially exports, and less on the monetary factors contri¬buted by banking— Economic planning like laying down of specific targets and allocating particular sums of money that constitute the economic policy of the government also plays a significant role. Still we cannot under-estimate the importance of banking and the monetary mechanism. One of the most important problems of a developing economy is that of capital formation. There is a good deal of difference between hoarding and saving and the......

Words: 582 - Pages: 3

Premium Essay

The Impact of Microfinance Institution on the Economy of Nigeria

...Impact of Microfinance Institution on Nigeria Economy Ghana Christian University College SDM 201222101014 Introduction to Microfinance Mr. Sam Quinn Word Count: 2241 Dec. 2, 2014 Table of Content Pg Introduction 3 Definition of Terms 3 Concept of Microfinance 3 The Goals of Microfinance Institutions 5 Impact of Microfinance on the Economy of Nigeria 6 Negative Impact of MFIs on the country (Nigeria) 10 Conclusion Introduction Since the advent of microfinance institution in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty.  The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the...

Words: 2614 - Pages: 11

Premium Essay

The Impact of Microfinance Institution on the Economy of Nigeria

...Introduction The introduction of microfinance banks in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the rural poor. Microfinance banks have taken up the challenges of the gap created by the Nigerian Deposit Money Banks. Microfinance banks can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. Since the advent of microfinance banking in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance banking scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. This paper theoretically examines the impact of this institutions to Nigeria as a country. International Journal of Finance and Accounting Concept of Microfinance Microfinance...

Words: 2607 - Pages: 11

Premium Essay

The Role of Nigeria Security and Civil Defence Corps in Crime Control in Nigeria

...AN APPRAISAL OF THE ROLE OF NIGERIA SECURITY AND CIVIL DEFENCE CORPS IN CRIME CONTROL IN NIGERIA AVER TYAVWASE THEOPHILUS Abstract The study was carried out to appraise the role of Nigerian Security and Civil Defence Corps in crime control in Nigeria. Public Sentiment Paradigm and the Interest group theoretical perspective were combined to appraise the role of Nigeria Security and Civil Defence Corps in crime control. The interest group theory was adopted for the study, based on its relevance to the working of Nigeria Security and Civil Defence Corps in Nigeria. The study confirms that Nigeria Security and Civil Defence Corps lack the necessary equipment to fight crime in Nigeria. They are also inhibited by factors like dearth of manpower, corruption, illiteracy among others based on the foregoing the Corps lacks the necessary weapons and gadgets to check the rising wave of crime in the society especially the with the emergence of Boko Haram. It was recommended that: government should as matter of urgency provide more modern and sophisticated equipment that can match, if not surpass, those of armed bandits, Government should also embark on a very thorough and massive recruitment of able young men and girls to address the issue of death of manpower and finally government should also address the issue of corruption in Nigeria Security and Civil Defence Corps by punishing member of the corps that involve in sharp practices in the society. Introduction The most rampant......

Words: 6311 - Pages: 26

Premium Essay

Role of Agricultural Extension Delivery in Poverty Eliminatioin in Nigeria

...Farmer friendly Agricultural Policy that achieves food security, eradicates poverty, develops the rural economy and protects the environment (FMARD, 2000). The objectives and strategies to achieve them as spelt out in the policy documents emphasize the importance of agricultural extension to the goal attainment of the agricultural sector. To achieve increased production and improved processing in all the sub-sectors of agriculture (crop, livestock, and fisheries), improvement of quality of life and promotion of environment friendly practices and other objectives require extension effort. The new policy thrust expanded the broad objective according to FMARD (2000) to include; Promoting farmer-friendly agricultural policy that achieves food security, eradicates poverty, develops the rural economy and protects the environment through; • Creating the conducive macro-environment to stimulate greater private sector investment in agriculture, • Rationalizing the roles of the three tiers of government in their promotional and supportive activities to stimulate growth; • Reorganizing the institutional framework for government intervention in the sector, • Articulating and implementing integrated rural development as a priority national programme to raise the quality of life of the rural people; • Increasing agricultural production through increased budgetary allocation and promotion of the necessary developmental, supportive and service-oriented activities,......

Words: 2545 - Pages: 11

Premium Essay

Role of Banks in Uae Economy

...Role of banks in Economy • Life line of an economy (transfers money from surplus to deficit) • Credit provision (Fuels business, growth and Entrepreneurship) • Liquidity provisioning (Credit in times of urgent need) • Remittance of money, access to foreign exchanges and commodity markets • Risk Diversification Banking sector in UAE • Emirates NBD, Dubai Islamic Bank • ADCB, NBAD, ADIB • RAK Bank, FGB, Noor Bank • Standard Chartered, Barclays, Citibank, HSBC Sector Status (Healthy) • Most of the country’s biggest banks have transformed their business models in the past couple of years to get more money from services that command fees, such as asset management, brokerage and trade finance, rather than relying exclusively on interest from loans which have been compressed • Lenders have also largely cleaned up bad loans dating back from the financial crash of 2008, making them more resilient to any shocks. Total Debt/GDP is around 100% - 10% rise y-o-y. • Banks again anticipate a robust quarter. The provisioning cycle is fully behind and sector is expected to keep continued growth in commercial momentum. • In the first quarter of the year Emirates NBD led the sector with earnings ofDh1.67 billion, a 60 per cent year-on-year gain • Arqaam expects that the UAE banks that it rates will have a consolidated earnings growth of 15.9 % in the second quarter. Another agency expects the growth to be......

Words: 968 - Pages: 4

Premium Essay

Effect of Privatization in Nigeria Economy

... CHAPTER ONE 1. BACKGROUND In recent years, particularly since the adoption of the economic reform programme in Nigeria in 1986, there has been a decisive switch of emphasis from the grandiose, capital intensive, large scale industrial project based on the philosophy of import substitution to small scale industries with immense potentials for developing domestic linkages for rapid, sustainable industrial development. Apart from their potential for ensuring a self reliant industrialization, in terms of ability to rely largely on local raw materials, small scale enterprises are also in a better position to boost employ raw materials, small and medium enterprise, are also in a better position to boost employment, guarantee a more even distribution of industrial development in the country, including the rural areas, and facilitate the growth of non-oil exports. In Nigeria, the definition of small and medium enterprises also varies from time to time and according to institutions, for instance, the Central Bank of Nigeria’s (CBN) monetary policy circular No:27 of 1988 define small scale enterprises (excluding general commerce) as enterprises in which total investment (including land and working capital) did not exceed #500,000 and or the annual turn-over did not exceed #5.0 million. Medium enterprise (excluding general commerce) as enterprises in which total investment and not exceed #1,000,0000 (1 million) and the annual turnover did not exceed #1.2 million. Small scale......

Words: 9803 - Pages: 40

Free Essay

The Role of Business in the Economy

...lzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl zxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwwerty uiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm Leona Parks Marilyn Fitzpatrick 1/29/2012 Business 100 | Leona Parks Marilyn Fitzpatrick Business 100 29 January 2012 The Role of Business in the Economy Millions of individuals who have started businesses in the United States have shaped the business world as we know it today. Some business founders like Henry Ford and Thomas Edison have even gained places in history. Others, including Bill Gates (Microsoft), Sam Walton (Wal-Mart), Michael Dell (Dell, Inc.), and Steve Jobs (Apple Computer), have changed the way business is done today. Aside from contributions to our general economic well-being, businesses also contribute to growth and vitality in specific areas of economic and socioeconomic development. Businesses do the following: Create jobs. Spark innovation. Provide opportunities for many people. They complement the economic activity of large......

Words: 1581 - Pages: 7

Free Essay

The Role of Business in Today’s Economy

...Business plays a major role within our economy. There are different types of businesses such as retail, healthcare, banking, etc. Businesses are the major providers of jobs and economic growth in a capitalistic economy. For example, if the economy were to slow down, businesses would also slow down, which could impede growth and expansion. This would cause a domino effect in which businesses may begin to cut costs and people could lose their jobs. As a result, this would increase the economy’s unemployment rate, which means more people would be out of work and there would be less consumer spending to keep the economy growing. When the economy is growing, businesses are also growing. More funds are available to businesses, which would help them grow and expand their business. This would result in a low unemployment rate, which means people are working and the consumers would have money to spend to increase economic growth. There are many differences that for profit and nonprofit organizations have. For-Profit organizations have goals of starting a business solely for the purpose of making money. These businesses usually sell good or a service for profit. Nonprofit organizations usually have a mission that helps the community or general public and are not established to gain a profit.. An example of a non profit organization would be the Doug Flutie Jr. Foundation. This nonprofit organization requests donations to help children with autism, especially since it has......

Words: 865 - Pages: 4