CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
It
is an undisputable
fact that the
contribution of
microfinance
to entrepreneurship activities is increasing being recognized as a primary
engine of economic growth. (The Economist, May 18th 1996). By combining
existing resources with innovative ideas, entrepreneurs add value through the
commercialization of new products, the creation of new jobs and the building of
new firms. The Global Entrepreneurship Monitor (GEM) indicates that nations
with higher levels of entrepreneurial activity enjoy strong economic growth. In
short, entrepreneurs are the link between new ideas and economic development.
This is proper using the experience of the industrialized countries of North
America and West Europe. Legislative actions has been taken by countries like
United States of America, the Netherlands and Japan to see to the fact that entrepreneurial
activities can contribute to economic development.
This may explain why various governments around the world promoted it since
entrepreneurial skills and strategies are used to tackle different social
problem and addressing poverty as well as a means of employing the
disadvantaged.
Speaking
at the conference with a theme “Improving Access to Microfinance”, Soludo
(2008) revealed that in order to sustain increases participation of skilled
entrepreneurs in the credit and other financial service delivery to the micro,
small and medium enterprises in the microfinance sub-sector, Central Bank of
Nigeria (CBN) is forging ahead in its determination to develop a pool of
articulate and well focused entrepreneurs through setting up one
Entrepreneurship Development Centre (EDC) in each of the six geo-political
zones in the country. The three pilot entrepreneurship development centres, he
said,. Will commence January, 2008 are in Kano (North West), Ota (Southwest)
and Onitsha (Southeast). Also speaking at the international microfinance conference and annual microfinance
conference and annual microfinance and entrepreneurships awards held at the
Sheraton Hotel and Towers, Abuja, Soludo (2008) stated that access microfinance
by the economically active poor and low income earners in Nigeria is a
collective responsibility for the achievement of the Millennium Development
Goals (MDGs); He added that it provides a strong focus on macro-economic
stabilization, especially in the pursuance of massive trades and investment
liberalization program to encourage entrepreneurial capacity to develop
business and for the business to success (Nwoye, 1997).
Despite
the missing links in Africa’s development process, researchers and scholars
have increasingly recognized the crucial role that entrepreneurship plays in
economic development of nations, especially through the development of
microfinance sub-sector. (Rashed, H.S, 2000, Dozie, 2005 Aglion and Howilt
1997). For instance, Dozie argued that this vital factor of production which
forms the basis of the Schumpeter’s dynamism is
the bedrock to a nation’s industrialization and development. According to them,
this is achieves through the innovation and risk taking ability of the
entrepreneurs. It is therefore, the entrepreneur who generates the critical
momentum an economy requires for economic growth by breaking new grounds in
human endeavour as a result of the vital characteristics they possess.
However, on this note, this study
intend to address the entrepreneurship in Nigerian economy has the potential of
becoming the path to success and compete favourably at the global market
economy, when the technical and commercial skills of the entrepreneur are
effectively develops utilized.
Peter
and Clerk (1997) affirm that entrepreneurial development is a disposition to
accept new ideas and try new methods; a readiness to express opinions, a true
sense that make men and women more interested in the resent and future than in
the past, a better sense of punctuality, a greater concern for planning,
organization and efficiency...
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