FACTORS AFFECTING FUNCTIONAL ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA

Entrepreneurship development is a self employment strategy through which the unemployed youths engage themselves to earn their livelihood. Nonetheless, it is an activity that is besieged by very many hindrances and factors that limits its functionality and development. Some of these factors include Oduma, 2012.


1.      INADEQUATE CAPITAL: There is always the problem of initial start-up capital for most entrepreneurs. Prospective entrepreneurs with viable business opportunities at times only end up dreaming of their life business without actualizing them simply because of financial problem. Initial capital outlay remains one of the frustrating problems both for start-up and for entrepreneurship expansion in Nigeria.

2.      HIGH LEVEL OF ILLITERACY: Most of the entrepreneur investors are illiterates. As such, they lack the wisdom and knowledge in business transactions. Their level of literacy is usually not adequate enough to carry out their business to the level that it will benefit them and the society. This limitation most often forces some of them out of the business or displaces them entirely in the line of business.

3.      POOR MANAGERIAL ABILITY: This is a common phenomenon among most entrepreneurs. In entrepreneurship, a blend of technical know-how and managerial competence is a pre-requisite for success. Most often, these two essential factors appear lacking in entrepreneurs. Many of the entrepreneurs lack the needed managerial ability and competence and as such do not know what it takes to be a manager in a business venture.

4.      LACK OF GOVERNMENT SUPPORT: There is a clear indication of lack of government support for entrepreneurship development especially in Nigeria. Although various regimes in Nigeria have paraded good policies and programs for self employment. Unfortunately, almost all those good policies and programs were frustrated at the corridor of power and implementation.

5.      POOR INFRASTRUCTURAL FACILITIES: Another limiting factor to entrepreneurship development and expansion is the state of infrastructure in our society. In Nigeria, to be precise, there are poor infrastructural provisions like good road network, electricity, public health clinic and portable water supply. This makes it impossible for entrepreneurs to set up their cottage businesses, especially in the rural settlement where market and business opportunities exist. 

6.      POOR MARKET NETWORK: Market network is an essential factor for entrepreneurial development. There is completely the absence of expansive market network to stimulate enough transaction and exchange for entrepreneurs within our environment. For entrepreneurs to actually thrive there is need for expanded market network to ensure that customers and consumers products from entrepreneurs are exchanged in good time to satisfy consumers need and stimulate further production and or supplies in the hands of the entrepreneurs.       
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