Factors Influencing Entrepreneurial Performance in Small Scale Business
Abstract of Factors Influencing Entrepreneurial Performance in Small Scale Business
This research work, the Factors Influencing Entrepreneurial Performance of Small Scale Business. The general objectives of this study are to assess the factor that influence entrepreneurial performance in small and medium scale enterprise (SMEs) and also to assess how each factor identified affects the success of the of the entrepreneur in small scale business. The primary data for this research work was obtained through questionnaire response, personal interview and personal observation. This was supplemented with secondary data. Chi-square technique was used as a tool to test the hypothesis. It was observed that there is a significant relationship between personality trail and entrepreneurial performance and other variables such as demographic feature, research and development (R&D), technology etc can also influence the performance of entrepreneur in small scale sectors. In the light of the above, it was recommended that entrepreneurial development should become part and parcel of tertiary institutions curriculum and also entrepreneur should be encourage to attend training programmed in business management. This research works concluded that entrepreneurship is regarded as an integral part in the business culture of Nigeria economy and particularly as an engine for job creation and economic growth.
Chapter One of Factors Influencing Entrepreneurial Performance in Small Scale Business
INTRODUCTION
Background of Study
Entrepreneurship is increasing recognized as an important driver of economic growth, productivity, innovation and employment, and it is widely accepted as key aspect of economic dynamism. This has amplified the studies on small and medium enterprises (SME) growth and more importantly the formal and informal attributes associated with the entrepreneurs who have led their companies successfully to growth stage.
Certainly, for an entrepreneur to be successful in terms of establishing any form of small scale business, certain factors must be put into consideration that can boost the inspiration of the entrepreneur for effective and efficient management of his or her business in achieving the set objectives.
An entrepreneurs can be seen as people who have the ability to see and to evaluate business opportunities to gather the necessary resources to take advantages of them and to initiate appropriate action to ensure success Meredith et al (1982).
According to Ozigbo (2000), argued that there is no legal or single clear cut of definition of what constitutes small scale enterprise in Nigeria. And the classification of businesses into small, medium or large is a subjective and quantitative judgment Ekpenyoung and Nyound, (1992) under the Central Bank of Nigeria (CBN) monetary and credit policy guideline for 1996, as reported by Ozigbo (2000), small scale enterprises is an enterprise with fixed assets excluding land, but including working capital not exceeding ten Million Naira (l0m).
In view of the above, it is necessary to study or review several factors that influence the performance of entrepreneurship in small scale business.
Obviously, there are various factors that can influence entrepreneurial performance either positively or negatively such as change in present life style, education, personal values, age, work history, role Models and Support systems, moral support network and professional support network, these factors can rather make or mar the performance of entrepreneurship.
Most importantly, it is very necessary in this background of study to recognized the fact that the management of entrepreneurship is always at the hand of one or two persons who put their idea, skills, techniques, creativities and resources together in order to implement or innovate some thing new and they also act or serve as the manager’s proprietors and pioneers who pilots the affair of that business because entrepreneur are seen to be optimistic moderate risk taker and believing in his or her ability to control his or her own business rather than just making money.
Carland, Hoy et at (1984) define an entrepreneurship as an individual who established and managed a business for the principle purpose of profit and growth.
In this context entrepreneurs could make much better choice, ironically by adopting some strategies and principles for achieving a better entrepreneurial performance.
The following are some of the strategies to employs,
Do your research,
Have a good mentor,
Learn to exercise patience,
Stay within your budget,
Always be moving,
Make sure you enjoy what you do,
Self confidence and perseverance,
Feasibility studies,
Management training and development,
This picture that emerge might lead one to conclude that, despite the attempts by government to support small scale business in Nigeria, small firms have not be able to fully realize their potential because of the hostile environment borne by economic decline.
Conclusively, it appeared that entrepreneurs are face with economic difficulties, which lead to the study of factors influencing entrepreneurial performance in order to profile a reasonable solution for sufficient and effective performance.
Statement of the Problem
Studies have shown that self-awareness or personal knowledge can improve the performance of entrepreneur, but lack of studies on the part of entrepreneur prompt the question about its importance. The major concern is that, an entrepreneur should have in-depth knowledge about the existing and inevitable environmental factors. The most probable factors contributing to this problem is believed to be the possibility of certain environmental factors.
The problem and its dimension may be stated as follow:
a) The environmental factors which consist of dynamism, munificence, complexity and industry characteristics.
b) Weak environmental orientation in terms of autonomy, innovativeness, risk taking, proactiveness, competitive and aggressiveness.
c) The demographic characteristics which consist of growth, age, education and marital status.
d) Lack of entrepreneurial skills, in research and development (R & D), insufficient funds (capital) and poor expertise.
Objectives of the Study
The purpose of this study is to ascertain a superior managerial performance with special emphasis on entrepreneurial competences required for a successful performance.
The general objective is as follow:
a) To assess the factors that affects the success of the entrepreneur in small scale business.
b) To assess how each factors identified can affect the success of entrepreneur in small scale business.
c) To examine how research and development (R & D) can improve an entrepreneurial performance in small scale business.
Research Questions
The above research problem and purpose leads to the formation of question at which the answer to those questions would proficient solution to the problem. The questions are stated below;
1. What are the relationship between environmental factors and entrepreneurial performance in small scale business?
2. What are the relationship between research and development (R&D) and entrepreneurial success?
3. To what extent does technology affect entrepreneurial performance in small sale business?
Research Hypotheses
H01: There is no significant relationship between personality trait and entrepreneurial performance.
H02: There is no significant relationship between research and development and entrepreneurial success.
H03: There is no significant relationship between technology and entrepreneurial performance in small scale business.
Scope of the Study
This research work focus on a niche-segment which indicates entrepreneurial performance in few selected small scale business in Asaba, Delta State capital. It also limits itself on how an entrepreneur’s can improve their skills for effective and successful performance in small scale business.
This research work covered a duration of 10 (ten) years from (2002-2012), with the use of primary data like questionnaire and direct interview being carried out among residents in Asaba, Delta State capital.
Significance of the Study
This research study indicates the value, knowledge and contribution of difference scholars in regards to factors influencing entrepreneurial performance in small scale business.
The need to study this research topic becomes imperative because it highlight the following;
a) Vital information that can enhance an entrepreneurial success in small scale business.
b) The need for an entrepreneur to adopt managerial skills for effective performance.
c) The efficacy of technology toward entrepreneurial success.
d) Also to identify the series of factors that influence entrepreneurial performance.
Thus, the success of business is due to many factors, but among the greatest determinants of a business success is the entrepreneur.