ABSTRACT
The study proffers an appraisal of success criteria
for entrepreneurship business in Nigeria.Entrepreneurship is The capacity and
willingness to develop,
organize and manage a business venture along
with any of its risks in order to
make a profit.
The most obvious example of entrepreneurship is the starting of new businesses.In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and
risk-taking, and is an essential part of a nation's ability to
succeed in an ever changing and increasingly competitive global marketplace.The
research proffers success criteria for
entrepreneurship in business with a case study of Juli supermarket Lagos.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
management school suggests that an entrepreneur is a person who organizes or
manages a business undertaking, assuming the risk for the sake of profit
(Webster, 1966). Within this perspective, it is believed that entrepreneurship
can be developed through conscious learning. In most cases, failure in
entrepreneurial activities is attributed to poor management tactics. It is
therefore, averred that training in management functions can help reduce
business failure substantially and make success of an enterprise.. The leadership school of entrepreneurship
sees an entrepreneur as someone who relies on those he believes can help him
achieve his purposes and objectives. This school proposes that a successful
entrepreneur must be a ‘people manager’, an effective leader, a mentor who
motivates, directs and leads others to accomplish set tasks.Kao (1989)
postulates that the entrepreneur must be a leader, able to define a vision of
what is possible, and attract people to rally around that vision and transform
it into reality. The two major elements in this approachare: getting the task
accomplished and responding to the needs of those involved in task
accomplishment.Entrepreneurship is The capacity and
willingness to develop,
organize and manage a business venture along
with any of its risks in order to
make a profit.
The most obvious example of entrepreneurship is the starting of new businesses.In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and
risk-taking, and is an essential part of a nation's ability to
succeed in an ever changing and increasingly competitive global marketplace
.
Both
personality- and human capital models are examples of character-based model.
According to personality
based
model, entrepreneurs posses certain traits and these specific traits are
expected to produce a strong impact on planning the business and on the choice
of strategies and actions during the launching phase, which will in turn
determine the entrepreneur's eventual success in the undertaking.
In
particular psychological but also economic research has analyzed in detail
which personality characteristics are fundamental for entrepreneurial success.
The following traits have been defined as useful in explaining the past success
and in predicting the future development of a newly founded business:
motivational
traits,
such as `need for achievement', `internal locus of control', and `need for
autonomy', cognitive skills such as `problem-solving orientation', `tolerance
of ambiguity', `creativity' and `risk-taking propensity', affective personality
traits, such as `stress resistance', `emotional stability', and `level of
arousal', and social skills, such as`interpersonal reactivity' and
`assertiveness' (Caliendo and Kritikos, 2007). Empirical research aiming to
underpin the theoretical propositions ex-post has taken two directions: it has
compared the parameter values of these variables, gathered with the help of
psychologically validated questionnaires, either between entrepreneurs and
employees, or between successful and unsuccessful entrepreneurs.Previous
research has also pointed out the limits of this approach. On the one hand, the
size of the firm in terms of number of employees has been described as
indispensable for the application of the model.According to this argument, the
fewer employees a business has, the greater the impact of the owner's
personality on its success. On the other hand, there is no consensus on the
impact of personality structure on entrepreneurial success. Muller (1999)
suggests that these traits should be used to predict the development of
anindividual as entrepreneur. Given the numerous personality variables that
might influence entrepreneurial success, a second expectation is that each
individual variable will only be a weak predictor for entrepreneurial success
(Rauch and Frese, 2000). Gartner (1988) believes that no correlations will be
found between traits and the success of an entrepreneur at all.Human
Capital Model Human capital
theories relate to entrepreneurial success in a similar way as personality
structure: sufficient knowledge and working experience in the relevant fields
enable business founders to choose more efficient approaches, for instance in
organizing production processes, creating financial strategies, or analyzing
markets for the new product. The human capital of the entrepreneur is the
second part of the character-based approach after the entrepreneurial
personality. Human capital theory is concerned with knowledge and experiences
of small-scale businessowners. The general assumption is that the human capital
of the founder improves small firm chances to survive (Bruederl, Preisendoerfer
and Ziegler, 1992). Human capital acts as a resource. Human capital makes the
founder more efficient in organizing processes or in attracting customers and
investors. Different studies used various operationalizations of human capital.
Bruederl et al. (1992) distinguished between general human capital years of
schooling and years of work experience- and specific human capital- industry
specific experience, self employment experience, leadership experience, and
self-employed father and in general, trend indicated a small positive
relationship between human capital and success.Human capital theory has an
important implication: Since the theory is concerned with knowledge and
capacities, the theory implies processes as well: human capital can be trained
and improved. Additionally, ifhuman capital acts as a resource it might be
interesting to evaluate human capital implications of employees in small scale
enterprises as well. In manufacturing settings it was shown, that a human
resource management (HRM) system was related to performance especially when it
was combined with a quality manufacturing strategy (Youndt, Snell, Dean,
&Lepak, 1996).Most theoretical studies analyzing the impacts of human
capital on the success probability of a newventure are concerned with the
general human capital (such as the years 10 of schooling or working
experience),with various kinds of specific human capital (such as experience in
leadership, in self-employment or in the industry chosen for the new venture),
or with genetic or sociological relations (such as self-employed parents or
friends). Research on the impact of general human capital by Backes-Gellner and
Lazear (2003) has shown that it is important for later success if business
founders have already developed a broader knowledge base rather than
specialized knowledge of a certain topic. Relationships between the human
capital approach and the success rates of entrepreneurs have been empirically
tested as well. Chandler and Hanks (1994, 1996) showed that thereis a positive
impact when entrepreneurs found new businesses in the same branch where they
had gathered previous work experience. The same authors observed only a weak
impact of general human capital on success rates in terms of years of
schooling. An explanation of the latter is given by Lazear (2004), and by
Wagner(2003), who found empirical support for Lazear's `jack-of-all-trades
model' which is not necessarily correlated with years of schooling. Also, Dunn
and Holtz-Eakin (2000) found a positive correlation between success rates of
business founders and self-employed parents.Goal Setting Theory According to goal setting theory, high and
specific targets are main motivators in working organizational settings and
predictor to performance (Locke and Latham, 1990). The theory also applies to
small- scale enterprises (Baum, 1995; Frese, Krauss, and Friedrich, 1999). A
recent focus in leadership theory is on visionary (orcharismatic,
transformational) leadership. Collins and Porras (1994) indicated that
visionary companies have a stronger organizational culture and they are more
successful than non-visionary companies. Baum, Locke and Kirkpatrick (1998)
found direct and indirect causal effects of vision attribute, vision content,
and vision communication on small venture performance. In entrepreneurial
companies, visions might be more important than in bigger organizations because
of the relative close contact between entrepreneur and employee (Baum et al.,
1998). Thus, goals and visions have an effect on the performance of small
companiesA General Model of Entrepreneurial Successisa general interdisciplinary model for
entrepreneurial success is the Giessen- Amsterdam model of entrepreneurial
success. The model shows that all of the influences of personality, human
capital, and environment on success have to be mediated by strategies and
tactics of actions. This concept is in stark contrast to the theoretical stance
of the ecological approach which assumes that essentially a random process of
actions is shaped and selected by the environment, including the function of
the environment to produce certain failure and success rates.
The research therefore seek to provide an
appraisal of success criteria for entrepreneurship business in Nigeria.
1.2 STATEMENT OF
THE PROBLEM
The growing importance of entrepreneurship in
terms of constituting a sector of employment generation and economic building. Necessitates
that entrepreneurial businesses should have the capacity to grow, make profit
and contribute to the nations economic development.Entrepreneurship is The capacity and
willingness to develop,
organize and manage a business venture along
with any of its risks in order to
make a profit.
The most obvious example of entrepreneurship is the starting of new businesses.In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and
risk-taking, and is an essential part of a nation's ability to
succeed in an ever changing and increasingly competitive global marketplace.
However evidence shows that many entrepreneurs lack
the capacity, trait, and resources to manage
their business to grow, make profit and contribute. To nations building,as such
many entrepreneurial businesses have started and later folded up.
Therefore the problem confronting this research is
to provide an appraisal of success
criteria for entrepreneurship business
in Nigeria with a case study of Juli supermarket Lagos.
1.3 RESEARCH
QUESTIONS
1 What is
the nature of entrepreneurship business?
1
What are the success criteria for
entrepreneurship business?
2
What is the nature and success criteria
of Juli supermarket Lagos?
1.5 SIGNIFICANCE OF THE STUDY
The study shallproffer success criteria for
entrepreneurship business and shall also serve a useful information for new and
ongoing Entrepreneurship businesses.
1.6 RESEARCH HYPOTHESIS
1 Ho
The performance of Juli supermarket is low
H1 The performance of Juli
supermarket is high
2 Ho success criteria iinjuli supermarket is low
Hi success criteria iinjuli
supermarket is high
3
Ho impact of the success
criteria in juli supermarket is low
Hi impact of the success
criteria in juli supermarket is high