IMPACT OF ENTREPTRENEURS ACTIVITIES ON JOB CREATION IN ONDO

STATE

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Despite the enormous natural resources, Nigeria ranks low on the human development Index

with 160 percent income distribution gap at the household level that suggests a bias against rural

and uneducated households (Human Development Report 2010). This is consistent with rising

poverty data, which increased from 54.4% (in 2004) to 69% in 2010 according to official

government report in “the Nigeria Poverty Profile 2010”. According to the National Bureau of

Statistics (NBS) more than 100 million citizens earn less than $1 per day, thereby further

widening the inequality gap. Following the increasing rate of poverty, majority of citizens,

mostly unskilled and poor, with low level of education and lack of asset control are therefore

confined to the informal sector for survival due to necessity. The informal sector, which largely

comprises trade, agricultural businesses and services related to repairs, is estimated to provide

80% of non-agricultural employment and 60% urban jobs. Unfortunately, this category of

business remains at the subsistence level, constrained to the poverty corridor due to poor

motivation.

The importance of the informal sector in boosting employment generation and consumption

activities in a developing country like Nigeria cannot be underestimated.

The informal sector, which is characterized by informal activities and absence of government

regulation, is inclusive of transactions not accounted for in the Gross Domestic Product (GDP) of

the country. Though the informal sector, to a larger extent provides jobs to a great number of

1
households in Nigeria, the main policy challenge according to Ajayi and Ademokun (2010) is

supporting the informal sector to promote more employment opportunities, productivity, and

income for the poor. Akintoye (2018), also suggested that poverty and unemployment be reduced

through a well-managed and supported informal sector.

In Nigeria and other African countries, poverty is described as a socio-economic problem that

affects growth and development in the region. The government of these countries have designed

and embarked on several measures to reduce the degree of poverty and improve the social well-

being of the people. In Nigeria, the federal government has initiated several ensures and policies

to reduce the level of poverty among the masses.

Entrepreneurship is one of the measures embraced by the government to reduce mass poverty

and unemployment in the country. This study is not established to evaluate past measures of

poverty reduction in Nigeria, but aim at investigating the effect of entrepreneurship development

on job creation and poverty alleviation. Entrepreneurship development entails philosophy of self-

reliance such as creating a new cultural and productive environment, promoting new sets of

attitudes and culture for the attainment of future challenges (Arogundade, 2011).

1.2 Statement of the Problem

Unemployment is a problem that each society faces, especially Nigeria as a nation, and each

society must find a way to beat it. The question that however begs for an acceptable and

scientifically accurate answer is whether the Nigerian Government is committed to finding

solution to this hydra headed monster of unemployment. Recently, when the Federal House of

Representatives committee on labour and productivity visited the Federal Ministry of Labour, it

was discovered that the necessary financial releases meant for job creation have not been

effectively released and utilized. It is also a notable fact that the Presidential offices of

2
Millennium Development Goals MDG’s and National Poverty Eradication Programme NAPEP

have not fully succeeded all to galvanize national effort towards creation of credible job

opportunities for the millions of unemployed Nigerian youth even through Npower programme.

How to create credible jobs in Nigeria has therefore become imperative and this is precisely what

we have set out to hazard a guess, hoping that the Federal and state administrations in Nigeria

would pay attention and provide these job opportunities so that Nigeria would once more become

peaceful and productive because any nation that neglects her youth sector is consequently

doomed. Government can do a lot. The leading economies of the world today laid the economic

foundation in small and medium enterprises. In fact, the strength of the American economy is in

small and medium enterprises which Nigeria as a nation as to build on in order to create

entrepreneurs friendly society.

1.3 Objectives of the Study

The objective of this study is to examine the impact of entrepreneurs’ activities on job creation

and poverty reduction in Owo Local Government of Ondo state. Other objectives are;

i. To investigate the relationship between entrepreneurship development and job creation.

ii. To inspect the relationship between entrepreneurship development and poverty

alleviation.

iii. To examine impact of entrepreneurial performance on job creation in small and medium

enterprises in Owo local government area of Ondo state.

1.4 Research Questions

In line with the above overture, the research will make an attempt to answer the following

questions.

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 i. What is the impact of entrepreneurship development on job creation in Owo local

government area of Ondo state?

ii. What is the relationship between entrepreneurship development and poverty alleviation in

Owo local government area of Ondo state?

iii. What is the impact of entrepreneurial performance on job creation in small and medium

enterprises in Owo local government area of Ondo state?

1.5 Research Hypothesis

The null hypotheses to be tested against the alternative hypothesis for the study

i. Ho: 𝜇 = 01: state that: impact of entrepreneurship development does not have any

significant impact on job creation in Owo local government area of Ondo state.

ii. Ho: 𝜇 = 02: state that: Entrepreneurship development does not have any significant

impact on poverty alleviation in Owo local government area of Ondo state.

iii. Ho: 𝜇 = 03: state that: impact of entrepreneurial performance does not affect job creation

of small and medium enterprises in Owo local government area of Ondo state.

1.6 Significance of the Study

Entrepreneurship as a cornerstone of development strategies for emerging economies has

garnered support among a broad spectrum of scholars, policymakers and governments. (UNDP,

Nigeria, 2019) and UNIDO-Nigeria, 2012).

The relevance of this study is implicitly based in its ability to assist policy makers to formulate

policy supportive of informal sector operators especially against the background that knowledge

acquired from entrepreneurship development sharpens the sector operators thereby leading to

increased job creation as well as alleviating poverty in the society. The significance of the study

cannot be overstressed. The study is also significant in the following way:

4
It will also add and improve the existing literature on the issue of entrepreneurship development

in relation to job creation and poverty alleviation

The findings are expected to guide government/policy makers in drawing policies that has to do

with encouraging entrepreneurship development and by implication opportunities for

employment and;

It is also significant because it is a requirement in partial fulfillment of the award of the degree of

Bachelor of Science (BSc.)

1.7 Scope of the Study

The study will cover only Owo Local Government area as a result of the inherent difficulty of

studying the entirety of the state and country at large. It will also make use of both primary and

secondary data which will reflect a sizeable number for a better result.

1.8 Limitation of the Study

The study is expected to be constrained by a number of problems which include the difficulty of

obtaining relevant data. It is so because some of the information necessary for the study may be

considered confidential and as such inaccessible to the researcher. Time and finance are other

constraints that constitute major limitation of the study. And also, the financial difficulty which

may arise during the process of gathering the necessary information is also not a light burden.

Another limitation that can impact negatively on the results of the study is the educational status

of the population (unlearn business owner) of the study.

5
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Conceptual Review

2.1.1 Concept of Entrepreneurship

Entrepreneurship is seen from the perspective of establishing or funding a new business

enterprise especially, when it involves taking risk and earning profits. It is one of the factors of

production just like land, labour and capital. Entrepreneurship has been inextricably linked with

new venture creation (Inegbenebor and Ogunrin, 2009). Corporate Entrepreneurship or

Entrepreneurship is the type of Entrepreneurship that entails having new products, markets and

methods in existing business enterprises. This concept however is not as developed as new

venture entrepreneurship because it is undertaken by managers who do not bear business risk

(Holt, 2018).

According to the Amazing world, (2011) the term “Entrepreneurship” was derived from the 17th

century French word “entrependre” The term refers to individuals who were undertakers, i.e.

who undertook the risk of new enterprise. In fall, entrepreneurs in the ancient times were soldiers

of fortune, adventures, builders and merchants.

Gana (2011) define entrepreneurship as the willingness and ability of an individual to seek out

investment opportunities in an environment, and be able to establish and run an enterprise

successfully based on the identified opportunities. Though Gana’s definition was based on the

managerial perspective, it is important to mention that the entrepreneur has certain personality

traits which influence his behaviour (psychologists view). He also lives in a society (sociologist

6
view) and he is obviously affected by the economic opportunities and government incentives

(economist view). Gana (2011) therefore cautioned that any attempt to describe the entrepreneur

against only one dimension will be inadequate and would not give a holistic view of who the

entrepreneur is.

Mbaebgu (2018) opine that entrepreneurship refers to the activities of the entrepreneur as the

initiator, organizer, innovator and risk bearer in production or business. The entrepreneur is the

person whose activities create wealth and employment which can be measured either directly or

through economic growth rates. This definition is without prejudice to the classification of

entrepreneurs on a continuum from small craftman entrepreneurs to big time opportunistic

entrepreneurs adopted by Inegbenebor and Osaze (2019). Whether big or small entrepreneurs are

all in business to make profit and grow their enterprises.

2.1.2 Concept of Job Creation

Job creation is captured within the domain of employment creation (Keynesian, 2019). The term

job creation is used to refer to a situation where investment production activities give rise to the

need to employ more human resources that would be consistent with higher level of output

production (Quadrini, 2019).

Keynesian understanding of job creation is tied to increase in aggregate expenditure so as to

stimulate aggregate demand and increased consumption which leads to increase in investment

will then bring about employment creation. However, according to Otege (2010), the variation in

the conceptualization of job creation is that it is a viable solution to unemployment. Thus, job

creation can be measured by knowing how many people get employed over certain period of

time by comparing the present staff strength of enterprises to their previous staff strength in

some past periods.

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2.1.3 Concept of Poverty Reductions

Khan (2011) observes that poverty has very severe implication for economic growth and

development. Though there is no single definition of poverty as a concept, it is multi-

dimensional in nature and has thus been perceived using different criteria. The oxford Dictionary

of economics defines poverty as the inability to afford an adequate standard of consumption.

This definition is implied when the United Nation say a particular group of people live below

two US dollar ($2) a day. Anyanwu et.al; (2017) conceptualizes poverty in Nigeria to include the

following situations; within the framework, poverty reduction can therefore be referred to as

situation where more people have increase income and can be able to afford the basic necessities

of life. Generally, poverty reduction implies that the population or the number of poor people

decrease steadily overtime (Herman, 2015).

2.1.4 Employment Creation and Sustainability through Entrepreneurial Education

Education is important in the growth of all economies as it has contributed to economic growth

and job creation (Agwu et al., 2017). Education is a sustainable development that enables

individuals to acquire knowledge, values and skills needed to make decisions as to how things

can be done collectively either from the local or global perspective with the aim to improve the

quality of life now and in the future. Entrepreneurs reasonably contribute to social and economic

states of the nation via development of strategies and capabilities needed for proper coordination

of resources, innovation and freedom of creativity (Adelekan and Tijani, 2017). Entrepreneurial

training serves as a way to develop the mind that bores creativity and equip such minds with

meaningful skills that will sustain and increase creativity. Societies today are strengthened not

8
just by knowledge or information but by human innovation. Creativity is limitless as it spreads

its tentacles of diversification. However, it is credible to understand that creativity is heightened

when there is room for ethnic diversification and interaction. Economic creativity (employment

creation) is related to diversity.

2.1.5 Benefits of Entrepreneurship

As noted above, the benefits of entrepreneurship can very enormous. Entrepreneurship is about

making differences in business as entrepreneurs would only initiate a business if they are

convinced that they have what it takes to seize an opportunity to make a difference in a cause

that is vital to their personal and professional ambitions. With this in mind, entrepreneurship is

essentially about striving to earn a good living as entrepreneurs are often rewarded with

substantial financial gain in the form of profits. Another enviable benefit of entrepreneurship is

self-employment and own-bossing, which often offer unlimited job satisfaction and flexibility.

Entrepreneurship also creates jobs3 for others and hence could reduce the rate emigration and

unemployment in an economy. Entrepreneurship is a source of income generation which propels

economic growth. As entrepreneurs are highly motivated to be competitive and desirous of

reaching their full potentials because the business is taken as the medium for self-expression and

self-actualisation, the production of higher quality goods and services are guaranteed. In this

respect, the entrepreneur knows no boundaries as far as business success is concerned because

his/her creativity, enthusiasm and vision are limitless. Entrepreneurship also has the potential of

enhancing the development of new markets as well as the development of entrepreneurial

qualities and attitudes among potential entrepreneurs to bring about significant improvements in

societies.

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Furthermore, entrepreneurship is the key to the growth and development of local industries

through the processing of local raw materials into finished and semi-finished goods for the

domestic and foreign markets. It also promotes the utilisation of improved and cost-effective

technology in small and medium-scale enterprises which enhances higher factor productivity at

the local level especially in low-income countries where the traditional rural economy is

predominant.

2.2 Theoretical Review

2.2.1 Matching Theory of Job Creation

According to this theory, employment is created when entrepreneurs identify the right business

ideas that fill an investment gap and then employs human and non-human resources with the

community to serve as factor input. Another way the employment arises is when it takes time for

workers and firm to locate each other (Mortensen and Pissarides, 2014).

The theory holds that jobs are created as long as enterprises find the right factor inputs to

employ. This will lead to increasing the level of production and investment which will in turn

open more avenues for employment for employment. The theory however, identifies a key issues

that calls for our attention. It emphasis that given the location of a business enterprise, when the

right workers for the job are unavailable, it will lead to higher unemployment among the people

of the host community as other people elsewhere (who are searching for jobs) will find a match.

2.2.2 The Trickledown Theory of Poverty Reduction

Reduction poverty by means of economic development is a very important idea of the Neo-

classical economists with the assumption that more jobs will be created and the poor will benefit

from them as the economies develop. After World War II, many developing countries adopted

10
this policy, while double aims of economic development and poverty alleviation was not realized

simultaneously.

After drawing lessons from the unsuccessful application of this theory, in developing countries,

the World Bank advanced a new strategy to poverty reduction the trickledown theory. Its key

idea is that the developing countries should adopt a labor-intensive strategy aimed at increasing

employment so as to help the poor and move the economy towards development (Guobau 2018).

The theory advocates that within given enterprises, the production mode should have more use of

Labour than machines so that those who are unemployed would find work to do. By this

approach, the trickledown theory of poverty reduction links poverty reduction to employment

and then to economic development. The theory also sees unemployment as the major cause of

poverty. And so to reduce poverty in an economy, employment opportunities should be created

by adopting labor-intensive modes of production in every enterprise.

2.2.3 Venture Performance Theory

Because of the social and economic value of new business enterprises, models leading to an

improving understanding of the determinants of new venture performance will be used in this

literature. The venture performance theory focuses on understanding the impact of certain

parameters on the performance of any one policy souls such as poverty reduction, job creation,

corporate performance and industrial growth. The theory which was proposed by Sandberg and

Hoer (1987) state that the performance of any one policy goal is a function of industry structure,

venture strategy and the state of entrepreneurial development. The model specified that

performance is a confluence of factors that encompass entrepreneurial development (E) strategy

(S) and industry structure (IS) show below.

Venture performance =F (E, S, IS)………………………………………………………..(i)

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Using information on new venture, Sandberg and Hoer (2017) found evidence that industry

structure and strategy separately and in combination influenced new venture performance and the

performance of policy goals. Although their data did not find any supportive role of

entrepreneurial development, this point to the weakness of the model in that it measures job

variance and its other variance by new venture performance of the capitalist. For such model, it

is not likely that poverty reduction is considered a primary goal. Also though the model identifies

entrepreneurial development as a determinant of this venture performance, Sandberg and Hofer

found no significant evidence. This is because the theory is based on a capitalist economy.

2.2.4 Theories of Entrepreneurial Development

Theories of entrepreneurial development focuses on identifying the key characteristics that

entrepreneurs should possess if they are to grow their business. These characteristics include

leadership and risk bearing, etc. Alverec (2014) proposes individual/opportunity nexus. While

Vankata (2023) proposed the creative theory. Both theories base their arguments on

entrepreneurs discovering avenues of business expansion or simply. “creating’’ those

opportunities respectively. While these theories suggest that entrepreneurs should be alert to

opportunities, should be risk takers, etc. they do not link entrepreneurial development to job

creation and poverty reduction. These theories only focus on how entrepreneurship development

can be achieved and not on impact it can have on poverty unemployment.

2.2.5 Human Capital Theory

Simpeh (2011), stipulates that the theory of human capital development is focused on education,

creativity and experience which invariably leads to entrepreneurial development and

employment sustainability (as cited in Gary Becker, 1975). The theory postulates that human

12
capital theory engages the ability to recognize and exploit opportunities to be used to the

advantage of an entrepreneur.

2.3 Empirical Review

Pages and Poole (2013) studied the role of entrepreneurship development on economic

development, Maine, Nevade and Pennsylvania (all in the United States). The objective of their

study was to evaluate the role of entrepreneurial development on economic development using

job creation (among other variables) as a proxy. Their method includes the use of simple

descriptive statistics. They found that in all the States, job creation and new firm creation are the

most commonly used measures for entrepreneurial development. And that given adequate non-

financial support, new enterprises in all the states are expected to contribute to job creation

within 16 month of start-up. The non-financial support include regulatory policies and tax

incentives. Each of these, based on their arguments, are critical to entrepreneurial survival in the

three States.

Their study suggests that through regulatory and adequate tax incentives, enterprises in the study

area would contribute to job creation and hence economic development. The study did not

correlate with the tax system in places like Kaduna state where the tax culture is still very poor.

However, the study suggests that regulatory support (which was linked to creating the right

business environment could help bring about entrepreneurial development and job creation. In

March 2013, the Aga Khan Development network (AKDN) lunched the activities of the Aga

Khan agency for micro-finance in Syria. The programme initiative such as the Aga Khan rural

support programme in Pakistan and the enterprises support programmes at Tajikistan (2003).

Using historical method of study, they found that macro-credits enable communities access funds

to help them obtain a better quality of life and to become self-reliant. They argue that micro-

13
credit programmes and institution Support to selected enterprises in Syria had helped to bring

about reduction in the level of poverty. They noted that through the impact of micro-credit as a

veritable tool of entrepreneurial support is not immediately seen, the programme encourages

small scale enterprises to build their income while simultaneously helping the community

through job creation and greater economic autonomy.

Baptista and Carias (2017), examine job creation and destruction by different size classes of firm

in the Portuguese region, paying particular attention to job flow in growing and declining

industries and in more entrepreneurial versus more managerial section and regions, they applied

the flow approach to the assessment of job creation and destruction by small firms versus their

large counterpart, addressing various measurement issues in order to avoid, the main pitfalls.

Particularly, they looked at job flows per section and within regions and attempted to identify

irregularities in job creation and destruction. Their result confirms that both job creation and

destruction across sectors and regions are highly concentrated among relatively few firms. This

is true not just for small firms but in all classes of enterprises as well. While the product life

cycles significantly influence the pattern and magnitude of job flows, different industries and

regional technology regimes play a less significant role. Micro-firm (consisting of 10-15

employees) are the ones that have greater in small firm than in large ones particularly during

recession or low growth period.

This implies that in areas with relatively low economic growth rate, new firm formation (which

are largely due to necessity based business ownership) are known to ‘’employ’’ a large

proportion of the population. Thus, with a little help and support these ‘one man business’ could

become small scale enterprise that provide employment in the community and thereby help in

reducing poverty.

14
Henry, et.al, (2017) examine the impact of trade reforms on the welfare of the poor in Trinidad

and Tobago, using quantitative method of data collection from the field. They argue that for

small scale enterprises to help reduce poverty, government support (in form of trade reform)

should be given to these enterprises so as to increase their competitiveness. The methodology

adopted by the study links trade reforms particularly trade liberalization to poverty reduction.

Their argument was that small enterprises could grow into large scale enterprises if government

provides entrepreneurial support at the infant stage of the enterprises, and at some future data

(through trade reform liberalization) re-direct the enterprise to competitiveness. This argued will

bring about poverty reduction.

Oluremi, (2021) considered the development of entrepreneurship as a means of creating the

needed

jobs in Nigeria. Descriptive and inferential Statistics (Multiple Regression Analysis) were used

in the study, a sample size of 336 respondents was selected using the Cochran formula (at an

alpha level of 0.05) from 2,690 registered SMEs in the Federal Capital Territory, Abuja.

Stratified random sampling technique was considered while SPSS 25 was used for data analysis.

The study concludes that there is a strong positive relationship between entrepreneurship

development and employment generation in Nigeria. Findings revealed that the employment

generation of the entrepreneur is influenced by its access to finance and access to stable

electricity. The study, therefore, recommends that Government should focus on the establishment

of an Entrepreneurship Commission whose role will be to oversee all entrepreneurship activities

in the country, ensure financial institutions set aside 5% of their profit as low-interest loans to

entrepreneurs and enforce its implementation.

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Okeke, Ugwu, Nebeife, and Ngige. (2020) focused on entrepreneurship and employment

generation in selected manufacturing firms in South East Nigeria. This study aimed at

ascertaining the extent entrepreneurship risk-taking impact on employment generation to the

state as well as to examine the extent entrepreneurial creativity impact on economic activities in

the state. The data collected from respondents through questionnaire were analyzed with tabular

presentation and percentage. The population of the study was 2820 people while the sample size

of 350 was obtained using Taro Yamane formular, and Mario Boley sampling technique and chi-

square statistical tools were used to analyze the data. The major finding revealed that

entrepreneurship risk taking in the state generated employment to the people. Also the

entrepreneurs assisted in job creation for unemployed youths and the entrepreneurs engage in

economic activities through the production of goods and services. It was also found that some of

the goods produced by the entrepreneurs serves as raw materials for further production.

Therefore entrepreneurship risk taking have a significant positive effect on employment

generation and also the entrepreneurial creativity have a significant positive effect on economic

activities in the state.

In Nigeria Anyanwu (2017) documents that after the implementation of trade liberalization

policies in 1986; business environment became harsh and crowded out small scale entrepreneurs.

Before 1986, entrepreneurs were largely owned by the government and enjoy huge government

support. But as soon as trade reform/liberalization polices were introduced through the Structural

Adjustment Programme (SAP), most enterprises folded up. This led to an increase in

unemployment and poverty rate. Thus the argument of Henry et.al; (2007) may not be valid for

the case of Nigeria in general. However, there is sure to be significant import of job creation and

16
poverty reduction when government reforms toward entrepreneurial development are considered

supportive.

Periquet (2006) in a paper on entrepreneurial development considered the case of

entrepreneurship in the Philippines, the descriptive evaluation shows that the great bulk of

Philippines enterprise are micro-enterprises which make up 91.9% with small and medium

enterprises (SMC’s) comprising only 7.8% of the total number of enterprise (802,271). The

paper above by Periquet (2006) identified entrepreneurial development as a process that could

hasten rural development. However, four (4) ways of bringing about entrepreneurial

development were suggested and they include; development human capital, access to funding,

removing barrier to new business start-up, innovation and technology.

Those recommendation imply that, small scale enterprises would need to build up human capital

and get access to funds if their enterprise must contribute to poverty reduction and job creation.

There will also be the need for government support to help these enterprises in overcoming the

barrier to new business creation. This could be in the form of subsidizing the cost of technology

and other business start-up cost/registration procedures.

Aces (2016) studied the impact of entrepreneurship on economic growth. He argue that an

entrepreneur creates new business and now business in turn create new job, this intensifies

competition and may even increase productivity through technology changes. High measure

levels of entrepreneurship will translate directly into high level of economic growth. Several

studies have also friend to evaluate the impact of entrepreneurial development (by using other

proxy’s for this variable) on economic growth i.e. employment creation, poverty reduction and

so on.

17
Barro (1991) find that the average share of public investment had a positive, but statistically

insignificant impact on economic growth. This was followed by a study by Easterly and Rebelo

(2013) which extended the analysis in two directions. First, they included investment by public

enterprises as well as by central government. Secondly, they distinguished between public

investments in different sectors. In contrast with Barro (2011) they find that public investment

had a positive and statistically significantly effect on economic growth.

These arguments bring out one important point that public investment has an impact on

economic performance. Though there tends to be a disagreement in terms of the direction, what

is certain is that government support to enterprises has some kind of significance on economic

growth. This is consistent with the finding of Milbourne, et.al (2003) who both tested that public

investment has a positive and statistically significant impact on economic growth.

The development process of any country is determined by the way the production forces in and

around the economy is organized. For most countries the development of industry had depended

a great deal on the role of private sector. Entrepreneurship has played a major role in this regard.

This opinion is supported by Ogundele (2017) that the promotion and development of

entrepreneurial activities would aid the dispersal and diversification of economic activities and

induce even development in a country. Similarly, Osuagwu (2012) added that entrepreneurial

development in Nigeria should be perceived as a catalyst to increase the rate of economic

growth, create job opportunities, reduces import of manufactured goods and decrease the trade

deficits that result from such imports.

In addition, Ariyo (2008) noted that if Nigeria wants to reach its full potential in terms of

economic and social developments, it cannot afford to ignore the importance of its indigenous

entrepreneurs and the contributions that they make to the country’s economy. Entrepreneurship

18
remains the gateway to sustainable wealth creation in Nigeria (Ogundele, 2020). In view of

Matanmi and Awodun (2015), if Nigeria desire to move out of the disturbing high level of

unemployment and ravaging level of poverty, adequate attention must be given to the growth of

entrepreneurship. They concluded that Nigeria still remain in the doldrums because of the

combination of ignorance, low capacity building and lack of encouragement of entrepreneurship.

The successful contribution of entrepreneurship to poverty alleviation and economic

development in Lagos State depends on entrepreneurship training and orientation.

Entrepreneurship, according to Ogundele (2010) is the process of emergence behaviour and

performance of entrepreneur. Entrepreneurship education is a structured formal conveyance of

entrepreneurial competencies, which in turn refers to the concepts, skills and mental awareness

used by individuals during the process of starting and developing their growth-oriented ventures.

Another view of entrepreneurship development is the term given to someone who has innovative

ideas and transforms them to profitable activities (Omolayo, 2016). Entrepreneurial orientation is

the development of entrepreneurial skills, effective and efficient application of the skills in

management of business to create a significant difference from other business, recognizing the

skill and allowing it to function effectively.

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 CHAPTER THREE

3.0 METHODOLOGY

3.1 Research Design

This study adopted the survey research design. It involved using a self-designed questionnaire in

collecting data from the respondents. The area of study is Owo local government area. Owo is a

Local Government Area in Ondo state, Nigeria. The towns that make up the local government

are Owo, Iyere, Uso, Emure-Ile, Ita-Ipele, Emurin and Isuada. The indigenous language of Owo

people are Yoruba language and farming and petty trading are mainly their occupation.

3.2 Population of the Study

The population of this study is one hundred and sixty-eight thousand twenty-nine 168,029. The

sample size of 399.05 was determined using Taro Yamane (1964). Secondary and primary

20
sources of data will be used in this study. Percentage table was used to analyze the

demographical data. 3.3 Sample and Sampling Techniques

n= N

1 + N (e)2

Where n = Sample Size

N = Population = 168,029

e = Level of significance (0.05)

n= Sample size

And substituting the values

n = 168,029

1 + 168,029(0.05)2

= 1058

421.07

n = 399.05

The sample value is Four Hundred (400).

3.4 Methods of Data Collection

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There are several methods of data collection. Among the various methods available, the ones

used specifically for this study is the questionnaire discussed below:

Questionnaire: Survey testing represents the most systematic program conducted. The

questionnaire is perhaps, the most used and the most abused survey instrument (Osuala, 2015).

Osuala argued that, too often, it is used to provide a pooling of ignorance in situations where

only an experimental method can provide a meaningful answer. Questionnaire really constitutes

the first attempt at scaling. The questionnaires are advantageous whenever the sample size is

large enough to make it uneconomical for reasons of time or funds to observe or interview every

subject.

The questionnaires designed are in two parts. The first part is a classification section. This

requires such details of the respondent sex, age, occupation etc. The second part possesses the

questions relating to the subject matter of the inquiry. The responses for this second part form the

basis of our data presentation and analysis. This represents purely the primary source of data

collection.

The questionnaire designed contains both closed and Likert scale questions section A and section

B respectively.

3.5 Instruments and Measurement

The basic analyses used in this study are the conventional instruments that are frequently

employed for statistical analyses and measurement in most studies. These tools of analysis are

tables which are used for the presentation of information and data in a tabular form those

acquired from the field in percentages and frequencies. Charts are equally used to present the

information displaying their trend or movement over time and space.

3.6 Method of Data Analysis

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The study will use descriptive and inferential analysis techniques to analyze data. The descriptive

statistics will be used base on percentages, mean and standard deviations which indicate the

average performance of a group or a measure of some variables of the research questions

Hypotheses will be analyzed using Analysis of variance test (ANOVA) at 0.05% level of

significance.

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