This study investigates the effects of entrepreneurship development on employment generation. The research focused on youths of five selected and student of Lafia Local Government Nasarawa state, Nigeria. Data were collected using questionnaire from an infinite population of the selected Local Government. Samples of 133 youths were drawn from the population of the local government. A total of 200 youths and students were sample for the study.






  • Background of the study

There is no country in the modern world where an improvement in the material level of living is not regarded as a desirable goal by rulers and citizens alike. The growing acceptance of the need to do something for the poor, can be noticed in the numerous poverty alleviation programmes in Nigeria, the average Nigerian still lives subsist below the absolute poverty line. Amongst the challenges that confront Nigeria, a major contributory factor was the style and expectations of the development strategy that was pursued and faced with this failure; the need for a meaningful national development is not only necessary but also imperative. To this end, a lot of economic reform programmes or strategies have evolved but recently special emphasis is being made on self-reliance via entrepreneur and its numerous small and medium enterprises. The economic success of the countries of south east, Asia, and America is traceable to the contributions made by self-reliant individuals (entrepreneurs), through their numerous small medium development depend on the entrepreneur who makes a living by creating new business new jobs and new ideas. Entrepreneur means different things to different people. In other to appreciate this study more, some concepts that are associated with this study will be explained.According to Oxford advanced Learner’s dictionary it defines entrepreneur as a person who starts or organizes a commercial enterprises, especially one involving financial risk. To an economist, entrepreneur is one who brings resources, labour, materials and other assets into combination that make their value greater than before and who introduce changes, innovations and a new order. Entrepreneurs are the risk takers who create businesses; they assemble all the factors of production in an effort to start and operate a business and to make a profit. For Schumpeter “the whole process of economic change hung ultimately on the person who makes it happen–the entrepreneurs”. Entrepreneurship involves combining to initiate changes in production hence it is essentially the promotion of economic change, it is a process involving the entrepreneur and an entrepreneurial career. Hirsch and Peters in their text entitled entrepreneurship: describes this process as one of creating something difficult with value by devoting the necessary time and assuming the accompanying financial, psychic and social risks and receiving the resulting, the rewards of monetary and personal satisfaction. In Nigeria, many policies are constantly being implemented to ensure their survival which will in turn enable them contribute maximally to economic development but there challenges were intensified more by the perennial energy crisis, weak infrastructure, poor import and export policies, tariff structure among others, which have prevailed in the country for some time now. These have, inevitably led to the near collapse and failure of the small scale enterprises. The government of this country should look into the modalities of solving these challenges. It is therefore against this background that this work sets out to evaluate entrepreneurship development in Lafia Metropolis, Nassarawa State, considering some small scale enterprises.



It has been observed that some of the problems associated with entrepreneurship development and job creation in Nassarawa state include but not limited to: Incompetence of Management: The major hazard of an entrepreneurship business is the incompetence of management. A small business owner may know all the management principles and theories; his management practice may jeopardize his business. He may not possess the leadership qualities, be unwilling to delegate authority, lack of appropriate human relations ability and may not possess the appropriate skills of management; such a business operated by this business owner is likely to fail. Inadequacy of Infrastructural Facilities: Water, electricity, accessible roads, and other means of communication are sine quanon to the efficient performance of entrepreneurship enterprise. Their absence or inadequacy affects negatively the efficient performance of entrepreneurial businesses.

Disaster: There are certain circumstances over which small scale business owner may have little or no control. Natural disaster such as thunder, product or accident or sudden death of the owner may adversely affect the operation of the small scale business enterprise. High Rate of Loan Diversion and Defaults: Loans obtained from government, banks and individual persons are used to promote personal aggrandizement instead of the corporate objective of the business and hence failure to repay the loan plus interest affects the business. Inadequate Credit Control: A common problem facing entrepreneurial business owner is whether or not to extend credit. Some small scale business enterprise possesses credit granting practices, credits extended to friends and relations are often times too hard to collect in times of need. This therefore, increases the financial predicament of the business owner. Inadequate Planning: Planning a business begins with gathering and evaluating data on resources requirements, operating costs, potential markets and sales, competition, supplies, relevant government regulations, etc. Unfortunately, however, many eager business owners push ahead impulsively, without paining attention to planning, and thus business failure sets in. Lack of the use of modern method of gathering and analysing data constituted a weak point in the small business strategies planning effort. Poor Business Accountability: The financial problem of small scale enterprises is rarely only financial. Often it is only a symptom, the diagnosis of which reveals other weaknesses. Business finance and stress are mixed up with personal finance and stacks required for personal needs cash and slacks are taken at will for personal use whenever the need arises without accounting for such withdrawals. This makes is difficult to assess the operating results of the business and at times starves the forms of its liquid resources. Hence, the need for this study on the effect of entrepreneurship development on employment generation in Lafia Metropolis, Nassarawa State.



The aim of this topic is to recall the pivotal role, which entrepreneurs and the small medium enterprises are expected to play in modern economics. Therefore the study will make every effort to reveal the various ways to encourage entrepreneurship development geared towards employment generation in Lafia Metropolis, Nassarawa State. The specific objectives of this study are as follows;

(1)     To identify the constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome.

(2)     To determine the level of awareness of people towards entrepreneurship development as a tool for employment generation in Lafia Metropolis.

(3)     To examine various ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development.

(4)     By extension and implication, the study shall provide how the government both state and national and also the society will influence positively on entrepreneurship and its development.



For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0:  there are no constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome

H1:  there are constraints encountered by entrepreneurs as a sole operator or as a bigger organization and how their challenges can be overcome

H02: there are no ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development

H2:  there are ways that will be employed to develop entrepreneurship in order to get the desired result of employment creation and development


The research work will be of great significance to students, prospective and practicing entrepreneurs, co-operators, chief executives and other practicing managers of business and non–business organizations. The research work will serve as a background and catalyst to any future researchers and scholars who may wish to venture into the areas of promoting employment creation and entrepreneurship development in Lafia Metropolis. Again the outcome of the research could be significance to the people with different occupations and professions. The conclusion which this research may expose, could lead to improvement and efficiency in Lafia Metropolis, Nassarawa as regard to entrepreneurship. The confidence level on embarking on entrepreneurship development in Nigeria will improve, and more people or the general public will agree to venture in that business.


The study focuses on the effects of entrepreneurship development on employment generation in Lafia Metropolis; a case study of small scale enterprises. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

Entrepreneur: Stone and freeman (1992:156) defined it as either the originator of a new business venture or a manager who tries to improve an organizational unit by initiating productive changes. In other words, it is an individual or group of individuals, who sees environmental change as an opportunity and uses the factors of production to produce new goods and service.

Entrepreneurship: Hisrich, (1995:17) Defines Entrepreneurship as a process of creating something different with the value by devoting the necessary time and effort assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction.

Small Scale Enterprise: Onuoha (1994:322), citing Osaze (1996), sees small business as one which is owned, managed and controlled by one or two persons, is family influenced in decision makings, has a differentiated organizational structure has a relatively small share of the market and employs less than 50 people.

Entrepreneurship Development: This is the coming into existence in society of the class of individuals, who are not limited to pace odds.

Employment Generation: this refers simply to creation of job opportunities either through entrepreneurial ventures or government empowerment schemes etc


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study


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