O

ENTREPRENEURIAL SPIRIT AMONG TERTIARY

STUDENTS IN NIGERIA

BY

DR. (MRS.) S. L. ADEYEMI

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF ILORIN

ABSTRACT

Much has been reported in the press (Financial Business Times Emphasis on Examination results may curb Entrepreneurship, Olokun, 1995 in Third Eye Daily The development of Entrepreneurship in Nigeria) about the lack of entrepreneurial spirit among young Nigerians today. There appears to be a shortage of industrial, export-oriented and outward-looking entrepreneurs. It is noted that Nigerian tertiary students are generally not interested or are not willing to be self-employed or to start their own business. Many preferred to be wage-earners in the public and private sectors.This is particularly true for university graduates who can command relatively high earnings and job security. Therefore they would prefer not to start out on their own which may entail higher risks. This study seeks to explore whether entrepreneurial spirit exists among Nigeria tertiary students or there is really a dearth of budding entrepreneurs among the tertiary students. The objective therefore is to verify the extent of truth in the press reports.The underlying motivation behind this present research is to assess the risk-seeking optitude and innovative nature (creativity) prevalent among the tertiary students who represent the bulk of the young population and future leader of Nigeria. With the findings so gathered, suggestions and recommendations can then be put forward as to how to nurture or enhance the entrepreneurial spirit that is so vital to Nigeria.

INTRODUCTIOIN

It has been reported in the News paper that there is a lack of entrepreneurial spirit among young Nigerian today. The Financial Business Time, (1993) there also appears to be a shortage of industrial, export-oriented and outward-looking entrepreneurs Third Eye Daily (1995). It is noted that Nigeria tertiary students are generally not interested or are not willing to be self-employed or to start their own business, preferring job security and relatively high pay jobs. The examination orientation of the education system has also been accused of being responsible for this situation. This study seeks to explore whether entrepreneurial spirit exist among Nigeria tertiary students or is there really a dearth of budding entrepreneurs among the tertiary students.

ENTREPRENEURIAL SPIRIT A WORKING DEFINITION

Entrepreneurship has been variously defined Baudear saw entrepreneurship as innovative management (Baudear, (1910); Cantillion (1965) described it as self-employment accompanied with uncertainty in returns; Kao (1993) extended the definition to include the process of wealth and value creation. Others focused on the entrepreneur. Schumpeter (1934) considered the entrepreneur to be an innovator who carried out new combinations; say (1964) and Knight, (1921) were of the view that he was an extraordinary manager with Say considering him a highly talented manager and Knight described him as a managerial risk-taker.Marshal (1964) drew a distinction between an entrepreneur and a manager. In more recent times Drucker (1985) called him an opportunity maximizer. Recent literature on the entrepreneur can be grouped into the descriptive and the prescriptive approaches, the traits model and the social development model. Under the descriptive approach, an entrepreneur is defined by describing the characteristics or attributes that he possess. Some of the attributes in the literature include the internal locus of control Rotter (1966), a high need for achievement McClelland (1961); Brockhaus, (1980), Clayton (1981) and possession of vision and a sense of mission (Silver, 1986, 1988). Flexibility, imagination and a willingness to take risks were added to the growing list of attribute by Stevenson and Gumpert (1985) form their study. A total of eleven common characteristics were identified in independent studies by Baumback (1981), Welsh and Young (1984), and Welsh and White (1983): namely: good health, realism, superior conceptual ability, self confidence, a need to control or direct (internal locus of control), attraction to challenges, sufficient emotional stability, self control, initiative, balance and control and enterprises (self reliant attitude supported by confidence in ones ability to take risks). Sexton and Bowman (1985) study showed the entrepreneur to be tolerant of ambiguity, preferring autonomy, aloof, enjoying risk taking, resists conformity and readily adapting to changes. Another recent study found entrepreneurs starting larger firms tend to have more education, more management experience and objectives that were more entrepreneurial in nature ( cooper, A. C. et al, 1989). Yee (1992) study supported the risk- taking attitude first presented by earlier studies an entrepreneur is an incubator of novel ideas who is distinguished from the run- of-mill small business sense, innovativeness and the willingness to take risks.The prescriptive approach sought to prescribe what an entrepreneur should be, and not the characteristics of an entrepreneur, Jean Baptize Say (1762 1832), for example prescribed that an entrepreneur must have judgment, perseverance and a knowledge of the world as well as of business.; and must possess the art of superintendence and administration. Richard Cantillon suggested that an entrepreneur needs to have the foresight and willingness to assume risks and take the necessary action to seize profitable opportunities in the market place. Moussair (1988) stated in his (unpublished) Ph.D. thesis that an entrepreneur must have the ability to communicate effectively. Duncan emphasized the need for an entrepreneur should also have the relevant skills for identifying a market niche and developing a venture for that niche as a key ingredient for business success ( Duncan, 1991). Chan and Sobey (1993) stated that a person must have the ability to perceive and evaluate opportunities in a global perspective to be effective as an entrepreneur in the 21st Century. The traits model sought to identify a single personality trait or constellation of traits capable of successfully predicting entrepreneurial behaviour patterns. The best known trait is the Need Achievement (nAch) associated with McClelland (1961). Another single trait approach is one which attempts to measure locus of control or the extent to which people believe that they control their own destinies.Gibb and Ritchie (1981) argued that the traditional view, that entrepreneurs were born and not made, largely ignored environmental influences. They proposed a social development model, suggesting that entrepreneurship can be fully understood in terms of the types of situation encountered and the social groups to which individuals relate. A fourfold typology (the Improvisers, the Revisionists, the Superceders and the Reverters) spanning the life cycle and suggesting certain key influences at each stage was proposed. It has been argued by some psychologists, notably Sheehy (1976), that there are particular turning points throughout the course of the life cycle, where individuals work through personal transitions in order to satisfy and reconcile their own changed goals, needs and ambitions with the opportunities, circumstances and situations which they currently find themselves in.Despite some early acceptance, recent criticisms have been cast on the validity of both approaches. There have been subjectivity and lack of consistency with regard to measurement of the traits. Training designed to raise levels of nAch has been said to influence only surface behaviour and usually results in temporary effects. The social development model has been criticized as being an entirely situational model, which loses sight of the individual. Further, it dose not explain more than the traditional view that it was critical of and is equally guilty of not being able to predict who is likely to succeed as an entrepreneur.

There is no definition of entrepreneurial spirit in entrepreneurship literature. The phrase is imprecise and is capable of different definitions depending on the context of its usage., Kao (1989), for example, uses the term to refer to the retention of the entrepreneurial outlook and stance in an entrepreneurs venture, after it has expanded and has introduced professional management. In the context of this study, it was necessary to arrive at an operational definition/measure of entrepreneurial spirit. It can be seen from the literature that though there are variations in the definition of an entrepreneur, certain attributes received significantly repeated attention; namely, risk-taking, locus of control, innovative, leadership qualities, strong determination and achievement-orientation. Hence, it was decided that these six characteristics would form the basis of this research provide the working definition of entrepreneurial spirit. The frequent identification of these attributes in the definition of an entrepreneur, verified in the studies conducted amongst entrepreneurs, would support a hypothesis that if these attributes are found in the sample, that an entrepreneurial spirit exists.

METHODOLOGYTo verify if an entrepreneurial spirit existed in tertiary students, it was decided to employ a questionnaire survey on a sample of tertiary students. The tertiary institutions in Nigeria include two university, (University of Ilorin and University of Technology Minna), five polytechnics (Kwara Polytechnic, Federal Polytechnic Offa, Ire Polytechnic, Ibadan Polytechnic and Bida Polytechnic) and other tertiary institutions (such as Institute of Education and Nigerian Institute of Management). The study was carried out on a stratified sample. The population was broken down into five main groups identified. Five major tertiary institutions: University of Ilorin, (UI) Federal University of Technology, Minna, (FUT), Ibadan Polytechnic (IP), Kwara Polytechnic (KP) and Federal Polytechnic Offa. (FEDPOLY) were chosen as they offered courses for the stratified groups. These contributed to a representative samples for meaningful approximation to the tertiary student population. The sample size was set at two hundred and fourty.FacultyUIFUTIPKP/FPTOTAL(%)

1) Business Management 15/1511/1513/1515/1554/60 (90.0)

2) Engineering15/1514/1514/1515/1558/60 (96.7)

3) Arts12/1210/1210/1210/1242/48 (87.5)

4) Computing Technology12/1210/1210/1210/1242/48 (87.5)

5) Science12/1212/1210/1210/1222/24 (91.7)

TOTAL54/5457/6647/5460/66218/240

Percentage %100.086.487.090.990.8

NOTE: - Denominator: Sample Distribution

Numerator: Response PatternFifteen questionnaires were given out to the Business and Engineering students in each of the five tertiary institutions and twelve questionnaires were given out to be to the Arts, Computing and Science students to reflect the greater number of more tertiary students are pursuing the first group of courses and to ensure that the sample is proportionately representative of the tertiary population. The response rate was 100% however, owing to missing, incomplete and invalid responses, twenty-two questionnaires were rejected and the adjusted response rate was 90.8%. The high response rate is attributable to the data collection by way of group interviews (4 to 8 students in a group). Steps were taken to reduce bias in the respondents questions were asked in a standard manner with all replies dutifully recorded without expressions and gestures to suggest approval or disapproval.A copy of the questionnaire employed is attached in Appendix 1. It consisted a total of 35 questions. Sections One and Two contained 26 questions one of the six key characteristics used to assess the respondents entrepreneurial spirit. These questions were randomly distributed in the questionnaire to prevent detection of the attributes being tested and to eliminate respondent bias. More questions were assigned to three of the six characteristics risk seeking (seven questions), achievement orientation (5) attributes. Sections Three was included for general findings. In addition, a segment on demographics was also included for further content analysis. The questionnaire was pre-tested on 30 tertiary students and refined to remove ambiguity.To assess the respondents possession of entrepreneurial spirit the following rating scheme was chosen. The questionnaire was designed so that the number of questions for each of the six key characteristics added up to an odd number. Thus a respondent answering positively to say, 3 out of 5 questions on risk-seeking, would be sub-classified as begin a risk seeker. This process would continue for the rest of the key characteristics. This respondent would be considered as possessing entrepreneurial spirit if he has at least answered positively for four out of the six key characteristics tested. This was to ensure that a more well-rounded definition of entrepreneurial spirit was achieved. This rating scheme was chose in preference to the other possible schemes (example, scale basis) as they were not as effective in ensuring that a particular respondent who scored high marks for the whole questionnaire because he might have scored high marks for the less critical characteristics, and answered negatively on the more critical ones. Further, adopting another rating scheme would have involved designating a certain passing mark for assessing respondents who possessed entrepreneurial spirit from those who did not and there would be no basis for choosing a particular point.

Figure 4.1, Percentage of Respondents being assessed if they possess entrepreneurial spiritOn analyzing the responses and using the rating scheme referred to in the earlier section the survey response appears to support earlier press findings (Third Eye Daily) The development of entrepreneurship in Nigeria that young Nigerians are not entrepreneurial enough, as only 47% of the sample were assessed to have entrepreneurial spirit. However, the difference between those deemed to have entrepreneurial spirit and those who are deemed to possess it, is not substantial (only 6%). It is likely that with a less stringent rating scheme, more students would be able to pass the test and the overall conclusion would be that entrepreneurial spirit is prevalent among the young population, thus refuting the press reports.The entrepreneurial spirit of respondents may be result of their social economic background, training and education, preferences and personal attributes. As such, personal characteristics, experience and education were examined in the study.

Gender: The survey findings showed that 50.9% of the male respondents possessed entrepreneurial spirit as opposed to 43.3% of the female respondents. This observation would appear to be in line with traditional viewpoints that the self employed sector is the domain of the male gender. Various studies had asserted that women generally made a different career choice (Welsh and Young 1984; Hisrich and Brush, 1986; Cromie 1987). By way of conjecture, it may be able to explain this gender difference on the socio-cultural context in Africa where men are expected to be the sole breadwinners and may be motivated to start-up businesses for better rewards, where women are not (at least not in the recent past) brought up to play supportive roles in the family and not expected to undertake such risks. Using the Chi-square test for association at the 5% level of significance we find that gender is independent of entrepreneurial spirit. Therefore, generalizations cannot be made. Furthermore, the difference between the scoring of males and females (7.6%) is on substantial. On the other hand, the small difference could be a manifestation of the observation made elsewhere that the self- employment rate of females is increasing three times faster than that of males (Hisrich & Brush, 1984).

Education Level: It had been reported in the newspaper that polytechnic students are generally more entrepreneurial in nature than undergraduates. (The Financial Business Times, 4 Sep 1993) The article further attributed the results of their findings to the fact that polytechnic students have the necessary skills and more practical training than their undergraduate counterparts. In addition, the polytechnic students viewed their prospects of working under others as less promising compared to undergraduates. They feared promotional barriers and were thus more motivated to set up their own businesses. Contrary to this, the entrepreneurial spirit: 46.9% undergraduate respondents versus 44.7% polytechnic respondents. This result appears to be consistent with other studies that have found that the propensity of an individual choice of self-employment increases with the educational level (Hisrich, 1984; Rees and Shah, 1986; Gill, 1988; and Dolton and Makepeace, 1990). Using the chi-square test for association at the 5% level of significance, we find that educational level (i.e. undergraduate versus polytechnic) is independent of entrepreneurial spirit.Other factors: The effect of work experience on entrepreneurial spirit was another factor examined. The survey results showed that of those possessing entrepreneurial, 51.3% and work experience and 42.4% did not. The Chi-square test for association at the 5% level significance showed that work experience is associated with entrepreneurial spirit.On examining the effect of the presence of family businesses and entrepreneurial spirit, the survey results showed that those possessing entrepreneurial, 61.5% were form families with businesses and 44.1% were from families without businesses. Using the Chi-square test for association at the 5% level of significance, it was found that the presence of family businesses is associated with entrepreneurial spirit. Both the finding on work experience and the presence of family seem to reinforce the social development model of entrepreneurship.Conclusion

The main purpose of this study was to examine the validity of reports that the young Nigerians lacked entrepreneurial spirit. It sought to examine the possession of entrepreneurial spirit by tertiary students using a definitions of entrepreneurial spirit based on six key characteristics of entrepreneurs that have been featured in the literature. Employing a questionnaire, which was administered in group interviews on a stratified sample of tertiary students, it was found that tertiary students lacked entrepreneurial spirit when they were assessed on a stringent rating scheme (answering the questionnaire positively for any 4 of the six key characteristics). Using the Chi-square test for association at the 5% level significance, it was found that gender, race and educational level are independent of entrepreneurial spirit whilst work experience and the presence of family businesses are associated with family business.The finding that only 47% of the sample possessed entrepreneurial spirit would be alarming if entrepreneurship is desired for Nigerias continued prosperity. However, it must be borne in mind that no national programmed of entrepreneurship development exits at present in the education system and that should that be introduced, the picture might be different. Further, the entrepreneurship and small business management courses are not compulsory for tertiary students. The association of work experience and entrepreneurial spirit would imply that the policy of some tertiary institutions in placing the students in attachment programmes and entrepreneurial spirit would have to be the subject of future study.REFERENCE:Baudeau, N. , 1910, Premiere Introduction a la Philosophie Economique ou analyse des Etats Policies. Paris: Librarierie Paul Geuthner.Brockhaus, R.H., 1980, Risk-taking propensity of entrepreneurs, Academy of Management Journal.

Brockhaus, R.H., 1982, The psychology of the entrepreneur in Kent, C. A., Sexton, D.L., and Vesper, K.H. et al (eds.) Encyclopaedia of Entrepreneurship. Englewood Cliff, J.J.: Prentice-Hall, P. 39-56.

Cantillon, R., 1965, Essai Sur le Nature du Commerce en General. New York: August M. Kelley.

Clayton, O., 1981, Planning A Career As A Business, Business Edition Forum.

Chan, T. S., and Sobey, F.H., 1993, International entrepreneurship edition: Strategic alliance among business, government and university, Proceedings of the ENDEC World Conference on Entrepreneurship.

Cooper, A.C., Woo, C.Y., and Dunkelberg, W.C., 1989, Entrepreneurship and the initial small size of firms, Journal of Business Venturing, 4(5):317-332.

Cromie, S., 1987, Similarities and differences between women and men who choose proprietorship, International Small Business Journal, 5(3) : 43-60.

Dolton, P.J. and Makepeace, G. H., 1990, Self- employment among graduates, Bulletin of Economic Research, 42(1): 35-53.

Drucker, P.F., 1985, Innovation and Entrepreneurship, New York: Harper & Row.

Gibb, A., and Ritchie, J., 1981, Influences as entrepreneurship: A study over time Bolton ten years on , Proceedings of the UK small Business Research Conference, Polytechnic Central London, November, p. 20-21.

Gill, A. M., 1988, Choice of employment status and wages of employees and the self-employed: Some further evidence, Journal of Applied Econometrics, 3(3): 229-234

Hamzah- Sendut, T.S.D., Madsen, J., and Thong, G., 1990, Managing in a Plural Society, Singapore: Longman.Hisrich, R.D. and Brush, C.G., 1984, The woman entrepreneur : Management skills and business problems, Journal of Small Business Management, 22(1): 30-37.

Hisrich, R.D. and Brush, C.G.,1986, Characteristics of the minority entrepreneurs, Journal of Small Business Management, 24(4):1-8.Kao, R.W.Y., 1993, Entrepreneurship, past, present and ?, Creativity and Innovation Management. 3(1)

Knight, F. H., 1921, Risk, Uncertainty and Profit. New York: Kelley and Millman, Inc.

Marshall, a., 1964 Principles of Economics, 8th ed. London: Macmillian and Co. McClelland, D. C. 9161, The Achieving Society. New York: Van Nostrand.

McClelland, D. C. 1962, Business Drive and National Achievement, Harvard Business Review, July-August,??

Moussair Barab, Mr Ayoub, 19988, Success and Failure in Small Business: The Case of Manufacturing Firms in California, Ph.D. Thesis, United States International University.

Olokun Aluko (1985), Third Eye Daily The Development of Entrepreneurship in Nigeria. October 17, 1995

Rees, H. and Shah, A., 1986, An empirical analysis of self-employment in the United Kingdom, Journal of Applied Economics 1(1):95-108

Rotter, J. B., 1966, Generalized Expectancies for Internal Versus External Control of Reinforcement. Psychological Monographs.

Schumpeter, J., 1934, the Theory of Economic Development, Boston: Harvard University Press.Sexton, D. L., and Bowman, N., 1985, The entrepreneur- A capable executive and more, Journal of Business Venturing, 1(1):129-140

Siler, A. D., 1988, The Entrepreneurial Life, Ronald Press Publications, p. 244-249.

Silver, A. D. 1988, A portrait of the entrepreneur, Altanch, UK, 102(1134): 77-80.

Stevenson, H. H. and Gumpert, D. E., 1985, The Heart of Entrepreneurship, Harvard Business Review, 63(2): 85-94.

The Financial Business Times, (1993), Polytechnic Graduates more Entrepreneurial. Sept 4, 1993.

The Straits Times, 1993, Polytechnic Graduates more entrepreneurial, 4 Sept 93.

Yee, W.C., 1991, The entrepreneur as a risk manager, Proceedings of the ENDEC World Conference on Entrepreneurship and Innovative Change, July 3-5, Singapore, p. 177-180

QUESTIONNAIRESECTION ONE

PLEASE CIRCLE THE ANSWER YOU THINK IS APPROPRAITE WHERE 1- AGREE, 2 NEUTRAL, 3 DISAGREE.

1.You like trying new food, new places and totally new experiences123

2.You sometimes put off making decisions because you hate making wrong decisions123

3.If you have the money, would you want to speculate in shares/commodities for high rates of return?

123

4If you want something, do you wait for someone to notice you first and give it to you, instead of asking for it yourself?

123

5.

Do you like to take charge and see things through?123

6.You do things on your own. Nobody has to tell you to get going

123

7.You tend to fall in love quickly with new product ideas, new manufacturing ideas and new financial plans?123

8.You are creative and often come out with new ways of doing things?123

9.Winning isnt everything. Its the only thing. Do you Agree?123

10.You enjoy doing things that are moderately difficult to achieve success in.123

11.You have a tendency to start a lot of things but seldom finish them123

12.It is rather futile to have goals because failing to reach them only causes frustration and worry123

QUESTIONNAIRE

SECTION TWO

FOR THE FOLLOWING QUESTIONS, PLEASE CIRCLE THE APPROPRAITE NUMBER ACCORDING TO THE SCALE OF 1- AGREE, 2 NEUTRAL, 3 DISAGREE.

13.When things go right and are terrific for you, do you think its mostly luck?123

14.Despite advice, you would pursue different career paths from your course of study when you perceive better opportunities in other fields123

15.You prefer routine work with definite guidelines to follow, so there is less chance of making errors

123

16You like to be in control of situations and make your own decisions, rather than be told what to do and how to do it

123

17.

You often feel Thats just the way things are and theres nothing you can do about it

123

18.Even though people tell you it cant be done, you would persist on.

123

19.Even if you disagree with others, you are willing to see their point of view and work with them123

20.You are generally willing to try new methods123

21.Work that is of a routine nature will be your last choice of career123

22.Change and variety are good for you123

23.Strong ambition usually leads to stress and anxiety, which is bad for most people

123

24.When you come out with an idea to watch a certain movie, you are often able to persuade others to go along with you.123

25.You would not be satisfied unless you have reached the desired level of results

123

26You get discouraged fairly easily when things go wrong but you would try again123

QUESTIONNAIRE

SECTION THREEANSWER THE FOLLOWING QUESTIONS BY CIRCLING THE OPTION THAT YOU THINK SUITS YOU BEST, AND/OR FURTHER ELABORATE WHERE APPLICABLE.27.Do you think your tertiary education helps you in becoming an entrepreneur?

(A) Yes

(B) No

28.Have you ever thought of becoming an entrepreneur someday?

(A) Yes

(B) No

If yes, proceed to the next question. Otherwise please proceed to Q3229.In which line of business would you be interested?

(A) Retail

(B) Manufacturing

(C) Professional Services

(D) Computing

(E) Others, please specify30.Why would you want to be an entrepreneur?

A) Challenging to be one

(B) Independence

(C) Seeing an opportunity to become one

(D) Aiming for money and status

(E) Others, please specify

31.At which age do you think you would want to be an entrepreneur?

(A) 20-29

(B) 30-39

(C) 40-49

32.What is you general physical health?

(A) Excellent

(B) Average

(C) Below Average

33.Do you think young Nigerians lack entrepreneurial spirits?

34.What do you think can be done to encourage or improve this spirit?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

54.00%

52.00%

50.00%

48.00%

46.00%

44.00%

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