Student Entrepreneurship in Nigeria_US

789 views
690 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
789
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Student Entrepreneurship in Nigeria_US

  1. 1. IdentIfyIng CrItICal Issues InIdentIfyIng CrItICal Issues In student entrepreneurshIpstudent entrepreneurshIp Evidences from NigeriaEvidences from Nigeria Willie O. Siyanbola, PhD (Sussex), FMSN (dg.ceo@nacetem.org) (DG/CEO) & Abiodun A. Egbetokun (abiodun.egbetokun@nacetem.org) (Research Officer) National Centre for Technology Management, Ile-Ife, Nigeria (www.nacetem.org) 1 (c) 2008 NACETEM Presented at the 6th Annual NACCE Conference, January 4-7, 2009 @ Anaheim Hilton Hotel, USA
  2. 2. www.nacetem.org Presentation OutlinePresentation Outline  Project Background  Rationale  Scope  The Executing Agency  Key Themes  Main Results  Policy Implications  Conclusion 2(c) 2008 NACETEM
  3. 3. www.nacetem.org Sponsored by the Federal Government of Nigeria through the Federal Ministry of Science and Technology in 2005 Planned and executed by NACETEM from 2006 Completed in 2007 The very first large-scale study on student entrepreneurial attitude in Nigeria 3 Project BackgroundProject Background
  4. 4. www.nacetem.org Unemployment in Nigeria is still very high (37% in 2004) possibly due to low entrepreneurial propensity among the youth The need for baseline pragmatic data to assist in the design of appropriate policies on Technological Entrepreneurship The need to better understand how best to stimulate student/graduate entrepreneurship 4 Study RationaleStudy Rationale
  5. 5. www.nacetem.org  Over 7500 students and over 1200 lecturers sampled  13 out of 92 Universities;  9 Polytechnics out of 50;  3 Colleges of Education (Technical) out of 8 5 Project ScopeProject Scope
  6. 6. www.nacetem.org 6
  7. 7. www.nacetem.org (c) 2008 NACETEM 7 About the CountryAbout the Country
  8. 8. Nigeria – Brief fact fileNigeria – Brief fact file Political Independence: 1960Political Independence: 1960 Population: 140 millionPopulation: 140 million Land area 923,000 sq kmLand area 923,000 sq km Education institutions:Education institutions: 94 Universities;94 Universities; 53 polytechnics53 polytechnics 6th largest oil producer (OPEC)6th largest oil producer (OPEC) GDP per capita: US$1,750GDP per capita: US$1,750 Literacy: 70.7%Literacy: 70.7% Teledensity: Over 50m GSM linesTeledensity: Over 50m GSM lines External reserves:US$60 bnExternal reserves:US$60 bn Inflation rate: 7%Inflation rate: 7% Nigeria
  9. 9. www.nacetem.org Selected Economic IndicatorsSelected Economic Indicators Country* Per Capita GDP (PPP US$) % population below poverty line % population below $1/day % population below $2/day Japan 36501 - - - South Korea 14265 .. <2 <2 Chile 5838 17.0 <2 9.6 Malaysia 4731 15.5 <2 9.3 South Africa 3489 .. 10.7 34.1 China 1283 4.6 16.6 46.7 Nigeria 594 34.1 70.2 90.8 USA† 37562 .. .. .. (c) 2008 NACETEM 9 † In the US, only 13.6% of the people lived below $11 per day as at 1995 * Data for most recent available year Source: Human Development Report, 2001; 2005; 2006
  10. 10. www.nacetem.org About the ExecutingAbout the Executing AgencyAgency (c) 2008 NACETEM 10
  11. 11. www.nacetem.org Who We AreWho We Are  The National Centre for Technology Management (NACETEM)  The Science and Technology (S&T) Policy Research and Training Agency of the Federal Ministry of Science and Technology  Provides knowledge support and constitutes the software component of the nation's STI endeavours  Provides evidence-based STI policy advice to government (local, state and federal) (c) 2008 NACETEM 11
  12. 12. www.nacetem.org What We AimWhat We Aim NACETEM VISIONNACETEM VISION To be an internationally recognised centre of excellence in science, technology and innovation management for sustainable development NACETEM MISSIONNACETEM MISSION To play a leading role in the build-up of expertise for effective management of science, technology and innovation and to actively engage in policy research, design, evaluation and review (c) 2008 NACETEM 12
  13. 13. www.nacetem.org Our BusinessOur Business (c) 2008 NACETEM 13
  14. 14. www.nacetem.org Impacts (1)Impacts (1) In the last 8 years  >65 short-term courses  >500 persons trained  >50 legislators/technocrats trained  10 years of PGD programme in Technology Management  >150 persons trained (c) 2008 NACETEM 14
  15. 15. www.nacetem.org Impacts (2)Impacts (2)  In the last 8 years  Consulted for 5 major institutions inc. the World Bank  Completed about 10 policy research projects  About 3 policy research projects ongoing  Connected with over 5 related int’l institutions  SPRU (Sussex, UK)  UNU-MERIT (the Netherlands)  NEPAD (Africa)  STEPRI (Ghana)  CESTI (South Africa) (c) 2008 NACETEM 15
  16. 16. www.nacetem.org Key ThemesKey Themes (c) 2008 NACETEM 16
  17. 17. www.nacetem.org  Entrepreneurial and business experience*  What proportion of students is interested in entrepreneurship?  What proportion of undergraduates is presently involved in business?  What factors motivated or discouraged students’ past involvement in business?  Is there a link between past involvement in business and the decision of students to become entrepreneurs? *Scott and Twomey (1988) 17 Key Themes addressed (1)Key Themes addressed (1)
  18. 18. www.nacetem.org  Family Background*  Are students influenced by their families’ entrepreneurial history?  Do family characteristics (income, educational levels and size) affect decisions to become entrepreneurs? *Verheul et al (2002); Scott and Twomey (1988) 18 Key Themes addressed (2)Key Themes addressed (2)
  19. 19. www.nacetem.org  Entrepreneurial Education*  How important is entrepreneurial education?  How is its impact to be measured? *Wang and Wong (2005); Stewart et al (1999)  19 Key Themes addressed (3)Key Themes addressed (3)
  20. 20. www.nacetem.org Key Themes Addressed (4)Key Themes Addressed (4)  Attitude and aspirations*  What are the current attitudes of young Nigerians towards entrepreneurship?  What socio-economic, demographic, academic and cultural factors (ethnic origin, course of study, academic performance as reflected in CGPA, students’ age, gender, marital status) influence the fostering and development of entrepreneurship? *Verheul et al (2002; 2005); McClelland (1961) (c) 2008 NACETEM 20
  21. 21. www.nacetem.org Key Themes Addressed (5)Key Themes Addressed (5)  Orientation*  Do young Nigerians envisage themselves becoming entrepreneurial?  How would this entrepreneurship manifest itself?  If entrepreneurship is typified by certain characteristics, do young Nigerians think they possess these traits? *Bird (1988); Boyd and Vozikis (1994); Cunningham et al (1995) (c) 2008 NACETEM 21
  22. 22. www.nacetem.org Key Themes Addressed (6)Key Themes Addressed (6)  Government policy and environmental factors*  What do young people perceive as practical or structural barriers to entrepreneurship?  What do they perceive as enhancers of entrepreneurship?  How do they perceive the role of government programs and initiatives?  Are these programs and initiatives adequate to promote entrepreneurship? *Verheul et al (2002; 2005)(c) 2008 NACETEM 22
  23. 23. www.nacetem.org Key Themes Addressed (7)Key Themes Addressed (7)  Predicting and promoting entrepreneurial behavior  What factors best explain the propensity of students to become entrepreneurs?  What policies should be adopted to promote entrepreneurship among students? (c) 2008 NACETEM 23
  24. 24. www.nacetem.org Main ResultsMain Results Sample CharacteristicsSample Characteristics (c) 2008 NACETEM 24
  25. 25. www.nacetem.org Academic Characteristics of the selected studentsAcademic Characteristics of the selected students  Field of Study Percentage (N=6236) Engineering/Technolog y 52.3 Pure sciences 17.6 Agriculture 11.8 Social sciences 2.3 Management sciences 15.9 CGPA Percentage (N=4417) 1.00+ 2.40 2.00+ 29.52 3.00+ 51.66 4.00+ 16.46 (c) 2008 NACETEM 25
  26. 26. Socio-demographic characteristics of the RespondentsSocio-demographic characteristics of the Respondents (c) 2008 NACETEM 26 Age Group Percentage (N=6144) 16-20 13.4 21-25 60.7 26-30 21.5 31-35 3.1 36-40 0.8 Above 40 0.4
  27. 27. Socio-demographic characteristics of the RespondentsSocio-demographic characteristics of the Respondents (c) 2008 NACETEM 27
  28. 28. www.nacetem.org Main ResultsMain Results Entrepreneurial and BusinessEntrepreneurial and Business ExperienceExperience (c) 2008 NACETEM 28
  29. 29. www.nacetem.org Students’ Interest in Entrepreneurship (N=5791)Students’ Interest in Entrepreneurship (N=5791) (c) 2008 NACETEM 29
  30. 30. Entrepreneurial Involvement of the Students (N=5898)Entrepreneurial Involvement of the Students (N=5898) (c) 2008 NACETEM 30
  31. 31. www.nacetem.org Pattern of Students’ Entrepreneurial Involvement (N=5898)Pattern of Students’ Entrepreneurial Involvement (N=5898) (c) 2008 NACETEM 31
  32. 32. www.nacetem.org Some ComparisonsSome Comparisons Country Students’ Business Engagement (%) Students’ Entrepreneurial Interest (%) Nigeria 27 85 Australia 10.3* 68.2* United States 65# Singapore 50.7† (c) 2008 NACETEM 32 * Sergeant and Crawford, 2001 # Kourilsky and Walstad, 1999 † Wang and Wong, 2004
  33. 33. Influence of Entrepreneurial Experience on InterestInfluence of Entrepreneurial Experience on Interest (c) 2008 NACETEM 33 B SE Wald Exp(B) Entrepreneurial Experience 1.107 0.108 104.442 3.025 Constant 1.406 0.206 1292.486 4.080 Pseudo R2 0.039
  34. 34. www.nacetem.org Factors motivating student entrepreneurs in order of strengthFactors motivating student entrepreneurs in order of strength Factors Percent (n=1861) Personal interest 30.74 Parent 19.29 Desire to make money 17.25 Self-actualization 15.91 Peers 5.64 Relatives 4.67 Sibling 3.44 Circumstances 3.06 (c) 2008 NACETEM 34
  35. 35. www.nacetem.org Factors discouraging student entrepreneurs in order of strengthFactors discouraging student entrepreneurs in order of strength (c) 2008 NACETEM 35
  36. 36. www.nacetem.org Main ResultsMain Results Family BackgroundFamily Background (c) 2008 NACETEM 36
  37. 37. www.nacetem.org Family entrepreneurial history and students’ entrepreneurial attitudeFamily entrepreneurial history and students’ entrepreneurial attitude (c) 2008 NACETEM 37 Entrepreneurial Interest Techno- Business Preference Has any of your parents initiated or run a business in the past? 0.193** 0.031* Is the business ongoing? 0.065** 0.007 Has any of your close relatives initiated or run a business in the past? 0.195** 0.035* Is the business ongoing? 0.102** 0.037* ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed.
  38. 38. www.nacetem.org Parents’ Socio-demographics and Students’ Entrepreneurial Attitude:Parents’ Socio-demographics and Students’ Entrepreneurial Attitude: CorrleationsCorrleations (c) 2008 NACETEM 38 Entrepreneurial Interest Techno-Business Preference Range of Monthly Income Father -0.059** -0.089** Mother -0.014 -0.095** Highest Level of Education Father -0.088** -0.079** Mother -0.083** -0.095** Number of Children Father 0.043** 0.032* Mother 0.024 0.022 Position in Family Father -0.022 0.020 Mother -0.041** 0.006 ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed.
  39. 39. www.nacetem.org Main ResultsMain Results Entrepreneurial EducationEntrepreneurial Education (c) 2008 NACETEM 39
  40. 40. www.nacetem.org Students’ Exposure to Entrepreneurial EducationStudents’ Exposure to Entrepreneurial Education (c) 2008 NACETEM 40
  41. 41. www.nacetem.org Students’ Entrepreneurial Education and InterestStudents’ Entrepreneurial Education and Interest (c) 2008 NACETEM 41 B SE Wald Exp(B) Entrepreneurial Education 1.048 0.089 137.469 2.852 Constant 1.335 0.163 1018.945 3.801 Pseudo R2 0.048
  42. 42. www.nacetem.org Students’ Entrepreneurial Education and InterestStudents’ Entrepreneurial Education and Interest (c) 2008 NACETEM 42
  43. 43. www.nacetem.org Sources of entrepreneurial education by ownership of institutionsSources of entrepreneurial education by ownership of institutions Ownership Sources of entrepreneurial education Public Universitie s (N=1129) Private Universities (N=309) Polytechni cs (N=602) COE (N=213) An elective 20.99 8.09 21.76 11.74 A core course 27.55 79.29 31.89 45.07 Part of another course 9.21 4.85 11.63 21.60 A private arrangement 28.96 6.80 21.26 17.84 An informal exposure 22.76 5.83 16.11 20.66 (c) 2008 NACETEM 43
  44. 44. www.nacetem.org Main ResultsMain Results Students’ CharacteristicsStudents’ Characteristics (c) 2008 NACETEM 44
  45. 45. www.nacetem.org Students’ Characteristics and Entrepreneurial InterestStudents’ Characteristics and Entrepreneurial Interest Entrepreneurial Interest Techno-Business Preference Age 0.031* 0.007 Gender -0.135** 0.056** Marital status -0.074** 0.036* Ethnic origin 0.095** -0.001 Faculty/school -0.040** 0.033* Present level of study -0.046** -0.009 Present CGPA -0.011 -0.027 (c) 2008 NACETEM 45 ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed.
  46. 46. www.nacetem.org Personal Entrepreneurial Characteristics (PEC)Personal Entrepreneurial Characteristics (PEC) (c) 2008 NACETEM 46
  47. 47. www.nacetem.org Main ResultsMain Results Gender DifferentialsGender Differentials (c) 2008 NACETEM 47
  48. 48. www.nacetem.org Gender Differentials in Students’ Entrepreneurial Interest and ExperienceGender Differentials in Students’ Entrepreneurial Interest and Experience Male (%) Female (%) Interested in starting own business* (N = 3691; 2017) 87.4 77.0 Presently involved in business** (N = 3743; 2071) 29.2 23.2 Motivating factors for involvement in businesses (N = 1023; 443) Parents 21.9 29.1 Sibling 3.8 5.6 Relatives 5.4 6.8 Personal interest 38.6 38.4 Desire to make money 22.7 19.9 Self-actualization 22.6 14.2 Events 4.0 3.6 Peers 6.8 7.9 (c) 2008 NACETEM 48 *χ2 = 104.26; p < 0.001 **χ2 = 24.51; p < 0.001
  49. 49. www.nacetem.org Gender Differentials in Students’ Entrepreneurial Interest and ExperienceGender Differentials in Students’ Entrepreneurial Interest and Experience Independent Variables Male EI Female EI Age 0.026 0.007 Marital Status -0.069** -0.048* Ethnic Origin 0.075** 0.082** Number of father’s children 0.056** 0.028 Number of mother’s children 0.048** 0.006 Position among mother's children -0.005 -0.073** Father’s highest level of education -0.079** -0.074** Mother’s highest level of education -0.058** -0.084** Father’s range of monthly income -0.044* -0.045 Parents’ entrepreneurial history 0.144** 0.240** Is the business on-going? 0.053** 0.095** Close relatives’ entrepreneurial history 0.170** 0.214** Is the business on-going? 0.102** 0.112** Exposure to entrepreneurial training/course 0.141** 0.178** (c) 2008 NACETEM 49
  50. 50. www.nacetem.org Main ResultsMain Results Government Support andGovernment Support and Environmental FactorsEnvironmental Factors (c) 2008 NACETEM 50
  51. 51. www.nacetem.org Sources of funds for student entrepreneurs in order of strengthSources of funds for student entrepreneurs in order of strength Sources of funds Percent (n=1699) Personal savings 57.33 Family savings 15.60 Loans from family and friends 11.60 Bank loans 5.18 Family inheritance 3.65 Co-operative loans 3.53 Government sources 3.12 (c) 2008 NACETEM 51
  52. 52. www.nacetem.org Government Support in order of adequacyGovernment Support in order of adequacy Government Assistance Adequacy rating (%) Improved Telecommunication Facilities 79.7 Easy access to Market 63.5 Training 57.6 Improved Transport Facilities 57.3 Technical Support 54.4 Business Advisory Services 51.9 Improved Access to Machinery 47.2 Improved Public Water Supply 46.4 Finance 44.7 Improved Security 44.0 Stable Power Supply 37.6 (c) 2008 NACETEM 52
  53. 53. www.nacetem.org Days Required to Register a New BusinessDays Required to Register a New Business Country Business Startup Delay (days) USA 5 Turkey 9 Egypt 19 South Korea 22 Bangladesh 37 Nigeria 43 Iran 47 Philippines 48 Vietnam 50 Indonesia 97 Mexico .. Pakistan .. (c) 2008 NACETEM 53 Source: World Development Indicators Database, July 2008
  54. 54. www.nacetem.org Main ResultsMain Results Models of Student EntrepreneurshipModels of Student Entrepreneurship (c) 2008 NACETEM 54
  55. 55. www.nacetem.org Regression Model of PEC variables and EIRegression Model of PEC variables and EI B S.E. Wald Sig. Exp(B) Persistence 0.245 0.042 34.547 0.001** 1.278 Opportunity & Initiative 0.214 0.047 20.992 0.001** 1.239 Information Seeking 0.143 0.041 11.955 0.001** 1.153 Independence and Self- Confidence 0.125 0.043 8.638 0.003** 1.133 Goal Seeking -0.119 0.051 5.389 0.020* 0.888 Risk Taking 0.050 0.040 1.527 0.217 1.051 Constant -0.676 0.322 4.407 0.036 0.509 (c) 2008 NACETEM 55 R2 =0.042
  56. 56. www.nacetem.org Regression Model of Significant Variables and EIRegression Model of Significant Variables and EI B S.E. Wald Sig. Exp(B) Access to enough funds 4.165 0.221 356.4 0.001** 64.363 Course of Study 0.283 0.117 5.9 0.015* 1.327 Parents’ Business Experience 0.248 0.112 4.9 0.027* 0.780 Age 0.229 0.105 4.8 0.029* 1.257 Entrepreneurial Disposition -0.162 0.079 4.2 0.041* 0.850 Constant 1.022 3.015 0.1 0.169 (c) 2008 NACETEM 56 R2 =0.351
  57. 57. www.nacetem.org Regression Model of Significant Variables, PEC and EIRegression Model of Significant Variables, PEC and EI B S.E. Wald Sig. Exp(B) Access to enough funds 4.358 0.259 282.564 0.001** 78.065 Age 0.389 0.126 9.612 0.002* 1.476 Persistence (PE) 0.284 0.098 8.404 0.004* 1.328 Parents’ Business Experience 0.298 0.124 5.734 0.017* 0.743 Course of Study 0.269 0.130 4.303 0.038* 1.309 Constant -5.080 1.440 12.441 0.000 0.006 (c) 2008 NACETEM 57 R2 =0.391
  58. 58. www.nacetem.org Regression Model of Business PreferenceRegression Model of Business Preference B S.E. Wald Sig. Exp(B ) Risk Perception 0.21 0.05 18.56 0.01** 1.23 Persistence -0.22 0.05 19.52 0.01** 0.80 Goal setting 0.15 0.06 6.56 0.01** 1.17 Entrepreneurial Education as Private Course -0.41 0.18 5.10 0.02* 0.67 Parents business experience 0.11 0.06 3.25 0.07* 1.11 Entrepreneurial disposition -0.11 0.05 5.60 0.02* 0.90 Constant 0.04 0.61 0.00 0.95 1.04 (c) 2008 NACETEM 58
  59. 59. www.nacetem.org ImplicationsImplications && ConclusionsConclusions (c) 2008 NACETEM 59
  60. 60. www.nacetem.org ImplicationsImplications  Many students want to be entrepreneurs but few actually do  Mentorship is important to stimulate and sustain students’ entrepreneurial interest  Funding and infrastructure need to be in place  Introducing entrepreneurial curricula is beneficial  There is need to pay attention to female students in the long run  Risk aversion is not a problem among students (c) 2008 NACETEM 60
  61. 61. www.nacetem.org ImplicationsImplications  There is a 3.9% likelihood that student entrepreneurs would like to remain as entrepreneurs  Exposure to entrepreneurial education explains 4.8% of students’ interest in entrepreneurship  Students’ PEC explains 4.2% of their interest in entrepreneurship  Fund availability, Discipline, Family’s entrepreneurial history, age and entrepreneurial disposition explain 35.1% of students’ interest in entrepreneurship  Fund, Age, Persistence, Family’s entrepreneurial history and discipline explain 39.1% of students’ entrepreneurial interest (c) 2008 NACETEM 61
  62. 62. www.nacetem.org ConclusionsConclusions  All students are not equally likely to become entrepreneurs  Students are most likely to be entrepreneurs when they are mature in terms of age, their parents had been entrepreneurs, they study in the sciences/engineering, they learn to be persistent and are given sustainable access to funds (c) 2008 NACETEM 62
  63. 63. www.nacetem.org Your Comments, pls…Your Comments, pls… Thank you forThank you for listeninglistening (c) 2008 NACETEM 63
  64. 64. www.nacetem.org ReferencesReferences  W.H. Stewart, Jr, W. Watson, J.C. Carland and J.W. Carland (1999). A proclivity for entrepreneurship: a comparison of entrepreneurs, small business owners, and corporate managers. Journal of Business Venturing 14 (2), pp. 189–214.  M.G. Scott and D.F. Twomey (1988). The long-term supply of entrepreneurs: students’ career aspirations in relation to entrepreneurship. Journal of Small Business Management 26 (4), pp. 5–13.  B. Cunningham, P. Gerrard, F.P. Chiang, K.Y. Lim and C.L. Siew (1995). Do undergraduates have what it takes to be entrepreneurs and managers of small businesses in Singapore?. Journal of Asian Business 11 (4), pp. 35–49.  A. Ghazali, B.C. Ghosh and R.S.T. Tay (1995). The determinants of self-employment choice among university graduates in Singapore. International Journal of Management 12 (1), pp. 26–35.  Verheul, Ingrid, van Stel, Andre, Thurik, Roy (2005). Explaining Female and Male Entrepreneurship at the Country Level. Erasmus Research Institute of Management Report Series Research in Management  Wang, C. K. and Wong, Poh-Kam (2004). Entrepreneurial interest of university students in Singapore. Technovation 24 (2004) 163-172.  Timmons, J. A. (1994). New Venture Creation – Entrepreneurship for the 21st Century. Irwin, Boston  Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management Review, 13(3), 442-453.  Boyd, N. G., & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial intentions and actions. Entrepreneurship: Theory and Practice 18(4), pp. 63-77.  McClelland, D. C. (1961). The Achieving Society. New York: Van Nostrand. (c) 2008 NACETEM 64

×