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Student Entrepreneurship in Nigeria_US

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Student Entrepreneurship in Nigeria_US Student Entrepreneurship in Nigeria_US Presentation Transcript

  • Identifying Critical Issues in Student Entrepreneurship Evidences from Nigeria Willie O. Siyanbola, PhD (Sussex), FMSN ( [email_address] ) (DG/CEO) & Abiodun A. Egbetokun ( [email_address] ) (Research Officer) National Centre for Technology Management, Ile-Ife, Nigeria ( www.nacetem.org ) (c) 2008 NACETEM Presented at the 6 th Annual NACCE Conference, January 4-7, 2009 @ Anaheim Hilton Hotel, USA
  • Presentation Outline
    • Project Background
    • Rationale
    • Scope
    • The Executing Agency
    • Key Themes
    • Main Results
    • Policy Implications
    • Conclusion
    (c) 2008 NACETEM
    • 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
    Project Background
    • 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
    Study Rationale
    • 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
    Project Scope
  • (c) 2008 NACETEM About the Country
  • Nigeria – Brief fact file Political Independence: 1960 Population: 140 million Land area 923,000 sq km Education institutions: 94 Universities; 53 polytechnics 6th largest oil producer (OPEC) GDP per capita: US$1,750 Literacy: 70.7% Teledensity: Over 50m GSM lines External reserves:US$60 bn Inflation rate: 7% Nigeria
  • Selected Economic Indicators (c) 2008 NACETEM † In the US, only 13.6% of the people lived below $11 per day as at 1995 * Data for most recent available year Source: Human Development Report, 2001; 2005; 2006 Country* Per Capita GDP (PPP US$) % 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 .. .. ..
  • About the Executing Agency (c) 2008 NACETEM
  • Who 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
  • What We Aim
    • NACETEM VISION
    • To be an internationally recognised centre of excellence in science, technology and innovation management for sustainable development
    • NACETEM 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
  • Our Business (c) 2008 NACETEM
  • 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
  • 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
  • Key Themes (c) 2008 NACETEM
    • 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)
    Key Themes addressed (1)
    • 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)
    Key Themes addressed (2)
    • Entrepreneurial Education*
      • How important is entrepreneurial education?
      • How is its impact to be measured?
      • *Wang and Wong (2005); Stewart et al (1999)  
    Key Themes addressed (3)
  • 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
  • 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
  • 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
  • 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
  • Main Results Sample Characteristics (c) 2008 NACETEM
  • Academic Characteristics of the selected students (c) 2008 NACETEM   Field of Study Percentage (N=6236) Engineering/Technology 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
  • Socio-demographic characteristics of the Respondents (c) 2008 NACETEM 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
  • Socio-demographic characteristics of the Respondents (c) 2008 NACETEM
  • Main Results Entrepreneurial and Business Experience (c) 2008 NACETEM
  • Students’ Interest in Entrepreneurship (N=5791) (c) 2008 NACETEM
  • Entrepreneurial Involvement of the Students (N=5898) (c) 2008 NACETEM
  • Pattern of Students’ Entrepreneurial Involvement (N=5898) (c) 2008 NACETEM
  • Some Comparisons (c) 2008 NACETEM * Sergeant and Crawford, 2001 # Kourilsky and Walstad, 1999 † Wang and Wong, 2004 Country Students’ Business Engagement (%) Students’ Entrepreneurial Interest (%) Nigeria 27 85 Australia 10.3* 68.2* United States 65 # Singapore 50.7 †
  • Influence of Entrepreneurial Experience on Interest (c) 2008 NACETEM 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 R 2 0.039
  • Factors motivating student entrepreneurs in order of strength (c) 2008 NACETEM Factors Percent (n=1861) Personal interest 30.74 P a rent 19.29 Desire to make money 17. 2 5 Self-actuali z ation 15.91 Peers 5.64 Relatives 4 . 67 Si b ling 3.44 Circumstances 3.06
  • Factors discouraging student entrepreneurs in order of strength (c) 2008 NACETEM
  • Main Results Family Background (c) 2008 NACETEM
  • Family entrepreneurial history and students’ entrepreneurial attitude (c) 2008 NACETEM ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed. 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*
  • Parents’ Socio-demographics and Students’ Entrepreneurial Attitude: Corrleations (c) 2008 NACETEM ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed. Entrepreneurial Interest Techno-Business Preference Range of Monthly I n come Father -0.059** -0.089** Mother -0.014 -0.095** Highest Level o f 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
  • Main Results Entrepreneurial Education (c) 2008 NACETEM
  • Students’ Exposure to Entrepreneurial Education (c) 2008 NACETEM
  • Students’ Entrepreneurial Education and Interest (c) 2008 NACETEM 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 R 2 0.048
  • Students’ Entrepreneurial Education and Interest (c) 2008 NACETEM
  • Sources of entrepreneurial education by ownership of institutions (c) 2008 NACETEM Ownership Sources of entrepreneurial education Public Universities (N=1129) Private Universities (N=309) Polytechnics (N=6 0 2) COE (N=213) An elective 20.99 8.09 21.76 11.74 A cor e course 27.55 79.29 31.89 45.07 Part of an o ther course 9.21 4.85 11.63 21.60 A private a r rangement 28.96 6.80 21.26 17.84 An informal exposure 22.76 5.83 16.11 20.66
  • Main Results Students’ Characteristics (c) 2008 NACETEM
  • Students’ Characteristics and Entrepreneurial Interest (c) 2008 NACETEM ** Correlation is significant at the 0.01 level 2-tailed. * Correlation is significant at the 0.05 level 2-tailed. 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
  • Personal Entrepreneurial Characteristics (PEC) (c) 2008 NACETEM
  • Main Results Gender Differentials (c) 2008 NACETEM
  • Gender Differentials in Students’ Entrepreneurial Interest and Experience (c) 2008 NACETEM *χ 2 = 104.26; p < 0.001 **χ 2 = 24.51; p < 0.001 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
  • Gender Differentials in Students’ Entrepreneurial Interest and Experience (c) 2008 NACETEM 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** Access to enough capital 0.624** 0.694**
  • Main Results Government Support and Environmental Factors (c) 2008 NACETEM
  • Sources of funds for student entrepreneurs in order of strength (c) 2008 NACETEM Sources of funds Per c ent (n=1699) Personal savings 57.33 Family savings 1 5 .60 Loans f r om family and friends 1 1 .60 Bank loans 5 .18 Family inherit a nce 3.65 Co-operative loans 3.53 Government sources 3.12
  • Government Support in order of adequacy (c) 2008 NACETEM 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
  • Days Required to Register a New Business (c) 2008 NACETEM Source: World Development Indicators Database, July 2008 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 ..
  • Main Results Models of Student Entrepreneurship (c) 2008 NACETEM
  • Regression Model of PEC variables and EI (c) 2008 NACETEM R 2 =0.042 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
  • Regression Model of Significant Variables and EI (c) 2008 NACETEM R 2 =0.351 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
  • Regression Model of Significant Variables, PEC and EI (c) 2008 NACETEM R 2 =0.391 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
  • Regression Model of Business Preference (c) 2008 NACETEM 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
  • Implications & Conclusions (c) 2008 NACETEM
  • Implications
    • 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
  • Implications
    • 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
  • Conclusions
    • 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
  • Your Comments, pls… Thank you for listening (c) 2008 NACETEM
  • References
    • 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 21 st 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