THE DEVELOPMENT OF ENTREPRENEURSHIP IN A DEPRESSED ECONOMY (A Case Study Of Nigerian Association Of Small-Scale Industrialists (NASSI) Enugu State Chapter)



This research work strives to evaluate the extent of development in Entrepreneurship in a depressed economy like Nigeria.  A closer and pragmatic approach was adopted by using Nigerian Association of Small-Scale Industrialists (NASSI) Enugu State Chapter.  NASSI has been seen as one of the nation’s governmental agency involved in manpower development and training and financing small-scale industrialists. In view of this the following is being recommended for improving this developmental objective.

a.                 Government commitment in developing the sector, this giving the much desired self-reliance a priority by investing in the project.

b.                 The entire citizenry are enjoined to be creative by being involved in creation of opportunities for self-reliance rather than relying on government and other big companies for their jobs.

c.                  The provision of an organized loan-revolving scheme, thus making it mandatory for benefactors to repay in time.

d.                 Nassi should as well try and organize their curricular towards giving trainings that are practical and not theoretical so as to feel the impact in a short period of time.  And finally the need to inculcate into our psych and schema the need to be technologically self-reliant.

Therefore, the research is suggesting that further studies could be done on this by evaluating the impact of small-scale enterprises in the economy.  And the prospects of the Nigerian Entrepreneur in a depressed economy. Consequently, the research solicits for NASSI to be more pragmatic in their operation vis-à-vis the decree of which they were established and then government in its own effort to try and create an enabling environment for entrepreneurship development.  In +his words Abrahim Maslow (A psychologist known for his theories regarding human needs) insinuated that “the most valuable 100 people to bring into a deteriorating society would not be economists, or politicians or engineer rather 100 entrepreneurs.”


















1.1            Background of the Study

1.2            Statement of the Problem

1.3            Objective of the Study     

1.4            Significance of the Study

1.5            Research Hypotheses       

1.6            The Scope of the Study   

1.7            Limitations of the Study  

1.8            History Background of the Case Study

1.9            Definition of Terms



2.1            Meaning and History of Entrepreneurship Development

in Nigeria

2.2            History of Entrepreneurship Development in Nigeria

2.3            Meaning and Functions of an Entrepreneur

2.4            Functions of an Entrepreneur    

2.5            Activities of the Nigeria Association of Small-scale

Industrialists (NASSI) in the Development of Entrepreneurship

2.6            Problems of NASSI in the discharge of Entrepreneurship

Development in Enugu




3.1            Method of Data Collection

3.2            Population of the Study  

3.3            Sample and Sampling Techniques

3.4            Research Instruments

3.5            Method of Data Analysis 



4.1            Introduction

4.2            Test of Hypothesis 




5.1            Summary of Findings                                                                                50

5.2            Conclusion                                                                                                   52

5.3            Recommendations                                                                                     53

5.4            Suggestion for further studies                                                                54

Bibliography                                                                                                55

Appendix A                                                                                                  56

Appendix B                                                                                                   57

Appendix C                                                                                                   61


















The need to incorporate in our system the importance of being technologically self-reliant cannot be over-emphasized.  The first step is to develop our human and natural resources, thus increasing our per - capita income.  In the past even years, or more, especially during the administration of Ibrahim Babangida, Nigeria has constantly pursued an economic policy that is geared towards self-reliance for the individual as show by such programmes as the National Directorate of Employment (NDE) which is a graduate assistance scheme aimed at helping young school leavers to acquire necessary skills and funds that will help them to start their own businesses, other programmes with such mission include the people bank, Family Economic Advancement Programme (FEAP) and Nigerian Association of Small-scale Industrialists (NASSI).


The entrepreneur and his activities forms an integral part in the development of our economy.  At this point, it becomes pertinent to define who is an entrepreneur and why we are having an insight into his plight to actualize the aims and objectives of his existence. Nwana, L.E. (1995:32) defined an entrepreneur as an individual who is willing and able to take business risks for gainful purpose”.

Despite the aspirations of many, only a few people in this country and indeed Enugu our place of concentration has carried out their intention of having business established by them.  Studies have been shown that 90% of these who seriously decided to incorporate a company five or more years ago have not yet done so.  In Enugu state our emphasis will concentrate on the Nigerian Association of Small-Scale Industrialists (NASSI) Enugu State chapter, formed in 1978 owing to the creation of Enugu State in 1991, the Enugu office was established, to represent the organized small-scale industrialists in the state, thus tries to uplift the status of this sector.


The NASSI has its chapter in all the seventeen (17) local government areas of the state aimed at inculcating into our society, the spirit of owing and controlling business at the grass root level, to facilitate the much desired self-reliance on our locally made goods and services, self-reliance on the national economy as show in the policies of banning the importation of certain goods into this country, the Structural Adjustment Programme (SAP) which among other things aims at sourcing for  our own raw materials for the industries locally, though many see it as backward integration the maintenance culture is also part of our attempts on self-reliance.


Based on the indigenization policy that brought into existence, the Nigerian Enterprise promotion decree of 1972, which aims at encouraging and giving Nigerians the skill and knowledge to own and control their own business.  Although all the aims and objectives of this dream has not come to fruition, since about 75% of Nigerians and indeed in Enugu have not realized their dream of owning and controlling a business of their choice (Igboeli J. 1995).



The problem statement of this research work includes the following:

1.        How developed is the Enugu Entrepreneur, even with the emergence of NASSI?

2.        With what government has done so far through NASSI, has it been able to carry-along these entrepreneurs as regards, manpower development, financial and technical aids?

3.        If developed, to what extent has this development been able to put the Enugu entrepreneur on track in items of self-reliance? 

4.        Will the shortcomings be ascribed to the government and non-governmental agencies that support them or to the entrepreneurs themselves?

5.        In such a depressed economy how is the entrepreneur surviving.






The need to develop entrepreneurship in the Nigerian economy cannot be over-emphasized, because therein lies our hope of National growth.  The objective of this research includes the following.

1.        To critically analyze the activities of entrepreneurs in Enugu, in relation to the overall objective of government programmes and policies.

2.        To know how the efforts of government to develop entrepreneurship is progressing.

3.        To identify the problems that has been militating against the development of entrepreneurship in Enugu and Prefer solutions.



In such a depressed economy like ours, the need to rush paid jobs with or without personal initiatives is setting ourselves in the wrong direction.  Hence all governmental efforts to provide loans and incentives to persons who are willing to own and control business would come in handy. It is also in record that this present administration even though military has a clear idea of what it will take to put Nigeria on her road to both political stability and economic growth. Obviously, this administration has steadfastly created good economic and social environment for real economic growth for all.  This is born out of recent experience of European and American businesses owner’s efforts to discuss business with our private and public agencies.  Also creditors are either canceling our debts or converting them into long term loans. With these favorable conditions in mind, economic theories of development suggest that a rapid growth would occur if the available resources (human and material) are completely and judiciously explored and utilized for the production and distribution of goods and services, since our is a free economy. This assignments is passed unto Nigerian Entrepreneurs to truly bring the dreams to fruition.


Therefore, this study is aimed at bringing into focus this objective and then accessing the steps so far and what could be done to improve the system.  If by giving the job to governmental and non-governmental agencies participation in private sector to an organization will not be of advantage we can deal directly with the recipients.  All the funds given out through NDE, SAP, NERFUND etc were seen by many recipients as their own part of “National cake”, therefore we shall strive hard to see if we can bring some sanity into the system by giving other organizations like NASSI the chance to directly deal with the entrepreneurs or any other organization to be formed.  Apart from the monitoring of fund disbursement pattern, NASSI shall help to seek ways to connect the Enugu entrepreneur with other business contacts both locally and internationally.


This research work is poised towards identifying the activities of the entrepreneur in pursuing the much-desired economic and social self-reliance.  The work will be of great help to student of business management, researchers and also the entrepreneurs themselves who will learn more and thus make a right step in the right direction by first approaching their businesses with the overall view of being self-reliant.


Secondly, to appreciate the financial aids given to them as loan to be repaid and not relief packages and finally for the government to bring in their presence in Enugu metropolis by establishing agencies that will be pragmatic in dealing with the entrepreneurs as well as improving the social amenities in the city, like good road network, good sanitary conditions and full supply of power which forms an integral part in the production of good and services.



1.        Ho:     Rate of illiteracy has not narrowed the scope of the Enugu


            HI:       Rate of illiteracy has narrowed the scope of the Enugu


2.        Ho:     Funds are misdirected thus going it to those who many not utilize

it well.

Hi:       Funds are not misdirected thus going it to those who utilize it well.

3.        Ho       Government presence in the city has brought poor assimilation of

NASSI policies on business.

Hi        Government presence in the city has not brought poor assimilation of NASSI policies on business.

4.        Ho:     Lack of funds has hampered the expansion of the entrepreneurs.

Hi:       Lack of funds has not hampered the expansion of the



1.5            THE SCOPE OF THE STUDY

The scope of this work is just an insight into the activities of the young ideal manager or who may be called an entrepreneur in Enugu.  The angle the research is bringing in this entrepreneur is from the activities of the Nigerian Association of the Small-Scale industrialist (NASSI) Enugu State Chapter, Enugu Office.  The entrepreneurs to be discussed here would be the small-scale industrialist.  The office of the NASSI in Enugu has been visited and five more industries involved in small-scale production were visited as well.



The researcher was unable to get the required information from the chairman of NASSI, thus by speaking with the secretary the right data was collected.


The time frame was too short to conduct more researches on this topic hence the asocial does not have any library for academic research work.  Thirdly funds were a problem and as a result certain areas were not covered in this study.



The Nigerian Association of Small-Scale Industrialists (NASSI) was found in 1978 by the Federal Military Government of Nigeria through the Centre for Management Development (CMD) to represent the organized small-scale industrialists in the country and thus uplift the status of the industrial sector.


In 1979, the Anambra State chapter was constituted, owning to the creation of Enugu State out of former Anambra State the Enugu State Chapter came into being in 1991.  This association has its office situated at 30 Zik Avenue, Enugu to oversee the affairs of the members in Enugu State.  The Nigerian Association of small-scale industrialists has chapters in all the 17 local governments of Enugu State.  The person at the helm of affairs at the state level is called the state chairman while local government chapters are manned by local government coordinators.


NASSI is on the vanguard of Industry Development to enlighten from the grassroots, entrepreneurs and to articulate them for gainful purpose.  It also collaborates with foreign bodies to formulate business plan for members.


1.8            DEFINITION OF TERMS

1.        Depressed Economy

A severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts two or more years. A depression is characterized y economic factors such as substantial increase in unemployment, a drop in available credit, diminishing output, bankruptcies and sovereign debt defaults, reduced trade and commerce, and sustained volatility in currency values. In times of depression confidence and investments decrease, causing the economy to shut down.

2.        Scholar

A scholar is a person that has a sharp focus that delimits the area of inquiry in which s/he works. He works to develop a complex, depth and sophisticated understanding of any of the topics of study. Such a person is naturally inquisitive about around him/her. Swims in the learning around her/him. She is familiar and knowledgeable in the area of inquiry. Such person is articulate about his/her learning and can speak with authority and clarity about what it is s/he researches, why and with what hypothesis. He/she is highly productive, always striving to perform his/her best and constantly seeks opportunity in which to complete for awards and competitive events that both recognize and support outstanding works.

3.        Poised

This means when an individual is ready or set to take action or strike something any moment in time. It is when a person exhibits composure and self-assuredness, which comes in handy, for instance, during a job interview, giving a public talk or debate, or playing sports. Watching the Olympics, you may wonder how gymnast remain so poised when competing on the balance beam, considered the sport's most mentally and physically challenging event.

4.        Pragmatic

This is a way of dealing with a situation or problems in a practical way rather than using theoretical or abstract principles.

5.        Metropolis

A metropolis is very large city that contains is very large number of people.

6.        Time frame

This is an interval of time between one event and another related event that happens after it.

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