THE EFFECTS OF ENTREPRENEURIAL SKILL ON PRODUCT PORTFOLIO DEVELOPMENT (A STUDY OF MEDIUM SCALE ENTERPRISES IN LAGOS)


Content

ABSTRACT

This research work examined the effects of entrepreneurial skill on product portfolio development of medium scale enterprise in Lagos. It is important for business owners (be it a small medium scale enterprises operator or large scale enterprise), who aspire for optimum success in their endeavour to take cognisance of the essential entrepreneurial skills which will aid the effective achievement of their organization goal and objective. The research design adopted for the study is survey research design. The main instrument used was self administered questionnaires. The data obtained from the questionnaires were analysed using mean, median mode and standard deviation. Two hypotheses were tested using Z-test at 0.05% level of   significance. The analysis done reveal that there is significant relationship between entrepreneurship skills and product portfolio development. Also, co-operation between small medium scale entrepreneurs and research institutes, for exploitation of research findings of these institutes should be encouraged in order to achieve development in general was recommended.

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENT

                                                                Pages

Title page                                                                         i      

Certification                                                                     ii

Dedication                                                                                iii

Acknowledgement                                                             iv

Abstract                                                                            v

Table of content                                                                       vi

CHAPTER ONE

INTRODUCTION

1.1   Background of the study                                          1  

1.2   Statement of the problem                                         6   

1.3   Objectives of the study                                            7

1.4   Research of the questions                                         7

1.5   Statements of research hypotheses                           8

1.6   Significance of the study                                           8

1.7   Limitations of the study                                            9

1.8   Definition of terms                                                    9  

CHAPTER TWO

LITERATURE REVIEW

2.1   Introduction                                                             11

2.2   Theoretical frame work                                             12

2.3   Conceptual framework                                              20  

2.4   Extant literature review on the efficacy of

entrepreneurial skill on organization performance             28  

2.5   Factors that predispose firms to ensure healthy

product portfolio                                                              36  

2.6   Hindrance to entrepreneurial skill development        55  

 

 

 

 

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.0   Introduction                                                            61  

3.1   Population of the study                                             62           

3.2   Characteristics of population of the study                 62   

3.3   Sampling size/sampling techniques                           62  

3.4   Re statement of research questions                           63           

3.5   Re-statement of research hypotheses                                63           

3.6   Test of reliability/ test of validity                                      64  

3.7   Research design                                                                64  

3.8   Data analysis tool                                                     66

 

CHAPTER FOUR

DATA ANALYSES OF THE RESEARCH QUESTIONS AND HYPOTHESES

 

4.1   Introduction                                                             67

4.2   Analysis of part 1                                                      68  

4.3   Analysis of responses to part two of the questionnaire       70

 4.4 Data analysis and presentation of analysis hypotheses      87  

4.5   Discussion of hypotheses                                          90

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

 

5.1   Introduction                                                             91

5.2   Summary of findings                                                 91  

5.3   Conclusion:                                                              93  

5.4   Recommendations                                                    94

5.5   Limitation of the study                                             95

5.6   Suggestion for future research                                   95            Questionnaire                                                           96  

        Bibliography                                                             100  

Chapter one

introduction

 

1.1 background of the study:

The success or failure, of any organization product offering(s), be it goods or services, depends immensely on the strategies and technologies used in developing, maintaining and sustaining such products or services in the target market. The extent to which these responsibilities/duties/tasks are successfully carried out is as a result of the unusual skills, experience and ability possessed by the owner (entrepreneur), of the said business organization; to effectively co-ordinate the human and material resources in that organization, in order to achieve the stated organisation objectives either to make profit or community service rendering.

 

The said responsibility of the ‘entrepreneur’ can be emphasized in the definition given by Edward P. Lazear. According to him, an ‘entrepreneur’ is a generalist who put together terms of people and assembles resources and capital. To do this effectively, they must have a general set of skills.

 

Although an individual maybe endowed with a set of skills but endowment can be augmented by investment in human capital. Therefore, responsibility of assembling, coordinating, etc. of these said resources cannot be carried out effectively by a mere business owner whether it is a small organization or a large firm.

These said skills, possessed by ‘entrepreneur’, enables them provide products ( in form of goods or services), of great additives, which is second to none in the market of industry; is referred to as the quality that must be possess by an individual to be a successful entrepreneur, and it’s called ‘entrepreneurial skills’.

The term, ‘entrepreneurial’, is an adjective concept that is used to describe the degree of entrepreneurial trait, that an individual possess or exhibit or the pattern of entrepreneurial behaviour, present in an individual activities. Therefore, it can be said that a person who displays some characteristics or habits, typical of an entrepreneur, is said to be ‘entrepreneurial’.

It is possible, that entrepreneurial skills are embodied in the networks with customers, suppliers and other market participants that enhance the outcomes of entrepreneurs. It’s also possible that it is the greater ability to identify markets, set strategy and correctly analyse the various business problems and also enables organization develop their product portfolio.

In enhancing the outcomes of an entrepreneur, a sequential process or procedures must be followed. This is termed as ‘entrepreneurship’.

According to Kuratko and Hodgetts (2001), entrepreneurship is the dynamic process of creating incremental wealth. This wealth is to be created by individuals who assume major risks in terms of equity, time and career commitment of providing value inform of some products or services, which may not be new or unique, but the entrepreneur must place value by securing and allocating the necessary skills and resources.

The focus of this study, is on skills which will also encompass the ability to successfully allocate resources (human and material), for the achievement of the objective.

A skill, can be said to be an organized and coordinated pattern of mental and or physical activity in relation to an object or other display of information usually involving both the receptor and effect or process. It involves having enough ability knowledge and experience to be able to do something well.

Hence, for a person to be regarded as an entrepreneur he/she must possess some certain unusual and personal attributes, behaviour, values and skills or characteristics that allows them to successfully develop, setup, grow, render and maintain a product of great addictive which consumers within the industry sees as second to none. They are referred to as the agent of effective economic changes, an enterprising individual, job creator, the goal getters, etc.

The various skills of entrepreneurs have been classified into three (3), (Linus Osuagwu, 2006). They are ‘technical skills’, ‘business management skills’ and ‘personal entrepreneurial skills’. Technical skills are said to involve such things as writing, listening, oral presentation & communication, monitoring environment, ability to organize, etc. on the other hand, management skills includes those areas involved in starting, developing and managing any enterprise i.e. skills in decision making, marketing, general management/administration, financing, accounting, production, controlling and negotiating which are essential in launching and growing a new business venture.

While personal skills are some skills that differentiate an entrepreneur from a manager i.e. inner control/discipline, risk taking, being innovative, being change-oriented, being persistent, visionary leader, etc.

All these entrepreneurial skills are undoubtedly needed in every facet or an organization product development or product life cycle (development, growth, maturity and decline stages), to ensure the sustainability of the various products to a state of economic stability and growth in order to maximize profit.

For a setup to be referred to as organization, it must have a product offering i.e. goods or services which it is to render to consumer in exchange for profit. An organization product(s) offering, is the set goods or services rendered by the said organization to satisfy the needs and wants of its target market, for the purpose of achieving it stated goals and objective. And if the said product offering is well coordinated, it will lead to high demand and continuous existence of the product and it will automatically bring about the need for the said organization to expand its scope or area of production either by diversifying, integrating, among other option available to the organization. Hence, the need to develop or design a product portfolio arises.

A portfolio is referred to be a set of investment. In other words, an organization product portfolio can be referred to as a set or list of the organization product offering (their investment).

When an entrepreneur owns only a single enterprise, he is referred to as a novice owner/entrepreneur. Habitual-serial owners/entrepreneurs are those that start more than one business consecutively and habitual-portfolio owners/entrepreneurs are those who start more than one business concurrently. As documented by extant relevant literature

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