EDUCATIONAL QUALIFICATIONS OF ENTREPRENEURS AND PERFORMANCE IN SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS STATE NIGERIA.

ABSTRACT  

The study examined the effect of educational qualifications on entrepreneurs and performance of small and medium scale enterprises in Mainland Local Government Area of Lagos State, Nigeria. In this study, relevant and extensive literatures were reviewed under sub-headings. The descriptive research survey was used in the assessment of the opinions of the selected respondents with the adoption of the questionnaire and the sampling technique. A total of 100 (One Hundred) respondents were selected and used as samples for this study, the respondents were made up of (50 males and 50 females). A total of four null hypotheses were generated and used in this study using both the percentage frequency counts and the t-test statistical tools at 0.05 level of significance. At the end of the data analyses, the following results were generated: hypothesis one found that there is a significant effect of educational qualifications and performance of entrepreneurs in small and medium enterprises in Lagos State Nigeria, hypothesis two showed that there is a significant gender difference in the management of small and medium scale enterprises due to educational qualifications of the entrepreneurs in Lagos State while hypothesis three indicated that the effective management of small and medium scale enterprises  significantly depend on the educational qualifications of the entrepreneurs in Lagos State, Nigeria and finally, hypothesis four revealed that there is a significant gender difference in the successful management of small and medium scale enterprises in Lagos State, Nigeria.

Background of the Study

In the present day economies of the world, small and medium scale enterprises have come to be recognized as veritable engines of growth, employment, poverty reduction and innovative development. Government of various nations and indeed, world economic development and financial institutions such as the Brethonwood Institution, International Monetary Fund, the World Bank, and the United Nations have all in recognition of the potentials of SMEs, embarked on deliberate developmental policies aimed at creating a productive base for world economies (Englama, 1997).

 The educational qualification of an entrepreneur who engages in the small and medium scale enterprises is very paramount for the success of the enterprise. This is because, if the small and medium scale enterprises are owned and handled by the educated individuals, the resultant effect will be business boom and success of the small and medium businesses (Anyanwu, 2004). According to Adeosun (2006), many businesses in Nigeria, especially the small and medium scale enterprises do not thrive because their owners are not well educated and in some cases, are total illiterates who are not well disposed to possess the required educational ability and skills to handle successful business enterprises such as the small and medium scale enterprises.

As Onyema (2007), observes that, the academic qualification or educational level of an individual businessman is important for success in the business world. According to Onyema, in Nigeria, where unemployment is high, individual citizens, especially the school leavers/graduates of the Nigerian tertiary institutions ought to engage themselves in the small and medium scale enterprises so as to avoid hoping against hope in looking for the jobs that are non-available. As emphasized by Harper (1995), with the large increase in world population (especially Nigerian and many developing countries) “governments can certainly not afford to employ many more. Also the  large scale industry has dramatically failed to absorb more than a tiny fraction of the multitudes who need jobs. In many countries, small enterprises are  possibly the hope of employment creation, and it is hardly surprising that policy-makers in developing nations and almost everywhere else have so eagerly strived to promote and encourage them”. The availability of efficient infrastructural services is a key requirement for the take-off of private investment (CBN, 2000).

Reflecting countries experiences in the performance of small and medium scale enterprises, SMEs employ more than 50 percent of the industrial workforce in Columbia, India, Indonesia, Kenya, Philippines, Tanzania and Zambia. They are the real job creators in the European Union (EU) accounting for 99.9 percent of 11.6 million enterprises (excluding enterprises in agriculture, fishing and other sectors, 72 per cent employment of the 80.7 million persons employed by all enterprises, and generate 69.7% percent of turn-over in EU (Deloittee, Touche and Tohmatsu, 1995). SMEs were equally responsible for more than 50 per cent of total employment in Canada (Government of Ontario, 1995).

Studies have shown that, SMEs have in many countries, provided the mechanism for stimulating indigenous entrepreneurship, enhancing greater employment opportunities per unit of capital invested and aiding the development of local technology (Sule, 1986; World Bank, 1995). They help to mobilize savings for investment and promote the use of local raw materials. Through their dispersal nation-wide, they contribute to more equitable income distribution among individuals and regions, as well as mitigate rural-urban migration.

In view of these advantages, greater attention has been given to the promotion of SMEs globally as tool for poverty alleviation and economic development. Even in the most buoyant economies, such as the United State of America, small scale enterprises have played an important role in her transition from the industrial age of the post industrial information technology era. Also, in other countries like Japan and South Korea, the use of sophisticated technology has reduced to the minimum efficient scale of production in industries known for product innovation, such as the electronics and computer industries (Olorunshola, 2000).

In the same vein, the Nigeria budget for 2003 was designed among other things to reduce poverty. According to Sanusi (2003), it is “to pursue macroeconomic policies and sector growth strategy that will achieve fiscal stability, improve non-oil sector competitiveness, lower levels of inflation,  fix stable and competitive exchange rate in order to engender growth and reduce poverty through increased employment”. Specifically, attention has been directed at the development of small and medium scale enterprises with the aim of turning them into engines of growth for the various economies.

Various problems confront its growth and hence, the objective of its establishment and management as engine of growth. These include among others, lack of information; lack of management and technical skills; poor ethical values, lack of transparency; lack of proper policy formulation and implementation; and above all, lack of quality education on the side of the small and medium scale entrepreneurs in Nigeria.

 Many entrepreneurs in Nigeria have failed in their businesses due to lack of proper education which gives one the ability to manage and coordinate vital issues that could lead to success in any undertaken by an individual businessman or woman. Majority of the business men and women have failed in their small business ventures due to lack of education which has made them to exhibit poor management and expansion of their business enterprises. Above all, the small and medium scale industries failed to achieve the desired economic growth due to poor managerial skills of the entrepreneurs and their lack of education.

In Nigeria, as in most countries of the world both developed and developing, small and medium scale enterprises are faced with a number of problems which seem insurmountable. Often the nature has been that the only problem which SMEs face is that of inadequate acquisition of educational qualification and that all other problems are sub-summed under it (Agundu, 2003). In as much as it is acknowledged that the problem of inadequate acquisition of needed educational qualification by the entrepreneur is a major impediment to the development of small industries, most especially in the developing countries like Nigeria, other problems such as poor transportation, inadequate and inefficient infrastructural facilities and lack of sufficient funds, are also predominant. Bureaucratic and inefficiency in the administration of incentives discourage rather than promote SME growth. Multiplicity of regulatory agencies and taxes has always resulted in high cost of doing business and poor management practices and low entrepreneurial skill arising from inadequate educational and technical background of many SMEs promoter. Weak demand for products, arising from low and dwindling consumer purchasing power and lack of patronage for locally produced goods by those in authority. All these problems should be recognized as inhibiting the development of SMEs (Ausbeth, 2004).

The problem of inadequate and inefficient infrastructural facilities has been a major handicap to the meaningful development of SMEs in Nigeria. These problems include lack of regular power supply especially in the rural areas. Lack of access to good roads, and housing militate against efficient production and distribution of goods and services (Agabi, 2006). The problem of inadequate infrastructural facilities particularly in the rural areas has frustrated the promotion of SMEs in such manner as to providing a lasting solution to the current problem of spatial imbalance in the distribution of industries between the rural and urban areas, and to check the perennial rural-urban drift which increases social tension in urban cities in Nigeria.

Additionally, there is weak demand for products and service of SMEs arising from low and dwindling consumer purchasing power. They are faced with undue competition from already well established firms in the industry where they belong or choose to enter (Funtula, 2005). All strong economies in the world today have a very dynamic small and medium scale industrial sector. This sector has been the backbone in the transformation of young and developing economies into very complex and advanced economies, which are characterized by very high productivity and high per capita income. A large number of today’s big business and even multi-nationals started as family business in the small and medium scale industrial sector. Through growth and expansion, their businesses developed in managerial and professional expertise to become medium or large scale ventures, (Nwankwo, 1981).

The benefits of SMEs are well documented in the literature and would be summarized here to put into proper perspective the issues involved. They provide an effective means of stimulating indigenous entrepreneurship, create greater employment opportunities per unit of capital invested and aid the development of local technology. Through their wide dispersal, they provide an effective means of mitigating rural-urban migration and resources utilization. According to Adeleke (2000), by producing intermediate products for use in large scale enterprises, they contribute to the strengthening of industrial inter linkages. Small enterprises are known to adapt with greater ease under difficult and changing circumstances because their typically low capital intensity allow products lines and inputs to be changed at relatively low cost. They also retain a competitive advantage over large enterprises by serving dispersed local markets and produce various goods with low scale economies for niche markets (Ndu, 1998). 

SMEs also serve as veritable means of mobilization and utilization of domestic savings as well as increased efficiency through cost-reduction and greater flexibility. To ensure actualization of their benefits, programmes of assistance in the area of education, finance, extension, advisory services, training and provision of infrastructural facilities were designed by the government for the development of SMEs. Too many challenges face the small and medium enterprises in Lagos State. Among the problems are the issues of lack of education among the entrepreneurs who manage these small and medium scale businesses in the state. It is very disheartening to note that majority of the entrepreneurs who run their businesses locally, do not have the requisite educational qualification that will enable them to manage their enterprises effectively. Little wonder the collapse of many small and medium scale business enterprises in Nigeria, especially in Lagos State where most of the businesses are carried out.

Lack of education among the small and medium entrepreneurs, has caused them to suffer the dearth of business information that are necessary for the growth and success of their business enterprises. Not only that, due to the receipt of half or non-education by the owners of the small and medium scale enterprises, their required managerial skills with which to pilot effectively the daily routine of the business venture is non-existent. Therefore, these entrepreneurs continue to manage their businesses on trial- and- error basis, which often times has resulted in the lost of capital, stunted growth of the businesses which by extension, has affected the Nigerian economy adversely and the collapse of the businesses, which equally, has resulted in the loss of manpower and the resultant unemployment and idleness which are the causes of restiveness, killings, kidnappings and other vices in the society these days.

The poor management of businesses by the entrepreneurs, who are basically uneducated, has brought unhealthiness in the Nigerian economic growth and development. This is because, the uneducated managers of the enterprises in Lagos State in particular, have lost focus due to their ignorance and the ability to coordinate the business ventures effectively and efficiently for the boosting of the economy in the state. Their failure to manage well, has led to loss of business opportunities to other up-coming Nigerians, especially the youths who are now skeptical and confused on the best business ventures to go into because they have seen the failure of the previous business attempts by others who were there before them.

1.2 Statement of the Problem

 One of the critical problems facing the economic growth in Africa Sub-Sahara and indeed, developing countries generally is the problem of harnessing the resources to achieve the desired goals through the acquisition of educational qualifications by the entrepreneurs. Other factors identified as major issues facing rapid development of the small and medium scale enterprises in Nigeria are poor managerial skills, inadequate infrastructure, internal challenges and some external forces. The central issue in the study is, does educational qualifications of entrepreneurs actually affect performance in small and medium scale enterprises?

1.3  Purpose of the Study

The purpose of this study is to:

 (1)   Establish whether educational qualifications of entrepreneurs affect the performance of small and medium scale enterprises.

(2)    Examine whether the performance of small and medium scale businesses is based on the managerial skills of the entrepreneurs.

(3)    Investigate whether the effective management of small and medium scale enterprises depends on the educational qualifications of the entrepreneurs.

(4)    Determine whether there is gender difference in the successful management of small and medium scale enterprises due to educational qualifications.

1.4     Research Questions

The following research questions were raised in this study:

(1)   Will the educational qualifications of the entrepreneurs affect the performance of small and medium scale enterprises in Lagos State?

(2)   How can the managerial skills of entrepreneurs affect the success/performance of small and medium scale enterprises in Lagos State?

(3)   Does the effective management of small and medium scale enterprises depend on the educational qualifications of the entrepreneurs?

(4)   Will there be gender difference in the management of small and medium scale enterprises due to educational qualifications?

1.5     Research Hypotheses

The following research hypotheses were formulated and tested in this study:

(1).    There will be no significant effect of educational qualifications and performance of entrepreneurs in small and medium enterprises in Lagos State.

(2)     There will be no gender difference in the management of small and medium scale enterprises due to educational qualifications of the entrepreneurs.

(3)     The effective management of small and medium scale enterprises will not significantly depend on the educational qualifications of the entrepreneurs.

(4)     There will be no significant gender difference in the successful management of small and medium scale enterprises in Lagos State.

1.6  Scope and Delimitation of the Study

This study covered the examination of the educational qualifications and performance of the small and medium scale enterprises in Lagos State, Nigeria. The small and medium enterprises involved in this study included the following:

Stonik Enterprises Ltd.

Ejike –Eme Auto Parts.

Emako Auto Enterprises.

Lordswill Nigeria Enterprises.

 All the above small and medium scale enterprises are located in the Mainland Local Government Area of Lagos State, Nigeria.

1.7     Significance of the Study       

The study may be beneficial in the following dimensions:

 Adult education facilitators may benefit from the findings and recommendations of this study, because, it may afford them the opportunity to learn deeply, the effect of education on successful management of small and medium scale enterprises in Nigeria in general and Lagos State in particular.

 The adult education students may be able to learn more on what connotes small and medium scale enterprises and how the level of education of an individual affects his handling or management of the enterprises.

 The school authorities may be in-the-know concerning the kind of education they would give to an individual in order to equip him/her to be able to manage effectively the small and medium enterprises he/she owns.

 With the findings and recommendations of the study, governments of the Federal, States and Local Governments may be able to know that establishment of small and medium scale enterprises is important to curb the issue of unemployment and over-dependence on government for employment.

 The members of the society may be able to understand the importance of effective management of small and medium scale enterprises in Nigeria as an engine for effective development in the country, especially in the aspect of the economy.

1.8  Definition of Terms

Small - Scale Industry: An industry with a labour size of 11-100 workers or a total cost of not more than N50 million, including working capital but, excluding cost of land.

Medium Scale Industry: An industry with a labour size of between 101-300 worker’s or a total cost of over N50million, but not more than N200million, including working capital, but, excluding cost of land.

Educational Qualification: This means the academic qualification of an individual, especially the entrepreneurs of the small and medium scale enterprises.

Performance: This refers to the level of activity put in by an individual either in his/her work or any other activities be it in education, organization etc.

EFFECT OF AUTOMOBILE TECHNOLOGY ON ENTREPRENEURSHIP FOR SUSTAINABLE DEVELOPMENT IN LAGOS STATE.

EFFECT OF AUTOMOBILE TECHNOLOGY ON ENTREPRENEURSHIP FOR SUSTAINABLE   DEVELOPMENT IN LAGOS STATE.

Background of the study

Over the years there have been many definitions of  entrepreneurship and they have all been acceptable definitions but i define it as the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.

In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential  part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.

One can simply say that entrepreneurship as the pursuit of a self-owned business or company. Entrepreneurs are people who are willing to take risks to make a profit, whether by inventing a new product or opening their own company, it is also the behavior of starting business or taking on financial risk with the hope of making a profit. Entrepreneurship is almost a way of life. If you have it in you, then it permeates everything that you do.

Entrepreneurship is the act of starting a company, arranging business deals and taking risks in order to make a profit through the skills acquired (Omolayo 2006). Entrepreneurship education can also be described as the term given to who has innovative ideas and also posses the ability to transforms it to profitable activities. Entrepreneurship in other words is the process of bringing together creative, innovative ideas and coupling these with management and organizational skills in order to combine people, money and resources to meet an identified need and create wealth. In the same vein, Nwangwu (2007) opined that entrepreneurship is a process of bringing together the factors of production, which include land, labour and capital so as to provide a product or service for public consumption. However, the operational definition of entrepreneurship is the willingness and ability of a person or persons to acquire educational skills to explore and exploit investment opportunities, establish and manage a successful business enterprise.

Entrepreneur can be defined as an innovating individual who has developed an ongoing business activity where none existed before. Meredith (1983) defined an entrepreneur as a person or persons who possesses the ability to recognize and evaluate business opportunities, assemble the necessary resources to take advantage of them and take appropriate action to ensure success. Entrepreneurs are people who constantly discover new markets and try to figure out how to supply those markets efficiently and make a profit.

An Entrepreneur is a person that searches for change, responds to change, and exploits change by converting change into business opportunity.

Political instability and inconsistencies in the social-economic policies of successive government led to the emergence of high level unemployment in Nigeria. In the mid 80s, the Nigeria economic collapsed while youth and graduate unemployment hit the roof. There was large-scale layoff of workers and early retirements as a result of structural adjustment policies and bad economic trends in the country. In the face of this situation entrepreneurship, which would have salvaged the situation, was not encouraged. It has been observed that tertiary education has not been properly included with philosophy of self-reliance such as creating a new cultural and productive environment, that will promote pride in self-discipline, encouraging people to take part actively and freely in discussions and decisions affecting their general welfare, promoting new sets of attitudes and culture for the attainment of future challenges.

According to Nwangwu (2007), the failure of tertiary education to inculcate the above philosophy in students has led to wastages in terms of both human and natural resources. This is because the youth and graduate from tertiary institutions are not equipped with the skills with which to exploit the natural resources that abound in Nigeria. All these factors have rendered the pursuit of self-reliance among our graduates difficult to retain. Whether technology alone will be sufficient to achieve an entrepreneurship sustainable future is unclear. This will depend on public and private support for entrepreneurship beneficial technologies and the extent to which further growth in world population and economic output will compromise per capita emissions reductions and a more efficient use of natural resources.

Sustainable development is a pattern of economic growth in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come (Paul, 2005). Sustainable development ties together concern for the carrying capacity of natural systems with the social challenges faced by humanity. Sustainable development requires balancing environmental, societal and economic considerations in the pursuit of development and an improved quality of life. Sustainability includes intergenerational equity, gender equity, just and peaceful societies, social tolerance, environmental preservation and restoration, poverty alleviation and natural resource conservation (Paul, 2005). The major essential tool for achieving sustainable development includes the following:

Improve the quality of basic education; Reorient existing education programmed to address sustainable development; Develop public awareness and understanding; and Provide training for all sectors of private and civil society.

Education for Sustainable Development is the focus or projection of education that seeks to equip people towards creating a sustainable future. Stakeholders such as government, businesses, educational institutions, media, and organizations play important roles in achieving sustainable development. Each of these sectors has a different vision of sustainable development. Some are interested in environmental preservation and protection; some have economic development interests while other may be more interested in social development. According to UNESCO (2003) the way each nation, cultural group and individual views sustainable development will depend on its own values.

In many European nations, Universities and technical colleges trained students of science, economics and business management in skills that helps to build more sustainable societies. Programs such as Peace Education, Human Right Education, Environmental Education and Youth Entrepreneur schemes are carried out in many schools (UNESCO, (2003). Hence, such initiatives help students and teachers to gain an understanding of the inter-linkages needed for sustainable development (Paul, 2005). The emphasis has been on education that will provide life and occupational skills that will enhance the potentials of individual, reinforcing self-sufficiency and improving quality of life.

Entrepreneurial competency is defined as the capability of entrepreneurs to face effectively a critical situation by making sense of environmental constraints and by activating relational and internal specific resources’ (Iandoli, (2007). Entrepreneurial competencies are defined as individual’s traits, such as specific knowledge, motives, features, self images, social roles and abilities which result in venture’s success. Some entrepreneurial competencies can be learned through formal education, other competencies are tacit and depend on individual’s characteristics and are built during the person’s life, experience, and career (Brownell, (2006).

Entrepreneurial competencies associated with the firm’s performance and competitiveness business growth and success (Mitchelmore and Rowley, (2010). Acquiring entrepreneurial competencies is of key importance for entrepreneurs willing to achievement oriented entrepreneurs. Issues relating to the competencies development process relating to entrepreneurs have generally been neglected. Competencies play an important role in successful entrepreneurship. Surprisingly, the research on the entrepreneurial competencies is rather limited (Mitchelmore and Rowley, (2010).

This study examines the effect of automobile technology students’ competency on entrepreneurship for sustainable development in Lagos State. Also, change in basic technologies of production, transport and consumption rather than modifications of existing products and processes or the adoption of end-of-pipe technologies are also considered.

However, such changes alone will be largely insufficient for achieving the ultimate goal of sustainable development. To achieve that, more fundamental changes in technology are needed.

1.2              Statement of the problem

There are basically two ways a graduate can end up , either into the soft skill level which is gaining employment in a corporate world(white-collar job) or entrepreneurial skills(business owner) to start one’s own business. In Nigeria’s economic environment which has unemployment as one of its major problems, it is of benefit that when a student acquires proper knowledge in entrepreneurship skills such student would be able to discover what they can lay their hands on if corporate employment does not come. The importance of entrepreneurship to any economy is like that of entrepreneurship in any community. Entrepreneurial activity and the resultant financial gain are always of benefit to a country. If a student has entrepreneurship skills then they will recognize a genuine opportunity when you come across one and that makes unemployment reduction possible.

The present education system encourages cramming and memory and not on creativity and practical application of knowledge and this is unhealthy and unstable for a virile technological advancement and   entrepreneurship development .Also fear of failure by the people to take risk on entrepreneurial activities, while an unstable and conducive political environment drives away people that are planning to embark on entrepreneurial activities hence it does not make knowledge delivery on entrepreneurial skills available to students.

In addition, government programs are not designed to promote technological and entrepreneurship sustainability in Nigeria, the level of infrastructural development provided by the government is still very low and this has been affecting to a very high extent the level of productivity and entrepreneurial activities in the country.Judging by the figures that are coming out of the Education Ministry in Nigeria, In the last few years, at least 60% of graduates are not able to get employment immediately. Because of that, they go into one entrepreneurial venture or another, but unfortunately they have not been adequately prepared to face the challenges of venturing.

Introduction of entrepreneurship skills in our curriculum and making it compulsory in education system in order to prepare students for proper skills needed in venturing into any business they can after graduating as this will help reduce unemployment. However, the education institution need to encourage entrepreneurship skills right from the curriculum itself and government should also take initiative in encouraging the students by providing conducive climate for the same.

Teachers and faculties should motivate students in being interested in this aspect of the curriculum and it should be emphasized as a very important knowledge that may be useful after completion of studies.

More so, Entrepreneurial development through education will advance the economy of the nation hence much credence should be given to it and ingrained with focus on profitable personal development. Infrastructure provision and non-profitable organization invitation into sponsoring various entrepreneurial programs and funding in institutions is a very important aspect in the growth and development of entrepreneurship development and employment level of a nation.

1.3              Purpose of the study

The purpose of the study will be to:

Examine automobile technology student competency on entrepreneurship. Find out the effect of entrepreneurship on sustainable development in Lagos state. Explores some of the policy issues in achieving a shift towards a more sustainable development in Lagos State.

1.4              Significance of the Study

The result of this studies will be useful to the youth both graduates and undergraduates. This is because it will help them to be aware, prepare and improve on personal development of their entrepreneurial skills hence gives chance to those who are not lucky or do not become gainfully employed in the so called ‘White-Collar’ jobs to start their own business with the little possible finance they lay their hands on.

Secondly, The result of the study will be useful to the government as it will lay emphasis on the various ways in which entrepreneurship skill development in students can reduce unemployment and also point out the various ways this can be done and policies that will be put in place to make sure that entrepreneurial activities can be directed toward productive ends conducive to economic progress.

Thirdly, the society is a large faction to gain from this study by making known the importance of delivering the knowledge of entrepreneurship skills can go a long way to meet local needs from hairdresser, financial consultant, emergency plumber and other local but important business owners. This study also talks about the fear people have in risk of starting a business and how that can be overcome and how the society is a large factor in the fear that is created in the mind of someone that wants to start a business.

1.5              Research Questions

This study will provide answers to the following questions:

What are the automobile technology student competencies on entrepreneurship? What are the policy issues in achieving a shift towards a more sustainable development in Lagos State? What are the effects of entrepreneurship on sustainable development in Lagos state? To what extent is automobile technology affect students competency on entrepreneurship development?

1.5       Research Hypotheses

1.         There is no significant difference between students in rural and urban area and competency in entrepreneurship

2.         There is no significant difference between the mean scores of students’ social economic status on entrepreneurship development

3.         There is no significant relationship between automobile technology and students’ competency on entrepreneurship development

1.6              Significance of the study

The finding of the study will equip our general knowledge on the nature of automobile technology and student’s competency on entrepreneurship with emphasis on sustainable development on Lagos State.

This research work is significant because it will assist lecturers, educationists, parents and students to realize that entrepreneurship development is key to sustainable development.

 Curious readers who are in need of general information on entrepreneurships   will profit from reading of the project since it will enhance their knowledge on how sustainable development can be attained.

1.7              Scope of the study

The study will be mainly on the effects of automobile technology students’ competency on entrepreneurship for sustainable development in Lagos state. The study will be limited to secondary schools in Mainland  Local Government Area of Lagos State.

TRAINING MANPOWER DEVELOPMENT AND EMPLOYEE PERFORMANCE

TRAINING MANPOWER DEVELOPMENT AND EMPLOYEE PERFORMANCE 

INTRODUCTION:

The purpose for this study was to determine the training Manpower Development and Employee Performance in an organization. Training of Manpower has been one of the pressing problems that have greatly affected the economy of any nation. Since the problem of training manpower development and employee performance among organizations is not new in the field of educational research, many studies have been carried out, but considerable numbers of literatures and papers have been reviewed. Hence, related literature on this subject therefore has been profound and vast. Some of the studies were quite intriguing. Some were particularly concerned with sporting factors that aided poor employee performance. Such studies have however been helpful in a way that they point to why some employee could not perform or achieve their goals positively thereby opting out as a result.

In the reviewing the related literature for this study, the following areas have been mapped out for review; organization background and employee’s performance, organization income (socio-economic status) and training Manpower development; Organization changes in labour market and Manpower needs in manufacturing and marketing, and summary.

2.1   ORGANIZATION BACKGROUND AND EMPLOYEE’S PERFORMANCE  

The organization structure or background could influence the employee’s performance and training. If the management (managers) of any firms or organization did not attend training, workshops or seminars, they would find it difficult to send their employees to training and also to provide them with some necessary incentive and motivation, and these will affect manpower needs or employee’s performance. Major banks (1979) in his study found out that the organizational structure cum background ha s a unique relationship with training manpower development in an organization. In the same vein, Morris (1972) shows that organization with poor attitude to training of manpower development have their employee as lacking technical know-how. Jegede (1984) also explains that lack of manpower needs in any of the organization can be attributed to organization background and socio-economic status. Musgrave (1979) is of the opinion that companies or organization that fall under the upper and middle classes is of high socio-economic status and are well solidified, they tend to realize the importance of training manpower needs. Moreso, Iniodu (1991), Akpan (1993), and Udofia (1993) are of the view that organization of good standard find it necessary and rewarding to identify, determine and trained their employee with the view to organize workshop, seminars and symposium where technocrats will be involved to show expertise. These will enable the employee to put in maximum performance in the service oriented organization.

2.2  ORGANIZATION INCOME AND TRAINING MANPOWER DEVELOPMENT   

Henry (1993) opined that employee from a rich organizations find it easy to adjust to training life for effective performance and greater achievement. Eket (1986) observed that employee from poor organizations do not attend the same level of training manpower development as those form wealthy organizations. The differences, according to him, may be due to the availability and provision of training materials in different organizations. Esien (1979) noted that low financial position of any organization have a strong influence on the employee performance in an organization.

Manpower can be said as the total knowledge, skill, creative abilities, talents and attitude of an organization to work force as well as the values, attitude and benefits of the individuals involved in it. The needs for Manpower in an Organization include: To maximize utilization of human resources. To reduce excessive labour turnover and high absenteeism. To meet the challenges of new and changing technology and also new techniques of production.

EVALUATION OF INFORMATION TECHNOLOGY ON THE BANKING INDUSTRY

EVALUATION OF INFORMATION TECHNOLOGY ON THE BANKING INDUSTRY (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

ABSTRACT  

Information technology is a powerful force that drives the world towards a converging commonality. From the beginning of the human era, technology has been of the most essential and most important factor for the development of mankind.

The use of Information technology broadly referring to computers has seen tremendous growth in service industries in the recent past. The most obvious example is perhaps the banking industry.

This project examines the impact of information technology on the banking industry 2000 -2009. It will also find out how growth rate in computer technology cost, interest: interbank, inflation rate, total bank asset, total deposit, number of bank branches, total computer asset cost affect the performance of First Bank of Nigeria.

The study will analyze the problem of the impact of information technology on the banking sector, effectiveness of information technology to tackle the occurrence of long queues deposits and withdrawals; facilitates fraud, saves time of customers, just to mention a few.

This study adopted the ordinary least square multiple regression analyses, Pearson correlation co-efficient of determination to examine and appraise the relationship between information technology and the banking sector of First Bank of Nigeria. The findings show that Growth rate in computer technology cost, interest rate: (inter bank), inflation rate, total bank asset, total deposit, number and bank profits of First Bank of Nigeria.

This study recommends that in order for banks to increase its profitability and carryout good operations the bank should be saddled with the responsibility of mapping out strategies and itemizing tactics to boost its capitalization. 

EFFECTS OF LIQUIDITY PROBLEMS ON COMMERCIAL BANKING IN NIGERIA

The business of modern banking started in Nigeria in 1892 with the incorporation of African Banking Corporation. British Bank of West Africa later absorbed this bank in 1894. The early period of commercial banking in Nigeria was characterized by a lack of legislation which made it an all-comers affair.

With the absence of any banking legislation in 1892, when the first bank was established in Nigeria (African Banking Corporation) anybody could set up a banking company provided the bank is registered under the Ordinance Act which section 2(i) prohibited the formation of a banking company or partnership consisting of more than ten (10) persons for the purpose of carrying on a banking business, unless it was registered as a company, hence it was referred to as the “free banking era”.

This period also saw the establishment of three foreign banks and two indigenous banks. The foreign banks were; The British Bank of West Africa Limited in 1894 (now known as First Bank Plc), the Barclays Bank Dominion colonial and overseas in 1917 (now known as Union Bank Plc) and the British and French Bank, in 1949 (now known as United Bank for Africa Plc). The two indigenous banks were the National Bank of Nigeria in 1933 and the Agbonmagbe Bank (now known as Wema Bank Plc), as well as the African Continental Bank Limited in 1947.

The appointment of the Paten commission of inquiry on 7th September 1948 was another feature of this free banking era. It was to inquire generally into the business of banking in Nigeria and make a recommendation to the government on the form and extent of control, which should be introduced into the banking system.

Based on the report of this commission, the first-ever banking legislation in the country was promulgated in 1952. An increase in the number of indigenous banks in the country was another major event during this period. However, some banks established during this period could not survive.

The second phase (i.e. the second era) in the origin of commercial banking in the country opened with the establishment of the Central Bank Plc (CBN) in 1959. After the establishment of the Central Bank and prior to independence in 1960, new commercial banks were established. 1959 to 1962 saw the enactment and amendments of banking legislation. These were the 1958 Banking Ordinance which became effective in 1959, then 1961, 1962 and 1964 amendment and the Banking Decree.

The evolution of commercial banking in Nigeria brought about the Financial System Review Committee set up by the Federal Government under the chairmanship of a distinguished economist; Dr. Pius Okigbo. The committee known as the Okigbo committee was to review the Nigerian Financial System. Consequently, in a white paper published on the committee with respect to the commercial banks (the establishment of a state bank in each state and the amalgamation of the three biggest indigenous banks into one entity). The Okigbo report, and the white paper on it nevertheless, marked a new era in the evolution of the commercial banking system in Nigeria (Yunisa and Kehinde2010 ).

1.2 STATEMENT OF THE PROBLEM

There are very brilliants ideas, projects, concepts, businesses that are viable, feasible and bankable still waiting for angel investors. There seems to be a lack of faith in the Nigeria Entrepreneur, bank and financial institution business owners by custodians of loanable funds i.e. banks and other financial institutions. Therefore the statement of the problem is how all these business owners can have access to establishing this type of business. More so, inventors find it difficult to access credit.

1.3 OBJECTIVES OF THE STUDY

The main objective of this study is to focus on the problems of liquidity in commercial banks in Nigeria so as to provide the information required to make decisions as to how the fund should be mobilized effectively and one such decisions is made, to provide the data necessary to adequately manage the available fund. Other objectives of this study include;

To determine whether fund mobilization has an effect on liquidity problems. To find out whether illiquidity holds the customer to lose confidence in commercial banking.

1.4 RESEARCH QUESTIONS

1. Does fund mobilization has an effect on liquidity problem?

2. Does illiquidity hold the customer to lose confidence in the commercial banks?

1.5 RESEARCH HYPOTHESES

Ho: Fund mobilization has effect on problems of liquidity.

Hi: Fund mobilization does not have any effect on problems of liquidity.

Ho: Illiquidity holds the customers to lose confidence in the commercial banking system.

Hi: Illiquidity does not hold the customers to lose confidence in the commercial banking system.

1.6 SCOPE OF THE STUDY

The scope of this study is restricted to the effect of liquidity problems on the commercial banking system in Nigeria with the United Bank for Africa Plc. (UBA) as the case study. The research work is limited to the staff and customers of the bank only.

1.7 SIGNIFICANCE OF THE STUDY

A study of this kind is expected to make a significant contribution to the organization’s development. The study will provide the basis for scrutiny for liquidity problems on commercial banking in Nigeria, which aids banks under study (United Bank for Africa) and other commercial banks to solve the problems faced in the area of liquidity and mobilization of funds. It will assist other banks to solve similar problems. It also provides various indicators and methods used to measure organizational performance.

1.8. LIMITATION OF THE STUDY

As expected this study may not be without its limitations.

The study was limited by a number of factors, which include the following:

i. Insufficient numbers of recent literature on the subject topic.

ii. Inadequate time and financial resources to carry out the study extensively.

iii. Inaccessibility of some relevant data.

1.9 DEFINITION OF TERMS

1. Liquidity: The liquidity of an organization is measured by the ability of that organization to meet its short term debt and liabilities.

Liquidity can be measured through the following ratios:

(a) Current ratio: current asset

Current liabilities (in which the ratio is 2:1)

(b) Acid test ratio: Current asset – stock

Current liability

(in which the ideal acid test ratio is 1:1)

(c) Fixed interest ratio: Profit before interest and tax

Fixed interest rate

(d) Return on Capital Employed (ROCE):

Profit before interest and tax

Capital Employed

(e) Earning per share ratio:

Profit after tax

No of ordinary share issued

2. Illiquidity: An establishment or bank is said to be illiquid when it can no longer meet its depositor's demands or its obligations as at when due. It is a numinous sign of insolvency and when the problem of illiquidity persists for a very long time, it could lead to the forceful sale of assets below their market value.

3. Commercial Banks: Commercial banks are institutions where people, corporate bodies, statutory corporation etc keep money and other valuables for security reasons.

4. Insolvency: An establishment or bank is said to be insolvency when the value of its realizable assets is less than the total value of its liabilities.