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JOURNAL OF RESEARCH IN NATIONAL DEVELOPMENT VOLUME 5 NO 2, DECEMBER, 2007

ENTREPRENEURSHIP DEVELOPMENT: A PEOPLE CHANGE APPROACH TO SELF ACTUALIZATION AND SUSTAINABILITY

Olukayode Jolaosinmi  Ogundele and Adedoyin Rasaq Hassan
Department of Marketing, Lagos State University, Ojo,
and
Emeka Emmanuel Okafor
Department of  Sociology, University of Ibadan, Ibadan

 

Abstract

This research presents an educational, training, and development approach that is focused on the need for change in the behaviour of the entrepreneurial stream, and the society in general, to attain true self-actualization and sustainability. The paper considers self actualization and sustainability as essentially entrepreneurial behaviour. A model that specifies the appropriate approaches for entrepreneurial education, training and development is presented. The emphases are, on individual, immediate environment, and the larger society in shaping the entrepreneurial personality. The paper reports a field study where four hypotheses were tested on education, training and development of entrepreneurs in Nigeria. The results showed strong support for the effect of education, training and Development on the entrepreneur’s emergence, the behaviour of entrepreneurs was perceived to be negatively affected by lack of training and Development, and finally, the entrepreneurs perceived positive relationship between training and development, and entrepreneur’s performance. The selected sample of entrepreneurs were asked to list areas of training and development needs in order to improve them on their various vocations and trades.   The paper notes that the lessons from this research is that, education, training and development could be used as a vehicle for people change approach to self actualization and sustainability for the Nigerian nation, because they can be used to produce change in the behaviour of entrepreneurs. Conclusions and recommendations on the approach were highlighted.
Key words: Development; Entrepreneurs; Change; Self actualization.
                            Sustainability


Introduction

This paper examines entrepreneurship from the education, training and developmental perspective. The purpose is to present a model of training and development programme that is likely to be more fruitful in entrepreneurship development programmes in Nigeria.
Formal education refers to the one acquired in Schools, Colleges and Universities.  Its purpose is to develop the individual generally (Beach, 1975). Cole (2001) defined training as any learning activity which is directed towards the acquisition of specific skills and knowledge for the purpose of an occupation or task.   It is regarded as applying principally to the improvement of skills and hence of learning how to perform specific job or task. Beach (1975) considered development as a systematic process of training and growth through which the individuals gain and apply skill, knowledge, insight and attitude to manage work organization effectively. Again, Banjoko (2002) explained that Development is used in relation to the process of helping managerial employees who perform non-routine jobs to improve their managerial, administrative and decision-making abilities and competence. He stressed further that Training and Development can be determined through the three main processes of: organizational needs analysis, task needs analysis and Person needs analysis.

Change is a modification of a current form or state, of an organization or institution, which results in a different form or state of the organism or institution concerned (Adeleke, Ogundele and Oyenuga, 2004). Udo-Aka (1987) considered education as involving the acquisition of general knowledge and the development of basic mental ability, in contra-distinction with his definition of training which involves the acquisition of specific skills.  Man must learn new habits values, motives and attitude.  And it would certainly be more efficient if he could learn them directly through education rather, than indirectly through gradual social and economic forces.  He noted that the experience of countries like India and Pakistan served to prove this view as being correct.
              Intrapreneurship development means imparting in the budding or actual entrepreneurs necessary skills and competences to make them effective and better behaved individuals in their entrepreneurial roles.  Ekpo-Ufot (1988) presented a package for entrepreneurship development. He listed the basic attributes of the entrepreneurs which could be influenced in any meaningful development effort. These are: (a)Value: achievement and risk taking (b) Personality traits: Imaginative, initiative, leadership, self-confidence, technological skills, self competence. (c) Covert behaviour, rich in idea, thinking and (d) Overt behaviour: does things, doer of action, innovates business plan ahead with long term view, prefers task with feed back, etc. He also listed the basic determinants of entrepreneurship these are; (1) Society’s values and needs (2)  Family  (3) School (4)  Work organization (5) Urbanization and industrial estates (6)  Availability of financial resources and Government. Some of the shortcomings of Ekpo-Ufot (1988) package are; (1) it focused on four out of 14 possible approaches (2) the attributes listed by him are biased heavily on the behavioural aspect of entrepreneurship development (3) the listed determinants are also not comprehensive enough, several important ones were left out.
However it served as a convenient takeoff point for the methods or approaches of entrepreneurship development that will be presented in this work: This is because the attributes and the determinants could be influenced in a number of ways so as to produce better equipped existing entrepreneurs. It could also be used to broaden the horizon of budding entrepreneurs.

 

A Developmental Model

It is possible to construct a model of the determinants and attributes of entrepreneurship development based on the discussion thus far. This is shown in figure I below.


ghd 



Figure I: Model of the processes and Stages in Entrepreneurship Development

Step 1

dgd 



dgdAttitudes, Motivation and
gdfdNeeds Mental capacity
Biological Make-up                                                      Entrepreneurial Emergence
gd 

Step 2

gdFamily unit

ghSchooling, Social groups
Societal values                                                  Entrepreneurial Behaviour

dgdhEconomic conditions                                                            and performance

ghPolitical system and priorities
Religious values etc.
dg 


Step 3

dh 



                                    Financial resources for training
g                                              And development                       Radio, Televisions
dhg                                                                                                Newspaper & books
dh 

ghdForum for Entrepreneur        ENTREPRENEUR                Government and private

ghdPractice                                                                                    support programmes for
                                                                                                Training and development
                                    Institutions for entrepreneurial
                                    Training and Development

Source:                       Developed by the Authors and Adapted from  Ogundele (2000)
                        Determinants of Entrepreneurial emergence, Behaviour and Performance
                        Unpublished doctoral dissertation, Lagos, University of Lagos.
gdg 



Figure 1 above is a model of the processes and stages involved in the education, training and development of individual in the society. The employment of the model in entrepreneurship development programme is expected to produce desired changes in peoples’ behaviour, for the good of the society. This will eventually lead to self-actualization and sustainability of the pace of progress for the society in general.
Stage 1, in the model focuses on the personality of the individual/entrepreneur. This involves the fundamental characteristics of the individual. It is partly based on his/her attitudes to work and life in general. It also involves his/her motivations and needs as a member of a family and other larger groups. His and her mental capacity will also set a limit as to the types of opportunities that could be exploited by him/her (Ogundele, 2003). The individual make up in term of physical fitness is equally important.
Stage 2 relates to the immediate childhood and adolescent environments. These are the homes, school, social groups, economic characteristics of the environment, political systems and priorities, technology, religious and societal values (Ogundele and Opeifa, 2004). All of them will determine the types of education, vocational training and development to which an individual could be exposed. These will in turn determine the possibility of an individual being given entrepreneurial orientation which will serve as basis for self-actualization and sustainability. They will consequently influence the processes of emergence, behaviour and performance of entrepreneurs.
Stage 3 relates to institutions and agencies that could further mould the entrepreneurs or individuals by equipping them with more practically oriented skills and competencies. It assumes, first, that existing or practicing entrepreneurs could perform better through exposure to relevant training and development. This is because, deficiencies that are manifested in the practice of entrepreneurship or self-employment, may be corrected through on and off the job training. Secondly, it assumes that an individual who is not yet an entrepreneur could be made to become an active entrepreneur. Thus, through the processes of providing financial support and facilities for training and development is guaranteed. This depends on supports from various institutions- private organizations and government agencies.

It is therefore predicted that the level of formal education will affect entrepreneurship. Equally, the level of technical, vocational, managerial and other specialized training and development will affect entrepreneurial processes. Opportunities awareness training will also affect entrepreneurship. Also predicted is that: lack of necessary training and development would adversely affect entrepreneurship and consequently self-actualization and sustainability.



Research on Perception of Education, Training & Development
Hypotheses
These hypotheses were formulated:-

  1. That high level of formal education will promote entrepreneurial emergence.
  2. That training and development will be perceived to have positive and significant effects on entrepreneur’s emergence.
  3. That lack of training and development will be perceived to have significant negative effects on entrepreneur’s behaviour.
  4. That there will exist a perceived positive relationship between training and development and entrepreneurial performance.

Measurement of variables:
Structured questionnaire was employed for data collection. Most of the measures used for performance and other dependent variables were perceptual. Chi-square test, Crammer’s ‘V’ and Content analysis were applied in the test of hypotheses.

Data Collection
The sample consisted of two groups of entrepreneurs.  The first group was made up of 74 private entrepreneurs (PEs) who were engaged in the food processing industry.  The second group was made up of 70 National Directorate of Employment Assisted entrepreneurs (NDEAEs), who were engaged in various industrial sub-sectors. The research was focused on processes; therefore, there were no rigid restrictions on the choice of states and samples of respondents.  This is because the processes remain constant and processes constitute behaviour.  Data collection was done between March and September, 2003.  The research activities covered Lagos, Oyo and Osun States of Nigeria.

Results and Discussions
Hypothesis 1: That high level of formal education will promote entrepreneurial emergence.
            The influence of formal education on the emergence of entrepreneurs is explored for in Table 1 below. This is based on the actual levels of education reported by the entrepreneurs.


Table 1: Level of Formal Education of Entrepreneurs Reported by PEs and NDEAES

Level

PE (n=74)
F                 %

NDEAE (n=70)
F                   %

Total n=144
F               %

Low 1-10yrs

26            35.14

2                  2.9

28           19.44

Moderate 11-15yrs

30            40.54

4                  5.7

34            23.61

High  16 + yrs

18           24.32

64              91.4

82            56.95

Total

74          100.00

70          100.00

144        100.00

Source: Responses of PEs and NDEAEs


Ch. Sqr = 65.82, d.f. = 2, V = 0.68. The computed X2 from Table 1 is 65.82 and the crammer’s ‘V’ value is 0.68, the Table Value of X2 at P<0.001 level of significance and for 2 degrees of freedom is 13.816

From the table above the computed X2 exceeds the Table value by a very wide margin. Similarly, the crammer’s v value of 0.68 indicated that there is a very strong association between high level of formal education and entrepreneurial emergence. On the whole, 56.95% of both groups of entrepreneurs had high level of formal education, only 19.44 had low level of formal education. Hypothesis 1 on emergence is supported.
This finding was an exact opposite of Akeredolu-Ale (1975) finding where most entrepreneurs had low level of formal education. Singh (1986) found that the general notion that entrepreneurs often had low level of formal education was not support by the finding of his study. Bowen and Hirsch (1986) reported that entrepreneurs of their study had educational level that was above the level of the average for the general population. The finding of this study is in conformity with Aluko (1983) conclusion of emerging new breed of highly educated entrepreneurs. This is particularly so when cognizance is given to the fact that 91.4% of the NDEAEs had high level of formal education.
Hypothesis 2: That training and development will be perceived to have positive and significant effect on entrepreneur’s emergence.    

The responses on the perceived necessity of training and development for entrepreneur’s emergence are contained in Tables 2a and b below:


Table 2a: Perceived Necessity of Training and Development for Entrepreneurs Emergence

Response

PEs(n=74)
F                    %

NDEAEs
F                    %

Total
F                    %

Yes

61          82.43

46               65.71

107             74.31

No

13          17.57

24               34.29

37               25.69

Total

74         100.00

70               100.00

144             100.00

 

 

 

 

Source: Responses of PEs and NDEAEs

Ch. Sqr = 5.36, d.f. = 1, V = 0.19

Table 2b: Content Analysis of the Reasons given for the Perceived Necessity of Training and development for Entrepreneurs Emergence.


Responses

PEs  %

NDEAEs    %

Total

Positive effects of
Training and Development

100.0

81 .        44

90     . 72

Other factors more
Important

-               -

14     .      27

7     .    14

None reasons given

-              -

2       .      28

2      .    14

Total

100.0

100.0

100.0

Source: Responses of PEs and NDEAEs

The computed X2 in Table 2a is 5.36. This significant at P< 0.05 level of significance with one degree of freedom. The crammer’s ‘V’ value of 0.19 shows a fair relationship between training and development and entrepreneurs emergence.
The content analysis of the reasons behind the perception reported in Table 2a as contains in table 2b above. It showed that 100% of the PEs and 81.44%n of the NDEAEs and 90.725 of the combined groups gave reasons supporting the positive influence of training and development on entrepreneurs’ emergence.
The results of the analyses in Table 2a and b support hypothesis 2. Hypothesis 2, on emergence is therefore supported.
There are several literature supports which linked training and development with entrepreneurs emergence, these include Singh (1986) Okaka (1990) and (Amit, Glosen and Muller, 1993). Training and development provide needed skills and knowledge for the entrepreneurs. It also creates opportunities awareness. It is claimed that business ideas were developed during the training and development programmes. Most of the entrepreneurs of this study who were in the bakery industry claimed that their training as bakers primarily influenced their decision to take on entrepreneurial role     
Hypothesis 3: That lack of necessary Training and development will be perceived to have significant negative effect on entrepreneurs behaviour.
Tables 3a and b below contain perception of the PEs and NDEAEs on the perceived behaviour of entrepreneurs in relation to lack of entrepreneurial training and development and the reasons behind the perceptions. The computed X2 in table 3a is insignificant at any relevant levels in this study.
The same thing applies to crammer’s ‘V’ value. But data in the Table 3a showed that 95.95% of the PEs, 94.29% of the NDEAEs and 95.13% of the combined groups perceived the negative effects of the lack of training and development on the pace of entrepreneurial responses to business opportunities Table 3b relates to the context analysis of the reasons behind the patterns of perception displayed in Table 3a above. In Table 3b, 96.005 of the PEs, 87.45 of the NDEAEs and 91.7% of the combined groups gave reasons which related to the negative effects of lack of training and development on responses to business opportunities by entrepreneurs.
Table 3a: Perceived negative Effect of Lack of Training and Development on Responses to Business Opportunities.


Respones

PEs (n=74)
F                     %

NDEAEs (n=70)
F                   %

Total n= 144
F                %

Yes

71               95.95

66              94.29

137           95.13

No

3                    4.05

4                 5.65

7                7.48

Total

74                100.00

70               100.0

144             100

Source: Responses of PEs and NDEAEs

Ch. Sqr = 0.20, d.f. = 1, V = 0.03
Table 3b: content Analysis of the Reasons behind Perception contained in table 3a

Responses

PEs

NDEAEs   %

Total

Reason of negative effects of lack of training and development

96   .    00

87   .    4

91   .    7

Other factors more important

4   .      00

10   .    2

7   .      1

No reasons given

-           -

2   .      4

1   .      2

Total

100.00

100.0

100.0

Source: Responses of PEs and NDEAEs


When the percentage section in table 3a is taken together with data in Table 3b hypothesis 3 received partial support. Hypothesis 3 is therefore partially supported.
The entrepreneurs expressed the view that lack of training and development resulted in poor performance. The effect of training and development is expressed in behavioural practice of performance. The objective of training and development is partly behavioural change. This could best be expressed in performance. The entrepreneurs listed the followings as some of the effect of training and development; acquisition of skills and knowledge, better awareness of opportunities, path finder in problem situation, increased productivity, improved performance, based on better awareness and improved skills. This finding is in line with Udo-Aka (1987) report and Ekpo-Ufot (1988) recommendations. The finding also confirmed Kunkel (1971) and Singh (1986) findings on the influence of training and development on behaviour. Okaka (1990) also emphasized the influence of training and development on behaviour.
Hypothesis 4: That there will exist a perceived positive relationship between training and development and entrepreneurial performance.
Table 4 below relates to the perceived relationship between training and development and entrepreneurial performance. The calculated X2 from Table 4 is 32.99 and the crammer’s ‘V’ value is 0.47. The Table value X2 at P < 0.001 level of significance for one degree of freedom is 10.828. The calculated X2 is higher than the table value. The crammer’s V of 0.47 showed very strong association between training and development and entrepreneurial performance. Hypothesis 4 is fully supported.


Relationship

PEs n=74
F               %

NDEAEs n=70
F                 %

Total n=144
F              %

Postive

66     89.2

31              44.3

97          67.4

Not significant

8      10.8

39              55.7

47          32.6

Total

74     100.0

70              100.0

144        100.0

                                    Source:  Responses of the PEs and NDEAEs
                                                   
                                                               Chi-square 32.99, d.f=1, v=.47


Thus the entrepreneurs perceived that training and development had direct effects on performance. This is by way of acquisition of new and better skills and improved knowledge on operation. This finding is in line with Harris (1971) observation that training gives wider perception of opportunities. Singh (1986) and Okaka (1990) reported the positive the positive influence of training and development on performance.



Table 5: Re grouped Areas of Training and Development Needs Listed by PEs and NDEAEs

Journal Of Research In National Development Volume 5 No. 2 ISSN 1596 – 8308 December, 2007.

  



Environmental level

PEs (n=74)
   F    %

NDEAEs (n=70)
    F           %

Finance

30                                  10.27

13                    6.77

Marketing

28                                   9.58

10                   5.20

Research and Development

14                                    4.79   

11                   5.73

Discipline

14                                    4.79

14                   7.30

Technical

11                                    3.77

14                   7.30

Opportunities awareness(political, legal, etc)

 

10                            3.42

 

12                      6.25

Men and material management

9                              3.08

6                         3.13

Values orientation

9                              3.08

2                        1.04

Relevant social environment

7                              2.04

8                        4.17

Human relations

6                             2.05

9                        4.69

Moral codes

5                              1.17

-       -

Business law

3                               1.02

1                        0.53

Sub total

  1.      49.96

100                    52.11

Personal Level

 

 

Accounting

24                             8.22

11                      5.73

Production

23                            7.81

10                      5.20

Planning Decision-making and project analysis

18                            6.16

9                        4.69

Management

11                           4.10

14                      7.29

Supervision

10                           3.42

4                        2.08

Altitudinal orientation

8                            2.74

2                        1.04

Honest and modest dealings

8                            2.74

2                        1.04

Personnel Management

8                            2.74

9                        4.69

Innovativeness

6                           2.05

3                        1.56

Bookkeeping

6                            2.05

7                        3.65   

General entrepreneurship training & development of long term duration

3                            1.03

4                        2.08

Motivation training

2                            0.70

-       -

Sub Total

128                      43.82

75                      39.05

Internal Structural/Arrangement   

 

 

General Administration

12                      4.11

5                         2.60

Behavioural training

3                        1.03

5                         2.60

Communication

3                        1.03

4                         2.08

How to make right connection

-                            -

3                         2.08

Sub Total

18                      6.17

17                       8.84

Grand Total

292                   100.0

192                    100.0

Source: Responses of the PEs and NDEAEs


The spectrum of the issues listed as deserving attention for training and development by entrepreneurs covers several areas.  They reflected three broad areas, of functional, behavioural and environmental perspectives.
At the environmental levels, training and development attention are expected to be focused on the functional areas of finance, marketing, technology, research and development, men and material development.  Concerning behavioural areas listed issues included social relations, psychological dimension, issues of attitudinal orientation, acts of indiscipline and awareness of opportunities that are available in the environment.
At the personal level training and development were suggested to be needed in areas of management, production control, discipline, innovation, values reorientation, supervision and human relations.  Also listed are fundamental behavioural skills of communication, decision-making, interpersonal relations and delegation authority.
General entrepreneurship training and development of long term duration was also specified.  The internal structural arrangement of entrepreneurs organization was not left out.
The objective of asking the entrepreneurs to list areas of training and development needs was to ascertain their perception of the areas where training and development are highly relevant to them. 

Theoretical Framework on Entrepreneurship Development

It is necessary to note that any comprehensive development programme should aim at revolution rather than evolution.  Its objective is to develop shortcuts. The focus now will be on three approaches that are comprehensive and useful for total entrepreneurship development.  They are intended to produce several changes in people perception of their environment, which will lead to changes in their behaviour.
It is to be noted that the developmental and the multi-dimensional approaches, Ogundele and Opeifa, (2003) identified three approaches of entrepreneurship development.
These are:

  1. Functional method that involves the economic, technological, managerial and structural theories of entrepreneurship.
  2. Behavioural method, which incorporates the psychological, socio-cultural, innovation, network and experiential approaches. And;
  3. Environmental method combining the ecological, historical, educational approaches to entrepreneurship.

For the purpose of this study only the last two will be considered in relative details.

Behavioural Approach
The behavioural approch to entrepreneurial development started with McClelland (1961) on n-Ach. This was supported by his subsequent study in Asian countries where the process of education was used to bring about a rise in the level of n-Ach, among the studied group. The appropriate training will have to centre on the following attributes: Attitudes, values, beliefs, norms, customs, perceptions, motives, and needs.  It is a development of entrepreneurial spirit, characteristics, and personality (Rao et al, 1990). Since personality issues are involved other relevant attributes are personality traits, leadership, innovation, and developing ideas.
There is need for training in the areas of patriotism, disciplined behaviour, self-awareness and value reorientation. This is because some attitudes which we have developed over the years and some behavioural responses which we exhibit as a people are inhibitive of any purposeful development.  Serious emphasis should therefore be placed on disciplined behaviour. Attitudinal change is necessary because people attitude determine their attitude in terms of individuals and organizations goals attainment.

Environmental approach

This is an aspect which is beyond the influence of the entrepreneur. It has to be done for him/her by others.  Therefore, a family environment that encourages hardwork and discipline could be a better breeding place for the enterprising man.  Formal education in school which emphasizes the need for achievement and challenging careers could have positive contribution. A decent work environment could be a breeding place for entrepreneurs.  The availability of financial assistance and conducive urban environment could aid the growth of entrepreneur.
Above all these, societal values and needs have conditioning effects on the entrepreneur.  As such positive values and needs have to be encouraged in the society.  The government as the big brother has very important role to play in producing the individuals that will be able to shift the boundary of opportunity positively in the environment (Ogundele 2003).  There is also need for training in the awareness and appreciation of competition, the legal system and technological changes.
From the above it is apparent that the envisaged training has to be comprehensive in coverage. It should lead to change in outlook and behaviour. Otherwise it would tantamount to mere waste of resources and time.
From a general perspective Ejiofor, (1985) observed that the challenge of indigenization is low capacity of indigenous management in Nigeria. God, he said, had endowed this country with necessary resources but we lack ability to manage them. While other countries faced problems of managing poverty we had experienced the problem manage prosperity. I will like to add that the consequence of our inability to manage prosperity is that our political and business leaders have succeeded in impoverishing the masses of this country. Hence this call for the development of entrepreneurship focused on people change.

Aspects involved in Entrepreneurial Change
The things involved in the requirement for change on the part of the entrepreneur should be specified.  Cole (1959) noted that the requirement for entrepreneurial change may best be elaborated in the three stages: that of entrepreneurial structure, that of motivation, and that of process or course of movement. The nature of entrepreneurial world in term of structure concern those who make, execute and are responsible for strategic decision of profit oriented enterprises.  The entrepreneur is the central focus and nearest to him is the personnel of the business unit for the “maintenance and aggrandizement” of which decisions are made.  These include individuals responsible for the conduct of the enterprise and those only indirectly associated such as shareholders, bankers,


Suppliers and the like.  Still far removed from decision-making center would be the entrepreneurial world which include those facets of the total culture that have relevance for entrepreneurial character and performance e.g. ministers of religion giving interpretation of proper business conduct and an engineering school in its “applied” instruction.  Changes are therefore required on the part of the entrepreneurs, their direct and indirect associates that have influences on their behaviour.. On motivation we are concerned with various incentives to action on the part of the entrepreneurial figure.  Financial reward, prestige, rise in the business hierarchy, sense of power, sense of public service and the like, need for achievement at least in most cases.  There is need to change our attitude as a nation from uncontrolled and mindless emphasis on money alone.  Nobler standards such a technological innovation, scholarly distinction, better quality product awards etc be should be emphasized. Lastly, there is the process or course of movement by which we mean that there must be opportunity (Ogundele 2003).  Within the individual enterprise there are some measures of natural contenders. For instance, the marketing versus the production division, and shareholders versus labour unions - each endeavouring to push the entrepreneurial actors in one direction or the other.  Outside of these institutions in the entrepreneurial stream lies also potentiality of contending pressures. The organizations themselves – trade associations, management consultants, public consultants and the like – may each represent a pull or push in a given direction.

CONCLUSIONS
The results of this study show that education, training and development affect several other determinants of entrepreneurship.  These are, in the functional areas, behavioural aspect and the total environmental perspectives.  The data in Tables 1 to 5 above emphasize the importance of education, training and development on entrepreneurship processes, thus justifying the call for a people change approach in entrepreneurship development.
It is also brought to focus that the hope of any meaningful development in Nigeria in all aspects of its people endeavour lies in rigorous and massive training and development right from childhood and continually until one retires from gainful employment.

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