Academic journal article Ife Psychologia

Entrepreneurial Intention and Entrepreneurial Abilities

Academic journal article Ife Psychologia

Entrepreneurial Intention and Entrepreneurial Abilities

Article excerpt

(ProQuest: ... denotes formulae omitted.)

Unemployment is a global trend, but most common in developing countries of the world, with attendant social, economic, political and psychological consequences. Massive youth unemployment in any country is an indication of far more complex problems. The ILO (2007) report showed that the proportions of world unemployment are steadily increasing and that the number of those out of jobs remained at an all-time high of more than 195 million or 6.3 percent, with sub-Saharan Africa at nearly 10 percent. In Nigeria, figure from National Bureau of Statistics (NBS) shows that 30million (about 30 percent) people are unemployed many of them youths. Though unemployment in Nigeria had become intractable, Oladele (2011) had observed that unemployment was rare in Nigeria before the advent of colonialism. The Yoruba, Hausa and Igbo people are known in pre and post independent Nigeria to be entrepreneurs (Dana, 1995). Today, they are mostly job seekers. With about 163 universities one observed that the number of University graduates has quadrupled over the years. Many of these new entrants into the labour market cannot find jobs and such encouragement offered by NDE, SMEDAN, NEEDS and recently SUREP are combating unemployment from the point of finance and training, not minding the personality of the would be entrepreneurs.

Though statistics are rare, the performance of beneficiaries of unemployment intervention programmes and support systems such as National Directorate of Employment (NDE), established 1986, Small Industries Credit Committee (SICC) which administers small industries credit fund, National Economic Reconstruction Fund NERFUND), Small and Medium Enterprises Loan Scheme (SMELS), People' Bank, Small and Medium Entreprises Development Agencies of Nigeria (SMEDAN) and so forth have not been very impressive (Ogundele, 2007). Also many businesses have closed down in recent past and many are losing jobs in the severally restructured financial sectors. Added to this is the touted employability of many of the graduates coming into the labour market.

The economy of Nigeria has in the past two decades grapple with chronic unemployment which at the moment is putting the skill, knowledge and abilities (KSAs) of about 11.65 million youths at stake. This puts the unemployment rate at 24% of a labour force of 48.53 (2011 est. Wikipedia). Statistics from the Manpower Board according to Awogbenla and Iwuamadi (2010) and the Federal Office of Statistics showed that Nigeria has a youth population of about 80 million, representing 60% of the total population. Of these, 64 million are unemployed and additional 1.6 million underemployed. In most advanced economies, the major agent for job creation is entrepreneurs via activities of big capitals and Small Scale Enterprises (SMEs). In the United States of America, between 1999 and 2000 small businesses created 2.5 million jobs representing three quarter of all net new jobs (U.S Bureau of Census). In Nigeria, in attempt to generate employment through new jobs, attention has recently been focused on the twin issues of Foreign Direct Investment (FDI) and promotion of Small Scale Enterprises. While the former is aimed at continuation of status quo ante, whereby the economy depend on foreign capital, the later is a desirable actions aimed at encouraging indigenous entrepreneurship. Many factors that can push the agenda of enterprise creation, such as financial mediation, creation of facilitating environment are being addressed; however, not much is at the moment known about personality factors influencing entrepreneurship. Most Nigerian graduates are reared with the impression well ingrained in their minds that Western education is to be able to earn a living by becoming gainfully employed in industries and organisations. The expectation that the public and private sectors of the economy have enough jobs for graduates has indeed become mere mirage. …

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