AN INVESTIGATION OF SUCCESS CRITERIA FOR ENTREPRENEURSHIP BUSINESS IN NIGERIA
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BACKGROUND OF THE STUDY
According to the management school, an entrepreneur is a person who organizes or manages a business venture, taking on risk in the pursuit of profit (Webster, 1966). Entrepreneurship, according to this viewpoint, may be created via intentional learning. In most situations, bad management practices are to blame for failure in entrepreneurial endeavors. As a result, it is asserted that management training may significantly minimize company failure and assist a firm succeed. The Leadership School of Entrepreneurship views an entrepreneur as someone who enlists the assistance of people he feels can assist him in achieving his goals and objectives. A successful entrepreneur, according to this school, must be a'people manager,' an effective leader, and a mentor who encourages, directs, and leads others to do certain duties (Nnamdi, 2010).
According to Kao (1989), an entrepreneur must be a visionary, capable of defining a vision of what is feasible and attracting people to rally behind that vision and help it become a reality. The two main components of this strategy are completing the work and responding to the needs of persons involved in the task completion. Model Based on Personality Character-based models include both personality and human capital models. According to a personality-based model, entrepreneurs have particular characteristics, and these characteristics are predicted to have a significant influence on company planning and strategy selection during the launch phase, which will decide the entrepreneur's ultimate success in the venture (Sha, 2000).
Particularly psychological, but also economic, study has looked at which personality traits are essential for entrepreneurship success. Motivational traits, such as 'need for achievement,' 'internal locus of control,' and 'need for autonomy,' cognitive skills, such as 'problem-solving orientation,' 'tolerance of ambiguity,' creativity, and 'risk-taking propensity,' and affective personality traits, such as'stress resistance,' 'emotional stability,' and 'level affluence,' have been defined as useful in explaining (Caliendo and Kritikos, 2007). Ex-post empirical research has taken two approaches: it has compared the parameter values of these variables, acquired with the use of psychologically validated questionnaires, either between entrepreneurs and workers, or between successful and failed entrepreneurs. Previous study has also revealed the approach's limitations. On the one hand, the scale of the company in terms of personnel has been stated as critical to the model's use. According to this idea, the smaller a company's workforce, the greater the effect of the owner's personality on the company's performance. On the other side, there is no agreement on how personality structure affects business success. These characteristics, according to Muller (1999), should be utilized to forecast an individual's development as an entrepreneur. A second expectation is that, given the multiple personality traits that may impact entrepreneurial success, each individual component will only be a poor predictor of entrepreneurial success (Rauch and Frese, 2000). According to Gartner (1988), there will be no relationships between qualities and entrepreneur success. Model of Human Capital Human capital theories are similar to personality theories in how they relate to entrepreneurial success: having enough knowledge and experience in the relevant fields allows business founders to choose more efficient approaches, such as organizing production processes, developing financial strategies, or analyzing markets for a new product. After the entrepreneurial personality, the human capital of the entrepreneur is the second component of the character-based strategy. Small-scale business owners' expertise and experiences are fundamental to human capital theory. The widespread belief is that the founder's human capital boosts the odds of a small business surviving (Bruederl, Preisendoerfer and Ziegler, 1992). Human capital may be considered a resource. Human capital helps the founder organize procedures and attract consumers and investors more effectively. Human capital was operationalized in a variety of ways in different research. Bruederl et al. (1992) separated between general human capital—years of schooling and years of job experience—and particular human capital—industry-specific expertise, self-employment experience, leadership experience, and self-employed father experience. ... there was a tiny positive association between human capital and achievement in general. The concept of human capital has a significant implication: The idea implies processes since it is concerned with knowledge and capacities: human capital can be educated and enhanced. Furthermore, if human capital is a resource, it may be worthwhile to consider the human capital implications of workers in small businesses. A human resource management (HRM) system was linked to performance in manufacturing settings, especially when it was paired with a quality manufacturing strategy (Youndt, Snell, Dean, & Lepak, 1996). Most theoretical studies examining the effects of human capital on the likelihood of a new venture's success are concerned with general human capital (such as years 10 of schooling or work experience), various types of specific human capital (such as leadership experience, self-employment experience, or experience in the industry chosen for the new venture), or genetic or sociological relationships (such as self-employed parents or friends). Backes-Gellner and Lazear's (2003) study on the influence of general human capital indicated that having a broader knowledge base rather than specialized understanding of a specific area is beneficial for subsequent success. The relationship between the human capital strategy and entrepreneur success rates has also been experimentally evaluated. Chandler and Hanks (1994, 1996) observed that when entrepreneurs established new enterprises in the same branch where they had previously worked, they had a favorable influence. In terms of years of schooling, the same authors found only a little influence of general human capital on success rates. Lazear (2004) and Wagner (2003) provide an explanation for the latter, finding empirical evidence for Lazear's 'jack-of-all-trades model,' which is not necessarily connected with years of schooling. Dunn and Holtz-Eakin (2000) discovered a link between the success of firm founders and the number of self-employed parents. Theory of Goal-Setting High and specified goals, according to goal setting theory, are the key motivators in working organizational contexts and predictors of performance (Locke and Latham, 1990). Small-scale businesses can also benefit from the theory (Baum, 1995; Frese, Krauss, and Friedrich, 1999). Visionary (or charismatic, transformative) leadership has received a lot of attention recently in leadership theory. Visionary organizations, according to Collins and Porras (1994), have a better organizational culture and are more successful than non-visionary companies. Baum, Locke, and Kirkpatrick (1998) discovered that vision attribute, vision content, and vision communication had direct and indirect causal impacts on small business performance. Because of the very intimate interaction between entrepreneur and employee in entrepreneurial enterprises, visions may be more essential than in larger organizations (Baum et al., 1998). As a result, small business performance is influenced by objectives and visions. An Entrepreneurial Success Model in General. The Giessen-Amsterdam model of business success is a comprehensive multidisciplinary paradigm for success. All of the impacts of personality, human capital, and environment on achievement must be moderated by action plans and tactics, according to the model. This idea is in sharp contrast to the ecological approach's theoretical position, which posits that the environment shapes and selects basically a random series of behaviors, including the environment's part in producing specific failure and success rates.
As a result, the goal of the study is to assess the success criterion for entrepreneurship in Nigeria.
1.2 STATEMENT OF THE PROBLEM
The increasing importance of entrepreneurship as a source of employment and economic growth mandates that entrepreneurial enterprises have the ability to expand, profit, and contribute to the nation's economic development (Baum et al., 1998).
Entrepreneurship is defined as the ability and willingness to create, organize, and manage a business enterprise, as well as any associated risks, in order to profit (Baum et al., 1998). Starting a new business is the most obvious example of entrepreneurship. In economics, profit may be made by entrepreneurship using land, labor, natural resources, and capital. Entrepreneurial spirit is defined by risk-taking and invention, and it is a critical component of a country's capacity to compete in an ever-changing and increasingly competitive global economy.
Evidence suggests, however, that many entrepreneurs lack the ability, trait, and resources to manage their firms so that they might expand, prosper, and contribute to the development of nations. As a result, numerous entrepreneurial ventures have started and then failed.
As a result, the challenge confronting this research is to present an assessment of success criteria for entrepreneurial businesses in Nigeria using Juli supermarket Lagos State as a case study.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to appraise the success criteria for entrepreneurship business in Nigeria. Other specific objectives are:
1. To examine the nature of entrepreneurship business.
2. To find out the success criteria for entrepreneurship business.
3. To investigate the nature and success criteria of Juli supermarket Lagos.
1.4 RESEARCH QUESTION
1. What is the nature of entrepreneurship business?
2. What are the success criteria for entrepreneurship business?
3. What is the nature and success criteria of Juli supermarket Lagos?
1.5 SIGNIFICANCE OF THE STUDY
The study shall proffer success criteria for entrepreneurship business and shall also serve a useful information for new and ongoing Entrepreneurship businesses.
1.6 RESEARCH HYPOTHESES
H01: The performance of Juli supermarket is low
HA1: The performance of Juli supermarket is high
H02: Success criteria in Juli supermarket is low
HA2: Success criteria in Juli supermarket is high
H03: Impact of the success criteria in Juli supermarket is low
HA3: Impact of the success criteria in Juli supermarket is high
1.7 SCOPE OF THE STUDY
The study focuses on the appraisal of success criteria for entrepreneurship business in Nigeria with a case study of Juli supermarket Lagos
1.8 DEFINITION OF TERMS
ENTREPRENUERSHIP BUSINESS DEFINED
General Model of Entrepreneurial Success
A general interdisciplinary model for entrepreneurial success is the Giessen- Amsterdam model of entrepreneurial success. The model shows that all of the influences of personality, human capital, and environment on success have to be mediated by strategies and tactics of actions. This concept is in stark contrast to the theoretical stance of the ecological approach which assumes that essentially a random process of actions is shaped and selected by the environment, including the function of the environment to produce certain failure and success rates.
Human Capital Model
Human capital theories relate to entrepreneurial success in a similar way as personality structure: sufficient knowledge and working experience in the relevant fields enable business founders to choose more efficient approaches, for instance in organizing production processes, creating financial strategies, or analyzing markets for the new product. The human capital of the entrepreneur is the second part of the character-based approach after the entrepreneurial personality.
Human capital theory is concerned with knowledge and experiences of small-scale business owners.
The general assumption is that the human capital of the founder improves small firm chances to survive (Bruederl, Preisendoerfer and Ziegler, 1992). Human capital acts as a resource. Human capital makes the founder more efficient in organizing processes or in attracting customers and investors. Different studies used various operationalizations of human capital. Bruederl et al. (1992) distinguished between general human capital-years of schooling and years of work experience- and specific human capital- industry specific experience, self-employment experience, leadership experience, and self-employed father and in general, trend indicated a small positive relationship between human capital and success.
Personality Based Model
Both personality- and human capital models are examples of character-based model. According to personality based model, entrepreneurs posses certain traits and these specific traits are expected to produce a strong impact on planning the business and on the choice of strategies and actions during the launching phase, which will in turn determine the entrepreneur’s eventual success in the undertaking.
In particular psychological but also economic research has analyzed in detail which personality characteristics are fundamental for entrepreneurial success. The following traits have been defined as useful in explaining the past success and in predicting the future development of a newly founded business: motivational traits, such as `need for achievement’, `internal locus of control’, and `need for autonomy’, cognitive skills such as `problem-solving orientation’, `tolerance of ambiguity’, `creativity’ and `risk-taking propensity’, affective personality traits, such as `stress resistance’, `emotional stability’, and `level of arousal’, and social skills, such as ‘interpersonal reactivity’ and `assertiveness’ (Caliendo and Kritikos, 2007). Empirical research aiming to underpin the theoretical propositions ex-post has taken two directions: it has compared the parameter values of these variables, gathered with the help of psychologically validated questionnaires, either between entrepreneurs and employees, or between successful and unsuccessful entrepreneurs.
Leadership School of Entrepreneurship
The leadership school of entrepreneurship sees an entrepreneur as someone who relies on those he believes can help him achieve his purposes and objectives. This school proposes that a successful entrepreneur must be a‘people manager’, an effective leader, a mentor who motivates, directs and leads others to accomplish set tasks. Kao (1989) postulates that the entrepreneur must be a leader, able to define a vision of what is possible, and attract people to rally around that vision and transform it into reality. The two major elements in this approach are: getting the task accomplished and responding to the needs of those involved in task accomplishment Human Capital Model.
Human capital theories relate to entrepreneurial success in a similar way as personality structure: sufficient knowledge and working experience in the relevant fields enable business founders to choose more efficient approaches, for instance in organizing production processes, creating financial strategies, or analyzing markets for the new product. The human capital of the entrepreneur is the second part of the character-based approach after the entrepreneurial personality. Human capital theory is concerned with knowledge and experiences of small-scale business owners.
The general assumption is that the human capital of the founder improves small firm chances to survive (Bruederl, Preisendoerfer and Ziegler, 1992). Human capital acts as a resource. Human capital makes the founder more efficient in organizing processes or in attracting customers and investors. Different studies used various operationalizations of human capital. Bruederl et al. (1992) distinguished between general human capital-years of schooling and years of work experience- and specific human capital- industry specific experience, self-employment experience, leadership experience, and self-employed father and in general, trend indicated a small positive relationship between human capital and success.
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