EVALUATING THE EFFECTS OF ENTREPRENEURIAL CHARACTERISTICS ON BUSINESS PERFORMANCE
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The study examined the effect of entrepreneurial characteristics on business performance.
main objectives of the study were to find out the effect of entrepreneurial characteristic on business performance with the case study of APEX paint Ltd.
The research also described the performance of the business based on the characteristics exhibited by the entrepreneurs. Quantitative research method was used in the study.
The total population of the study is 290, while relevant data was gathered with the aid of a structured questionnaire.
The Survey questionnaire was sent to the staff for the research. Empirical study was conducted by sending a questionnaire to the staff of APEX paint Ltd.
There were 290 respondents.
The results driven from the research showed that there is a strong effect of entrepreneurial characteristics on business performance.
Four hypothesis was formulated and inferential statistical tool was used to analyze the data specifically Pearson product moment correlation was used to examine the relationship between entrepreneurial characteristics and business performance, while Regression analysis was used to examine the significant effect of entrepreneurial characteristics on business performance.
1.1 Background of the Study
Starting from the time of report of the fascinating study of entrepreneurs by McClelland (1961) in which he came out with a list of nine characteristics of the entrepreneur, several other writers have equally illuminated the list of entrepreneur characteristics.
McClelland (1961) listed the following characteristics of entrepreneur; need for achievement, desire for responsibility, preference for moderate risks, perception of probability of success, stimulation by feedback, energetic activity, future orientation, skill in organizing and attitude toward money.
An entrepreneur is an innovator who implements changes within a market through the carrying out of new combinations.
The carrying out of new combination can take several forms; the introduction of a new good quality, therefore; the introduction of a new method of production, the opening of a new market; the congress of a new source of new materials or parts; the carrying out of the new organization of any industry.
Furthermore, an entrepreneur is an individual that identifies, develop and brings vision to life under condition of risk and a considerable uncertainty.
The vision may be an innovative idea, an opportunity or simply a better way to do something (Mamma, 2010).
This is the reason why it is often said that every entrepreneur is a human being but not every human being is an entrepreneurs. Going by this adage; it can be said that entrepreneurs are special people with distinguishable features or characteristics.
As such an entrepreneur is result oriented; future oriented; creative, innovative, has self-confidence; has a good human relations; must be self-discipline; copies with uncertainty and above all profit oriented.
A lot of business falls due to the inability of the innovators of such business to exhibit the time entrepreneurial characteristic in the day to day management of their business enterprise, hence such business do not stand the test of time.
This is evident in the way and manner in which small and medium scale business collapse in Nigeria.
It is against this background that the research sees the subject matter of this research: the effect of this entrepreneurial characteristic on business performance worthy of empirical investigation.
An effective organization can broadly be defined as one that makes the best use of its resources to attain high level of performance, thus successfully achieving its purpose and objectives while also meeting its responsibilities to stakeholders.
There is no single factors, which will guarantee organizational effectiveness, but the following is a selection of factors which, in one way or the other, will contribute to success.
A clear and well-articulated vision of the future of the organization.
A well-defined mission and goals, and strategies to accomplish them.
A value system with emphasis on performance, productivity, customer services, teamwork and flexibility.
A powerful management team.
A well-motivated, committed, skilled and flexible workforce.
Continuous pressure to innovate and grow.
The ability to respond fast to opportunities and threats.
1.2 Statement of Problem
Launching into a business venture without having the basic trade instinct or the characteristic of an entrepreneur is suicidal.
This is so because such an enterprise cannot stand on the test of time. For instance, an individual who goes into business initially must face difficulty before the business break-even.
However, people who do not have trait of an entrepreneur would not be patient enough to nurture a business to a profit-making stage.
This is the reason why so many small and medium scale businesses fail.
The inability to effectively exhibit a basic trade instinct as well as lack of motivation, goals, and talent for venture creation sequel to the absence of entrepreneurial characteristics in most business proprietor impedes the performance of business enterprise in no small way.
As such, the subject matter of this research becomes an empirical issue worthy of investigation.
Nigeria is a country with numerous entrepreneurs as a result of the abundant human and natural resources it possesses.
The growth of these entrepreneurs in the country is important to economic growth.
1.3 Objectives of the study
The central subject of the study is to examine the effect of entrepreneurial characteristic of business performance in Nigeria.
The specific objectives are to:
1. Identify the impact of innovation on the market.
2. Evaluate the impact of self-belief, hard work and disciplined dedication on business performance.
3. Identify the problems militating against entrepreneurs in the performance of their business.
4. To proffer solutions to the identified problems.
1.4 Research Question
To achieve the purpose of the study, research questions were formulated as follows:
1. What is the impact of innovation on business performance?
2. What is the impact of commitment on business performance?
3. What is the impact of market on business performance?
4. What is the impact of customers on business performance?
1.5 Research Hypothesis
H1: Innovation has a positive impact on business performance
H0: Innovation has a negative impact on business performance
H2: Commitment has a positive impact on business performance
H0: Commitment has a negative impact on business performance
H3: Market has a positive impact on business performance
H0: Market has a negative impact on business performance
H4: Customer has a positive impact on business performance
H0: Customer has a negative impact on business performance
1.6 Significance of the study
The study will be beneficial to entrepreneurship development; as such the country can utilize the findings of the research as a basis for policy formulation as regard entrepreneurship development.
The study will also contribute to the existing knowledge on entrepreneurship development.
It is also worthy to note that the study can be used as a basis for further research, as the research can be used as a spring board for further research as well as a good reference material to students undertaking similar research.
1.7 Limitation of the study
Limitation faced in the course of this research includes;