are established and the more these enterprises survive or succeed.

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1 The Role of Entrepreneurship Education on the Establishment and Survival of Small, Micro and Medium Enterprises (SMMEs) in Ibadan City of Oyo State, Nigeria Dele, Olatunji Yinka Institute for Entrepreneurship and Development Studies Obafemi Awolowo University Ile-Ife, Osun State, Nigeria Abstract Entrepreneurship education is very important in the training and development of human resources in any country through the transformation of individuals, communities, nations and the world at large. Entrepreneurship can be used for wealth creation, poverty, education, ensuring social-economic empowerment, sustained self and national development. The study examined the role of entrepreneurship education on small micro and medium enterprises (SMMEs) in the Ibadan city of Oyo State Nigeria. Both primary and secondary data sources were used in the study. A quantitative research design was followed in conducting this research. Sample random sampling technique was used to select respondents. Survey method, by way of a self-administered questionnaire was used to collect primary data. The findings of this research showed that entrepreneurship education is very important for the establishment and survival of SMEs.The study concluded that entrepreneurship education plays a significant role in the establishment and survival of SMMEs in Ibadan city of Oyo State, Nigeria. The more people are equipped with entrepreneurial competencies, the more business enterprises are established and the more these enterprises survive or succeed. Keywords: Entrepreneurship, Entrepreneurship Education, Employment, Poverty, Wealth Creation. Introduction Entrepreneurship Education has continued to feature as a captivating theme in local summits and international conferences because of its potency as a tool for mitigating unemployment and other socioeconomic challenges inhibiting sustainable development in all parts of the globe (Akhevmonkhan, Raimi, & Sofoluwe, 203). Entrepreneurship education in Nigeria amongst other things seeks to provide small and medium enterprises with the knowledge, skills, and motivation to encourage entrepreneurial success in a variety of ventures. Small Micro and Medium Enterprises form the back bone of Nigeria economy, not just in terms of their contribution to the Gross Domestic Product (GDP) but also in terms of employment creation. As a result of these implications, the government of Nigeria realizes the importance of developing entrepreneurship and consequently, SMMEs. Available online: P a g e 3

2 Von Broemsen et al (2005) point out that despite the importance of SMMEs, 75% of SMMEs in South African fail within the first two years of operation as result of lack of entrepreneurship education. Fatoki and Garrute (200) mention lack of education and training as one of the main reasons for the lack of entrepreneurial creation and the high failure rate of new ventures. Herrington and Wood (2003) maintain that the lack of education and training has reduced management capacity in new firms in developing economies. In the same vein, all SMMEs policies in Nigeria fail due to lack of entrepreneurship education, policy contradictions and non continuity to lack of purpose and vision. It is on this note that this study looks at the role of entrepreneurship education on the establishment and survival of small, micro and medium enterprises in Ibadan City of Oyo State, Nigeria. Statement of the Problem There is now a very serious attention in Nigeria paid to entrepreneurship education in small, micro and medium enterprises. Although SMMEs play an important role in the economy an unacceptable and disappointingly high number of these ventures fail during the first years of operation. According to Fatoki and Garwe (200), lack of education is one of the low level of entrepreneurial activities and the high failure rate of SMMEs. Considering the importance of SMMEs to the economy and the high failure rate of SMMEs, it is critical to look at the challenges facing SMMEs in order to overcome their challenges. Von Graevenitiz et al. (200) note that entrepreneurship education is ranked high on policy agendas of several countries but little research is available to assess its role on SMMEs. Von Gravenitz et al (ibid) further state that while some literature has generated insights, the research on entrepreneurship education still has gaps. This study intends on assist in closing part of this gaps. Objectives of the study The objectives of the study are to i. review literature on the concept of entrepreneurship and entrepreneurship education. ii. highlight the objectives, and challenges of entrepreneurship education. iii. role and impact of entrepreneurship education on the establishment and survival of SMMEs in Ibadan City of Oyo State, Nigeria. Hypothesis Ho: Entrepreneurship education does not play any role in the establishment and survival of SMMEs in Ibadan City of Oyo State, Nigeria. H: Entrepreneurship education plays a role in the establishment and survival of SMMEs in Ibadan City of Oyo State, Nigeria. Literature Review Concept of Entrepreneurship Entrepreneurship is a multi-disciplinary concept. Aruwa (2006) states that the concept of entrepreneurship is not restricted to business of economic operation. It is also Available online: P a g e 32

3 obtainable in non-business operations. He however states that in the business cycle, entrepreneurship is a distinct resource and a necessary condition for business success. According to Adeyeye (2008), entrepreneurship has to do with the process of bringing together creative and innovative ideas as well as management and organizational skills so as to be able to integrate man, machineries and other organizational resources for the purpose of satisfying the identifying needs of the customer, thereby creating wealth. Similarly, Rutatko and Hodgett in Mainoma and Aruwa (2008) are of the conviction that entrepreneurship is a dynamic process of vision, change and creation which requires the use of energy and passion for the purpose of creating and implementing new ideas and creative solution. Finally, Hisrich and Brush in Mawol, and Aliyu (200) define entrepreneurship as the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk and receiving the resulting rewards of monetary and personal satisfaction and independence from the foregoing, it could be deduced that entrepreneurship is all about: i. Identification of business opportunities ii. Creativity and innovativeness. iii. Bearing risk to utilize opportunities or implement a new plan. iv. Good management skills v. Wealth creation Concept of Entrepreneurship Education The term entrepreneurship education is used interchangeably with entrepreneurship training and skill acquisition. Conceptually, entrepreneurship education refers to a specialize knowledge that inculcates in learners the traits of risk-taking innovation, arbitrage and co-ordination of factors of production for the purpose of creating new products or services for new and existing users within human communities (Acs and Storey 2004; Kanothi, 2009). Mauchil et al. (20) assert that entrepreneurship education can be defined as the process of providing individuals with the ability to recognize commercial opportunities and the knowledge, skills and attitudes to act on them. Entrepreneurship education has also been described as a formal or informal structured learning that inculcates in students/trainees the ability to identify, screen and seize available opportunities in the environment in addition to skill (Sexton and Smilor, 997). From several definitions provided above, entrepreneurship education can be conceptualized as a specialized and allround training programme designed to change the world view of SMEs through education. Objectives of Entrepreneurship Education Entrepreneurship education seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety or settings. Entrepreneurship education according to Paul (2005) is structured to achieve the following objectives. Available online: P a g e 33

4 i. To offer functional education for the youths that will enable them to be self-employed and selfreliant. ii. Provide SMEs with adequate training that will enable them to be able to overcome challenges. iii. To serve as a catalyst for economic growth and development. iv. To reduce high rate of poverty. v. To create employment generation vi. Reduction in rural-urban migration vii. To inculcate the spirit of perseverance in the SMEs entrepreneurs which will enable them to persist in any business venture they embark on viii. To create smooth transition from traditional to a modern industrial economy. Challenges of Entrepreneurship education for Nigerian SMEs According to Ojeifo (202), the following are the constraints facing rapid entrepreneurship education in Nigeria. a) Poor access to vocational skills development training for rural and urban youths involved in the informal economy. b) Rampant political and bureaucratic corruption together with the absence of social consensus in important macroeconomic policy issues. c) Absence of regulatory mechanisms for effective oversight of enterprise development initiatives, is specially those in the SMMEs space. d) The presence of administrative and trade barriers that curtail capacity building and inhibit access to technical support. e) Poor curriculum implementation for youth entrepreneurs. f) Inadequate funding of entrepreneurship education g) Lateness in starting entrepreneurship education in Nigeria. Research Methodology Both primary and secondary sources of data were utilized to conduct this research. Self administered were used because they have a relatively high cause response rate. Data were collected from SMMEs in Ibadan City of Oyo State Nigeria. The research used simple random, sampling technique in which each element a known and equal chance of selection to select respondents from the sampling frame which was constructed using the list of registered SMMEs obtained from corporate affairs commission Ibadan. A sample size of 20 elements was calculated using the Raosoft sample size calculator from a population of 420 elements. Sample size was calculated using 95% confidence level, 5% margin of error and a 50% response rate. The response rate was 8% meaning 62 respondents completed and returned the questionnaires. The collected data was analyzed by the researcher using SPSS. The collected data was analyzed by the researcher using SPSS. The chi-square test for independence was used to test for association, cross tabulation was also used to determine the distribution of respondents. Available online: P a g e 34

5 Data Analysis, Results and Discussion Table : Gender of respondents Gender Category Frequency Percentage Male Female Total From table above, male entrepreneurs constituted 66% of the respondents while their female counterparts were 34%. These results thus indicate that men are more involved in entrepreneurial activities as compared to their female counterparts. Table 2: Age of Respondents Age Category Frequency Percentage Below 25 years years 3 40 years Above 40 years Total The results depicted in Table 2 show that the majority which is (8%) of owners and managers of SMMEs in Ibadan city of Oyo State, Nigeria are above 30 years of age and this can be related to the general age of business ownership in Nigeria. Table 3: Years in Business of Respondents Years in Business Category Frequency Percentage Less than 3 years 4 8 years More than 8 years % 39.9% 33.5% Total 62 00% From the table 3 above, forty-six respondents which constitute 26.6% of SMEs have been operating for less than 3 years forty percent 64 (39%) have been in business for 4 to 8 years and the remainder have been in business for more than 8 years. Table 4: Industry or Sector of the Business Industry Sector Category Frequency Percentage Wholesale and Retain Sector Construction Industry Manufacturing Sector Service Sector %.7% 9.% 30.3% Total 62 00% Available online: P a g e 35

6 From table 4 above, 38.9% of the respondents were in the wholesale and retail sector,.7% who were in construction industry, 9.% were in the manufacturing and 30.3% were in the service sector. This shows that the majority of SMMEs owners and managers who participated in this study are in the trading sector. Table 5: Number of Employees Number of Employees Category Frequency Percentage Micro Small Medium % 47.5% 32.7% Total 62 00% From table 4 above, the respondents who are operators of the micro business are 9.8% while 47.5% operated small enterprises. The remaining 53 (32.7%) are either owners or managers of medium enterprises. Table 6: Highest Educational Qualification of Respondents Level of Education Frequency Percentage Masters Degree And Above Bachelors Degree Diploma Certificate High School Primary School Non-formal Total 62 00% Table 6 shows that the respondents have different levels of educational qualifications ranging from non-formal to a master degree and above. It is clear from the table above that 3 representing 80.9% of the respondents have post-secondary school education. Table 7: Years in which SMMEs started receiving Entrepreneurship Education Period Frequency Percentage Before After Total Available online: P a g e 36

7 Table 7 shows that SMMEs owners started receiving entrepreneurship education after 990, and the number had been increasing ever since. The majority, 00 (6.59) of respondents indicated they only started receiving entrepreneurship education after the year Table 8: Entrepreneurship Education Necessary for the Successful Establishment of SMMEs Frequency Percentage Yes No Total Table 8 shows that all respondents agreed that entrepreneurship education is crucial for the successful establishment of SMMEs. These findings are in line with the suggestions of Isaac et al (2007) who suggested that key to success of establishing SMMEs are education. This also supports the notion by Nieman and Nieuwenhuizen (2009) that successful entrepreneurship is linked to education. Table 9: Role of Entrepreneurship Education the Establishment and Survival of SMMEs Establishment Total and Survival of SMMEs Yes No Received Entrepreneurship Education Yes No Total Table 9 shows that the majority of SMMEs owners and managers who participated in this study agreed that entrepreneurship education is important for the successful establishment and survival of business ventures. Table 0: Chi-squares Test for Hypothesis Value DF Asymp. sig. (2.sided) Pearson Chi-Square Continuity Correction Likelihood Radio Fisher s Exact Test Linear-by-Linear Association Number of Valid cares.209 a Exact sig. (2 sided) Exact sig. (-sided) From the table above, the results show that a chi-square value of and degree of freedom with a probability value of was found. Since the p-value (probability) of is less than 0.05, it therefore means that we reject the null hypothesis and conclude that entrepreneurship Available online: P a g e 37

8 education plays a role in the establishment and survival of role in the establishment and survival of SMMEs in Ibadan City of Oyo State, Nigeria. Table : Correlation between Entrepreneurship Education and the Establishment and Survival of SMMEs Received Entrepreneurship Education Establishment and Survival of SMMEs Pearson Correlation Sig (2 tailed) N Pearson Correlation Sig (2-tailed) N Table 7 shows the direction and strength of the relationship between entrepreneurship education and the establishment and survival of SMMEs. The Pearson product moment correlation which measures the strength and direction of the association between variables and denoted by r, is which means that there is a strong positive correlation between entrepreneurship education and the improvement of entrepreneurship education and the improvement of entrepreneurship skills and knowledge of SMME owners and managers in Ibadan City of Oyo State, Nigeria. This proves that the more entrepreneurship education is improved, the more the skills and knowledge of SMME owners and managers are also improved. These findings are in line with the findings of Luthje and Franke (2002) and Driver et al. (200) who discovered a positive relationship between entrepreneurship education and firm creation. It is therefore true that the future of Nigerian capacity depends on how well people are being Received Entrepreneurship Education Establishment and Survival of SMMEs Available online: P a g e equipped with entrepreneurial skills to establish and run their own businesses. Conclusion The study concluded that entrepreneurship education plays a significant role in the establishment and survival of SMMEs in Ibadan city of Oyo State, Nigeria. The more people are equipped with entrepreneurial competencies, the more business enterprises are established and the more these enterprises survive or succeed. There is no more doubt that a positive relationship exist between the establishment of businesses are equipped with entrepreneurial education African countries should strive to equip people with entrepreneurial competencies through entrepreneurial education for this will also help in reducing levels of unemployment and poverty. Recommendations Based on the finding of this research the following recommendations are suggested to

9 the SMME owners and managers, the government, government agencies, institutions of higher learning and banks. Government Agencies Government agencies need to effectively provide services to the people that they serve. They should implement strategies that can help to improve SMMEs establishment and survival in Ibadan City of Oyo State, Nigeria. They should work hand in hand with the banks to ease access to finance by SMMEs, they should also empower youths to become employment creators rather than ordinary job seekers and equip entrepreneurs with the necessary skills. Government Government should help provide resources where necessary this should be done in a more sustainable manner. There should also explore other strategies to compliment entrepreneurship education that will create independent entrepreneurship instead of educated beggars. SMME Owners and Managers SMME owners and managers need to take advantage of entrepreneurship education programmes that are offered by institutions of higher learning and government agencies if they want to improve the performance and survival chances of their businesses. They should also empower their members of staff with entrepreneurial skills and knowledge. Institutions of Higher Learning Nigeria higher institutions need to carry out awareness campaigns to motivate students to enroll for entrepreneurship courses. They should also teach people in their communities to create economic opportunities for themselves rather than being depending on employers or the government. Banks Banks should monitor and assess the potential of SMME operators, rather than only considering collateral security and a deposit that most SMME owners and managers lack. Banks should also provide financial resources to SMME operators who show potential for success. References []Acs, Z. J. and Storey, D. J. (2004) Introduction: Entrepreneurship and Economic Development, Regional Studies 38 (8): pp [2]Adeyeye, M. M. (2008) Entrepreneurship Small and Medium Scale Enterprises. Ibadan: Evi Coleman Publications. [3]Akheumonkhan, I. A., Raimi L. and Sofoluwe A. O. (203) Entrepreneurship Education and Employment Stimulation in Nigeria 3() pp [4]Aliyu, M. M. (203) Subject Method for Business Teachers, Sokoko: Sunjo A.J. Global Limited [5]Aruwa, S. A. S. (2006). The Business Entrepreneur: Entrepreneurial Development, Small and Medium Enterprises (2nd ed), Kaduna: Entrepreneurship Academy Publishing. [6]Fatoki, O. and Garwe D. (200) Obstacles to the Growth of New SMEs in South African have Access to Bank Credit, International Journal of Business and Management, 5 (0), pp [7]Herrington M. and Wood E. (2003) Global Entrepreneurship Monitor, South African Report (online) from < Available online: P a g e 39

10 es/gemsouthafrican2000pdfz (Retrieved on May 200). [8]Isaac E., Visser, K. Friendrich, C. and Brijal, P. (2007) Entrepreneurship Education and Training at the Further Education and Training (FET) Level in South Africa, South African Journal of Education, 27: [9]Luthje C. and Franker N. (2002) Fostering Entrepreneurship through University Education and Training Lessons from Massachusetts Institute of Technology. 2nd Annual Conference on Innovative Research in Management, Stockholm, Sweden. [0]Kanothi, R. N. (2009) The Dynamics of Entrepreneurship in ICT: Case of Mobile Phones Downstream Services in Kenya. Working paper, No 466, Institute of Social Science, The Netherlands. []Mauchil, F. N.; Karambakwa, R. T, Komas, N. Mangwende, S. and Gombrararume, F. B. (20) Entrepreneurship Education Lessons: A Case of Zimbabwean Tertiary Education Institutions. International Research Journals, Vol. 2 (7) pp [2]Nieman, G. and Neuwenheuzen, C. (2009) Entrepreneurship A South Africa Perspective, Petonan: Van Schaik Publications. [3]Sexton, D. I. and Smilor, R. W. (997) Entrepreneurship. Chicago Illnois: Upstart Publishing Company. [4]Von Broembsen, M., Wood, E. & Herring, M. (2005) Global Entrepreneurship. South AfricanReportonline. From gemsouthafrican2000pdf (Retrieved on 0 May, 20). [5]Von Gravevenitz, E., Harhoff, D. and Weber, R. (200) The Effects of Entrepreneurship Education, Journal of Economic Behaviour and Organisation, 276: Available online: P a g e 40