Effects Of External Environment On Entrepreneurship

EXTERNAL ENVIRONMENTAL VARIABLES AND ITS IMPACT ON ENTREPRENEURSHIP IN NIGERIA

INTRODUCTION

There are various definitions of Entrepreneurship and at the same time, there is no universally accepted definition for same. This view is corroborated by Duru (2011) who opined that early scholars defined entrepreneurship from the standpoint of “functions” of an entrepreneur such as inventor, imitator, innovator, or more appropriately as a calculated risk taker.

Entrepreneurship is the process or activity of identifying needs in the society, designing a structure or mechanism (starting a business) to produce satisfaction to meet the identified needs, bearing in mind the risk involved while anticipating profit as a reward. Entrepreneurship is also about

The internal business environment comprises of variables such as firm’s goals, management structure, Labor, Financial resources, value system etc. that are within the control of the entrepreneur. These factors/variables of the internal environment affect business (entrepreneurship) from within, that is, they are intrinsic to the business set up by the entrepreneur. The variables that constitute the internal environment are also referred to as controllable factors.

On the other hand, the external environment (which is the main focus of this paper,) is constituted by variables that the entrepreneur has little or no control over e.g. political, legal, Socio-cultural Technological factors etc. Some elements of the external environment threaten entrepreneurship growth, others are friendly and they provide

OBJECTIVES

The primary objective of the paper is to identify and analyze the effect of external environmental variables on entrepreneurship in Nigeria.

This study will also attempt to:

i. Identify the various relationships subsisting between external environmental factors and entrepreneurship. ii. Examine the role of entrepreneurship in Nigeria iii. Identify and assess major threats and opportunities posed by external environment in Nigeria. iv. Assess possible methods and recommendations for dealing with threats and opportunities posed by the external environment.

1.2 SIGNIFICANCE OF THE PAPER

This paperwork will be of immense benefit to entrepreneurs, students, government and other stakeholders. It will help entrepreneurs understand better, the various components of the external environment in Nigeria and how to identify threats and opportunities.

Also, this paper will be useful to the government when it comes to formulation and implementation of policies that are pro-entrepreneurship growth. It will also help the government in identifying policies and laws that limit entrepreneurship