Page 1 of 10
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 2
February 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 31
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 socio- economic challenges inhibiting sustainable
development in all parts of the globe
(Akhevmonkhan, Raimi, & Sofoluwe,
2013).
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.
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Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 2
February 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 32
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 (2010) 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 (2010), 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. (2010) 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.
H1: 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
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Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 2
February 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 33
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 (2010)
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. (2011) 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, 1997).
From several definitions provided above,
entrepreneurship education can be
conceptualized as a specialized and all- round 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.
