It is a general belief that other factors of production are found in abundance yet man lives in poverty in the midst of plenty mainly because of the linkage factor i.e. entrepreneurship is often largely insufficient/inadequate.
According to Sharma and Chrisman's definition of entrepreneurs; “Entrepreneurs are individual acting independently or as part of an organization, who create a new venture or develop an innovation and take risks entering them into the market place”.
The definition above has many insights, which could help us understand and derive some of the characteristics properties, which make the difference between successful and unsuccessful entrepreneurs.
The practice of entrepreneurship combines three major sets of practices.
- The use of initiative and innovation.
- The ability to take reasonable risk.
- The user of entrepreneurial/managerial ability that ensures accomplishment.
Problems of The Entrepreneur
- Political instability: This does not encourage an investor to invest in the economy even if he has invested, he might decide to fold up due to the prevailing hostile economic climate.
- Presence of inflation: Inflation is an economic condition characterized by a general and continuous rise in the price level coupled with a fall in the value of money. Hence inflation is economically harmful to suppliers because of unstable quoted market prices.
- Inadequacy of information: The collation and analysis of relatively dependable, reliable and authentic data that may facilitate and enhance forecasting and planning. It is pertinent to point out that the entrepreneur may not be conscious of the existing forces of law of demand and supply that directly or indirectly affects consumers' behaviour.
- Capital: Capital is relatively inadequate to finance entrepreneurial business transactions in Nigeria. The initial capital for the take-off of the business may not be adequate or it may be non-existent. Due to lack of funds acquisition of entrepreneurial/managerial skills is not yardstick or prerequisite for establishing a small-scale business.
- Inadequate of infrastructural facilities: This may hamper or hinder the development of entrepreneurial activities.
- Inadequate of Government support or motivation: To aid in embarking on small-scale business by providing free consultancy services and making available soft loans.
- Type of business to establish: At the onset may pose and Herculean task for new entrepreneurs because of lack of experience in small-scale business transaction and management.
In conclusion, the ultimate objective of every individual whether educated or not is to be his/her own boss and employ other. The profit motive as well as the attendant physiological achievement associated with successful entrepreneurships are the driving force to be an entrepreneur. So as to achieve desire goals and objectives an entrepreneur must try as much as possible overcome the above problems.
Keynotes: Entrepreneurs, problems, Sharma and Chrisman, economy, small-scale business etc
