1.1 BACKGROUND OF THE STUDY
The small and medium enterprises (SME) division has a significant role in the economic development of most countries of the world and notably vital for-profit generation to owners (Ebiringa, 2011). It is, therefore, a known fact that SMEs contribute meaningfully to achieving general economy development. This contribution can bring about a surge of GDP, improvement in the way of living, and reduce the rate of unemployment (Perks and Smith, 2006). As a result of these facts, any economy should maximize the benefit provided by such venture. However, Nigeria has not been able to identify the full importance of this sector despite the country position as the world leader in entrepreneurial spirit (Global Entrepreneurial Monitor, 2012).
Business development skills are vital to the growth and survival of Small and medium scale enterprise (Amatori, 2006). Therefore, skills are the knowledge demonstrated through actions or a unique performance in certain situations. Skills are attained and developed through training (Zehra, 2016). Nevertheless, reaching maintainable business growth is a task that requires special skills (Perks and Smith, 2006). With the above scenario, it is most likely for a business to succeed more if business owners could have sufficient entrepreneurial skills. These skills provide benefit for start-ups and it is as well useful throughout the lifecycle of a business.
The purpose of this study is to develop an understanding of the essentiality of business development skills and how these skills can impact Business growth. This study aims to examine Business development skills and how it can contribute to business growth and identified the most valuable skills that can contribute to business growth.
1.2 Statement of the Problem
Businesses generate major growth, wealth and well-being in many countries and this increase came about by the establishment of an environment which provides urge for both start-up and growth-oriented business persons. Thus, reducing the obstacles forced to existing firms, and providing opportunities to learn from mistakes (Pyysiäinen; Anderson; Mcelwee; and Vesala, 2006). According to the studies of (Henry; Hill; and Leitch. 2003; Undiayaundeye, 2015) entrepreneurs are identified as the engine of economic progression and the creation of wealth, and they are important the quality of life by providing employment opportunities for both the educated and less educated. However, despite the rigorous contribution of this sector, the problems of unemployment are not total resolved globally. According to Global Entrepreneurial Monitor (2012), Nigeria is a world leader in entrepreneurial spirit, and they believe they have necessary skills and knowledge. However, despite this report, the amount of failed business has not reduced in recent years. The focus of research in entrepreneurship over the years is on building theory without the consideration or attention on what it takes for a venture to survive. The empirical studies of Bosire and Nzaramba (2013) in their findings, concluded that development of business skills could serve as a measure for improving the self-reliant of startups and established entrepreneurs. Similarly, (Coric, Katavic, and Kopecki,) claims that business growth and success depends on the connection of crucial business development skills for starting businesses, as well as the survival and development in their early years. However, such study is still missing in Nigeria context to the best of the researcher knowledge. Additionally, the research of Undiayaundeye (2015) identified lack of business development skills among graduates and thus, degenerate to failed entrepreneurial journey of business owners. As a result of the above discussions, this study, therefore, intends to examine the influence of these skills on business growth. This study aims to examine the weight of business development skills on business growth in Nigeria.
1.3 Objectives of the study
The major objective of the study is to examine business development skills and how it can contribute to business growth.
Following objectives include;
- To identify the most valuable skills that can contribute to business growth.
- To ascertain the influence of business development skills on business growth.
- To ascertain the relationship between business development skills and business growth.
- What are the most valuable skills that can contribute to business growth?
- How does a business development skill influence business growth?
- 3. What is the relationship between business development skills and business growth?
1.4 Research Questions
1.5 Research Hypotheses
There is a significant influence of business development skills on business growth
There is a significant relationship between business development skills and business growth.
1.6 Significance of the study
The reason this study is carried out is to enhance the knowledge about the entrepreneurial perspectives of the minority entrepreneurs in the developed economy. The study will be beneficiary to policy makers, business communities, and other researchers that want more knowledge on entrepreneurship skills and SMEs development. Business communities will be informed on the essentiality of abilities for their general business management. Also, the entrepreneurs in Nigeria will have an understanding of skills perception of business owners in developed country. To policymakers, this study might be informative in building a strategy for improving citizen’s entrepreneurship skills for SMEs efficiency.
1.7 Scope of the Study
This study is on Business development skills and business growth.
1.8 Limitation of the study
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Attitudes of Respondents: The researcher encountered the major challenge from the respondents on their typical reluctant attitude to fill the questionnaire or grant interview. In some cases, some respondents expect to be paid for the use of their time and knowledge; if otherwise, they were very reluctant in giving the required information. Some hoard information in keeping with the oath of secrecy. In spite of repeated assurance of confidentiality most of them fear the loss of their job and some were too busy to grant interview and fill the questionnaires correctly.
Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.