Summary of findings/ …………………………………………………………………………CHAPTER FIVE5.0.
Conclusion……………………………………………………………………………………5.1. The way forward and concluding remarks…………………………………………………….Nickell (1996) highlighted the fact that scholars and economists are inclined to the view that competition enhances productivity growth and ultimately long-term economic growth.53 Standard assumptions backed by Adam Smith, suggested that competition induces a better allocation of resources and spurs efficiency, which ultimately increases consumer welfare and promotes economic growth.
54 Based on reports of the last two preceding chapters, this study has been able to establish the intrinsic relationship between entrepreneurship, employment generation, and ultimately, how that translates to economic growth. This was evidenced by both postulations by scholar’s alike as well as real life evidences in selected case studies in other economies. What is however clear is that, in markets is is clearly influenced by a lot of requisite factors which helped encouraged competition and in turn drove growth. With regards to Nigeria’s case, it is clear a lack of local competitive entrepreneurship climate,high unemployment rate,and the inability to attract quality foreign alliances in some cases is the root cause of reduced growth in the economy. What is also worthy of note is that, in as much as it is a widely held view that a booming domestic entrepreneurship climate,capable of attracting quality foreign partnerships, is the fuel that would purportedly drive the engines of the economy, and spur it into tremendous growth and subsequently help reduce unemployment, it is pertinent to note that, lack of a viable domestic entrepreneurship alone is not the only problem inhibiting the country from actualizing its potential. Institutional lapses, governmental corruption and/or lack of basic infrastructures need to be given serious thought as root causes of the country’s dwindling economic fortunes.
This view is supported by Gugler, Mueller and Yurtoglu’s(2000), while assessing the relationship between corporate governance and long-term economic growth, affirmed that improved corporate governance and supporting institutions would lead to better economic Performance. They identified basic protection of property rights, law and order, a Well-functioning judicial system and contract enforcement as being among the crucial elements of good governance. Ironically, It is evidently clear a lot of the requisite factors or conditions that propel the wheels of viable entrepreneurship and ultimately economic development is absent to a great deal in Nigeria. The government has in recent times attempted to initiate measures to remedy the situation by enacting the Nigeria investment promotion act into law, in its bid to encourage, promote and co-ordinate investment in the Nigerian economy.
This Act dismantled years of controls and limits on foreign investment, thus opening nearly all sectors to foreign investment, allowing for 100 percent foreign ownership in all sectors (except the oil sector), equally giving protection and guarantee of investments.On paper, this seemingly underlines the government’s objectives of attracting investments to the economy, but the realty has been different. Poor infrastructure, institutional corruption the right will to fully implement policies has plagued the realization of the initial objective of formulating such laws. All of these factors cumulatively directly or indirectly makes the country an unattractive destination for foreign investment and partnerships, restricts foreign firm entry, and in turn slows economic growth and worsens the unemployment situation. The question then is, should all of these inhibiting factors be in place and adequate policies are implemented to boost increased market entry, would it lead to same growth and development experienced by other economies? Taking cognizance of the fact that Nigeria’s economy is different in structure, institutional framework and its general modus operandi, evidences presented thus far, in this study, does not seem to suggest the result would be any different to other economies mentioned.
This is further evidenced by Ospina and Schiffbauer (2010) ,In a comparative study of transition economies found that firms facing less competition (20% higher markups) had lower productivity (TFP 1.2% lower), while Reforms generated 12-15% increases in TFP, through stronger competition62REF TO PROVE ENVIRONMENT. All of these further prove that should the requisite environment be in place for competition policies to thrive in emerging economies, emerging markets efficiency would be greatly improved, thus productivity growth, which ultimately, long term, would lead to economic growth in most cases. It is however pertinent to state that the mere existence of a viable domestic entrepreneurship scene capable of attracting the requsite and effective institutional mechanisms is by no means a guarantee that these emerging economies would suddenly transform and leapfrog the developed economies in terms of growth and development. But based on evidences from all over the world (evidences presented in preceding chapter and above), it would be a step in the right direction at ensuring Nigeria actualize its economic potential.
4.1 ETHICAL THOUGHT. Although studies have indicated that influx of foreign firms into an economy can be beneficial to a transitional economy like Nigeria, it is noteworthy to state that it could also be detrimental, if not properly managed and controlled.While the findings of this study has shown that such foreign entries encourage competition, promotes efficiency, leads to innovation and ultimately results in growth and development, in my opinion, there is seemingly a thin line between increased competition brought about by increased access by foreign entities and its impact on small local firms faced with major foreign competition.
Foreign firms may engage in anti-competitive practices at the detriment of Nigeria and abuse dominant market positions63.and/or bring with them unethical conduct aimed at exploiting the needs of the country, rather than to facilitate the country in realizing its objective of such alliances – which is to achieve economic development. Nonetheless, evidences abound to show that the net benefits abound plentiful, thus, the key is striking a balance to arrive at a sweet spot, where the nations economy can enjoy the dividends from such foreign alliances without considerable harm.In this regard, it is pertinent to state that Nigeria require regulations regarding striking a balance between encouraging foreign firms entry into the economy and not creating scenarios where small local entrepreneurial firms are outrightly eliminated.
, thus,it would be in the best interest of the nation to equip domestic firms with the requisite tool to compete fairly in an increasingly competitive market. CHAPTER FIVE. 5.0. CONCLUSION The objective of this report has been to assess the unemployment situation in Nigeria and analyze literature on purported growth impact; entrepreneurship would have, on negating this epidemic and facilitating the country on paths of rapid industrialization. It also aimed to explore what requisite strategies to be employed to make the economy a lot more robust, attract more international patronage and partnerships, and subsequently help combat unemployment. The evidence overwhelmingly supports the widely held theories that entrepreneurship does to a great extent, coupled with a host of other factors, could be indeed a driving factor for innovation, productivity and growth.
Evidences suggest that, should all other inhibiting factors be in place, a booming domestic entrepreneurship in the country could be a panacea to attracting the necessary foreign investment and alliances the economy needs and it would yield same result as in developed economies, where increased globalization and market liberation policies have resulted in tremendous growth overtime.This study demonstrates that there is generally a positive relationship between entreprenurship, employment generation and economic development, should all other requisite structure be in place for these practices to thrive. Various institutional lapses and other bottlenecks in the country which often times hinders realization of most of the intended benefits of entrepreneurship, was also discussed and requisite strategies to curb it was recommended. The critical message emanating from the findings (case studies, examples from other countries experiences and scholarly postulations) incorporated in this study, is that, the adoption of well implemented guiding policies, and providing the requisite environment and structure for entrepreneurship to thrive, is more likely to enhance the competitiveness of Nigeria’s domestic entrepreneurship scene, attract the necessary foreign partnerships it craves and stir the economy on the path of growth to achieve its full potential.Singh (2002) argues that developing countries can provide a fertile soil for competition policy64. This is Page 20 of 25 THE WAY FORWARD The capital and technological streams that the country needs to boost its domestic entrepreneurship environment, foster its economic rejuvenation and subsequently curb its unemployment plague, is intrinsically linked to increased foreign trade and investment, hence it is of strategic importance that the country initiates the right policies to attract the right forms of foreign partnerships.In light of the key theme of this study, it could be right to infer that the need for effective policies favoring entrepreneurship is crucial for curbing the country’s unemployment scourge. However, for these policies to be effectual; taking cognizance of the fact that countries are different in economic structure, economic needs and modus operandi, these policies design should be tailored to align with Nigeria’s pre existing conditions and particular attention given to the implementation process.
Increased Free market access, Protection of property rights, promotion of rule of law and transparency, providing requisite infrastructures, enhancing labour skills, achieving political and economic stability are all believed to be among the main factors that would, coupled with effective entrepreneurship framework, enhance the efficiency of the country’s economy, curb its unemployment problem, boost its productivity and hence induce growth long term. The needs for institutional willingness to fully support policy measures recommended in the course of this study, and provide the necessary framework for it to thrive, are some of the measures, which this paper is suggesting as the way forward. This should be the line of thinking of all stake holders of the country.In 1995, Nigeria investment promotion act was introduced into law, in its bid to encourage, promote and co-ordinate investment in the Nigerian economy. This Act dismantled years of controls and limits on foreign investment, thus opening nearly all sectors to foreign investment, allowing for 100 percent foreign ownership in all sectors (except the oil sector), equally giving protection and guarantee of investments.On paper, this seemingly underlines the government’s objectives of attracting investments to the economy, but the realty has been different.
Poor infrastructure, institutional corruption, the right will to fully implement policies has plagued the realization of the initial objective of formulating such laws.Define policies and strategies which is most suitable to the country’s economic conditions.The strategy involves trade liberalization and tariff reforms; infrastructure investment; tax incentives to attract investment; and a commitment to implementation of set out policies., than a passive government attitude towards anti entrepreneurship practices. Research and case studies provides unwavering support for the position that from the point of view of innovation, market efficiency, superior productivity, performance and ultimately, economic growth, the regulatory and governance frameworks affecting public policy that are least restrictive, in their impact on the competitive environment or competitive intensity produce superior economic results. Because more competitive markets result in higher productivity growth, hence policies that lead to markets operating more competitively, such as enforcement of competition law and removal of regulations that hinder competition, will result in faster economic growth.