Role of Entrepreneurial Characteristics of Micro and Small Enterprise Owners in Poverty Reduction in Nigeria

Abstract

Micro and small enterprises (MSEs) provide employment in most of the countries in the world, in both formal and informal sectors. It is therefore, important that the enterprise owners are effective in providing goods and services to contribute to the economic development of their respective countries. Entrepreneurial characteristics of entrepreneurs contribute to poverty reduction in both developed and developing nations of the world. Developed countries of the world are able to achieve development due to the successful roles played by entrepreneurial characteristics of micro and small enterprise owners. However, in Nigeria it is not clear the role that entrepreneurial characteristics of micro and small enterprise owners play in poverty reduction. Most of the studies have focused on the MSE roles, challenges, prospects and poverty reduction. Studies have hardly been carried on entrepreneurial characteristics of MSE owners in poverty reduction in Plateau State. In addition, most of the studies on Nigeria have been on SMEs and not on entrepreneurial characteristics of MSE owners, which constitute a large number of enterprises. This study, therefore, sought to fill this knowledge gap. It sought to establish entrepreneurial role of creativity, innovation, skills acquisition and risk taking among micro and small enterprise owners in poverty reduction in Nigeria. The study adopted a descriptive survey method to collect data to address this problem. The study population comprised 3120 MSEs registered with the Ministry of Commerce and Industry, Plateau State, Nigeria. The sample size comprised 342 respondents. A semi - structured questionnaire with both closed and open ended questions was administered. Cronbach’s Alpha Test was used to test the reliability of the instrument. The study used descriptive and inferential statistics in analyzing the data. The study findings revealed that creativity enables entrepreneurial MSE owners think of new ideas of bringing new products into existence. The findings also revealed that innovation among MSE owners transform new ideas into reality thus bringing new products into the market. The findings further revealed that skill acquisition and risk taking among MSE owners result in the production of innovative products and establishment of new ventures which produce innovative products, make sales, generate income. These create wealth, which plays a significant role in poverty reduction in Nigeria. The study concludes that creativity leads to new ideas of bringing new products into existence. The study further concludes that skills acquisition, innovation and risk taking among entrepreneurial MSE owners help them to have well planned vision, and handle crisis management. These ensure the establishment of enterprises, which leads to employment generation and poverty reduction in Nigeria. The study recommends that entrepreneurial MSE owners need to play creative roles, as creativity leads to initiation of new ideas of producing new products or adding value to existing ones. The study further recommends that entrepreneurial MSE owners should be innovative in transforming new ideas into reality through making available new products in the market thus leading to a variety of products in the market. Entrepreneurial micro and small enterprise owners need to acquire skills and have more knowledge, well planned vision for the enterprise, as skills acquisition enables entrepreneurs to adapt to changes in technology and better handling of management crisis.