Project – THE IMPACT OF ENTREPRENEURSHIP ON BUSINESS GROWTH

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

The link between entrepreneur characteristics and Business performance has received a lot of focus by studies. Studies (Erikson, 2002; Westerberg & Wincent, 2008; Islam et al., 2011) show that characteristics of an entrepreneur which include demographic factors, individual background, personal traits, entrepreneur orientation, and entrepreneur readiness play an important role in performance of business in Nigeria. These factors which form the character and behaviour of the entrepreneur are crucial internal capacities that impact on firm performance (Schreckenberg et al.,2006; Dubey, 2008; Zoysa & Herath, 2007; Islam et al.,2011). Thus an enterprise reflects the characteristics of the entrepreneur whose commitment and vision are central to firm performance. The entrepreneur combines both tangible and intangible resources into a business organization (Gómez, 2006). Erikson (2002) observed that characteristics of the entrepreneur are determinants of firm performance. Essentially, firm performance is determined by the attributes of the entrepreneur driving the process.

All over the world as well as in Nigeria, several characteristics and factors have been identified to be key determinants of entrepreneur’s survival, although with inadequate empirical results. With SME survival rate generally low across the globe, it is necessary to establish an understanding of key entrereneurial characteristics and business practices that can help in the understanding and promotion of SMEs long-term survival. It is alleged that if business owners and managers are good at managing their businesses, then they will do extremely well in terms of ensuring the continuous survival of their businesses.

Project – THE IMPACT OF ENTREPRENEURSHIP ON BUSINESS GROWTH