CHAPTER ONE INTRODUCTION 1.1     Background to the Study

Unemployment reduction among graduate has become an all reaching concern. It is a challenge that most economies are facing under the current economic circumstances (Oppong & Sachs, 2015). Even the developed nations have not shown exception to this frightful social problem, although the up-surge is more pronounced in the developing countries. In Nigeria in particular, graduate unemployment is a very daunting challenge in the labour market. Oddly enough, Balogun (2016) hinted that almost half of the millions of graduates, churned out of the over various universities in Nigeria yearly, do not get jobs. This by implication goes to establish that, graduate unemployment is one of the most critical developmental problems facing the Nigeria as a country.

The phenomenon of entrepreneurship development has gained unprecedented importance because of its role in the socio-economic development of the society. Economically, entrepreneurship development invigorates markets and serves as a strong means of providing alternative employment opportunities for unemployment reduction among graduates and youths through the formation of small and medium scale enterprises. Socially, entrepreneurship development empowers citizens, generates innovation and changes mindsets (United Nations, 2010). The Federal government of Nigeria (2004) is of the view that entrepreneurs adaptable to changing situations by promoting self-reliance, thereby enhances unemployment reduction.

Unemployment is a macroeconomic problem that does no one any good, it is a social malady. The debilitating effects on the individuals in the society are unquantifiable. It threatens the lives of Nigerians especially the youths, causing dejection, frustration, poverty and dependency on family members who have their own problems to take care of (Chukwu & Igwe, 2012) Besides, it is worth stating that the ugly effects of unemployment include low national income, low standard of living, low per capita income to mention but a few. And it is against these scenarios that it becomes pertinent to find out how graduate unemployment reduction can be effective using entrepreneurship development as a key driver (Ibe & Ariagbaoso, 2013).

(Okifo & Ayo, 2013) Unemployment, both of the educated and the uneducated manpower, has become one of the most topical and thorny issues in contemporary Nigeria. The continuing global economic slowdown and uncertain economic prospects have resulted in a grim global economic landscape. This plunged many economies into deep recession, the ripple effects of which have affected the job markets. These effects are more pronounced in the developing and underdeveloped countries of the world, with increased unemployment being the outcome.

Entrepreneurship development has been recognized as an important element in the dynamics of all economies and it is regarded as the driving force in economic growth and job creation. The economic structure in Nigeria is well served by tertiary institutions in that; they generally provide a resource pool (graduates) for businesses across board. Graduates involvement in the economic development is of paramount importance.

1.2     STATEMENT OF THE PROBLEMS

Unemployment rates are particularly high among graduate and especially among school leaves, giving rise increasingly to the problems of “educated unemployment”. Paradoxically, unemployment reduction among graduate seems to be correlated with levels of education attained in some cases. This is particularly true for school leavers in, for example, Nigeria where the proportion of the unemployed with secondary education increased on a daily bases. Graduate employment rates are probably 3 – 4 times higher than those of older workers. Moreover, graduate s and new entrants to the labour force are as well placed as experienced workers to find employment in new opportunities or to go into self employment. The problems of graduate unemployment reflect the contraction of jobs in the modern sector and declining rate of job creation in that sector.

It also suggests serious labour market distortions related to the development and utilization of human resources in the context of changing economic circumstances. further, the problem of graduate unemployment is linked to the fact of many Nigerian, as already noted, continue to record relatively high rates of population growth, and the population structure of some of those countries is overwhelmingly young will children of school going age accounting for as much as half of the total population in some cases. In the light of the above the researcher aims at investigating the entrepreneurship development and unemployment reduction among Nigeria graduates (a case study of entrepreneurship development center, Heritage Polytechnic, Eket)

1.3     Objectives of the Study

The general objective of the study is to assess entrepreneurship development and unemployment reduction among Nigerian graduates. The specific objectives are:

1. To examine how knowledge acquisition can affect unemployment reduction among Nigeria graduate.
2. To determine how vocational skill acquisition can affect unemployment reduction among Nigeria graduate.
3. To assess how management ability can affect unemployment reduction among Nigeria graduate.
4. To identify how business idea generation can affect unemployment reduction among Nigeria graduate.

1.4     Research Questions

The following research question are formulated to guide the study:

1. How does knowledge acquisition affect unemployment reduction among Nigeria graduate?
2. How does vocational skill acquisition affect unemployment reduction among Nigeria graduate?
3. How does management ability affect unemployment reduction among Nigeria graduate?
4. How does business idea generation affect unemployment reduction among Nigeria graduate?

1.5     Statement of Hypotheses

H_O:    There is no significant relationship between knowledge acquisition and unemployment reduction among Nigeria graduate.

H_A:    There is a significant relationship between knowledge acquisition and unemployment reduction among Nigeria graduate.

H_O:       There is no significant relationship between vocational skill acquisition and unemployment reduction among Nigeria graduate.

H_A:       There is a significant relationship between vocational skill acquisition and unemployment reduction among Nigeria graduate.

H_O:       There is no significant relationship between management ability and unemployment reduction among Nigeria graduate.

H_A:       There is a significant relationship between management ability and unemployment reduction among Nigeria graduate.

H_O:    There is no significant relationship between business idea generation and unemployment reduction among Nigeria graduate.

H_A:  There is a significant relationship between business idea generation and unemployment reduction among Nigeria graduate.

1.6     SIGNIFICANCE OF THE STUDY

The findings of this study would be beneficial to other researchers, and students.

The findings would provide useful information to the economic planners on the appropriate strategies to be adopted that will bring about effective performance.

This study would also be significant in the sense that its finding would serve as reference materials for future researchers to carry out further studies in the field of knowledge under study.

Finally, the outcomes of this research would to be of immense benefits to students of Faculty of Business Administration/Management because its revealed information on the use of entrepreneurial technological tools and it corresponding impacts on unemployment reduction among graduates.

1.7     SCOPE OF THE STUDY

The study was delimited to assess the entrepreneurship development and unemployment reduction among Nigeria graduates (a case study of entrepreneurship development center, Heritage Polytechnic, Eket).

1.8     LIMITATION OF THE STUDY

In the course of carrying out this research, there were some challenges which could be viewed as initial setbacks to the study. They include;

Lack of Time: The duration for the study was a bit short for adequate and complete investigation to be carried out.

Material Factors: Shortage of relevant materials for literature review posed great difficulty.

Financial Factor: Inadequate funds affected the way data were collected since the researcher have to travel long distance for distribution of the research questionnaire forms.

1.9     DEFINITIONS OF TERMS

ENTREPRENEURSHIP: A person who undertakes the risk of starting a new business venture. Is a person who creates a firm to realize the idea, which aggregates capital and labour in order to produce goods or services for profit.

DEVELOPMENT: It is an event constituting a new stage in a changing situation, a specified state of advancement or growth. It could also be used to describe a new and advanced idea or product; or an event that constitutes a new stage under changing circumstances. Generally, the term development describes good change.

UNEMPLOYMENT: The term refers to a situation where a person actively searches for employment but is unable to find work. Simply, unemployment is the fact that people who want jobs cannot get them.

REDUCTION: Is the act of making something or of something becoming, smaller in size, amount, degree, importance, etc.

GRADUATES: Is a person who has successfully completed a course of study or training, especially a person who has been awarded an undergraduate or first academic degree.