EFFECT OF FOREIGN CAPITAL IN THE DEVELOPMENT OF ENTREPRENEURSHIP BUSINESS IN ENUGU STATE
ABSTRACT
This research work, examined Effect of Foreign Capital in the Development of Entrepreneurship Business in Enugu State. The objectives of the study include to: ascertain the extent foreign capital has increased new businesses in Enugu State, determine how foreign capital enhances employment generation and demine the effect of foreign capital on business activities in Enugu State. The research method adopted by the researcher was the survey research method. The major instrument of data collection was the questionnaire. The sources of data used were the primary and secondary sources of data. The population of the study was 196 while the sample size of 132 was determined using the Taro Yamane’s formula. The data collected was presented in tables of frequencies, percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings include that foreign capital has increased new businesses in Enugu State, foreign capital enhances employment generation and foreign capital has a positive effect on business activities in Enugu State. The researcher therefore concludes that foreign capital has a positive effect in the development of entrepreneurship business in Enugu state and  It was then recommended that business owners should utilize foreign capital in the development of their business, government should stimulate domestic investments through foreign capital and government should exploit local raw materials through foreign capital.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                

2.3     Empirical Review                             

2.4 Summary of Review of Related Literature            
2.5 Gap in the Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                            
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4 Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
Nigeria, like every other developing countries, has adopted policies over the years to encourage foreign capital inflow. The effort started in the mid 1950s and has continued up to the time of this study. Ernest (2015), posits that this offshore capital inflow in Nigeria was last reported at N7.7 billion (only foreign direct investment and portfolio investment in 2010). Nigeria has constantly ranked among the largest recipient of foreign capital in Africa, particularly foreign direct investment and in the words of Young (2016) has made over $120 billion as proceed foreign investments.
It is believed by neoclassical economists that international capital flows increase the volume of international investment. Capital inflow, it is argued, finances projects and
production activities and has the capacity to generate a good number of new employment opportunities (Williamson, 2015) foreign capital inflow is widely considered a very welcome idea for raising level of investment and encouraging economic growth as well as for building up of foreign exchange reserve. Supporting this view, Potens (2013), believes capital inflow is widely embraced by developing economies to raise their level of investment as well as build up  their foreign exchange reserve.
Both private and public sectors of Nigerian economy have utilized the foreign capital to boost their entrepreneurial capabilities in line with government development plans. The role of entrepreneurship as an agent of economic development has gained considerable attention in the policy thrust of well developed and developing economies. Entrepreneurship is the lifeblood of the Nigerian economy. It is the cradle of job and wealth creation in the most innovative ways.
The prosperity and progress of a nation, depends on the quality of its people (Adeyemi, 2012). If they are enterprising, ambitious, and courageous enough to bear the risk, the community/society will develop quickly. Such people are identified as entrepreneurs and their character reflects entrepreneurship. Entrepreneurship is no monopoly of any religion or community (Timus, 2015). Entrepreneurial potential can be found and developed any where irrespective of age, qualification, experience, or socio-economic background, only efforts are required in the right direction.
    Entrepreneurship may not be regarded as a sufficient condition for growth activity, but is surely a necessary condition (Destipande, 2013), hence it must be given top priority in the national programmes of a country. It is widely acknowledged in entrepreneurship literature that entrepreneurship is about people who realize new opportunities. Entrepreneurs are persistent, passionate, adaptable and able to take risks. As a result, entrepreneurship can occur in a range of environments. However, at the core of entrepreneurship lies the creation of new business ventures by individuals or teams (Murthy, 2016). Hence it is necessary to find out the effect of foreign capital on entrepreneurship development.
However, there are two opposing views of the effect of foreign capital in entrepreneurship development. larosiene (2014) argued that countries are involved in international transactions and are in particular, very dependent on private inflows and advised nations to count on flows to do the bulk of financing. Still in support of the importance of capital inflow, world economic leaders during the G-20 London summit of April 12, 2009, emphasized that international capital flows should be encouraged to improve the world economy. They see foreign capital inflow as an important catalysts for entrepreneurial development in the developing countries because it stimulates domestic investment, increases the stock of human capital via on the job training, increase capital formation and facilitates the utilization and exploitation of local raw materials as well as access to new technologies.
The above views have not received the support of many authors. In the mid 1990s, some economists argued that foreign capitals have no positive effect on entrepreneurship development. they said that manufacturing domestic financial market in recipient countries could undermine the gains on the macro-economic and growth effects of capital liberalization. A large empirical literature has emerged during the past decade to settle the issue. Hence, this research examines the effect of foreign capital in the development of entrepreneurship business in Enugu State.
1.2    Statement of the Problem    
The consequences or effect of the inability to attract foreign capital in the development of entrepreneurship business could lead to dormancy in domestic investments. This is because foreign capital is seen as an important catalyst in stimulating domestic investments. This therefore, further explained that when foreign capital does not flow into a country, the entrepreneurs in that country could still be using outdated and obsolete technology. This is because foreign capital inflow is known to bring in the latest technology to a country which is very beneficial or important to entrepreneurship development.
Foreign capital inflow results to non availability of expert firms that engages in exploitation of local raw materials. This is because foreign capitals in the form of foreign direct investment enables nations have the capacity and capabilities to exploit local raw material which in one way or the other lead to the growth or development of entrepreneurship business in a country.
1.3    Objectives of the Study
The general objective of the study was to examine effect of foreign capital in the development of entrepreneurship. However, the specific objectives include;
1.    To ascertain the extent foreign capital has increased new businesses in Enugu State.
2.    To determine how foreign capital enhances employment generation.
3.    To determine the effect of foreign capital on business activities in Enugu State.
1.4    Research Questions    
Based on the objectives of the study, the following research questions were raised.
1.    To what extent has foreign capital has increased new businesses in Enugu State?
2.    How does foreign capital enhance employment generation?
3.    What is the effect of foreign capital on business activities in Enugu State?
1.5    Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated.
Hypothesis One
H0:    Foreign capital has not increased new businesses in Enugu State.
H1:    Foreign capital has increased new businesses in Enugu State.
Hypothesis Two
H0:    Foreign capital does not enhance employment generation.
H1:    Foreign capital enhances employment generation.
Hypothesis Three
H0:    Foreign capital does not have positive effect on business activities in Enugu State.
H1:    Foreign capital has positive on business activities in Enugu State.
1.6    Significance of the Study
This study will be useful as it will serve various purposes. First, graduates and school leavers will be encouraged by this study to take the existing opportunities of entrepreneurship development, to be self determining as they will stop wasting their time for the non existent jobs in the public sector.
Secondly, the study enable all potential entrepreneurs understand the challenges of entrepreneurship and how they can be overcome. Thirdly, private institutions, government agencies and Nigerian businessmen with international connections will also benefit from this study. They will understand the need for them to attract or bring foreigners into Nigeria for investment. This will be a very significant way of making foreign capital to flow into the country for the purpose of entrepreneurial activities
The researcher will benefit from this study as it is a partial requirement for the award of Bachelor of Science (B.Sc) Degree in Business Administration. The universities will benefit as the research work increases their data bank. The general public will benefit as the study will help in job creation and therefore reduce crime rate in the society, as the study will help in the emergence of entrepreneurs, through the inflow of foreign capital. The research also serves as reference material for further research on this topic.
1.7    Scope of the Study
This research covered three senatorial zones in Enugu State. The time scope of the study is between 2016-2017. The academic coverage is the effect of foreign capital in the development of entrepreneurship business in Enugu State.
1.8    Limitations of the Study
The researcher encountered some impediments in the course of carrying out this research work. Among them were time and finance.
Time:  This was my biggest challenge as a student. It was not easy combining the lecture time, cooking for self, going to library to study and trying to meet up with other domestic and official issues most of the time.
Finance: the researcher does not have enough fund to carry out all that was supposed to be done in this research.