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1.1      Background of the study

The industrialization of any nation is dependent on the activities of the entrepreneur. This is because a nation may be endow with natural resources, but without an entrepreneur to think innovatively to harness these resources it will still remain on its natural state as a piece of furniture. Good Entrepreneur can create a strong economy. They are an important facet of industrial growth and development of a nation. According to Harper (2003) entrepreneurship is the main mechanism that creates wealth, explanations of economic growth and development often ignore (or fail to acknowledge explicitly) the entrepreneurial forces of change and adaptation that underlie economic performance. Surprisingly, the role of entrepreneurship in economic development has attracted less professional interest than the role of other factors, such as the accumulation of physical capital, expansion of the labour force, R&D, technological progress and education. Entrepreneurship is something we ignore at our peril. Entrepreneurship is pertinent to the analysis of how new ideas or ‘recipes’ for reconfiguring objects in the material and social world can be harnessed to enhance a nation’s wealth. In the longer term, a country’s economic progress depends on its ability to increase the value of what it produces with its resource base (people, land and capital). The point cannot be emphasized too strongly, however, that neither the ends to which these resources are put nor the means for achieving these ends (i.e. the set of resources and how they are used) are given or fixed. They are the result of entrepreneurial choices and are open to entrepreneurial initiative. Individual entrepreneurs and entrepreneurial teams bring to light the resources, technologies and trading opportunities that make economic development possible. Indeed, whenever entrepreneurs are the first to discover the availability and potential economic value of new resources, they are in effect bringing those resources into existence in economic terms (Kirzner 1989).Nigeria as a country has numerous business and investment potentials due to the abundant, vibrant and dynamic human and natural resources it possesses. The performance and effectiveness of entrepreneurs in the country as an instrument of economic growth and development has long been under scrutiny. This intense scrutiny has been against the backdrop of the low performance and inefficiency that characterized small business particularly in assessing its role on economic growth and development. Tapping the country’s resources require the ability to identify potentially useful and economically viable fields of endeavours. Nigerians have equally made their marks in diverse fields such as science, technology, academics, business, hospitality and entertainment. Entrepreneurship activities and innovative ingenuity in Nigeria have developed enterprises in areas such as agriculture/agro-allied, solid minerals, transportation, information and telecom, hospitality and tourism business, building and construction etc. According to Anyadike, Emeh and Ukah (2012) these human and natural resources notwithstanding, Nigeria is still one of the poorest countries in the world and has one of the highest rates of youth unemployment in sub-Sahara Africa, and despite its alleged strong economic growth. In respect of the above sad and deplorable situation, the government has done little to reduce the misery and frustrations of the citizenry. This has foisted a state of hopelessness on majority of young and old people who have resorted to any means including crime to succeed in life. They resort to vices because they are not gainfully engaged. In other words, they are unemployed; unemployed, not because they lack the qualification but because the system has been crippled politically, economically, socio-culturally and even religiously Anyadike, Emeh and Ukah (2012). The need for entrepreneurship development in the country today is necessitated by the fact that entrepreneurship development is a major factor in economic growth and development and also the permanent cure for extreme hunger and poverty necessitated by unemployment.Hospitality industries promotion is a key ingredients in marketing campaign. Promotion has contributed a lot to boost a better image of both major and minor hotels in every part of the world. It does communicate to its publics; the type of services it renders, and also believes in fair deals and considers the interest of its customers and various publics. Hospitality industries services, pricing, as well as promotional policies and strategies constitute elements of its promotion – mix. Hotels provide meals, drinks, attractions, accommodation etc., to the general public or persons in transit especially people traveling to places where they have neither their own homes nor any relation to cater for their needs. Such persons will like to know few things about the hotels in their transitory area. In other words, they may like to know about available hotels, the categories of such hotels, the room and suit fares, and the type of food served, the necessary comfort customers are accorded – with, the game that is both indoor and outdoor games available and perhaps and other special feature that make such hotels appealing to the sojourners in transit, what transit a guest house to a five star hotel supersede availability of amenities but character of the entrepreneur or owner. It is against this backdrop that the researcher intends to investigate the effect of entrepreneurial characteristics on the hospitality business.


Entrepreneurial practice in Nigeria has witness many ups and down over the years  as many indigenous company has sprang up over the years, the numbers of small and medium scale enterprises has been on the increase, and yet the unemployment rate in the country has witness a geometric increase rate while employment rate cannot be said to also progressed geometrically as statistics shows that over 60% of the population who are willing and able to work are not employed and 20% of the once employed are said to be underemployed. It is on this backdrop that the researcher intends to investigate the effectiveness of entrepreneurial characteristic on hospitality business.



The main objective of the study is to investigate the effectiveness of entrepreneurial characteristic on hospitality business; but to aid the completion of the study, the following specific objective was postulated by the researcher:

i)             To investigate the effect of entrepreneurial characteristic on hospitality business

ii)           To ascertain the relationship between entrepreneurial character and the growth of hospitality business

iii)          To ascertain the impact entrepreneurial on the transformation of the hotel business in Nigeria

iv)         To proffer suggested solution to the identified problem


To aid the completion of the study research questions were formulated by the researcher:

i)             Is there any effect of entrepreneurial character on the hospitality business

ii)           Is there any relationship between entrepreneurial character and the growth of hospitality business

iii)          Does entrepreneurial character plays any role in the transformation of hotel business in Nigeria.


to aid the completion of this study, the following research hypotheses were formulated by the researcher;

H0:entrepreneurial characteristic has no significant effect hospitality business

H1:entrepreneurial characteristic has a significant effect hospitality business

H02:there is no significant relationship between entrepreneurial character and the growth of hotel business in Nigeria.

H2:there is a significant relationship between entrepreneurial character and the growth of hotel business in Nigeria.


It is believed that at the completion of the study, the findings will be of great importance to entrepreneurs and intending entrepreneur, as the study will educate them on the vital role that entrepreneurs plays in the economic growth and development. The study will also be of great importance to the government as the findings will serve as a guide to the government to create an enabling environment which will allow the entrepreneur to prevail. The study will also be of great importance to researcher who wants to embark on research on similar topic as the findings will serve as a reference point to them. Finally the study will be of great importance to the academia and the general public as the study will add to the pool of knowledge.


The scope of this study covers effective entrepreneurial characteristic on the hospitality business.

a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study       

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities



Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire, and the people who do so are called 'entrepreneurs'

An entrepreneur has been defined as "a person who starts, organizes and manages any enterprise, especially a business, usually with considerable initiative and risk". 


Hospitality industry

The hospitality industry is a broad category of fields within service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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