CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Identifying entrepreneurial opportunities has been a key topic in the field of

entrepreneurship (Busenitz, Plummer, Klotz, Shahzad, & Rhoads, 2014; Short, Ketchen,

Shook, & Ireland, 2010), and its study has been linked to abilities and capabilities at an

individual level (Ardichvili, Cardozo, & Ray, 2003; Gaglio & Katz, 2001; Shane, 2000;

Shepherd, McMullen, & Jennings, 2007). The concept of entrepreneurial alertness has

contributed to research on opportunity identification since through the development of this

concept, a clearer explanation has been obtained as to why only some people are more

aware of the information and changes that point towards a possible entrepreneurial

opportunity (Tang, Kacmar & Busenitz, 2012). In spite of the relevance entrepreneurial

alertness has, very little research has been carried out dealing with its antecedents

(McCaffrey, 2013). Alertness requires an innovative act, which may influence the further

development and improvement of the entrepreneurial opportunity (Baron, 2004; Kirzner,

2009). However, innovation has not been empirically studied as an antecedent of

entrepreneurial alertness.

Innovation is another key element in the beginning of the entrepreneurial process, since it

contributes to the design of new products and services (Gielnik, Frese, Graf, &

Kampschulte, 2012; Heinonen, Hytti, & Stenholm, 2011). Ward (2004) commented that

“novel and useful ideas are the lifeblood of entrepreneurship”. However, the study of

innovation has not been easy because many factors come into play (Baer, 2012). Within

the entrepreneurial process, as suggested by Shane, Locke and Collins (2003), cognitive

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elements and people’s abilities are insufficient, and as such, emotional aspects are required.

One of the elements considered in this study as a precedent of innovation is alertness, and

specifically, entrepreneurial passion (Cardon, Gregoire, Stevens, & Patel, 2013).

Entrepreneurial passion is defined as an intense positive feeling toward entrepreneurial

tasks and activities that are relevant to the entrepreneur’s self-identity (Cardon, Wincent,

Singh & Drnovsek, 2009) Other scholars have conceptualized entrepreneurial passion as

love of the entrepreneurial work (Baum&Locke2004). Passion implies strong feelings and

high motivation. Most entrepreneurs attribute their persistence, particularly in the

beginning phase of starting a firm, to their great passion. Thus, entrepreneurial passion

should be a driver and source of energy to work hard, long hours with high levels of effort

and persistence (Baum & Locke 2004, Cardon et al. 2009). According to Cardon, Wincent,

Singh & Drnovsek, (2009) theory, entrepreneurial passion should have a motivating

function in all phases of the entrepreneurial process for two reasons: First, within Russell

& Carroll’s (1999) two-dimensional semantic structure of affect, passion is pleasant and

activating. Pleasant and activating feelings are a source of motivation and, thus, have an

effect on people’s efforts (Seo, Barret, & Bartunek, 2004). Experiencing pleasant,

activating feelings creates action tendencies to move toward an object (in contrast to

avoiding an object), and pleasant, activating feelings are linked to a physiological response

that provides the energetic basis form a king active efforts (Elliot 2006). Second,

entrepreneurial passion positively affects entrepreneurial effort through goal setting (Baum

& Locke 2004, Cardon et al. 2009). High levels of entrepreneurial passion should lead to

setting more challenging goals because the positive feeling associated with entrepreneurial

passion should increase entrepreneurs’ expectations and needs for being successful in the

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 activities related to that positive feeling (Cardon et al. 2009, Seo, Barret, & Bartunek,

2004). As a consequence, passionate entrepreneurs should set high goals because they

would not be satisfied with achieving only low or medium goals (Locke & Latham 2002).

Additionally, entrepreneurial passion should lead to higher levels of goal commitment.

This study seeks to contribute to the continuous efforts of research on opportunity

identification, that is, a model that suggests the effect that two variables, the mediating

relationship between entrepreneurial alertness and entrepreneurial passion. Specifically,

the model suggests that the entrepreneurial passion of a person is related to innovation, and

that this in turn is related to entrepreneurial alertness. Therefore, this study formulates three

important contributions. First, the beginning of the entrepreneurial process is addressed by

involving three variables. Second, empirical evidence is provided on the concepts of

entrepreneurial passion and entrepreneurial alertness through the use of instruments

recently developed by Cardon, Gregoire, Stevens and Patel (2013) and Tang, Kacmar and

Busenitz (2012), respectively. Third, innovation is considered an intermediate variable in

the entrepreneurial passion-alertness relationship.

1.2 Statement of the Problem

Entrepreneurship has been given much popularity in recent years, because, it is essential

for individual and economic growth. It is the panacea for the required manpower

development that would accelerate growth, reduce unemployment, poverty, corruption and

national security plaguing our dear nation through its alertness to opportunities and passion.

Entrepreneurial alertness and passion would empower our youth, reduce dependency on

white collar jobs which are becoming very scarce, where available, remuneration may be

far from being enough to meet obligations. Even when remuneration is enough, salary jobs

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 cannot be for life, retirement, resignation and so on will come and what happen then? It

has therefore become imperative that entrepreneurial alertness and passion be embraced by

all and sundry.

Nigerian economy seems to have lost its focus and thus is yearning for quick intervention.

The only best intervention is to embrace entrepreneurial alertness and passion. Economic

change is most desirable at this time when unemployment is very high, entrepreneurial

alertness and passion is essential to identify and respond to the changes. There are over 20

million unemployed youths due to the economic disease called meltdown and recession.

Each academic year, graduate are tuned out from schools without adequate enabling work

environment to engage them. Entrepreneurial alertness and passion via entrepreneurship is

the key to self-reliance and national development. It is against these stated problem that

the research is carried out to find out the mediating role of innovation in the relationship

between entrepreneurial passion and alertness.

1.3 Purpose of the Study

This research project aims to highlight the immense contributions of innovation in

mediating the relationship between entrepreneurial passion and alertness. Among the many

purposes are to:

i. Explain how entrepreneurial alertness is related to innovation.

ii. Examine the relationship between entrepreneurial passion and entrepreneurial

alertness

iii. Make critical study of those problems facing entrepreneur in development and to

offer useful recommendations that would enhance the implementation of its

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 solutions in other to achieve self and development, so as to prevent the re-

occurrence of such problems.

iv. Examine the relationship between entrepreneurial engagement and entrepreneurial

passion.

1.4 Research Questions

The following research questions were formulated in other to achieve the purpose of the

study

i. Is there any significant relationship between entrepreneurial alertness and

innovation?

ii. Is there any significant relationship between entrepreneurial passion and

entrepreneurial alertness?

iii. What are the challenges facing entrepreneurial alertness and entrepreneurial

passion?

iv. Is there any significant relationship between entrepreneurial engagement and

entrepreneurial passion?

1.5 Research Hypothesis

The following null hypotheses are formulated

Hypothesis 1

There is no significant relationship between entrepreneurial alertness and innovation

Hypothesis 2

There is no significant relationship between entrepreneurial passion and entrepreneurial

alertness

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 Hypothesis 3

There is no significant relationship between challenges facing entrepreneurial passion and

innovation

Hypothesis 4

There is no significant relationship between entrepreneurial engagement and

entrepreneurial passion.

1.6 Scope of the Study

The scope of this study covers the concept of entrepreneurial innovation in mediating the

relationship between entrepreneurial passion and alertness using entrepreneurs within

Lagos. Specifically, the study covers a number of entrepreneurs within MTN & 9Mobile in

Lagos state This area of study was selected due to its wide range of entrepreneurs activities

that has created jobs for young Nigerians and how to a greater extent, reduces the rate crime

in the society.

1.7 Significance of the Study

The importance of the study cannot be over emphasize as the study will be of great

importance first to the entrepreneurs within the study area as it will open their mental

alertness the significance of innovation to their passion and makes them sensitive to

societal problem

To the government, the study will enhance them to better understand the importance of

social amenities to the development of entrepreneurs’ personal trait (innovation) thereby

creating jobs for the teeming populace.

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 The study will also assist young graduate in understanding the effect and impact of

entrepreneurship and innovation in the society, hence enabling these elements to be

incorporated into policy and objectives of the organization.

In summary, this study will be a guide to scholars, researchers or writers who may wish to

carry further study on entrepreneurial personal trait.

1.8 Method of Data Collection

The method of data collection that will be used for this project is primary and secondary

method of data collection.

1. Primary source: These are information generated from direct sources such as

questionnaire and interview etc.

2. Secondary source: These are information generated through review of literature in

relevant textbooks and journals. But secondary data will be used for this study.

1.9 Operational Definition of Terms

Entrepreneur: a person who take risk, and/or start a business or businesses with the aim

of making profit

Entrepreneurial Alertness: alert individuals are able to recognize an opportunity ahead

of others. It is the ability to be sensitive to impending or looming challenges or problem

and provide solutions to them before others do.

Entrepreneurial Passion: the intense of enthusiasm towards or compelling desired goal

Innovation: creating new product and/or service to solve a problem

Entrepreneurship: the process of starting a business, a startup company or other

organization.

Creativity: the use of imagination or original ideas to create something; inventiveness.

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Economic Development: this is a process by which a nation improves the economic,

political, and growth in standard of living of her citizen

Development: the process of developing or being developed. An event constituting a new

stage in a changing situation.

Self-reliance: reliance on one’s own capabilities, judgment, or resources; independence

Performance: Performance is completion of a task with application of knowledge, skills

and abilities.

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