THE IMPACT OF ENTREPRENEURSHIP ON SOCIOECONOMIC DEVELOPMENT OF YOUNG GRADUATES IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Globally, entrepreneurship has become a powerful driver of socioeconomic development, and its importance is becoming more widely acknowledged. According to Anochie et al, (2018),there exist six distinct factors crucial to production and socio-economic development: land, labor, capital, materials, technology, and entrepreneurship. While in the realm of management, these are often referred to as the 6 M's: man, money, materials, machines, methods, and management. These factors represent the resources essential for the production of goods and services. However, they cannot achieve optimal outcomes independently; instead, they must be effectively harnessed, mobilized, and integrated. This necessitates the oversight and coordination of individuals within the economy. Both management and entrepreneurship serve as the human element responsible for orchestrating these factors to facilitate production. In the contemporary socio-economic landscape, the imperative to generate employment opportunities is paramount, with entrepreneurs playing a pivotal role in job creation, a critical aspect for the prosperity of nations, including Cameroon. This is especially true when it comes t o empowering recent graduates in developing countries such as Cameroon. However, given the nation's issues with underemployment, unemployment, and scarce economic prospects, entrepreneurship offers a viable path for inclusive development, poverty alleviation, and economic progress. The country has not yet seen a widespread expansion of entrepreneurial activities, despite government efforts to support this growth.

Entrepreneurship can be defined as the utilization of opportunities to establish businesses through identifying prospects, executing plans, and capitalizing on them (Peverelli & Song, 2020). An entrepreneur remains vigilant towards opportunities and endeavors to maximize their potential. This vigilance involves the ability to perceive novel possibilities that might escape the notice of others, a phenomenon referred to as discovery. Entrepreneurs then mobilize resources to exploit these opportunities. Similarly, according to Audretsch (2019), the amalgamation of alertness and action is encapsulated in the term "entrepreneurship". Furthermore, an entrepreneur is characterized as someone who integrates resources to generate market value. This process involves seizing opportunities both within and beyond existing organizational structures (Carayannis, Grigoroudis, Campbell, Meissner & Stamati, 2018). The World Bank reports that the youth unemployment rate in Cameroon hovers around 8.3%, with underemployment exacerbating the issue. Limited access to formal employment opportunities further exacerbates the economic vulnerabilities faced by young graduates, hindering their ability to contribute meaningfully to national development. Additionally, as an unproductive labor force results in lost output in the form of products and services, youth unemployment has a detrimental influence on economies, both in African and global contexts. Furthermore, governments that have high rates of youth unemployment suffer from a narrow base for income taxes and persistent losses in indirect tax collection (Bellemare and Poulin-Simon, 2019). The societal costs of youth unemployment include increased insecurity, particularly in metropolitan regions of Africa, and indirect health expenses. As a result, entrepreneurship education and training have been introduced to help university graduates as well as graduates from vocational and technical training institutes build their entrepreneurial skills.Therefore, a survey will be conducted to examine the impact of entrepreneurship on socioeconomic development of young graduates in Cameroon

1.2 Statement of the Problem

The majority of young individuals aspire to pursue higher education and secure stable employment in the formal sector. However, the harsh reality is that in impoverished nations, only a small fraction will access education beyond secondary school, and many will need to establish their own means of livelihood to sustain themselves. Unfortunately, the educational system often fails to adequately equip them for entrepreneurial endeavors in the future. One significant hurdle faced by donors, governments, and NGOs is figuring out how to both educate and motivate young people to initiate entrepreneurial ventures, thereby providing them with both income and a sense of purpose (Bacq et al., 2018). Additionally, there's a challenge in not just establishing businesses, but also in fostering their growth and generating employment opportunities, which in turn spreads the advantages of entrepreneurship throughout the local community. Also, this issue's significance is underscored by the commitment made by Heads of State and Governments at the Millennium Summit in 2000 to develop and execute strategies that offer young people worldwide genuine opportunities to secure decent and meaningful employment (Avori, 2018). More recently, the International Labour Organization (ILO) has proposed job creation as a fresh development objective for the United Nations, advocating entrepreneurship promotion as one of the suggested policy tools. Moreover, education and job creation have been highlighted as crucial measures against the proliferation of violent extremism. Therefore, there is need to promote the development of entrepreneurial activities within the country. Thus, it is in the light of these that the study seeks to examine the impact of entrepreneurship on socioeconomic development of young graduates in Cameroon. 

1.3  Objectives of the Study

The main purpose of this study is to examine the impact of entrepreneurship on socioeconomic development of young graduates in Cameroon.  Specifically, the study will;

Find out the relationship between entrepreneurship and socioeconomic development.

Find out the various contributions of entrepreneurship on the socioeconomic development of young graduates in Cameroon.

Find out the factors influencing the sustainability of entrepreneurship in Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

What is the connection between entrepreneurship and socioeconomic development?

What are the diverse ways in which entrepreneurship contributes to the socioeconomic development of recent graduates in Cameroon?

What factors impact the long-term viability and sustainability of entrepreneurship initiatives in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant relationship between entrepreneurship and socioeconomic development of young graduates in Cameroon

Ha: There is a significant relationship between entrepreneurship on socioeconomic development of young graduates in Cameroon

1.6 Significance of the Study

The findings of this study will Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of entrepreneurship on socioeconomic development of young graduates in Cameroon. 

1.6 Scope of the study

The scope of this study is to examine the impact of entrepreneurship on socioeconomic development of young graduates in Cameroon. Empirically, this study will find out the relationship between entrepreneurship and socioeconomic development, find out the various contributions of entrepreneurship on the socioeconomic development of young graduates in Cameroon and find out the factors influencing the sustainability of entrepreneurship in Cameroon.

Geographically, the study will be delimited to youths of  Bamenda, Cameroon

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.8 Definition of Terms

Entrepreneurship: is the act of creating, organizing, and managing a business venture, typically with the goal of making a profit.

Socioeconomic development: is the progress and improvement in the social and economic aspects of a society or community. It involves various factors such as income levels, employment opportunities, education, healthcare, infrastructure, standard of living, and overall quality of life.

Young Graduates: are individuals who have recently completed their formal education, typically at the tertiary level (such as university or college), and have obtained a degree or diploma.