RESEARCH PROPOSAL

1.1 Background of the study

Education is traditionally viewed as an investment for the future. There is abundant evidence in

every-day life and scientific literature for the fact that the acquisition of education improves the

future earnings and overall success of individuals (Angrist and Krueger, 1999). Another issue,

then, is whether this holds in the case of self-selected groups, such as self-employed persons.

They are generally regarded as rather original persons who may have learned their business skills

without too much of formal education.

The impact of education on the business success of an owner manager has been the subject of

much discussion and speculation in both the popular and academic press. If education leads to a

higher quality of entrepreneurial performance, this justifies appropriate investments in education.

Most of the prior studies have done their studies for study the relationship in between education

and business success or in between business experience and business success.

A study conducted by Kim (in Meng & Liang, 1996) involving entrepreneurs in Singapore

disclosed that successful entrepreneurs have higher education levels compared to that of

unsuccessful entrepreneurs.

Further the SME sector is an important contributor to the economy. It is therefore important to

understand the relationships between the business owner education, and their business success.

A study conducted by Kim (in Meng & Liang, 1996) involving entrepreneurs in Singapore

disclosed that successful entrepreneurs have higher education levels compared to that of

unsuccessful entrepreneurs. According to Kim (in Meng & Liang, 1996), Staw (1991), and Katz
(in Holt, 1992), after entering the entrepreneurial world, those with higher levels of education are

more successful because university education provides them with knowledge and modern

managerial skills, making them more conscious of the reality of the business world and thus in a

position to use their learning capability to manage business. England (1967b) suggested

managers with less education than college degree holders might be less financially secure and

less able to change their entrepreneurs commonly had trouble relating to authority figures,

seemingly as a result of their having had poor relationships with their fathers. Roberts (1969)

found that the founders of high technology companies had at least one college degree and that

half held at least a Master of Science degree. Crant (1996, p. 47) reported that students with

higher entrepreneurial intentions “…tended to be … MBA students rather than undergraduates”

and Williams (1977) major decision-makers in micro-businesses was found when compared to

others. Gasse (1982) Lattimore, Martyn et al. (1997) reporeted genders and achievement at

school, or social disadvantage, which becomes a driver for later entrepreneurial endeavor. If that

is the case, then entrepreneurs with a lower education qualification may, paradoxically, hold

values that are more strongly associated with own business success than those held by

entrepreneurs with a higher education qualification.

1.2 Aim and Objectives of the Study

The aim of this study is to examine statistically using analysis of variance, the relationship

between the level of education of business owner and the success of their business; however the

following specific objective would also be achieved.

1. To find out the relationship between formal education with business success of business

owner
 2. To use analysis of variance to examine the relationship between business success and

level of education of the manager or business owner.

3. To assess the level of education of SMEs in Nigeria.

4. To make policy recommendations at the end of this study.

1.3 Research Questions

This research will be guided by the following research questions;

1. How accurate can Analysis of Variance reveal the relationship between business success

and academic level of the business owner?

2. Is there difference in the mean of business success and various academic level of the

person running the business

3. How can formal education increase the success of business in Nigeria?

1.4 Research Hypotheses

The following hypotheses are formulated in null form to guild the study.

H0: There is no relationship between the relationship between business success and academic

level of the business owner

H1: There is relationship between the relationship between business success and academic level

of the business owner

1.5 Plan of the Study

This research consists of five chapters. Chapter one, which is the introductory part contains the

background of the study, the statement of the research problem, objectives of the study, research
questions among others. Chapter two, deals with the literature review and theoretical framework.

Chapter three consists of the research methodology. Chapter four deals with data presentation,

analysis, result and interpretation. Chapter five is the summary, conclusion and recommendation.

1.6 Limitation of the Study

In view of the technicalities involved, information that will be gathered will be limited to those

accesses and made available by the respondents and also those gathered from end users.

However, the impacts of this limitation will be reduced to the barest minimum. Also, the

anticipation of likely problems like unwilling attitude of the respondent to give information they

consider confidential and problems associated with the collection of questionnaires.

1.7 Brief Methodology of the Study

To achieve the aims and objectives of this research, this research will be based on different

sources of getting relevant information. The researcher will use both the primary and secondary

data in the study. The primary data will be collected by the researcher through questionnaire and

personal interview in order justify any information given while the secondary data are data

collected from journals and libraries.

The study will use both descriptive and inferential statistics in analyzing the data. Also, simple

percentages will be used to analyze the questionnaires.

1.8 OPERATIONAL DEFINITION OF TERMS

During the course of the research work, some major terms are used repeatedly, and they include

the following;

Business: An organization or economic system where goods and services are exchanged for one

another or for money.

Customer: General: A party that receives or consumes products (goods or services) and has the

ability to choose between different products and suppliers. See also buyer.

Economy: The wealth and resources of a country or region, especially in terms of the production

and consumption of goods and services.

Education: The wealth of knowledge acquired by an individual after studying particular subject

matters or experiencing life lessons that provide an understanding of something. Education

requires instruction of some sort from an individual or composed literature. The most common

forms of education result from years of schooling that incorporates studies of a variety of

subjects. "Jamie knew the importance of an education, so she chose to go to a four-year

university after graduating from high school.

Entrepreneurship: Is the act and art being an entrepreneur or one who undertakes innovations

or introducing new things, finance and business acumen in an effort to transform innovations

into Economics goods.

Organizational performance: An analysis of a company's performance as compared to goals

and objectives. Within corporate organizations, there are three primary outcomes analyzed:

financial performance, market performance and shareholder value performance (in some cases,

production capacity performance may be analyzed).