The Impact of Government Funding of Youths Innovative Ideas on the Economic Growth of Delta State

CHAPTER ONE

INTRODUCTION

 BACKGROUND OF THE STUDY

In recent years, increased governmental and academic emphasis has been paid to promoting entrepreneurship as a potential source of job creation, empowerment, and economic vitality in a quickly globalizing world. Despite this focus, no systematic effort has been made to establish a balance where both education and microfinance may be utilized in tandem to solve the issue of youth unemployment.

Entrepreneurship is not for everyone, according to Okoli and Okoli (2014), and therefore cannot be regarded as a large-scale solution to the youth job problem. Nonetheless, there is increasing interest in providing microfinance to youth, since it is known that education and training alone may not always lead to long-term self-employment. However, services in this region are currently restricted. Stakeholders have run into a number of issues when trying to create a product that can be readily accepted, particularly in metropolitan areas. Youth is often thought of as a transitional period between childhood and maturity. It’s the shift from being reliant to becoming self-sufficient. The state of work is one of the most important variables. Young people often believe that obtaining a job or a source of income would provide them with a feeling of freedom, allowing them to make decisions regarding their lives, families, and peers. Unfortunately, they are unable to do so due to a lack of employment.

The trend has been to either absorb youth into the broader adult population or to disregard their attempts to earn a living via entrepreneurial endeavors. As a consequence, there is a dearth of knowledge about the potential advantages of youth entrepreneurship as a way of improving youth lives.

Despite incalculable natural and human resources, entrepreneurship is not immune to issues that stymie entrepreneurial development and participation, resulting in a halt in economic progress and social transformation. In light of the foregoing (Peluola, Oyelola, Ajiboshin, Igwe, & Shokunbi, 2014), some of the threatening issues include a lackadaisical attitude due to the government’s lack of interest and support for micro, small businesses, difficulty in obtaining bank credits by entrepreneurs, typically starting capital and subsequent revolving loans, and difficulty in obtaining government loans. As a result, in order to achieve long-term economic development and social transformation, entrepreneurial participation must solve the issues listed above.

STATEMENT OF THE PROBLEM

The global financial crisis has had such a profound effect that finding work has become difficult, and we must adapt to this new reality. Nigeria is a single-economy nation where crude oil is the basis of the economy, and the price of oil has been falling since the financial crisis. This is hurting the country’s income potential, and as a consequence, layoffs are occurring across the board in the public service, banking, and manufacturing. There is no way to move overseas since businesses are retrenching in droves and people are protesting against foreigners being hired, even if the labor is cheaper. In the twenty-first century, youth unemployment has become the most pressing developmental issue in virtually every nation on the planet.

According to estimates from the Awogbenle & Iwuamadi (2010), 60 million young people are looking for employment but are unable to find it. Youth are almost three times as likely as adults to be jobless throughout the globe. Eighty percent of the young unemployed live in emerging and transitional economies. Youth unemployment is increasing at a rate of more than 15% per year in all emerging nations. Many nations continue to struggle to increase their economic development in order to offer employment for all of the young people who join the labor market each year (ILO, 2008).

The Government can bring an end to all this in Delta state and alos Nigeria as a whole by funding the innovative ideas created by youths.

 OBJECTIVE OF THE STUDY

The primary aim of this study is to investigate the impact of government funding of youth innovative ideas on the economic growth of Delta state. Thus, the following objectives;

1. To investigate whether the government of Delta state is funding any innovative ideas of youths.

2. To determine how often the youths in Delta state come up with innovative ideas.

3. To investigate the end results of these ideas created by Delta state youths.

4. To determine the impact of government funding of youths on the economic growth of Delta state.

RESEARCH QUESTIONS

The following questions guide this study;

1. Is the government of Delta state currently funding any innovative ideas of youths?

2. How often do the youths in Delta state come up with innovative ideas?

3. What happens to the ideas created by the youths in Delta state?

4. What will be the impact of government funding of youths on the economic growth of Delta state?

 SIGNIFICANCE OF THE STUDY

This study will be significant to the government of Delta state as it will bring to the fore the importance of funding youths innovative ideas as it may boost economic growth of Delta state. Also to other governments of other states, it will urge them to take action and fund youths in order to boost economic growth and also bring a drastic reduction in the unemployment rate of individuals. This study will be relevant to other researchers who wish to conduct further research on a subject matter pertaining to this.

SCOPE OF THE STUDY

This study will only cover Delta state. It will look into the importance of government funding youths innovative ideas and how it may affect the economic growth of the state.

 LIMITATION OF THE STUDY

The limitations encountered by the researcher during the course of this study were that of insufficient time and not enough funds to delve in deeper on the subject matter.

 DEFINITION OF TERMS

1. FUNDING: money provided, especially by an organization or government, for a particular purpose, in this case to empower the ideas of youths.

2. INNOVATIVE IDEA: This is a product, process, or business concept, or combinations that have been activated in the marketplace and produce new profits and growth for the organization

3. ECONOMIC GROWTH: an increase in the amount of goods and services produced per head of the population over a period of time.