CHAPTER ONE
INTRODUCTION
Background to the Study
Education has a significant role in the development of any nation. Education
is defined as a tool for national development and according to the National Policy
on Education (NPE) education also helps a society to promote the values,
behaviors, and lifestyles necessary for any country's sustainable development.
Education can be viewed as a learning process that will help citizens become more
capable of actively participating in the processes that influence socioeconomic
development in the future (Abdulkadir, 2014). In order to offer a better life for the
society and its members, education serves as a medium through which the society
imparts skills, attitudes, and behaviors to its younger members. In postsecondary
institutions, business education is included in the vocational education category.
Education in business is vocational education. However, Business Education is an
educational programme that prepares the individual for the world of work as a
teacher, office employee or to be self-employed.
Business education is one of the educational programmes that serve as an
antidote to unemployment as it equips students with the necessary skills,
knowledge and attitude to become self-reliant by establishing and managing their
own businesses profitably without the businesses going into extinction in
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foreseeable future time. In view of the comprehensive nature of business education
curriculum, it is expected that upon graduation, its graduates would adequately
satisfy the manpower requirement of the public and private sectors of the economy
in the business world, become globally competitive entrepreneurs and employers
of labour through the establishment of small and medium-scale businesses, among
others. But as against the expected, it seems that reverse is the case (Mong &
Okolocha, 2020).
Business education is one of the occupational areas that are richly provided
by vocational and technical education in Nigeria. Business education refers to a
programme of instruction that offers various skills in accounting, marketing and
Office Technology and Management (OTM). Major topics include: office practice,
book keeping, business mathematics, business communication, secretarial duties,
word processing, advertising (Ajisafe, Bolarinwa & Edeh 2015). Edokpolor and
Egbri (2017) stipulated that the actual goals of business education shall be to:
prepare students for specific career in office occupations, equip students with the
requisite skills for job creation and entrepreneurship, and expose students with
knowledge about business, including a good blend of computer technology, which
incorporates Information and Communication Technology (ICT). They further
explained that the first two goals involve education for business, which is aimed at
equipping recipients with the requisite attributes (knowledge, skills, competencies,
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and attitudes) to become gainfully employed in the world of work, whereas the
later addresses education ‘about’ business, which is aimed at providing a sound
basis for further studies at the graduate and post-graduate levels.
Skill acquisition is necessary for boosting business sustainability and
production as well as for enhancing employee performance and working
conditions. The acquisition of skills by business education graduates will help to
enrich the Nigerian economy as well as making it possible for sustainable
development. For this to be sustained there is the need to have quality business
education to deliver maximum practical skills to produce skilled manpower for
sustainable national. Practical skill acquisition helps business education students
politically, socially and economically (Oladeji & Afolabi, 2021). Moreover,
several skills such as hard, managerial, accounting, interpersonal, innovative,
technical, information and communication technology, marketing skills, e-
commerce among other are needed by graduates of business education to be able to
run any kind of business enterprise.
In order to succeed in fields such as accounting services, marketing
operations, computer technologies, private business executives, marketing
operations, database web and network technologies after graduation, students in
business education programs are expected to develop entrepreneurial skills
(Okoye, 2017). Graduates of business education programs who possess
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entrepreneurial skills are able to start and successfully manage small-scale
businesses such as photocopying, computer and internet centers, laptop and phone
repair centers, sales of computer and phone accessories, provision stores, book
binding centers, computer training, reprographic, printing presses, rental services,
leasing services, and employment agencies (Oborah, 2016). Because of these
chances, business education is now regarded by many as a true employment option
to wage work and the mass layoffs brought on by the global economic downturn.
Business Education prepares its graduates for employment in the work-
place, typical existing business enterprises as well as the acquisition of knowledge
relevant to employment. The Business Education programme basically equips the
individual with skills and abilities. The relevance of the programme has to do with
its practical acquisition and application of basic skills for real life situations. An
important characteristic of the Business Education programme is that its products
can function independently as self-employed and employers of labour. It is
unfortunate that products of Business Education end up rubbing shoulders with
products of other programmes (Abdulkadir, 2014). It has the consequence of
decreasing employment in both government and private organizations. The
products of Business Education seem to lack the necessary entrepreneurship skills,
most especially accounting skills, to set up and maintain their own businesses
(Okoro, 2014).
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Accounting is the art of recording, classifying and summarizing in a useful
manner and in monetary terms, transactions and events which are of financial
character and the subsequent interpretation. It is also the process by which data
relating to economic activities of an organization are measured and recorded
(Osuwa (2014). Accounting is the process of recording, classifying, selecting,
measuring, interpreting, summarizing and reporting financial data of an
organization to the users for objective assessment and decision making (Okoli,
2013). Accounting is a service activity and its function is to provide quantitative
information, primarily financial in nature, about economic entities that is intended
to be useful in making economic decisions. It provides quantitative financial
information about economic entities to statement users so that they could make
informed judgement and better decision (Okoli, 2013). In the same vein, Azih
(2013) defines accounting as the process of recording, classifying, summarizing,
analysing and interpreting financial transactions and communicating the results
thereof to interested users.
It is however observed that accounting education equips the recipients with
saleable skills that prepare them for dual jobs. Graduates of the Accounting
Education can either teach accounting subjects or serve as accounting officers in
various public and private parastatals. Technological change in the storage and
retrieval of accounting information in organizations has affected the demands from
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accounting education graduates which involves adequate knowledge of the skills in
storage and provision of information to the interested users in a paperless office
(Azih, 2013). It can be seen that accounting deals with the use of data or facts to
produce information necessary for decision making by different users of such
information such as mangers, employers and so on. Accounting education has been
described as a programme of instruction which aims at inculcating in the students’
management of personal finances, making relational economic choices, investing
wisely both in consumable items and non-immediate consumable item and
reconciling one’s assets and liabilities. Accounting education or in a broader term,
accounting skills are thereby required by Business Education student to be
successful entrepreneurs and as such, accounting competencies are highly required
for enhance and effective entrepreneurship opportunities.
Accounting competency is therefore the capacity and knowledge required in
preparing accounting records. Accounting competencies are those competencies in
accounting required by a person to function competently, confidently and
successfully in the process of carrying out the function of recording daily business
transactions. Examples of accounting competencies include skills in proper book-
keeping, purchasing and supply, pricing, determining labour costs, budgeting,
variance analysis, preparation of end-of-year financial statements, keeping
customers’ records and inventory control, etc. Others are skills in good credit
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facility practices, prudent financial and working capital management. Accounting
skills are needed to a high extent by business education students for successful
entrepreneurship (Eze, Ezenwanfor & Igberaharha, 2016).
In the same vein, Azih (2013) identifies the following accounting
competencies expected of Business Education graduates. These are preparation of
tax codes, selecting settings of a department, setting up of a currency, designing of
nominal records, preparation of control accounts, creating, amending and deleting
nominal records, creating of bank, cash and credit accounts, preparation of profit
and loss account, structure for coding customer and supply records, handling of
opening balances, preparation of check data, backups, compress data files, rebuild
data files, month end financial reports and budget report, correction of errors made
while posting transactions and preparation of a bank reconciliation statement.
Accounting competencies are vital for business education students who aim
to pursue entrepreneurship opportunities and these competencies enable
entrepreneurs to make informed financial decisions, effectively manage their
business's finances, and communicate financial information to stakeholders.
Business education students should have a solid understanding of accounting
principles. This includes concepts such as revenue recognition, matching principle,
accruals, and the time value of money. Familiarity with these principles ensures
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accurate recording and reporting of financial transactions. Also, competency in
preparing financial statements, including income statements, balance sheets, and
cash flow statements, is crucial for entrepreneurs. These statements provide
insights into a business's financial performance and aid in decision-making. The
ability to create accurate and reliable financial statements is essential for attracting
investors and securing financing (Tan & Laswad, 2019).
Entrepreneurs must have the ability to develop budgets and forecast
financial performance. This competency enables them to plan and allocate
resources effectively, monitor cash flow, and make informed decisions. A strong
grasp of budgeting techniques, such as zero-based budgeting or activity-based
budgeting, enhances an entrepreneur's ability to control costs and optimize
financial resources. Competency in cost analysis and management allows
entrepreneurs to understand the various costs associated with their business
operations. This includes fixed costs, variable costs, and indirect costs. By
conducting cost analyses and implementing appropriate cost management
strategies, entrepreneurs can identify cost-saving opportunities, price
products/services competitively, and improve profitability (Niskala & Sierla,
2018).
A comprehensive understanding of tax regulations and compliance
requirements is essential for entrepreneurs. They should possess knowledge of tax
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laws governing income tax, sales tax, payroll tax, and any other applicable taxes
for their business. Competency in tax planning and preparation ensures compliance
and maximizes tax savings, ultimately contributing to the financial success of the
business. Also, proficiency in financial analysis allows entrepreneurs to evaluate
the financial health and performance of their business. This includes analyzing
financial ratios, such as profitability ratios, liquidity ratios, and solvency ratios.
Financial analysis competency helps entrepreneurs identify trends, assess risks, and
make informed business decisions based on financial data (Jang, Chang & Lee,
2016). In today's digital age, entrepreneurs should possess competency in
accounting software applications and effective communication of financial
information is a critical competency for entrepreneurs. They must be capable of
presenting financial data clearly and concisely to stakeholders.
Possessing accounting competencies is crucial for business education
students seeking enhanced entrepreneurship opportunities. Competency in
accounting principles, financial statement preparation, budgeting, cost analysis,
taxation, financial analysis, software proficiency, communication skills, and
continuous learning equips entrepreneurs with the necessary skills to effectively
manage their business's finances, make informed decisions, and foster stakeholder
trust. These competencies enhance an entrepreneur's ability to thrive and succeed
in their entrepreneurial endeavors.
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Statement of the Problems
Observations and literature have shown that entrepreneurs in Nigeria often
experience business failure and many of the businesses set up by them collapse
within their first five years of existence. Some smaller percentage goes into
extinction between the sixth and tenth year of their establishment, while only about
five to ten percent of such firms survive, thrive and grow to maturity (Aremu &
Adeyemi, 2015). This observed frequent collapse of businesses in Nigeria is a
sufficient proof that practitioners seem to lack some competencies for effective
entrepreneurship development.
Business Education students by their education and training ought to possess
the relevant competencies, especially in accounting; competencies that will enable
them establish and run their own businesses successfully. For a Business Education
student to secure, maintain and sustain a job, he/she needs more than manipulative
skills. Furthermore, the expectations for which the National Policy on Education
introduced business Education in the Nigerian school system have not been fully
met. However, findings revealed that many Business Education graduates that set
their businesses come out with high rate of failure within a year, only about 50% of
such businesses survive; in two years, about 18% of them survive while in three
years, many of the businesses have liquidated (Akume 2016). This uncertainty of
success among Business Education students in running their businesses after
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graduation is a major concern to prospective entrepreneurs. There are doubts about
the accounting competencies possessed by these Business Education students. It is
on this note that the study intends to assess accounting competencies possessed by
Business Education students for enhanced entrepreneurship opportunities in
tertiary institutions Ekiti State, Nigeria.
Purpose of the Study
The main purpose of this study is to assess accounting competencies
possessed by Business Education students for enhanced entrepreneurship
opportunities in tertiary institutions in Ekiti State. Specifically, the study intends
to:
i. examine the accounting competencies needed by Business Education
students for enhanced entrepreneurial opportunities in tertiary institution
in Ekiti State;
ii. identify the accounting competencies possessed by Business Education
students in tertiary institution in Ekiti State;
iii. Identify the entrepreneurial opportunities available to Business Education
students in tertiary institution in Ekiti State;
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iv. determine the impact of accounting competencies on entrepreneurial
opportunities of Business Education students in tertiary institution in
Ekiti State.
Research Questions
This study shall attempt to provide answers to the following research
questions:
i. What are the accounting competencies needed by Business Education
students for enhanced entrepreneurial opportunities in tertiary institution in
Ekiti State?
ii. What are the accounting competencies possessed by Business Education
students in tertiary institution in Ekiti State?
iii. What are the entrepreneurial opportunities available to Business Education
students in tertiary institution in Ekiti State?
iv. How do accounting competencies influence entrepreneurial opportunities of
Business Education students in tertiary institution in Ekiti State.
Significance of the Study
The findings of this study will be beneficial to Business Education students,
entrepreneurs, Business Educators, policy makers in the area of entrepreneurship,
developers and future researchers.
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By understanding the accounting competencies possessed by Business
Education students, educators and policymakers can tailor educational programs to
better prepare students for entrepreneurship. This can help students develop the
necessary skills and knowledge to successfully start and manage their own
businesses.
Accounting competencies are highly valued by employers, especially in the
business and finance sectors. By identifying the specific competencies that are
most important for entrepreneurship, students can better position themselves for
employment opportunities in these fields.
The findings of this study can inform curriculum development in Business
Education programs to ensure that students are equipped with the necessary
accounting skills and knowledge for entrepreneurship. This can help ensure that
educational programs are relevant and up-to-date with the needs of the industry.
The findings of the study will provide insights for business developers and
entrepreneurs into the financial implications of different business strategies.
Entrepreneurs can use accounting information to set long-term goals, evaluate
performance against benchmarks, and adjust their strategies as needed to achieve
sustainable growth and profitability
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Finally, the study will be of immense benefit to future researchers by
contributing to the existing body of research on accounting competencies and
entrepreneurship, providing valuable insights for future studies in this area. It can
also help identify gaps in the literature and areas for further research. Overall,
understanding the accounting competencies possessed by Business Education
students can have a significant impact on their future career prospects and
entrepreneurial success.
Delimitation of the Study
The study will be delimited to Business Education Students in Ekiti State
owned universities. Also, the study will be delimited to 300 and 400 level students
during the 2022/2023 academic session
Definition of Terms
The following terms are defined as used in this study:
Business Education: Business education is an aspect of vocational and technical
education that infuse students with functional skills, attitudes and knowledge
necessary for effective participation in the world of work within business and for
self-employment.
Accounting: Accounting is the process of recording financial transactions
pertaining to a business. The accounting process includes summarizing, analyzing,
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and reporting these transactions to oversight agencies, regulators, and tax
collection entities.
Accounting Competencies: Accounting competencies are the technical
competencies of the accounting profession that add value to business and
contribute to a prosperous society. It is required by a person to function
competently, confidently and successfully in the process of carrying out the
function of recording daily business transactions.
Entrepreneurship: This is the ability and readiness to develop, organize and run a
business enterprise, along with any of its uncertainties in order to make a profit.
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