ENTREPRENEURIAL COMPETENCIES REQUIRED BY TECHNICAL COLLEGE REFRIGERATION AND AIR – CONDITIONING GRADUATES FOR ESTABLISHING SMALL AND MEDIUM SCALE ENTERPRISES IN FEDERAL CAPITAL TERRITORY

ABSTRACT

This  study  was  designed  to  identify  the  Entrepreneurial Competencies Required  by Technical College Refrigeration and Air Conditioning Graduates in the area of Technical, General Personal  Attributes, Financial, Marketing and  Managerial Competencies for establishing small and Medium Scale Enterprises in Federal Capital Territory. The study sought answers to five research questions and tested five null hypotheses. The population of the study consisted of 97 comprising teachers/instructors of refrigeration and air – conditioning for one Technical College, one Vocational Centre in Federal Capital Territory  and  craftsmen/technicians  of  Small  and  Medium  Scale  Enterprises.  No sampling was carried out since the population was of manageable size. The instrument was validated by three experts and Cronbach Alpha Reliability Coefficient was used to determine the internal consistency of the instrument. The instrument yielded a reliability Coefficient of 0.96. Mean statistic and Standard Deviation were used to answer the five research questions while the five null hypotheses were tested using t – test at 0.05 level of Significance. The major findings of the study were that: Technical College Refrigeration and Air – Conditioning Graduates Required twenty technical competencies, seventeen general   personal   attributes   competencies,   eleven   financial   competencies,   twelve marketing competencies and twenty one managerial competencies for establishing Small and Medium Scale Enterprises in Federal Capital Territory. It was recommended that the identified competencies should be in cooperated into the curriculum of Technical Colleges. It was also recommended that Federal Ministry of Education, States, Government Agencies and administrators of Technical Colleges should supply instructional  materials/equipment  and  organize  Seminar,  workshop  and  in-service training for teachers/instructors of refrigeration and air – conditioning so as to enable them effectively teach the required competencies to students.

CHAPTER 1

INTRODUCTION

Background of the Study

Refrigeration and air conditioning is one of the Technical College trade that offer entrepreneurial opportunity to craftsmen/technicians. Whitman, Johnson, and Tomczyk (2005) defined refrigeration as the process of removing heat from a place where it is not wanted and transferring that heat to a place where it  makes little or no  difference. According to Wikipedia (2011) refrigeration is a process in which work is done to move heat  from one  location to  another. This  work is  traditionally done  mechanically  or electromechanically. Whitman, Johnson, and Tomczyk (2005) defined air- conditioning as a process that maintains comfortable conditions in a defined area or equipment that conditions air by cleaning, cooling, heating, humidifying, and dehumidifying. Therefore refrigeration and air – conditioning is the process of transferring heat by mechanical or electromechanical principle from one point to the other for the purpose of food preservation and maintaining comfort condition in a define area.

According to  Khurmi  and  Gupta  (2008)  over  the  span  of  last  few  decades, refrigeration industry has grown in to full- fledged industry in the developed and under developed countries. Refrigeration and air- conditioning has brought much comfort to human beings than any other device of human comfort. The application of refrigeration can be classified in  to six  categories; domestic, commercial, industrial, marine, air- conditioning and food preservation. To produce Craftsmen/Technicians for designing,

constructing,  sells,  installation,  servicing,  and  repair  of  refrigeration  and  air   – conditioning equipment, the Federal Ministry of Education FME (2004) included refrigeration as a trade to be taught in Technical Colleges.

Technical Colleges  are  formal institutions where an  individual acquire  skills, attitude and scientific knowledge. Okorie (2005) stated that Technical Colleges in Nigeria are  established to  prepare individuals to  acquire practical skills and  basic  scientific knowledge.  However,  Nwachuku,  Bakare  and  Adjika  (2009)  stated  that  Technical College provide students through training with the relevant and adequate knowledge, skills  and  attitude  for  employment  under  the  guidance  of  a  teacher  in  a  related occupation. Technical Colleges are institutions that are equipped with instructional materials/equipment in various fields of occupation to provide skills, knowledge and attitude necessary for employment in specific occupation under the guidance of a train teacher in a related occupation.

Technical College refrigeration and  air  conditioning graduates need  adequate competencies to  broaden  their  employment  opportunities. Igbo  (2004)  in  Anyakoha (2009) stated that Nigerian’s future prosperity is a function of producing youths who are well prepared and well equipped to take their place in tomorrow’s society. Igbo further observed that the government has to implement educational system that will equip youths and adults with saleable skills which can enable them become gainfully employed or self employed.  Such  educational  system  should  provide  for  entrepreneurship  education, geared towards the production of potential entrepreneur.

The word “entrepreneur” according to Kuratko (2009) is derived from the French word entreprendre, meaning “to undertake”. The entrepreneur is one who undertakes to organize, manage and assume the risks of a business. An entrepreneur is an innovator or developer who recognizes and seizes opportunities, converts those opportunities in to workable/marketable idea, adds value through time, effort, money, or skills; assume the risks of the competitive market place to implement these ideas, and realizes the rewards from these efforts. Kuratko further stated that an entrepreneur is the aggressive catalyst for change in the world of business, an independent thinker who dares to be different amid a background of common event. However, Stokes, Wilson, and Mador (2010) stated that  entrepreneurs are  those  persons  (business  owners)  who  seek  to  generate  value through the creation or expansion of economy activity, by identifying and exploiting new products,   processes   or   market.   Stokes,   Wilson,   and   Mador   further   stated   that entrepreneurs display particular behaviours, skills, attributes and competencies, which mark them out from other types of individuals. Therefore, for Technical College refrigeration and air – conditioning graduates to distinguish themselves from other types of individual and be well equipped to establish SMEs, they need to acquire entrepreneurship education.

Entrepreneurship according to Hisrich and Peter (2005) is the process of creating something new, with value and devoting the necessary time and effort assuming the accompanying financial  psychic  and  social  risks,  receiving  the  resulting  reward  of monetary   or   personal   satisfaction   and   independence.   Anyakoha   (2009)   define

entrepreneurship education as the process of acquiring the knowledge, attitudes and skills of  entrepreneurship. Anyakoha further stated that  such  education should be  able  to produce self- reliant, job creators and not job seekers. Entrepreneurship education should be able to equip individual for creative problem solving and innovation. Entrepreneurship has a lot of benefits both for the entrepreneurs and the society in which these businesses are carried out. Some of these benefits include; opportunity to get control, offer a chance to make a difference, help people work to their full potential, reap high profits and offers a chance to pursue their interests (http://benefitof.net/benefits-of-entrepreneurship). Therefore, entrepreneurship is the process of organizing, managing, and assuming the risks of business.

For Technical College refrigeration and air – conditioning graduates to attain full potentials of entrepreneurship in their occupation, the graduates need adequate practical competencies. Ihekwoaha (2007) identified the acquisitions of practical competencies in Vocational-Technical Education as a means of becoming an entrepreneur, and owning small and  medium business enterprise. For  an entrepreneur to be  successful, he/she should possess the following characteristics according to Aminu (2009): determination, leadership  quality,   creativity,  self-nurturing,  self-discipline,  energetic,  and   future oriented. If the characteristics are strictly adhered to, it will lead to a number of benefits as enumerated by Stokes, Wilson and Mador (2010) which includes self-employment, employment for others, income generation, development of new markets, ability to have great accomplishment, healthy competition, thus encourage higher quality products of the

available small and medium enterprises in refrigeration and air- conditioning when the craftsmen/ technicians are competent.

Competency is a standardize skill or set of skills for an individual to properly perform a specific job. Encarta dictionary (2009) describe competency as ability to do something well, measured against a standard, especially ability acquired through experience or training. According to Olaitan (2003) to be competent means that the individual has acquired the knowledge, skills, attitude and judgment which are required in order to perform successfully at a specified proficiency level in a given work. Competency comprises knowledge, skills, novelty and experience needed to perform a particular job or series of jobs. Ely (1989) in Enete, Amusa, and Eze (2009) viewed competencies as essential knowledge and skills obtainable in a profession and those which the professionals in the field must possess and be able to demonstrate at optimal level of acquisition and functioning. The acquisition of competencies involve formation of relevant habits, which is usually preceded with relevant knowledge which facilitate correct thinking, leading to correct way of doing things. Therefore entrepreneurial competencies in the context of this  study is regarded as the  knowledge, skills, and attitudes acquired by Technical College graduates of refrigeration and air – conditioning to  identify  business  opportunities,  stimulate  creativity  and  transforming  idea  into practical and economic activities for maximum output in refrigeration and air – conditioning works.

To achieve this transformation, the entrepreneurial competencies required by Technical College refrigeration and air – conditioning graduates need to be identified. These  will  better  equip  the  graduates  for  employment  and  also  enhance  positive economic benefits at  the  long run.  Hisrich and  Peters (2002) identified managerial, technical, financial, marketing and general personal attrbutes competencies for establishing small and medium scale enterprises. Entrepreneurial competencies therefore refer  to  the  sufficient  knowledge,  novelty  and  skills  required  towards  enhancing successful performance in enterprises for self- reliant.

Technical competencies involve possessing knowledge of instruments and the functioning of tools, machines, and mastering of tasks of work.   Technical competencies pertain to specific bodies of knowledge and skills required. It includes the abilities to use the procedures, techniques and knowledge of a specialized field (http://www.humanresources.hrvinet.com/types-of-competency). Whitman, Johnson, and Tomczyk (2005) outlined technical competencies in refrigeration and air – conditioning as: work place behaviours, technical skills and the general body of knowledge. Technical competencies therefore are the ability of having theoretical and practical knowledge, attitude and skills on principles and practice of refrigeration and air – conditioning works.

Personal attributes are competencies that relate to inherent personal characteristics such  as;  motives, self  image, self  concept,  and  potentially affect  work attitude and performance.  (http://www.humanresources.hrvinet.com/types-of-competency). Kuratko (2009)   outlined   personal   attributes   competencies   as;   confidence,   determination,

creativity, initiative, intelligence, positive respond to challenges, courage, foresight, honesty, perseverance and integrity. Personal attributes are competencies that are in built or developed in man to perform certain task.

Financial competence is defined as having the skill, knowledge, and ability to perform activities with a financial impact in compliance with relevant occupation. According to Ihekwoaba (2007) are similar to management, but it lays emphasis on financial resources, money, cheques, postal orders, money order, letters of credit, bonds, shares. Anyakoha (2009) outlined Financial competencies as knowledge of; accounts, costing,   factors involved in decision to grant loan by financial houses   and ability to understand pay roll and various deductions, interpret financial statement and acquire the skill of preparing financial statement.

Marketing is the business activity of presenting products or services in such a way as to make the products or business desirable. Anyakoha (2009) outlined marketing competencies as determine and interpret factors which indicate extent and strength of competition, and determine what customers’ need, ability to determine price, advertising, identification of target market and customer, identify channel of distribution and be aggressive towards profit making.

Managerial competencies relate to skills needed to perform managerial work and process. Managerial Competence is the ability of managers and leaders to direct work streams and define outcomes clearly (http://www.uclouvain.be/en-206332.htmlret). Olabiyi, Keshinro, Oluwa and Bashorun (2009) outlined some managerial competencies

required   of   Technical   College   graduates   to   include:   foster   relationship   among organization  staff,  create  an  open  door  policy,  create  long  term  vision  for  the organization, and  develop interest and  implement policies. Managerial competencies therefore are the ability of getting things done through people or process of achieving an organization’s goal.

With the acquisition of entrepreneurial competencies, Denga (2002) observed that individuals can be engaged in self-employment and other useful projects such as the establishment of SMEs, thus reducing the present high rate of un-employment. Small and Medium scale Enterprise according to Datol, Danwanzam, Nyapsen, Padung, Udo, Bentu and  Okwori  (2004)  is  a  form of  business  organization which  is  usually  set  up  by entrepreneurs who shall provide all the needed capital, take decisions as well as shoulder the responsibility for the management and administration of the business. Datol, Danwanzam, Nyapsen, Padung, Udo, Bentu and Okwori further stated that the capital needed for SME is usually not more than one (N1m) million Naira, excluding land premises.  SMEs in the context of this study are enterprises with minimum assets base between one hundred thousand and five hundred thousand Naira, excluding land and working capital with a minimum of three and maximum of eighteen number of employee. SMEs occupy a place of pride in virtually every country or state. Due to the SMEs significant role in the development and growth of various economies, SMEs have been referred to as the engine of growth and catalysts for socio-economic transformation of any  country.  SMEs  represent  a  veritable  vehicle  for  the  achievement  of  national economic objectives of employment generation and poverty reduction at low investment

cost as well as the development of entrepreneurial capabilities. Therefore, it is necessary to identify the entrepreneurial competencies required for graduates of Technical Colleges in the Federal Capital Territory (FCT) in refrigeration and air – conditioning which they can use to set up SMEs and be self – reliant and relevant in the society thus reducing unemployment in the FCT.

Statement of the Problem

The problem of unemployment among graduates of Technical Colleges in general and refrigeration and air – conditioning in particular as well as doubts often entertained on whether these graduates possess adequate and relevant skills required for gainful employment, have stressed the need to examine and improve on the effectiveness of Technical  College  curriculum and  personnel  to  be  able  to  respond  to  the  students employability needs and the labour market requirement. In order to ensure that technical institutions serve the purpose for which they are designed, the Federal Government established the National Board for Technical Education (NBTE), and Industrial Training Fund (ITF) to ensure among other things, improvement on the standards, quality and quantity of skilled personnel at all levels of the nation’s technological and economic human resources needs thereby reducing poverty and unemployment rate.

Despite the government’s attempt in providing quality and quantity of skilled personnel for technological advancement, establishment of SMEs by Technical College refrigeration and air – conditioning graduates appear not to be impressive in FCT. Most of these graduates are found roaming the streets, and those who are self employed, do not

perform well due to lack of certain competencies.  Okoli (2009) observed that most of these students are graduating from Technical Colleges without the necessary skills and entrepreneurial competencies. Okoli further stated that many of these graduates do not posses entrepreneurial skills that will enable them establish and manage small business enterprise so as to become self employed and self-reliant on graduation.  Furthermore, Nwosu in Akinseinde (2010) stated that at present, Nigeria is experiencing the social consequences of not providing adequate Vocational Technical Education to the youths. The current increase in social problem of armed robbery, ritualism, pick pockets, house breaking, car snatching, human trafficking, attacks on individuals and nation’s source of income/wealth may be caused by high rate of unemployment among the youths. Therefore, to ensure that the  youths in general and Technical College refrigeration and air – conditioning graduates in particular are properly engaged in the economic development of the nation, there is need to acquire entrepreneurial competencies  before graduation. Acquiring these entrepreneurial competencies will assist those of them whose interest lie in the establishment of SMEs to compete favourably in the overcrowded markets all over Nigeria in general and FCT in particular.

Lack of entrepreneurial competencies by Technical College graduates as pointed by Olabiyi, Keshino, Oluwa and Bashorun (2009) has resulted to a situation whereby most  of  the  graduates  hope  solely  on  paid  employment  which  is  not  forthcoming; whereas, they could establish and manage SMEs if they possessed the entrepreneurial competencies needed to perform their jobs effectively. The Technical College graduates

of refrigeration and air – conditioning are not left out of this problem. To bridge the gap between unemployment among graduates of refrigeration and air – conditioning, there is need to identity the appropriate entrepreneurial competencies required hence this study.

Purpose of the Study

The  purpose  of  this  study  is  to  determine  the  entrepreneurial  competencies required   by   Technical   College   refrigeration  and   air   conditioning  graduates   for establishing   small   and   medium   scale   enterprises   in   Federal   Capital   Territory. Specifically, the study determined the:

1.  Technical competencies required by Technical College Refrigeration and  Air – conditioning graduates for establishing small and medium scale enterprises.

2. General personal attributes required by Technical College Refrigeration and Air – conditioning graduates for the establishment of small and medium scale enterprises

3.  Financial competencies required by  Technical College Refrigeration and  Air  – conditioning graduates for the establishment of small and medium scale enterprises.

4. Marketing competencies required by Technical College Refrigeration and Air – conditioning graduates for the establishment of small and medium scale enterprises.

5.  Managerial competencies required by  Technical College Refrigeration and  Air conditioning graduates for establishing small and medium scale enterprises.

Significance of the Study

The findings of the study would benefit the Federal Capital Territory Administration and  Agency  of  Science  and  Technology  Abuja,  National  Board  for Technical Education (NBTE), National Business and Technical Examination Board (NABTEB), Federal and State Ministries of Education, Vocational and Technical Education, Parents and Society, Teachers, Students and Researchers. Findings of the study of entrepreneurial competencies required by Technical College refrigeration and air conditioning graduates are expected to be of benefit to Federal Capital Territory Administration and Agency of Science and Technology Abuja, by serving as a reference material to the agency during procurement of instructional materials, inspection and supervision by ensuring and insisting that those identified competencies are taught. By so doing,  the  students  will  be  equipped  with  competencies  for  establishing small  and medium scale enterprises after graduation.

The National Board for Technical Education (NBTE) as a quality control body could use the findings from this study to in cooperate suitable programmes/modules that can enhance entrepreneurial competencies of graduates of refrigeration and air conditioning to  enable them to  establish  SMEs. Findings of  the  study would be  of importance to NABTEB as an examining body to in cooperate those areas that required acquisition of competencies in their examination questions especially those aspects of technical and managerial competencies for entrepreneurial ventures which will make the graduates saleable in the field of refrigeration and air – conditioning .

The findings from the study could be used by the Federal Ministry of Education and Federal Capital Territory Administration in particular, as a guide on the type of directives in terms of modules required to train youth in skill acquisition centers administrators for unemployed youths for jobs in refrigeration and air – conditioning enterprises. The findings could be useful to the ministry as a reference material during refresher courses for teachers of refrigeration and air – conditioning. The study would be of benefit to Vocational and Technical Education by adding value, creativity and new innovation to graduates at long run.

The findings of the study would be of importance to parents, it will serve as reference materials to parents on how to support their wards morally and financially towards establishing SMEs where the graduates will contributes to the income of the family. The society will stand to benefit from the competent services rendered by the Technical College refrigeration and air – conditioning graduates thus reducing unemployment. The findings of the study would be of benefit to refrigeration and air – conditioning teachers on the entrepreneurship competencies required by refrigeration and air – conditioning students. It will serve as a reference material to the teachers on the competencies  they  would  require  for  teaching  refrigeration  and  air  –  conditioning concepts and the competencies needed for gainful employment into refrigeration and air – conditioning enterprises  respectively.  The  findings  could  also  serve  as  a  source  of reference material to researchers.

Finally the result of the study if adopted will be of benefit to the Technical College refrigeration and air- conditioning students.   If the entrepreneurial competencies are identity and included in the curriculum, it will help students to acquire the necessary entrepreneurial competencies that are needed for establishing small and medium scale enterprises before graduation. It will also help in removing entrepreneurship phobia and increase their chances of trying out self employment.

Research Questions

The study seeks to answer the following research questions.

1. What are the technical competencies required by Technical College Refrigeration and Air -conditioning graduates for the establishment of small and medium scale enterprises?

2. What are the general personal attributes required by Technical College Refrigeration and Air – conditioning graduates for the establishment of small and medium scale enterprises?

3. What are the financial competencies required by Technical College Refrigeration and Air  –  conditioning graduates for  the  establishment of  small and  medium scale enterprises?

4. What are the marketing competencies required by Technical College Refrigeration and Air – conditioning graduates for the establishment of small and medium scale enterprises?

5. What are the managerial competencies required by Technical College Refrigeration and Air – conditioning graduates for establishing small and medium scale enterprises?

Hypotheses

Five null hypotheses were formulated to guide the study and will be tested at 0.05 level of significance.

H01: There is no significant difference between the mean responses of teachers/instructors of  refrigeration and  air  –  conditioning and  refrigeration and  air  –  conditioning craftsmen/technicians of small and medium scale enterprises on technical competencies of Technical College refrigeration and air – conditioning graduates for establishing small and medium scale enterprise.

Ho2: There is no significant difference between the mean responses of teachers/instructors of  refrigeration and  air  –  conditioning and  refrigeration and  air  –  conditioning craftsmen/technicians  of  small  and  medium  scale  enterprises  on  the  general personal attributes required by Technical College refrigeration and air conditioning graduates for establishing small and medium scale enterprises.

H03: There is no significant difference between the mean responses of teachers/instructors of  refrigeration and  air  –  conditioning and  refrigeration and  air  –  conditioning craftsmen/technicians of small and medium scale enterprises on the financial competencies required by Technical College refrigeration and air – conditioning graduates for establishing small and medium scale enterprises.

H04:   There  is  no  significant  difference  between  the  mean  responses  of teachers/instructors of refrigeration and air – conditioning and refrigeration and air – conditioning craftsmen/technicians of small and medium scale enterprises on the marketing competencies required by Technical College refrigeration and air – conditioning graduates for establishing small and medium scale enterprises.

H05: There is no significant difference between the mean responses of teachers/instructors of Refrigeration and air – conditioning and refrigeration and air conditioning craftsmen/technicians of small and medium scale enterprises on managerial competencies of  Technical College refrigeration and  air  conditioning graduates towards the establishment of small and medium scale enterprises.

Delimitation of the Study

Entrepreneurial competencies are very wide as a result of that, the researcher has limited the study to only five aspects of entrepreneurial competencies required by Technical College refrigeration and air conditioning graduates for establishing small and medium  scale  enterprises  namely:  technical,  general  personal  attributes,  financial,

marketing, and managerial. The study will involve teachers/instructors of refrigeration and  air  –  conditioning in  one  Technical  College,  one  Vocational  Center  and  some refrigeration and air – conditioning craftsmen/technicians of small and medium scale enterprises in the FCT.

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