CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
  Starting from the time of report of the fascinating study of entrepreneurs by McClelland (1961) in which he came out with a list of nine characteristics of the entrepreneur, several other writers have equally illuminated the list of entrepreneur characteristics. McClelland (1961) listed the following characteristics of   entrepreneur; need for achievement, desire for responsibility, preference for moderate risks, perception of probability of success, stimulation by feedback, energetic activity, future orientation, skill in organizing and attitude toward money.
An entrepreneur is an innovator who implements changes within a market through the carrying out of new combinations. The carrying out of new combination can take several forms; the introduction of a new good quality, therefore; the introduction of a new method of production, the opening of a new market; the congress of a new source of new materials or parts; the carrying out of the new organization of any industry. Furthermore, an entrepreneur is an individual that identifies, develop and brings vision to life under condition of risk and a considerable uncertainty. The vision may be an innovative idea, an opportunity or simply a better way to do something (Mamma, 2010).
This is the reason why it is often said that every entrepreneur is a human being but not every human being is an entrepreneurs. Going by this adage; it can be said that entrepreneurs are special people with distinguishable features or characteristics. As such an entrepreneur is result oriented; future oriented; creative, innovative, has self-confidence; has a good human relations; must be self-discipline; copies with uncertainty and above all profit oriented.
A lot of business falls due to the inability of the innovators of such business to exhibit the time entrepreneurial characteristic in the day to day management of their business enterprise, hence such business do not stand the test of time. This is evident in the way and manner in which small and medium scale business collapse in Nigeria. It is against this background that the research sees the subject matter of this research: the effect of this entrepreneurial characteristic on business performance worthy of empirical investigation.
An effective organization can broadly be defined as one that makes the best use of its resources to attain high level of performance, thus successfully achieving its purpose and objectives while also meeting its responsibilities to stakeholders. There is no single factors, which will guarantee organizational effectiveness, but the following is a selection of factors which, in one way or the other, will contribute to success.
    A clear and well-articulated vision of the future of the organization.
    A well-defined mission and goals, and strategies to accomplish them.
    A value system with emphasis on performance, productivity, customer services, teamwork and flexibility.
    A powerful management team.
    A well-motivated, committed, skilled and flexible workforce.
    Continuous pressure to innovate and grow.
    The ability to respond fast to opportunities and threats.
1.2    Statement of Problem
Launching into a business venture without having the basic trade instinct or the characteristic of an entrepreneur is suicidal. This is so because such an enterprise cannot stand on the test of time. For instance, an individual who goes into business initially must face difficulty before the business break-even. However, people who do not have trait of an entrepreneur would not be patient enough to nurture a business to a profit-making stage. This is the reason why so many small and medium scale businesses fail. The inability to effectively exhibit a basic trade instinct as well as lack of motivation, goals, and talent for venture creation sequel to the absence of entrepreneurial characteristics in most business proprietor impedes the performance of business enterprise in no small way. As such, the subject matter of this research becomes an empirical issue worthy of investigation.
Nigeria is a country with numerous entrepreneurs as a result of the abundant human and natural resources it possesses. The growth of these entrepreneurs in the country is important to economic growth.