Effect of Apprenticeship and Social Capital on New Business Creation Process of ‘Immigrant’ Entrepreneurs

Abstract

This study investigated the effects of apprenticeship and social capital on new business creation process of Igbo entrepreneurs in Wukari Taraba State. The high success rate of apprentice-turned entrepreneurs and increasing attachment of these entrepreneurs to their ethnic based union were the reasons that gave rise to the study. 40 businesses located in Wukari Local Government Area that were established by Igbos were randomly selected and questionnaire method was the mechanism applied in generating responses. Findings revealed that while apprenticeship had significant effects on pre-founding activities - when the business was taking off, social capital became important when the business had been established. Apprenticeship had significant effects on business idea generation, idea modification, business location and financing while social capital served as source of insurance services and access to information. The study recommends that apprenticeship practice should be revived and modernized and also that ethnic based unions should be given legal recognition and restructured to play both social and economic roles.