Market Segmentation and Issuance of Operational License Fee by the Local Council a Catalyst for Promotion of Domestic Entrepreneurship: Evidence from Leather Footwear Industry in SouthEast Nigeria
, Nwaoha, William Chimee, Obisike, Ndubueze Ezindu, Onwuka, Onwuka Okwara
Abstract
The study delved into quasi-experiment to segment leather footwear into foreign cluster and Local cluster with inclusion of issuance of operational license fee by the local council as a catalyst for promotion of domestic entrepreneurship drawing evidence from leather footwear industry in south-east Nigeria. The quasi-experiment involves two stages, the first stage involved segmenting the leather footwear into foreign cluster and local cluster with inclusion of issuance of operational license fee of equal fee for the both clusters by the local council. The second stage adapted the first stage with inclusion of issuance of operational license fee of 50% increase in fee for the foreign clusters by the local council. The essence is to examine the mean difference of the two exercises in order to ascertain the measure that will better promote domestic entrepreneurship in Nigerian leather footwear industry in the south-east Nigeria. The study covered a period of nine (9) months with four (4) objectives. Multi-Stage Questionnaire (MSQ) and Five Point Likert Scale (FPLS) were adopted to collect and codify the data for analysis while Analysis of Variance (ANOVA) was used to justify the objectives of the study, with the aid of E-views. The results from the findings revealed that the act of segmenting both foreign and local leather footwear into distinct clusters with equal operational license fee did not contribute to promotion of entrepreneurship and investment in local made leather footwear while segmenting the both into distinct clusters with 50% increase in license fee in the foreign leather footwear cluster positively contributes to promotion of entrepreneurship and investment in local made leather footwear. Based on the findings, the researchers recommend that government should increase the operational license fee of the foreign leather footwear dealers and reduce that of local leather footwear dealers as this encourages domestic e
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