CHAPTER THREE
METHODOLOGY
3.0 Preamble
This chapter contains methodology adopted for this study. This chapter outlines the strategies
adopted for data collection and analysis for the study. This chapter contains the following:
study area, population of the study, sample of the study, research design, research instrument,
coding of research instrument, validity and reliability of instrument and method of data
analysis.
3.1 The Study Area
The study was conducted to investigate the role of human capital development on survival of
entrepreneurs. It was conducted among the small and medium enterprises in Ago-Iwoye,
Ogun State. The choice of this location was largely from the fact that Ogun State is one of the
states that have huge number of SMEs in Nigeria, and Ago-Iwoye is a town in Ago-Iwoye in
Ogun State
3.2 Population of the Study
According to SMEDAN report (2017) it was confirmed that there are 2,394 SMEs in Ogun
State. The population of this study comprised of some selected SMEs in Ago-Iwoye, Ogun
State.
3.3 Sampling Size
A sample size of one hundred and five (130) respondents were purposively selected from
different SMEs in Ago-Iwoye. This was obtained by use of random sampling technique. This
technique was employed in order to avoid a conscious selection of a particular SMEs and also
to give all the SMEs equal chance to be selected.
3.4 Research Design
This study employed survey design. The design helped the researcher to describe the event in
question using the resulting data to explain and predict the given relationship between the
variables of the study. It gathered consistently the data of occurrence to test hypothesis, make
predictions or get meaning and implementation of the relationship between innovation and
entrepreneurial success.
3.5 Types of Data and Instrument for Data Collection
Type of Data
Primary data was employed for this study. These data were obtained from the administration
of structure questionnaire on the research respondents. These data were used to verify the
formulated hypotheses specified for the study.
Instrument for Data Collection
Structured questionnaire was employed as research instrument. The questionnaire items were
designed by the researcher. Closed ended type of questionnaire was used for the study. The
questionnaire were structured to contain 2 (two) sections. Section one contained items on
demographic variables of respondents. Section two contained items on human capital
development, training and development survival of entrepreneurs.. The four points Likert
scale was used to code the questionnaire responses and the codes used are stated as follows:
SA = Strongly Agree; A = Agree; D = Disagree and SD = Strongly Disagree.
3.6 Validity and Reliability of the Instruments
To enhance the validity of the instrument, a pre-testing was conducted on a population similar
to the target population. This study uses the Cronbach Alpha technique to determine the internal
consistency of the variable.
Table 3.1 Reliability Statistics
Reliability Statistics
Cronbach's Alpha
N of Items
.763
15
Source: SPSS Output
The reliability of the scale requires the value of Cronbach’s alpha to be equal or greater than
0.7 (Taheerdoost, 2016). In this study the reliability statistics (the internal consistency of the
variable) show the value 0.763.
3.7 Model Specification
Below is the model specification that depicts the relationship existing among the variables of
the research study.
Human Capital
Development
Training and
Development
Survival of
Entrepreneur
Method of Data Analysis
This study employed descriptive analysis to analyze the demographic factors of respondents
while Multiple Regression Analysis was employed to test the hypotheses formulated for the
study. The method was adopted because it was a good measure of relationship between
independent variable and dependent variable. The analysis will be done with the software
known as Statistical Package for Social and Management Sciences (SPSS).