While these numbers are encouraging, they also highlight the critical importance of fostering entrepreneurship if the nation is to realize its full economic potential. Look into the Best info about naija uncut.
Changes in Entrepreneurship History
The Ibo people of Nigeria have a long and illustrious history of business success, dating long before the advent of modern systems of currency and commerce. Over the past half-century, most of Nigeria’s rural and urban impoverished have survived thanks to the innovative adaptation of Nigerians’ innate talents into traditional businesses and crafts. However, widespread political corruption and catastrophic economic mismanagement meant that most people did not benefit from the country’s energy boom of the 1970s. The World Bank believes that due to these and other causes, only 1% of the population profited from oil revenues.
Most of Nigeria’s problems can be traced back to its long-term reliance on oil at the expense of its traditional trades and agricultural industries. In addition, the overwhelming majority of Nigerians were alienated by decades of non-inclusive policies, which plunged the country into abject poverty and savage civil and political strife. Due to economic stagnation, Nigeria has developed a massive private economy supporting most of the country’s 148 million residents. This informal, unorganized sector currently accounts for 65% of GDP and 90% of all new jobs, a testament to Nigeria’s innate entrepreneurial ability.
The degree to which Nigerian indigenous entrepreneurs have had to overcome official neglect and a lack of assistance and infrastructure highlights the importance of all these factors for Nigeria’s prospects. For Nigeria to break free of its Third World past, it must embrace and use the informal economy to its maximum potential.
Prospects for Entrepreneurship in Nigeria’s Future
Optimism and initiative alone aren’t enough to propel Nigeria to economic dominance. Former president O. Obasanjo’s administration revealed lofty goals to move the sub-Saharan country into the top 20 global economies by 2020, shortly after the country’s return to democracy in 1999. Abuja has also committed to ensuring that all people everywhere have access to fundamental needs like healthcare, education, housing, and safety by the year 2015 by signing the United Nations Millennial Declaration. Both goals place enormous demands on Nigeria regarding reversing negative patterns and developing novel strategies for achieving sustainable and inclusive economic expansion.
Obasanjo’s policies centered on speeding development by encouraging a new business regime based on innovation and adaptability through measures such as making entrepreneurial education obligatory for college students of all fields. Since then, the government has launched several initiatives to encourage company growth through the widespread adoption of cutting-edge technologies and socially conscious business practices. However, how practical these and other steps have been being still debatable.
Sixty-nine percent of respondents to a Gallup poll from 2007 who said they were planning to start a business were not planning to register their operations, suggesting a preference to remain in the unofficial sector of the economy. This is terrible news considering Nigeria’s long-term objectives.
Challenges to Business Growth
People in Nigeria aren’t interested in the formal economy because of the country’s policies and tax system, which have long been seen as impediments to the development of sustainable businesses. The reality that this persists despite the vigorous reform launched after the restoration of democracy is even more problematic. It’s abundantly clear that Nigeria’s problems are beyond the capacity of piecemeal solutions.
The following are the most significant challenges to the fast growth of entrepreneurship:
o The lack of a legislative climate that actively promotes the growth of locally-based, innovative businesses.
o Systemic irregularities that are harmful to small companies, as well as significant infrastructural deficits (particularly regarding roads and power).
o The existence of trade and administrative barriers impedes capacity development and access to expert assistance.
o There is a lack of regulatory mechanisms for overseeing MSME enterprise growth efforts.
In rural and metropolitan areas, youth in the informal economy have limited opportunities to acquire vocational and skills-development training.
Lack of societal consensus on critical macroeconomic policy problems and pervasive political and bureaucratic corruption.
More than three-quarters (77%) of Nigerians in the Gallup poll said that lack of money was the biggest challenge to starting their businesses. Despite the government’s emphasis on enterprise development, about 60% of respondents said that the present policies do not make it easy to start a business in Nigeria.
Some Extra Considerations
Peter Bamkole, a professor at Lagos Business School, was recently interviewed by Forbes Magazine to talk about the challenges confronting budding Nigerian businesspeople. There are three main issues discussed in the interview:
Both new and established companies are hampered by severe infrastructure deficits (most notably power and electricity) and limited access to local and international markets.
* Lack of a credit strategy that caters to businesses’ individual requirements and insufficient financing availability.
On the way to Nigeria, becoming an economic powerhouse, there is a lot of muck and danger. It requires more than hope to turn the country’s fiscal fortunes around for good.
Peter Osalor is an entrepreneur, business owner, consultant, and trust governor. Peter Osalor has been a great businessman since he founded Peter Osalor & Co in 1992. Since then, the company has amassed a large clientele and generated millions in revenue. Currently, he is a fully paid-up member of the ACCA and the Institute of Chartered Accountants in Nigeria. (ICAN). Peter is a licensed tax advisor and a part of the Nigerian Taxation Institute’s Chartered Tax Advisors. (CITN).
In the United Kingdom, he acts as a business adviser for Princess Trust. In addition, to ensure that Christian companies are not shut out of the economic opportunities presented by the 2012 Olympic Games in London, he is involved with the Inter-Governmental Committee of ICAN and the Black Church Membership of Christians (BCBC).