The Evolution of Entrepreneurship in Nigeria: Gordian knots and possibilities afore By Stephen Isayinka (MICIMC, AUSIP)

The Evolution of Entrepreneurship in Nigeria: Gordian knots and possibilities afore

• By Stephen Isayinka (MICIMC, AUSIP)

Throughout Nigeria’s history, the country has never had a greater need for fostering entrepreneurial spirit. However, there is still a lot of room for development, despite the increased demand for entrepreneurialism. This is because there are so many roadblocks in the way of entrepreneurship in Nigeria right now. The definition of entrepreneurship typically includes the steps involved in creating and running a company whose primary activity is the sale of products or services in exchange for financial gain. To put it simply, an entrepreneur is a business’s founder and owner. But there are those who argue that starting a business is only part of what it means to be an entrepreneur. This is a state of mind, an approach to life. To be an entrepreneur in the modern era means to think of unique ways to address challenges and create value. According to popular belief, entrepreneurs are known for their willingness to take calculated risks and think outside the box.

The problems that a country is currently facing are often directly related to its past. Things have changed significantly for entrepreneurs in Nigeria. The vast majority of Nigerians historically worked as business owners. Many Nigerians relied heavily on trade before the colonial era. In reality, wealthy people back then tended to be merchants. People have always traded what they have extra of for what they need, long before money was widely accepted as the ledger tender. Everyone back then seemed to be an entrepreneur in some capacity. Business-minded individuals have never been hard to find in Nigeria, and Nigerians have traditionally held themselves to a high standard of ethics and values in the marketplace.

There is a great need for entrepreneurs in Nigeria right now, so many groups and the government have been working to foster that growth. However, due to a number of obstacles, Nigeria is not seeing the same level of thriving entrepreneurship as other countries. Let’s take a closer look at these issues. Despite the growing interest in and demand for entrepreneurship, its evolution over the past few years has been stymied by a number of obstacles. This is due to the difficulties that have hampered its progress. There are a lot of obstacles that Nigerian business owners must overcome. Here are some of the most important ones that have stood in the way of Nigeria’s budding entrepreneurial scene.

The first is a shortage of funding; thousands of Nigerians have fantastic business ideas but lack the resources to make them a reality. Most of them, however, don’t have enough money to make their dreams a reality. The primary reason why the growth of entrepreneurship has been stagnant over the years is the lack of capital. Financial institutions are increasingly difficult to borrow from. A lack of financial resources is the primary obstacle confronted by the majority of Nigeria’s budding business owners. The next step for most people is to approach a financial institution like a bank in order to apply for a loan and begin funding their idea or business.

However, for the typical Nigerian seeking a loan to launch a business or expand a current small enterprise, the process is daunting at best. This is because financial institutions, like banks, see them as too risky to lend money to. Banks and other lenders often have doubts about whether or not a business owner can actually repay a loan.

The stringent requirements necessary to obtain such loans also contribute significantly to their difficulty in obtaining. The majority of banks and other lenders have prohibitively high minimum loan amounts and interest rates that make them unaffordable for entrepreneurs with new or small businesses. Most Nigerian entrepreneurs are put off by this, and many good ideas perish as a result.

There is also a serious issue with the growth of business ownership in Nigeria, and that is the lack of adequate infrastructure. Many businesses have closed because of power outages, making unstable power supplies the most pressing infrastructure problem affecting entrepreneurship. Most business owners must rely on backup power sources such as generators. As a result, they incur significant costs for the fuel required to power their generators. Another issue with Nigeria’s infrastructure is the country’s inadequate roads and transportation network. The high cost of doing business in Nigeria can be directly attributed to the country’s inadequate infrastructure. It’s out of reach for most startups and small businesses.

One of the greatest obstacles for Nigerian business owners is the country’s sluggish economy. There is a strong correlation between the health of a country’s economy and the prevalence of entrepreneurship there. A great number of companies in Nigeria have failed over the past few years due to the country’s unstable economy and deteriorating social climate. Combine all of these with political unpredictability, and it’s clear that businesses are in for a rough ride.

The inconsistency of government policies also presents significant obstacles to business development in Nigeria. When there is a change of government in Nigeria, there is no continuity. There aren’t any effective policies in place to foster an environment conducive to business creation, which is a major problem. The government should establish policies and an atmosphere that expand entrepreneurs’ options and freedoms.

Many business owners have failed due to impatience and greed. In today’s fast-paced economy, many new business owners and young entrepreneurs prioritize short-term gains. Money is more important to them than starting a business. Many people enter the business world for the sole purpose of making money quickly. The desire for instant wealth prevents many people from having the patience required to build a successful enterprise. Many people fall for scams because they are looking for a quick way to make a lot of money in business, but they are too greedy or impatient to wait for the hard work to pay off.

Now that the difficulties are clear, important questions arise, such as how successful is it likely that an entrepreneur will be in Nigeria? In spite of the difficulties, however, one should be aware of the excellent opportunities for business development in Nigeria. The Nigerian government is laying the groundwork for future economic expansion with their current economic transformation plan. The government is also making moves to ensure a favorable setting for companies to expand their bottom lines. Nigeria’s future may be affected in the following ways by encouraging entrepreneurship:

The economic growth of Nigeria can be attributed to its entrepreneurial spirit. It is impossible to overstate the importance of fostering entrepreneurialism to Nigeria’s economic growth. There are many obstacles in the way of Nigerian entrepreneurs, but they are necessary if the country is to advance.The percentage of 2009 GDP attributable to small and medium-sized enterprises (SME) in the industrial sector is estimated at 37%. After the oil industry, it was the second largest contributor. Thus, fostering entrepreneurialism has great potential to boost the Nigerian economy. Improving Nigerians’ standard of living is one side effect of encouraging entrepreneurship.

In conclusion, Nigerian government needs to collaborate with other organizations to improve the country’s business climate in order to encourage entrepreneurship. One aspect of this plan is to upgrade the country’s infrastructure. And the educational system as a whole needs to be reworked so that it turns out creative thinkers rather than just dumb people looking for work. The government and established financial institutions should make it simple to acquire funds. The government should also boost funding for banks that make loans to small and medium-sized enterprises (SMEs) and new businesses. There is a pressing need to integrate cutting-edge tech into the fabric of society and the classroom. There needs to be an intentional effort to reinvigorate the agricultural sector. It is deeply ingrained in Nigerian culture and has numerous opportunities for business development.