Manifest Challenges and Prospects in Nigeria’s Industrial Scene
By Stephen Isayinka
It is worth noting that fostering enterprise, innovation, and production activities has never been more vital in the history of Nigeria than it is right now. Despite the rising demand for entrepreneurialism in the nation, there is still considerable room for growth. Currently, there are a great deal of obstacles in the path of business activity in Nigeria. Entrepreneurship is often defined as the process of establishing and managing a business whose major activity is the sale of goods or services for profit. A simple definition of an entrepreneur would be the creator and owner of a firm. However, there are many who contend that starting a firm is merely one aspect of what it takes to be an entrepreneur. This is a mental attitude, a way of life. To be a successful entrepreneur in the twenty-first century, one must devise novel approaches to overcoming obstacles and creating value. According to common belief, entrepreneurs are known for their ability to take calculated risks and to think beyond the box. Frequently, the current issues of a nation are directly tied to its history. Entrepreneurs in Nigeria now face a drastically altered landscape. Historically, the vast majority of Nigerians operated their own businesses. Before the colonial era, a large number of Nigerians relied significantly on trade. During that era, the majority of rich individuals were merchants. People have always exchanged what they had in excess for what they require, long before money was universally regarded as the ledger’s currency. It appeared that everyone was an entrepreneur back then. In Nigeria, business-minded individuals have never been in short supply, and Nigerians have historically held themselves to a high standard of ethics and values in the marketplace. There is a big demand for entrepreneurs in Nigeria right now, so numerous organisations and the government have been striving to encourage their growth. However, a variety of hurdles prevent Nigeria from experiencing the same level of thriving entrepreneurship as other nations. Examine these concerns in greater detail. Despite the increased interest in and need for entrepreneurship, its development in recent years has been hampered by a variety of barriers. Due to the obstacles that have impeded its advancement, this has occurred. Nigerian company owners must overcome a multitude of difficulties. Here are some of the most significant obstacles that have hindered Nigeria’s nascent entrepreneurship environment.
The first is a shortage of funds; hundreds of Nigerians have excellent company concepts but lack the wherewithal to make them a reality. However, the majority of them lack the financial resources to realise their aspirations. The lack of finance has been the key factor in the sluggish growth of entrepreneurship over the years. The difficulty of borrowing from financial institutions is increasing. The bulk of Nigeria’s aspiring business owners struggle mostly due to a lack of financial capital. The subsequent step for the majority of individuals is to approach a financial institution such as a bank in order to apply for a loan and begin funding their concept or business. However, for the average Nigerian seeking a loan to begin a business or expand a small enterprise, the process is onerous at best. Financial organisations, such as banks, view them as too dangerous to lend money to. The ability of a business owner to repay a loan is frequently doubted by banks and other lenders. These loans are notoriously difficult to secure, which is mostly due to the severe standards required to receive them. The majority of banks and other lenders have minimum loan amounts and interest rates that are unaffordable to entrepreneurs with new or tiny enterprises. This discourages the majority of Nigerian entrepreneurs, and as a result, many good ideas are lost. Inadequate infrastructure poses a significant obstacle to the expansion of business ownership in Nigeria. Numerous firms have closed as a result of power outages, making unreliable power supplies the most critical infrastructural issue impacting entrepreneurship. The majority of business owners must rely on alternative power sources, such as generators. As a result, companies incur substantial expenses for the gasoline required to power their generators. Nigeria’s poor roads and transportation network are an additional issue with its infrastructure. Inadequate infrastructure is directly responsible for the high cost of doing business in Nigeria. Most startups and small businesses cannot afford it. The country’s slow economy is one of the largest barriers for Nigerian business entrepreneurs. There is a strong relationship between the economic health of a nation and the incidence of entrepreneurship there. Due to Nigeria’s unsteady economy and deteriorating social atmosphere, a significant number of businesses have failed during the past several years. When all of these factors are combined with political instability, it becomes evident that businesses are in for a tough ride. The inconsistency of government policies is another key impediment to corporate growth in Nigeria. In Nigeria, there is no continuity when the government changes. There are no effective policies in place to develop an atmosphere favourable to business formation, which is a significant issue. The government should provide rules and an environment that extend entrepreneurs’ alternatives and liberties.
Due of impatience and greed, many business entrepreneurs have failed. In today’s fast-paced market, numerous young business owners and entrepreneurs seek short-term profits. Starting a business is not as important to them as accumulating wealth. Numerous individuals enter the business field for the sole objective of gaining wealth rapidly. Many individuals lack the patience necessary to create a successful business due to their desire for instantaneous cash. Too greedy or anxious to wait for their hard work to pay off, many individuals fall victim to scammers because they are seeking a quick way to make a lot of money in business. Now that the obstacles are apparent, crucial issues arise, such as how probable is it that an entrepreneur in Nigeria can achieve success? Despite the challenges, one should be aware of the outstanding potential for company growth in Nigeria. With its present economic transformation strategy, the Nigerian government is building the groundwork for future economic growth. The government is also taking steps to create an environment conducive to the growth of companies’ bottom lines. Encouragement of entrepreneurship may influence Nigeria’s future in the following ways: The entrepreneurial spirit of Nigeria is responsible for its economic expansion. It is impossible to emphasise the significance of encouraging entrepreneurialism to Nigeria’s economic development. There are many difficulties in the road of Nigerian entrepreneurs, yet they are essential for the nation’s advancement. It is estimated that 37% of the industrial sector’s 2009 GDP was contributed by small and medium-sized businesses (SMBs). It was the second largest contributor behind the petroleum industry.
To conclude, encouraging entrepreneurialism has the potential to significantly improve the economy of Nigeria. A secondary consequence of fostering entrepreneurship is an increase in the level of living of Nigerians. The Nigerian government must collaborate with other stakeholders to improve the country’s economic climate and encourage entrepreneurship throughout the 36 states of the Federation. The nation’s infrastructure will be upgraded as part of this plan. It is vital that the entire educational system be reformed so that it produces innovative minds and not merely jobless individuals. The government and established financial institutions ought to make it easy to obtain financing. Government support should also be increased for banks that give loans to small and medium-sized enterprises (SMEs) and new businesses. Integration of cutting-edge technology into the fabric of society and the classroom is urgently required. The agriculture sector requires a concerted effort to be revitalised. It is strongly rooted in Nigerian culture and provides several prospects for commercial growth. This will hasten the nation’s achievement of Sustainable Development Goal 8 (Decent Work and Economic Growth) of the United Nations.
