Entrepreneurial Development in Nigeria
By Peter O Osalor
While these statistics bide well for the
country's economic prospects, they also
serve to reaffirm the vital importance of
entrepreneurial development in achieving
that potential.
Past Entrepreneurship Developments
People of the Ibo community in Nigeria are considered one of
the oldest entrepreneurs in history, their expertise stretching
back to times before modern currency and trade models had
developed elsewhere on the planet. In the more recent past,
Nigerians adapted their natural talents to evolve traditional
businesses and crafts that have sustained most of the
country's rural and urban poor for the better part of the last
half century. While the oil boom of the '70s brought in billions
of petrodollars, most of the country's population remained
untouched by the new-found prosperity, thanks to widespread
political corruption and catastrophic economic
mismanagement. Because of these and other factors, the
World Bank estimates that 80% of oil revenues benefited just
1% of the population.
Most of Nigeria's current woes trace back to a historic
overdependence on oil to the negligence of all other sectors,
including customary trades and agriculture. Decades of non-
inclusive policies alienated the vast majority of Nigerians,
plunging the country into a miasma of extreme poverty and
ravaging civil and political strife. The climate of economic
stagnation spawned a mammoth informal economy that
continues to sustain the bulk of Nigeria's 148 million people.
It is a measure of Nigeria's inherent entrepreneurial capacity
that this informal, unorganised sector presently accounts for
65% of Gross National Product and accounts for 90% of all
new jobs.
All these factors have tremendous relevance for Nigeria's
future prospects, even more so considering the extent of
official neglect and lack of assistance and infrastructure that
the country's indigenous entrepreneurs have had to
overcome. Harnessing the informal economy and leveraging
its full potential is a prerequisite for Nigeria to emerge from
the shackles of its Third World legacy.
The Future of Entrepreneurial Development in Nigeria
It is not as if Nigeria's hopes of economic superiority rest on
individual optimism and enterprise alone. Right after the
reinstatement of democracy in 1999, the government of
former president O Obsanjo unveiled ambitious plans to take
the sub-Saharan nation to the top 20 world economies by
2020. Abuja is also a signatory to the UN Millennial
Declaration of 2000 for the achievement of universal basic
human rights - relating to health, education, shelter and
security - in a time bound manner by 2015. Both objectives
present mammoth challenges for Nigeria in terms of reversing
past trends and evolving innovative strategy for sustainable
and inclusive growth.
The primary focus of Obasanjo's policies centred on
accelerated development through entrepreneurial education
(which he made mandatory for college students of all
disciplines) and the creation of conditions favourable to a new
business regime built on innovation and adaptability. The
federal government has since initiated successive
programmes aimed at promoting enterprises through
widespread use of technology and socially relevant business
models. The extent of success of these and other measures,
however, is still a matter of debate.
According to the 2007 Gallup poll, 69% of respondents
planning new businesses had no intention of registering their
operations, indicating they would still prefer to be part of the
informal economy. In light of Nigeria's long-term goals, this is
certainly bad news.
Obstacles to Enterprise Development
Disinterest in the formal economy reflects the status of
Nigeria's policies and tax regime, which have long been
deemed detrimental to the growth of viable enterprises. Even
more disturbing is the fact that this continues to be the case
despite the energetic reforms process initiated after the return
of democracy. It is more than evident that piecemeal
measures are unequal to meeting the challenges that Nigeria
has set itself up to.
The following are the most important obstacles facing rapid
entrepreneurial development:
o Absence of a pro-active regulatory environment that
encourages innovative enterprise development at the
grassroots level.
o Significant infrastructural deficits (especially with regards to
roads and electricity) and systemic irregularities inimical to
small businesses.
o The presence of administrative and trade barriers that curtail
capacity building and inhibit access to technical support.
o Absence of regulatory mechanisms for effective oversight of
enterprise development initiatives, especially those in the
MSME space.
o Poor access to vocational and skills-development training
for rural and urban youths involved in the informal economy.
o Rampant political and bureaucratic corruption, together with
the absence of social consensus on important
macroeconomic policy issues.
More than 73% of Nigerians featuring in the Gallup survey
conceded access to finance was the single-most important
hurdle in the way to setting up successful enterprises. More
telling is the fact that about 60% of respondents claimed that
current policies, despite the government's focus on enterprise
development, do not make it easy to start a business in
Nigeria.
Some Additional Factors to Consider
Forbes Magazine recently sat down with Lagos Business
School's Peter Bamkole to discuss the current obstacles
facing aspiring Nigerian entrepreneurs. The interview outlines
three major problems:
* Constrained access to local and international markets that
stunt entrepreneurial expansion and proliferation.
* Severe infrastructure deficits (mainly of power and
electricity) that hamstring both new and existing businesses.
* Inadequate access to finance and the absence of a credit
policy that addresses the specific needs of enterprises.
The road to Nigeria's emergence as an economic superpower
is muddy and treacherous. More than just optimism, it calls
for clever economic manoeuvring that will help turn the
country's fortunes around for good.
Peter Osalor is a multi-skilled director, chairman of trusts,
proprietor and consultant. Peter Osalor has been a successful
entrepreneur since 1992 when he formed Peter Osalor & Co
and which has since grown to a very large client base with a
turnover of millions. He is currently a fellow of the Association
of Chartered Certified Accountants (ACCA) and the Institute of
Chartered Accountants in Nigeria (ICAN). Peter is also a
member of the Chartered Tax Advisors and the Chartered
Institute of Taxation in Nigeria (CITN).
He is a business mentor for Princess Trust in the UK. He is a
member of the Inter Governmental Committee of ICAN and
also a member of BCBC, which represents Black Church
Membership of Christians whose responsibility is to ensure
that the Christian businesses are not left out in the business
opportunities arising from the 2012 Olympic Games In
London.
Currently he is one of the professionals behind the
Entrepreneur Revolution and Africa Entrepreneurs ([http://
theafricanentrepreneurs.com/]). His TV program called
success in your business ([http://
www.successinyourbusiness.com]) has become a massive
hit in Nigeria.
Article Source: http://EzineArticles.com/?
expert=Peter_O_Osalor
0 Comments | Leave a Comment
Submitted On January 12, 2010
While these statistics bide well for the
country's economic prospects, they also
serve to reaffirm the vital importance of
entrepreneurial development in achieving
that potential.
Past Entrepreneurship Developments
People of the Ibo community in Nigeria are considered one of
the oldest entrepreneurs in history, their expertise stretching
back to times before modern currency and trade models had
developed elsewhere on the planet. In the more recent past,
Nigerians adapted their natural talents to evolve traditional
businesses and crafts that have sustained most of the
country's rural and urban poor for the better part of the last
half century. While the oil boom of the '70s brought in billions
of petrodollars, most of the country's population remained
untouched by the new-found prosperity, thanks to widespread
political corruption and catastrophic economic
mismanagement. Because of these and other factors, the
World Bank estimates that 80% of oil revenues benefited just
1% of the population.
Most of Nigeria's current woes trace back to a historic
overdependence on oil to the negligence of all other sectors,
including customary trades and agriculture. Decades of non-
inclusive policies alienated the vast majority of Nigerians,
plunging the country into a miasma of extreme poverty and
ravaging civil and political strife. The climate of economic
stagnation spawned a mammoth informal economy that
continues to sustain the bulk of Nigeria's 148 million people.
It is a measure of Nigeria's inherent entrepreneurial capacity
that this informal, unorganised sector presently accounts for
65% of Gross National Product and accounts for 90% of all
new jobs.
All these factors have tremendous relevance for Nigeria's
future prospects, even more so considering the extent of
official neglect and lack of assistance and infrastructure that
the country's indigenous entrepreneurs have had to
overcome. Harnessing the informal economy and leveraging
its full potential is a prerequisite for Nigeria to emerge from
the shackles of its Third World legacy.
The Future of Entrepreneurial Development in Nigeria
It is not as if Nigeria's hopes of economic superiority rest on
individual optimism and enterprise alone. Right after the
reinstatement of democracy in 1999, the government of
former president O Obsanjo unveiled ambitious plans to take
the sub-Saharan nation to the top 20 world economies by
2020. Abuja is also a signatory to the UN Millennial
Declaration of 2000 for the achievement of universal basic
human rights - relating to health, education, shelter and
security - in a time bound manner by 2015. Both objectives
present mammoth challenges for Nigeria in terms of reversing
past trends and evolving innovative strategy for sustainable
and inclusive growth.
The primary focus of Obasanjo's policies centred on
accelerated development through entrepreneurial education
(which he made mandatory for college students of all
disciplines) and the creation of conditions favourable to a new
business regime built on innovation and adaptability. The
federal government has since initiated successive
programmes aimed at promoting enterprises through
widespread use of technology and socially relevant business
models. The extent of success of these and other measures,
however, is still a matter of debate.
According to the 2007 Gallup poll, 69% of respondents
planning new businesses had no intention of registering their
operations, indicating they would still prefer to be part of the
informal economy. In light of Nigeria's long-term goals, this is
certainly bad news.
Obstacles to Enterprise Development
Disinterest in the formal economy reflects the status of
Nigeria's policies and tax regime, which have long been
deemed detrimental to the growth of viable enterprises. Even
more disturbing is the fact that this continues to be the case
despite the energetic reforms process initiated after the return
of democracy. It is more than evident that piecemeal
measures are unequal to meeting the challenges that Nigeria
has set itself up to.
The following are the most important obstacles facing rapid
entrepreneurial development:
o Absence of a pro-active regulatory environment that
encourages innovative enterprise development at the
grassroots level.
o Significant infrastructural deficits (especially with regards to
roads and electricity) and systemic irregularities inimical to
small businesses.
o The presence of administrative and trade barriers that curtail
capacity building and inhibit access to technical support.
o Absence of regulatory mechanisms for effective oversight of
enterprise development initiatives, especially those in the
MSME space.
o Poor access to vocational and skills-development training
for rural and urban youths involved in the informal economy.
o Rampant political and bureaucratic corruption, together with
the absence of social consensus on important
macroeconomic policy issues.
More than 73% of Nigerians featuring in the Gallup survey
conceded access to finance was the single-most important
hurdle in the way to setting up successful enterprises. More
telling is the fact that about 60% of respondents claimed that
current policies, despite the government's focus on enterprise
development, do not make it easy to start a business in
Nigeria.
Some Additional Factors to Consider
Forbes Magazine recently sat down with Lagos Business
School's Peter Bamkole to discuss the current obstacles
facing aspiring Nigerian entrepreneurs. The interview outlines
three major problems:
* Constrained access to local and international markets that
stunt entrepreneurial expansion and proliferation.
* Severe infrastructure deficits (mainly of power and
electricity) that hamstring both new and existing businesses.
* Inadequate access to finance and the absence of a credit
policy that addresses the specific needs of enterprises.
The road to Nigeria's emergence as an economic superpower
is muddy and treacherous. More than just optimism, it calls
for clever economic manoeuvring that will help turn the
country's fortunes around for good.
Peter Osalor is a multi-skilled director, chairman of trusts,
proprietor and consultant. Peter Osalor has been a successful
entrepreneur since 1992 when he formed Peter Osalor & Co
and which has since grown to a very large client base with a
turnover of millions. He is currently a fellow of the Association
of Chartered Certified Accountants (ACCA) and the Institute of
Chartered Accountants in Nigeria (ICAN). Peter is also a
member of the Chartered Tax Advisors and the Chartered
Institute of Taxation in Nigeria (CITN).
He is a business mentor for Princess Trust in the UK. He is a
member of the Inter Governmental Committee of ICAN and
also a member of BCBC, which represents Black Church
Membership of Christians whose responsibility is to ensure
that the Christian businesses are not left out in the business
opportunities arising from the 2012 Olympic Games In
London.
Currently he is one of the professionals behind the
Entrepreneur Revolution and Africa Entrepreneurs ([http://
theafricanentrepreneurs.com/]). His TV program called
success in your business ([http://
www.successinyourbusiness.com]) has become a massive
hit in Nigeria.
Article Source: http://EzineArticles.com/?
expert=Peter_O_Osalor
0 Comments | Leave a Comment
Submitted On January 12, 2010
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