The success loved by most industrialized international locations will be attributed to the function performed by technological innovation and entrepreneurship, each of which proceed to drive their economies as we speak. These two elements are seen as key parts for the industrialization and improvement of African international locations. The Nigerian authorities has acknowledged this truth and has taken measures aimed toward selling and cultivating the entrepreneurial tradition in our nation. By way of the Nigerian Investing Fee (NIC), our authorities has previously launched a coverage that required college college students no matter their space of research to take programs in entrepreneurship. Whereas our authorities is placing further effort in selling entrepreneurship in Nigeria, there are nonetheless various issues that a Nigerian Entrepreneur faces. Under are a number of the issues encountered and doable options.
* Diversifying the Economic system
Although our nation’s economic system has over the past couple of many years relied closely on its oil manufacturing, we should discover methods to diversify our economic system and keep away from the over reliance on oil. Like different growing international locations, Nigeria is dealing with a rise in its unemployment charge that’s now at 6 % and is on the rise, with many graduates discovering it arduous to get jobs whereas most of those that get jobs are underemployed. This coupled with the worldwide monetary disaster through which large numbers of staff are being laid off; entrepreneurship is seen as a necessary key if we wish our nation to attain its ambition of being an industrialized nation by the yr 2020.
* Unfriendly Enterprise Local weather
Being an entrepreneur in Nigeria requires nice dedication as working towards and potential enterprise homeowners are confronted with numerous challenges. Nigerian’s enterprise local weather must be made welcoming to these within the Micro, Small and Medium Enterprises (MSMEs). The function performed by these MSMEs shouldn’t be underestimated since majority of the thriving companies fall on this class and for us to attain our objectives, ample consideration and assist have to be directed in direction of these establishments. To have the ability to assist and shield entrepreneurs, we should first have a transparent thought of the challenges dealing with our entrepreneurs of their pursuit of constructing Nigeria a affluent nation.
* Lack of Credit score Amenities
Potential Nigeria entrepreneurs undergo many hardships when attempting to entry credit score for his or her companies. Although there’s a variety of monetary establishments that provide enterprise loans, they normally cost excessive rates of interest deterring aspiring entrepreneurs. As an example, main banks have pegged their lending charges to as a lot a 28% deterring potential entrepreneurs who’re principally low earnings earners. Different obstacles confronted by our entrepreneurs embrace extreme collateral situations set by banks and different lending establishments. Although our authorities by the Central Financial institution and the Banker’s Committee got here up with tips requiring banks to put aside 10% of their earnings for funding MSMEs, majority of those banks have been reluctant to take action. This has led to the emergence of micro-finance establishments which although useful will not be ample for assembly the monetary necessities.
* A number of Taxation
One different delicate problem that’s encountered by majority of Nigerian entrepreneurs is a number of taxation. Though now we have a accountability of funding the federal government by paying taxes, a lot of the taxes charged on entrepreneurs will not be lawful and have the impact of accelerating the price of doing enterprise. Though Nigeria’s Corporations Revenue Tax Act (CITA) has authorized solely 39 taxes and levies, there are over 500 numerous levies and taxes which can be imposed by state and native authorities brokers. These taxes are questionable and within the case the place they’re real, they’re principally duplicated and this has the impact of accelerating the price of doing enterprise.
* Poor State of the Nation’s Infrastructure
The state of our infrastructure will be deemed to be a nightmare to each entrepreneurs and the remainder of the nation’s inhabitants. With the prevailing infrastructure deteriorating and in some locations it’s non-existent; the price of doing enterprise has tremendously gone up. The state of the nation’s street community makes it arduous for entrepreneurs within the agricultural sector to move harvested produce from farms to processing factories. In line with a report launched by the World Financial institution, Nigeria’s tempo of socioeconomic improvement and progress is means under what we are able to obtain. That is principally due to the erratic provide of electrical energy which has negatively affected many companies. The result of energy issues has prompted entrepreneurs to generate energy by costly ways in which have in flip elevated their manufacturing prices and made their merchandise uncompetitive because of excessive costs. Our authorities ought to put insurance policies in place to perk up Nigeria’s infrastructure in order to advertise profitable entrepreneurship.
* Failure to Adapt to the Altering Enterprise Atmosphere
Majority of those that enterprise into MSMEs (Micro, Small and Medium Enterprises) achieve this due to their must generate profits and in virtually all instances, such entrepreneurs lack related and ample details about the companies they have interaction in. Within the occasion the place issues come up, most of those enterprise homeowners lack ample downside fixing abilities and in the long run they discover it arduous to outlive. With the telecommunications sector having grown by about 206.5 % between 2002 and 2004 and is regularly increasing, Nigeria has develop into one of many quickest rising ICT market not solely in Africa but additionally worldwide. This presents a problem to entrepreneurs who haven’t embraced know-how, and who at the moment are discovering it arduous to stay related within the aggressive enterprise surroundings. For present and potential MSMEs to outlive and be related, we should adapt to the altering enterprise surroundings and embrace know-how.
* Addressing the Challenges
Fixing the issues encountered requires a mixed effort by each the entrepreneur and all involved stakeholders. As Small and medium enterprise homeowners, we have to improve our data and abilities of the market by buying related and updated schooling significantly in your space of enterprise. Our entrepreneurs want to gather details about their goal market by looking for assist from consultants and professionals who’ve expertise within the explicit market.
One technique that can be utilized by our small and medium entrepreneurs to stay related and aggressive in as we speak’s market is to provide you with contemporary and inventive concepts of doing enterprise. As a result of improve in know-how, enterprise is quick altering, thus our MSMEs must always re-invent the way in which they do enterprise.
There’s a nice want of making a robust hyperlink between MSMEs and supporting establishments if Nigeria is to completely profit from such companies. Although some monetary establishments are nonetheless reluctant to supply monetary help to MSMEs, there are some that give out loans at affordable charges offered the enterprise sounds viable. The important thing problem is for our entrepreneurs to arrange sound enterprise proposals. For our nation to attain its objectives and cease counting on oil alone, we have to focus a lot consideration wants on the personal sector and our authorities should create a conducive ambiance for such companies to thrive and drive the nation in direction of financial prosperity.