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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 right this moment. 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 the Nigerian Investing Fee (NIC), our authorities has prior to now launched a coverage that required college college students no matter their space of examine 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. Beneath are a few of the issues encountered and potential options.
* Diversifying the Financial system
Although our nation’s financial system has over the past couple of many years relied closely on its oil manufacturing, we should discover methods to diversify our financial system and keep away from the over reliance on oil. Like different creating international locations, Nigeria is going through a rise in its unemployment charge that’s now at 6 % and is on the rise, with many graduates discovering it onerous to get jobs whereas most of those that get jobs are underemployed. This coupled with the worldwide monetary disaster by which large numbers of staff are being laid off; entrepreneurship is seen as an important key if we would like our nation to attain its ambition of being an industrialized nation by the 12 months 2020.
* Unfriendly Enterprise Local weather
Being an entrepreneur in Nigeria requires nice dedication as working towards and potential enterprise house owners 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, satisfactory consideration and assist should be directed in direction of these establishments. To have the ability to assist and defend entrepreneurs, we should first have a transparent thought of the challenges going through our entrepreneurs of their pursuit of creating Nigeria a affluent nation.
* Lack of Credit score Services
Potential Nigeria entrepreneurs undergo many hardships when making an attempt to entry credit score for his or her companies. Although there may be a variety of monetary establishments that provide enterprise loans, they normally cost excessive rates of interest deterring aspiring entrepreneurs. For 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 circumstances set by banks and different lending establishments. Although our authorities by the Central Financial institution and the Banker’s Committee got here up with pointers 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 enough 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, many of the taxes charged on entrepreneurs will not be lawful and have the impact of accelerating the price of doing enterprise. Though Nigeria’s Firms Revenue Tax Act (CITA) has authorised solely 39 taxes and levies, there are over 500 varied levies and taxes which are 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 present 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 onerous for entrepreneurs within the agricultural sector to move harvested produce from farms to processing factories. In response to a report launched by the World Financial institution, Nigeria’s tempo of socioeconomic improvement and development is means beneath 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 Setting
Majority of those that enterprise into MSMEs (Micro, Small and Medium Enterprises) accomplish that due to their have to earn a living and in virtually all instances, such entrepreneurs lack related and satisfactory details about the companies they interact in. Within the occasion the place issues come up, most of those enterprise house owners lack enough downside fixing expertise and ultimately they discover it onerous to outlive. With the telecommunications sector having grown by about 206.5 % between 2002 and 2004 and is frequently increasing, Nigeria has develop into one of many quickest rising ICT market not solely in Africa but in addition worldwide. This presents a problem to entrepreneurs who haven’t embraced expertise, and who at the moment are discovering it onerous to stay related within the aggressive enterprise surroundings. For current and potential MSMEs to outlive and be related, we should adapt to the altering enterprise surroundings and embrace expertise.
* Addressing the Challenges
Fixing the issues encountered requires a mixed effort by each the entrepreneur and all involved stakeholders. As Small and medium enterprise house owners, we have to enhance our data and expertise of the market by buying related and updated training 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 right this moment’s market is to give you contemporary and artistic concepts of doing enterprise. As a result of enhance in expertise, enterprise is quick altering, thus our MSMEs have to continuously re-invent the best way they do enterprise.
There’s a nice want of making a powerful hyperlink between MSMEs and supporting establishments if Nigeria is to totally 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 organize 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.
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Source by Peter O Osalor
