Entrepreneurial Development in Nigeria

While these statistics bide well for the country'swidespread use of technology and socially relevant
economic prospects, they also serve to reaffirm thebusiness models. The extent of success of these and
vital importance of entrepreneurial development inother measures, however, is still a matter of debate.
achieving that potential.According to the 2007 Gallup poll, 69% of
Past Entrepreneurship Developmentsrespondents planning new businesses had no intention
People of the Ibo community in Nigeria areof registering their operations, indicating they would
considered one of the oldest entrepreneurs in history,still prefer to be part of the informal economy. In
their expertise stretching back to times beforelight of Nigeria's long-term goals, this is certainly bad
modern currency and trade models had developednews.
elsewhere on the planet. In the more recent past,Obstacles to Enterprise Development
Nigerians adapted their natural talents to evolveDisinterest in the formal economy reflects the status
traditional businesses and crafts that have sustainedof Nigeria's policies and tax regime, which have long
most of the country's rural and urban poor for thebeen deemed detrimental to the growth of viable
better part of the last half century. While the oilenterprises. Even more disturbing is the fact that this
boom of the '70s brought in billions of petrodollars,continues to be the case despite the energetic
most of the country's population remained untouchedreforms process initiated after the return of
by the new-found prosperity, thanks to widespreaddemocracy. It is more than evident that piecemeal
political corruption and catastrophic economicmeasures are unequal to meeting the challenges that
mismanagement. Because of these and other factors,Nigeria has set itself up to.
the World Bank estimates that 80% of oil revenuesThe following are the most important obstacles
benefited just 1% of the population.facing rapid entrepreneurial development:o Absence
Most of Nigeria's current woes trace back to aof a pro-active regulatory environment that
historic overdependence on oil to the negligence of allencourages innovative enterprise development at the
other sectors, including customary trades andgrassroots level.o Significant infrastructural deficits
agriculture. Decades of non-inclusive policies alienated(especially with regards to roads and electricity) and
the vast majority of Nigerians, plunging the countrysystemic irregularities inimical to small businesses.o
into a miasma of extreme poverty and ravaging civilThe presence of administrative and trade barriers
and political strife. The climate of economic stagnationthat curtail capacity building and inhibit access to
spawned a mammoth informal economy thattechnical support.o Absence of regulatory
continues to sustain the bulk of Nigeria's 148 millionmechanisms for effective oversight of enterprise
people. It is a measure of Nigeria's inherentdevelopment initiatives, especially those in the MSME
entrepreneurial capacity that this informal,space.o Poor access to vocational and
unorganised sector presently accounts for 65% ofskills-development training for rural and urban youths
Gross National Product and accounts for 90% of allinvolved in the informal economy.o Rampant political
new jobs.and bureaucratic corruption, together with the
All these factors have tremendous relevance forabsence of social consensus on important
Nigeria's future prospects, even more so consideringmacroeconomic policy issues.
the extent of official neglect and lack of assistanceMore than 73% of Nigerians featuring in the Gallup
and infrastructure that the country's indigenoussurvey conceded access to finance was the
entrepreneurs have had to overcome. Harnessing thesingle-most important hurdle in the way to setting up
informal economy and leveraging its full potential is asuccessful enterprises. More telling is the fact that
prerequisite for Nigeria to emerge from the shacklesabout 60% of respondents claimed that current
of its Third World legacy.policies, despite the government's focus on enterprise
The Future of Entrepreneurial Development in Nigeriadevelopment, do not make it easy to start a
It is not as if Nigeria's hopes of economic superioritybusiness in Nigeria.
rest on individual optimism and enterprise alone. RightSome Additional Factors to Consider
after the reinstatement of democracy in 1999, theForbes Magazine recently sat down with Lagos
government of former president O Obsanjo unveiledBusiness School's Peter Bamkole to discuss the
ambitious plans to take the sub-Saharan nation to thecurrent obstacles facing aspiring Nigerian
top 20 world economies by 2020. Abuja is also aentrepreneurs. The interview outlines three major
signatory to the UN Millennial Declaration of 2000 forproblems:
the achievement of universal basic human rights -* Constrained access to local and international
relating to health, education, shelter and security - inmarkets that stunt entrepreneurial expansion and
a time bound manner by 2015. Both objectivesproliferation.
present mammoth challenges for Nigeria in terms of* Severe infrastructure deficits (mainly of power and
reversing past trends and evolving innovativeelectricity) that hamstring both new and existing
strategy for sustainable and inclusive growth.businesses.
The primary focus of Obasanjo's policies centred on* Inadequate access to finance and the absence of a
accelerated development through entrepreneurialcredit policy that addresses the specific needs of
education (which he made mandatory for collegeenterprises.
students of all disciplines) and the creation ofThe road to Nigeria's emergence as an economic
conditions favourable to a new business regime builtsuperpower is muddy and treacherous. More than
on innovation and adaptability. The federaljust optimism, it calls for clever economic
government has since initiated successivemanoeuvring that will help turn the country's fortunes
programmes aimed at promoting enterprises througharound for good.