Part 3: Entrepreneurship in Nigeria is a Scam and a Multiplier of Poverty.


In the second part of this article, I described the four types of entrepreneurship available, they are, traditional, conditional, capital and innovative entrepreneurships.

Link to part 1 and 2
https://www.nairaland.com/3102449/part-2-entrepreneurship-scam-nigeria

It is important to note that nations that have developed over the years ensured massive emphasis on both capital and innovative entrepreneurship.

Unfortunately, the emphasis of entrepreneurship in Nigeria is on traditional and conditional entrepreneurships. I wonder how these kinds of entrepreneurships will solve socioeconomic problems in Nigeria.

Entrepreneurship in developed nations was used to provide infrastructures such as electricity, railways, airports, hospitals among others. Steel plants, petroleum refineries, automobiles, aircraft and hi-tech companies came to existence as a result of exploits in innovative and capital entrepreneurships.

Nigeria's kind of entrepreneurship being preached to our youth cannot be used to solve any kind of socio-economic problem such as lack of power supply, good roads, portable water, railway and so on. It is so obvious that the entrepreneurship we practice in Nigeria is absolutely handicapped. It lacks both solution and growth factor, however, it is a poverty multiplying one.

Nigeria's kind of entrepreneurship lacks the capability to provide substantial job opportunities needed by the youth. The traditional entrepreneurship we practice provide jobs in retailing, unskilled or semi-skilled jobs, exportation of raw materials and importation of finished goods. Developed nations have massive jobs in information technology, aerospace, space technology, healthcare power, sports, tourism, oil and gas, which are products of innovative and capital entrepreneurship. It is certain that the number of unemployed people in Nigeria will continue to increase if there is no change to our entrepreneurship approach.


Taking a look at the genesis of institutionalisation of entrepreneurship in Nigeria, which can be traced to 1986 when the Government established the National Directorate of employment, NDE, to provide skills for youth in order to make them employable. It was this same time that several industries began to fold up, banks began to liquidate, the quality of education began to experience sharp decline and government's investment in infrastructural development began to recede. It is so obvious that the government at that time lacked job creation skills.

Over thirty years down the lane, one should ask, how much jobs has NDE provided? Would we have the need of NDE if we had abundant industries and functional education that produces job creating graduates? What a pity to see that the major mantra of the government to the youth is traditional entrepreneurship. If Nigeria's kind of cake baking, hair dressing and dough-nut entrepreneurship had failed in the past, how would it help create factories and solve our unemployment problem? I see no reason why we should magnify the failures of entrepreneurship in the name of self employment.

Innovative entrepreneurship of Mr Innocent Chuckwuma of Innoson Vehicle Manufacturing and Mr Adetokunbo Ogundeyin of Proforce Limited -manufacturer of armoured vehicles- are undeniable examples. They built technological empires without government's help, yet, the sky is not even their limit, but their starting points. Imagine if we can replicate this achievements in electricity generation, petroleum refining, road/railway construction, metals and material production.

Nigeria is facing serious budget finance crisis because the revenue earned from petroleum is no longer sufficient to fund the budget. Massive funds is being ploughed into traditional entrepreneurship that provides very little tax, thereby plunging the nation massive borrowing. However, products and services of innovative ventures in developed nations have become huge sources of revenue to their respective nations. Therefore Nigeria should invest in entrepreneurship that will generate abundant revenue to fund subsequent budgets.

Nigeria has more than thirty percent of an estimated population of 200 million people involved in agriculture, yet malnutrition is ravaging our land. The major problem of insufficient food production is the primitive farming using cutlass and hoe -a form of traditional entrepreneurship. So unfortunate that insurgency in North-Eastern Nigeria and the nationwide herdsmen killings has highly contributed to reduced crop production.

On the other hand, some nations have lesser than two percent of their population in agriculture, yet they meet local demand and export. They make use of innovative entrepreneurship both on the farm and in the lab/workshops. They don't depend on normads to provide beef for them. Here in Nigeria, graduates of agriculture do not practice farming professionally, yet it is the unequipped graduates of other courses, that are persuaded into agriculture as a result of unemployment.

It is good to have several capital entrepreneurs like Aliko Dangote, who has built several industries in Nigeria and across Africa. His latest investment in the 650,000 bpd of crude oil refinery and petrochemical complex which is expected to help tackle the availability of petroleum products is highly laudable. However, he didn't become an overnight investor, his success story began in 1977 with the 500,000 naira loan -when $1 = 65k - given to him by his uncle, Alhaji Dantata. The major problem of capital entrepreneurship is how to get massive loans for industrial development. Unfortunately, many who have the funds prefer to save them in foreign banks.

Finally, a paradigm shift is still the solution our challenges.


CC: FOD, dominique, puskin, naijacutee

Hmmmmmmm

iHart:
Hmmmmmmm

Your comment is deep

The article is deep but shouldn't the government be held responsible as the countries mentioned provides enabling environment for the youths to thrive successfully. Sometimes I ask why Nigeria doesn't produce chocolate with the abundance of cocoa but I have worked in the manufacturing industry and know the cost of energy only, aside machinery and others. I think if the Nigerian youths have the opportunity their counterparts have in developed nations, we may do better.

Esthered:
The article is deep but shouldn't the government be held responsible as the countries mentioned provides enabling environment for the youths to thrive successfully. Sometimes I ask why Nigeria doesn't produce chocolate with the abundance of cocoa but I have worked in the manufacturing industry and know the cost of energy only, aside machinery and others. I think if the Nigerian youths have the opportunity their counterparts have in developed nations, we may do better.

Yea, you are right, the government should be held responsible for not providing the necessary environment for innovation driven economy. Our leaders are too selfish while they also lack developmental ideas.

Nigerian youths will actually do better than their counterparts in other parts of the world if we have the enabling environment. Unfortunately, politicians don't want anything good for the youth, they deny them of quality education, and once that is done, the key to success is taken away.

U are right @op

Lemme just add this to it, be futuristic in your approach to entrepreneurship. If it does nt offer sustainability, it is going to be a wasted investment

So many people are getting nice information from our seminar on Mini Importation business and they are making good money. Join the seminar today. Chat me up 09032335253

Ardour:
U are right @op

Lemme just add this to it, be futuristic in your approach to entrepreneurship. If it does nt offer sustainability, it is going to be a wasted investment

It is a wasteful thing for Nigerian leaders to submerge their intellect in a policies and ventures that have no capacity for sustainability. This is why MDG failed and SDG too will fail.

OP you have done it again with your exquisite and indepth research research on economic matters.

So you mean the entrepreneurship we practice cannot generate meaningful resources for the government? This means Nigeria has wasted resources over the years.

You need to be among Nigeria's policy makers soonest.

[b][/b][font=Lucida Sans Unicode][/font][color=#990000][/color]It is good to have several capital entrepreneurs like Aliko Dangote, who has built several industries in Nigeria and across Africa. His latest investment in the 650,000 bpd of crude oil refinery and petrochemical complex which is expected to help tackle the availability of petroleum products is highly laudable. However, he didn't become an overnight investor, his success story began in 1977 with the 500,000 naira loan -when 1$ = 0.65k - given to him by his uncle, Alhaji Dantata. The major problem of capital entrepreneurship is how to get massive loans for industrial development. Unfortunately, many who have the funds prefer to save them in foreign banks.
I love this part most, meaning if Dongote uncle didn't loan him that money his business ideas would have perish and we won't know somebody like him even existed... Nobody wants to give you loan they want you to come and be begging from them, if I would see where I can collect loan of #500000 from to pay 600000k or 700000k, then in the next 5years I will be the next Dongote I swear

eddyboii:
[b][/b][font=Lucida Sans Unicode][/font][color=#990000][/color]It is good to have several capital entrepreneurs like Aliko Dangote, who has built several industries in Nigeria and across Africa. His latest investment in the 650,000 bpd of crude oil refinery and petrochemical complex which is expected to help tackle the availability of petroleum products is highly laudable. However, he didn't become an overnight investor, his success story began in 1977 with the 500,000 naira loan -when 1$ = 0.65k - given to him by his uncle, Alhaji Dantata. The major problem of capital entrepreneurship is how to get massive loans for industrial development. Unfortunately, many who have the funds prefer to save them in foreign banks.
I love this part most, meaning if Dongote uncle didn't loan him that money his business ideas would have perish and we won't know somebody like him even existed... Nobody wants to give you loan they want you to come and be begging from them, if I would see where I can collect loan of #500000 from to pay 600000k or 700000k, then in the next 5years I will be the next Dongote I swear

That is Nigeria for you. You need money to invest, but some have it and they waste it. You are not just asking for loan, you are even ready to pay interest, that shows how determined you are to breakthrough. God will provide help for you

solutionsnow:
OP you have done it again with your exquisite and indepth research research on economic matters.

So you mean the entrepreneurship we practice cannot generate meaningful resources for the government? This means Nigeria has wasted resources over the years.

You need to be among Nigeria's policy makers soonest.

I seconded the motion

Oneolajire are u on twitter??

Ademat7:
Oneolajire are u on twitter??

Yap, @oneolajire

oneolajire:



Yap, @oneolajire

but you have less followers now, let me help you boost it(not automatic but gradually) at little cost

Ademat7:

I seconded the motion

May this dream come true soonest oooo. Better christmas wish

Ademat7:
but you have less followers now, let me help you boost it(not automatic but gradually) at little cost

You are really following up on this guy

oneolajire:


May this dream come true soonest oooo. Better christmas wish

Amen oooo

The damage done by Nigeria's kind of entrepreneurship is so terrible. The children of the rich and politicians take jobs at NNPC, CB and other lucrative jobs but the children of the poor are the ones told to go into failed entrepreneurships.

It remains the fact that government has a part to play to aid a successful entrepreneurship development.

Donraqh:
It remains the fact that government has a part to play to aid a successful entrepreneurship development.

You are very correct. There must be shift of focus from the poverty inducing entrepreneurship to prosperity expanding entrepreneurship.

Donraqh:
It remains the fact that government has a part to play to aid a successful entrepreneurship development.

Our government is not determined to eradicate poverty and unemployment. They don't copy the good economic policies of developed nations, they are only concerned about themselves and their families. Most of their policies increase the rate of unemployment and poverty.

Donraqh:
It remains the fact that government has a part to play to aid a successful entrepreneurship development.

I pray ooo. Maybe when another administration takes over

https://www.nairaland.com/5637388/nigerian-graduates-highly-employable-govt

Do you know that Nigerian graduates are highly employed? The government and employers say opposite to take advantage of graduates because of the mass unemployment in Nigeria. Follow the link above to see why the government keep saying that Nigerian graduates are unemployable.

solutionsnow:


I pray ooo. Maybe when another administration takes over

This administration is more concerned with making herdsmen take over the nation than ensuring innovative entrepreneurship take the center stage