Introduction
Nigeria is naturally endowed with
entrepreneurship opportunities; however the realization of the full potential
of these opportunities has been dampened by the adaptation of inappropriate
industrialization policies at different times. Several policy interventions
that were aimed at stimulating entrepreneurship development via small and
medium scale enterprises promotion, based on technology transfer strategy, have
failed to achieve the desired goals as it led to the most indigenous entrepreneurs
becoming distribution agents of imported products as opposed to building
in-country entrepreneurial capacity for manufacturing, mechanized agriculture
and experts services.
One of the goals of economic
development strategies pursued by many countries of the world has been
improvement in the standard of living through job creation. Entrepreneurship
development is no doubt a vital tool in fostering job creation. Entrepreneurs
orchestrate transformations and create new channels for economic activity and
employment. Petrin (1994) emphasized that for countries to accelerate economic
development in their rural areas, it is necessary to build up the critical mass
of first generation entrepreneurs. Thus, all countries that wish to pursue
continued development must encourage entrepreneurship.
Entrepreneurship
started in Nigeria when production started exceeding the consumption levels,
which resulted in barter system or double coincidence of wants. This is what
made producers realize that if they have surplus, the people will not have to
wait for double coincidence of wants. So through this exchange of products,
entrepreneurship started even before the advent of any form of money. The
historical and contemporary records reveal long and robust history of
family-owned business in Nigeria.
Modern
entrepreneurship started in Nigeria with the coming of colonial masters, who
brought in their wears and made Nigerians their milled men. In this way, modern
entrepreneurship was conceived. Most of the modern entrepreneurs in Nigeria
were engaged in retail trade or sole proprietorship. There is evidence that the
colonial legal and administrative policies purposefully discouraged Nigerians
from owning a business and achieving economics independence.
In Nigeria the state owned enterprises
traditionally clogged business opportunities and state restriction prevented
entrepreneurs from entering the market. However, in the mid 1980’s Nigeria
abolished its marketing board, which prevented entry into certain industries,
and opened up its markets to competition to domestic entrepreneurs? And today,
enterprise development is considered the answer to not only personal wealth and
achievement, but also the larger historical political and social agenda of
national economic and political development.
Challenges
of Entrepreneurship in Nigeria
The National Bureau of Statistics, in
collaboration with the Small and Medium Enterprises Development Agency of
Nigeria (SMEDAN), conducted a survey report on micro small and medium
enterprises (MSMEs) in the year 2010. The study provided a list of problems
militating against development of enterprises in Nigeria as follows:
(1) Lack of access to finance
(2) Lack of work space
(3) Weak infrastructure
(4) Lack of entrepreneurial/vocational
training
(5) Obsolete equipment
(6) Lack of access to research and
development
(7) Inconsistent policy
(8) Transportation constraints
(9) Lack of government support
A careful study of the above revealed
that the development of entrepreneurship in Nigeria since independence has been
persistently affected by poor funding, inadequate infrastructure, corruption,
poor government support, low education and training and many more. Nigeria is
ripe to take action by putting in place the necessary conditions that would
help entrepreneurs compete favourably with their counterpart in other
countries.
Let us now take a trip to some
countries in the world to assess their entrepreneurial activities and compare
it with the Nigerian environment. Stated below are some of the countries
visited.
An
Overview of Entrepreneurship Development in Japan
The success of Japanese corporations
both at home and abroad has stimulated a great deal of interest and enquiry
about the reason for their success. In the past two decades, considerable
attention has been given to the success of Japanese manufacturing industries (Cole,
2004). One of the key factors for their success according to Ouchi in Cole
(2004) has been their approach to management of resources, especially people.
Hard work and discipline run through Japanese national life. Duty before self
is a value ingrained in Japanese people.
Japan success in international world
have been attributed to five element structure which are; capital, management,
technology, an international network and the government. These are the pillars
that support Japan as a major economic power. Although Japanese economic
development is primarily the product of private entrepreneurship, the
government has directly contributed to the nation's prosperity. Its actions
have helped initiate new industries, cushion the effects of economic
depression, create a sound economic infrastructure, and protect the living
standards of the citizenry.
Comparison
with Nigeria
In view of the above, Japan is in many
ways a country which can be taken as a model by developing countries like
Nigeria, especially hard work and discipline which are in indeed one of key
attributes missing in Nigeria peoples.
An
Overview of Entrepreneurship in South Africa
South Africa presents a unique and
very interesting picture in Sub-Saharan Africa. South Africa has a unique set
of cultural circumstances attesting to a turbulent economic, unenviable
historical and segregationist past due to the apartheid policy. The result is
deep social divides that require innovative social solutions. Since its first
democratically held elections in 1994, South African government has realized
the important role of entrepreneurship in the development of South African
economy. With high unemployment, deep social and class divides and a highly
unequal society, the South African government realizes that in order to change
the socio-economic landscape of the country it would have to support a
concerted effort to develop entrepreneurship at the grass roots level and up
(SSCG Research, 2013). This has resulted in a number of policy and structural
developments to promote entrepreneurship, build capacity and ecosystems as well
as foster entrepreneurial thinking starting at the educational level. As a
result, South Africa currently has a growing entrepreneurial sector.
This commitment by government has led
to a number of initiatives such as Just as the ones here in Nigeria but under
different names. These initiatives are:
1. Policies to assist support and
develop small, micro and medium enterprises
2. The Department of Trade and
Industry’s Competitiveness Fund, providing financial assistance to
entrepreneurs which could cover up to 50% of running costs
3. Junior Achievement South Africa, an
organization which runs a number of programmes to encourage youth
entrepreneurship, and
4. The National Youth Development
Agency, which offers support to youth in finding resources for business and
business development.
Comparison
with Nigeria
With the above initiatives, South
Africa remains a frontier and market with great potential for entrepreneurship
and job creation. Hence, the country is among the highest ten in Africa in the
2013 Human Development Index (HDI) and so can be taken as a model for Nigeria,
especially its strong political will and commitment to promoting
entrepreneurial zeal a feature which is obviously missing in Nigerian political
arena.
An
Overview of Entrepreneurship in Malaysia
Malaysia has a vibrant entrepreneurial
base with a huge potential to become a global player. Malaysia’s
entrepreneurial success stories are explained by its citizens’ entrepreneurial
spirit and determination. Basically, the flourishing of entrepreneurship is
facilitated by a government that is always looking for ways to advance
entrepreneurship through new policies. Obadan and Agba (2007) noted that the
government of Malaysia is committed. Malaysia’s relative high entrepreneurial
spirit is reflected in its entrepreneurship and innovation rank by the Legatum
Prosperity Index: 28th out of 104 economies. Similarly, the World Bank ranks
the country 23rd out of 183 economies in the ease of doing business. A report
by the Mansfield Foundation mentioned the variety of supporting mechanisms that
exist for entrepreneurs in Malaysia, including physical infrastructure,
business advisory services and access to capital. (According to the World Bank,
Malaysia is the top country in the ease of getting credit). Education and
skills development have been made a priority, the funding landscape is being
restructured to enhance funding, a Competition Act has been introduced to
liberalize the economy and prevent monopolistic and anticompetitive actions by
large corporations. The above is made possible through the creation of a ‘New
Economic Model’ (NEM) for Malaysia where the Prime Minister has made
entrepreneurship the key driver of the economy with special emphasis on
innovation and the entrepreneurial drive of its citizens. In order to enhance
technical capabilities among entrepreneurs, in line with the intended direction
of the economy, the government created the Malaysian Technology Development
Corporation (MTDC) which provides not only technical advice and premises, but
also risk capital to promising ventures.
Comparison
with Nigeria
Deducting from the above Malaysian
entrepreneurial models can in many ways adopted and fix into the Nigerian
system. Looking at the Malaysian entrepreneurial environment such as its
physical infrastructure, business advisory services and most importantly access
to capital compare to Nigeria we are no doubt left behind.
An
Overview of Entrepreneurship in Brazil
Brazil is
entrepreneurial. One in every six adults is either trying to launch a business
or is a owner of a new venture less than 42 months old and one in every six
persons is running a more established venture. During my visit to Brazil I have
notice a few things that make the entrepreneurial environment particularly
exciting and some obstacles that are holding back this powerful engine of
entrepreneurial spirit. In general, entrepreneurship in Brazil comprises basic
businesses i.e those with the main objective of generating income for the
entrepreneurs themselves, substituting or complimenting his or her salary.
However, as explained in the GEM/ World Economic Forum report such businesses
are not innovative and don’t expected to hire a lot of employees. Thus, the
impact of generated is limited in terms of number of jobs created and
development of new products and services.
Comparison
with Nigeria
1.
Government Policies.
Government created and runs the
Brazilian innovation agency (FINEP), which sponsors such programs as the
premeira empresa inovadora (PRIME) an initiative to award financial aid to
particularly motivate new business. In Nigeria, the government has launched
various policies such as the National Entrepreneurship Strategy, which leads to
more inclusiveness in training and funding opportunities for budding
entrepreneurs.
2.
Social Development.
Entrepreneurial activity tends to create
more employment opportunities and consequently better social development in
Brazil. In Nigeria also, one acquired skills and ideal for the sake of creating
employment for oneself and others.
3.
Enablers and
Constraints.
Entrepreneurship is positively evaluated
in Brazil which demonstrates that Brazilians are generally willing to start up
and that entrepreneurship is part of day to day life for the population as
essential elements for developing an entrepreneurial culture in the country.
An Overview
of Entrepreneurship in Dubai
Prior to
1990s, Like Nigeria Dubai heavily depended on oil revenue as source of its
national income, sensing the numerous dangers associated with countries
depending on single economy like itself, its ruler Mohammed bin Rashid marshal
out plans to diversify its economy from oil and make Dubai a world center for
commercial activities, however, the government realized that this dream cannot
be achieved when you have people who seems comfortable to tie their necks, wear
suits and sit behind desks from 8am to 5pm five days or even more a week. What
they need are men with entrepreneurial spirits with high ability to take
calculated risks and strong passion for financial autonomy. As such Dubai
government roles out numerous policies and initiative to support and facilitate
entrepreneurial development across the emirate. One of such initiatives is
Mohammed bin Rashid establishment for young business leaders, these
organizations seek to motivate young Arab leaders to become integral part of
the region’s economy. Also there are several grants available for those with a
strong business plan. In addition Dubai government provides excellent support
for the Emirate entrepreneurs through the government procurement program, which
mandates that all government departments should dedicate at least 5% of their
annual procurement activities to companies registered with Mohammad bin Rashid
establishment for young business leaders.
The result
is that within two decades, Dubai succeeded in turning itself into an emerging
market with influx of investors all over the world.
Comparison
with Nigeria
Just like
the Dubai initiatives several state governments in Nigeria engage in skills
acquisition programmes which seeks to train and equip the participant youths
with basic entrepreneurial skills and resource managements knowledge. One such
programmes is the KADSTEP a Kaduna state entrepreneurship programme initiated
and sponsor by Kaduna state government in partnership with Kaduna Business
School (KBS), and Bank Of Industry (BOI), the programme is designed to run for
10 weeks, after which successful students with strong plans will have access to
at least three million naira loan from the Bank of industry payable within five
years. A strong government support and commitment like the one demonstrated in
Dubai by their authorities is what is strongly needed in Nigeria to facilitates
and enhances its entrepreneurial activity development.
Lessons
for Nigeria derived from this paper.
Having reviewed the
institutional framework of entrepreneurship in the above countries, we can now
draw some useful lessons for the purpose of economic transformation of Nigeria.
Our approach to management of resources especially people must improve for better
economy. Concerted effort should be made to support entrepreneurship
development at all levels especially the grass root level for the
transformation of the socio-economic landscape of Nigeria. Nigerians should
view their nation as a big family and businesses should look up to government
for guidance. Hard work, discipline and duty are values that should be copied,
developed and retained by Nigerians.
Conclusion
The major conclusion that can be drawn
from this paper is that there can be no meaningful economic advancement and
transformation in Nigerian without entrepreneurship development.
Entrepreneurship development is adjudged to provide meaningful promises of
sustainable economic growth and development of a country. A nation that
develops and retains the most competent entrepreneurs will enjoy real
competitive advantage over others that do not in this current globalised world
economy.
Further readings:
ijird.com International journal for innovative research and
development
A Review of Entrepreneurship Development in Japan,
South Africa and Malaysia: Lessons for Nigeria
noted.
ReplyDeleteWho is the author of this article for reference purpose
ReplyDeleteHelpful but no reference
ReplyDelete