Issues Encountered by Nigerian Entrepreneur and Achievable Solutions

The achievement enjoyed by most industrialized countries can be attributed to the function played by technological innovation and entrepreneurship, each of which continue to drive their economies today. These two factors are seen as important components for the industrialization and improvement of African nations. The Nigerian government has recognized this truth and has taken measures aimed at promoting and cultivating the entrepreneurial culture in our country. Via the Nigerian Investing Commission (NIC), our government has in the previous introduced a policy that expected university students regardless of their location of study to take courses in entrepreneurship. When our government is putting added effort in promoting entrepreneurship in Nigeria, there are nonetheless a quantity of challenges that a Nigerian Entrepreneur faces. Under are some of the difficulties encountered and possible solutions.

* Diversifying the Economy

Although our country’s economy has over the last couple of decades relied heavily on its oil production, we need to discover ways to diversify our economy and steer clear of the over reliance on oil. Like other developing countries, Nigeria is facing an enhance in its unemployment price that is now at 6 % and is on the boost, with many graduates finding it really hard to get jobs while most of those who get jobs are underemployed. This coupled with the worldwide financial crisis in which huge numbers of staff are becoming laid off entrepreneurship is observed as an important important if we want our country to accomplish its ambition of becoming an industrialized nation by the year 2020.

* Unfriendly Business Climate

Getting an entrepreneur in Nigeria calls for terrific determination as practicing and potential small business owners are faced with numerous challenges. Nigerian’s company climate ought to be produced welcoming to those in the Micro, Modest and Medium Enterprises (MSMEs). The part played by these MSMEs really should not be underestimated given that majority of the thriving corporations fall in this category and for us to attain our targets, adequate consideration and help must be directed towards these institutions. To be capable to enable and shield entrepreneurs, we will have to first have a clear notion of the challenges facing our entrepreneurs in their pursuit of making Nigeria a prosperous country.

* Lack of Credit Facilities

Prospective Nigeria entrepreneurs go by way of several hardships when trying to access credit for their firms. Though there is a wide variety of economic institutions that present business enterprise loans, they typically charge higher interest rates deterring aspiring entrepreneurs. For instance, important banks have pegged their lending prices to as a lot a 28% deterring possible entrepreneurs who are mostly low earnings earners. Other obstacles faced by our entrepreneurs involve severe collateral conditions set by banks and other lending institutions. Although our government by means of the Central Bank and the Banker’s Committee came up with recommendations requiring banks to set aside 10% of their income for funding MSMEs, majority of these banks have been reluctant to do so. This has led to the emergence of micro-finance institutions which even though helpful are not sufficient for meeting the financial specifications.

* Several Taxation

One other sensitive challenge that is encountered by majority of Nigerian entrepreneurs is various taxation. While we have a responsibility of funding the government by way of paying taxes, most of the taxes charged on entrepreneurs are not lawful and have the effect of rising the cost of carrying out small business. Despite the fact that Nigeria’s Businesses Income Tax Act (CITA) has authorized only 39 taxes and levies, there are more than 500 several levies and taxes that are imposed by state and nearby government agents. These taxes are questionable and in the case exactly where they are genuine, they are mainly duplicated and this has the impact of escalating the price of doing enterprise.

* Poor State of the Country’s Infrastructure

The state of our infrastructure can be deemed to be a nightmare to both entrepreneurs and the rest of the country’s population. With the existing infrastructure deteriorating and in some places it is non-existent the expense of performing enterprise has tremendously gone up. The state of the country’s road network tends to make it really hard for entrepreneurs in the agricultural sector to transport harvested make from farms to processing factories. According to a report released by the Globe Bank, Nigeria’s pace of socioeconomic development and growth is way under what we can realize. This is mostly mainly because of the erratic provide of electricity which has negatively affected numerous organizations. Undergraduate Project Topics of power difficulties has prompted entrepreneurs to produce energy by means of high priced ways that have in turn increased their production fees and made their items uncompetitive due to higher costs. Our government really should put policies in location to perk up Nigeria’s infrastructure so as to promote thriving entrepreneurship.

* Failure to Adapt to the Changing Business enterprise Atmosphere

Majority of these who venture into MSMEs (Micro, Smaller and Medium Enterprises) do so for the reason that of their have to have to make revenue and in virtually all cases, such entrepreneurs lack relevant and adequate data about the organizations they engage in. In the occasion where troubles arise, most of these enterprise owners lack enough challenge solving skills and in the finish they locate it really hard to survive. With the telecommunications sector getting grown by about 206.5 % amongst 2002 and 2004 and is continually expanding, Nigeria has grow to be a single of the fastest growing ICT market not only in Africa but also worldwide. This presents a challenge to entrepreneurs who have not embraced technologies, and who are now discovering it tough to stay relevant in the competitive small business environment. For existing and prospective MSMEs to survive and be relevant, we should adapt to the changing organization environment and embrace technology.

* Addressing the Challenges

Solving the complications encountered requires a combined effort by both the entrepreneur and all concerned stakeholders. As Smaller and medium small business owners, we require to enhance our know-how and abilities of the market by acquiring relevant and up to date education especially in your location of small business. Our entrepreneurs require to gather facts about their target market by seeking aid from consultants and professionals who have expertise in the particular market place.

One tactic that can be utilized by our compact and medium entrepreneurs to remain relevant and competitive in today’s market is to come up with fresh and inventive ideas of carrying out organization. Due to the enhance in technology, enterprise is speedy altering, hence our MSMEs will need to consistently re-invent the way they do enterprise.

There is a terrific need of producing a robust hyperlink among MSMEs and supporting institutions if Nigeria is to fully benefit from such organizations. Though some economic institutions are still reluctant to give monetary help to MSMEs, there are some that give out loans at reasonable prices offered the enterprise sounds viable. The key challenge is for our entrepreneurs to prepare sound business enterprise proposals. For our country to reach its targets and stop relying on oil alone, we will need to concentrate considerably interest demands on the private sector and our government ought to develop a conducive atmosphere for such companies to thrive and drive the nation towards economic prosperity.

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