The success enjoyed by most industrialized countries can be attributed to the role played by technological innovation and entrepreneurship, which continue to drive their economies today. These two factors are considered key components for the industrialization and development of African countries. The Nigerian government has recognized this fact and has taken steps to promote and cultivate entrepreneurial culture in our country. Through the Investment Commission of Nigeria (NIC), our government has in the past introduced a policy that required university students, regardless of their area of ​​study, to take entrepreneurship courses. While our government is going the extra mile to promote entrepreneurship in Nigeria, there are still a number of issues that a Nigerian entrepreneur faces. Below are some of the problems encountered and possible solutions.

* Diversifying the Economy

Although our country’s economy has been heavily dependent on its oil production for the past two decades, we must find ways to diversify our economy and avoid over-reliance on oil. Like other developing countries, Nigeria is facing a rise in its unemployment rate which is now 6% and rising, with many graduates finding it difficult to get jobs while most of those who do get jobs are underemployed. This, coupled with the global financial crisis in which large numbers of employees are being laid off; Entrepreneurship is seen as a fundamental key if we want our country to achieve its ambition of being an industrialized nation by the year 2020.

* Hostile business climate

Being an entrepreneur in Nigeria requires great determination as current and potential business owners face myriad challenges. Nigeria’s business climate should be welcoming to micro, small and medium-sized enterprises (MSMEs). The role played by these MSMEs should not be underestimated as most of the thriving businesses are in this category and for us to achieve our goals, proper attention and support must be directed to these institutions. In order to help and protect entrepreneurs, we must first have a clear idea of ​​the challenges our entrepreneurs face in their quest to make Nigeria prosperous.

* Lack of Credit Facilities

Potential entrepreneurs in Nigeria face many difficulties when trying to access credit for their businesses. Although there is a wide range of financial institutions that offer business loans, they usually charge high interest rates that deter aspiring entrepreneurs. For example, major banks have set their lending rates as high as 28%, which deters potential entrepreneurs who are mostly low-income people. Other obstacles that our entrepreneurs face include severe guarantee conditions established by banks and other credit institutions. Although our government, through the Central Bank and the Bankers Committee, presented guidelines that require banks to reserve 10% of their profits to finance MSMEs, most of these banks have been reluctant to do so. This has led to the rise of microfinance institutions that, while useful, are not enough to meet financial requirements.

* Multiple Taxation

Another sensitive challenge faced by most Nigerian businessmen is multiple taxation. Although we have a responsibility to fund the government through taxes, most taxes levied on business owners are illegal and have the effect of increasing the cost of doing business. Although Nigeria’s Corporate Income Tax Act (CITA) has passed only 39 taxes and levies, there are more than 500 miscellaneous levies and taxes imposed by state and local government officials. These taxes are questionable and if genuine they are mostly doubled and this has the effect of increasing the cost of doing business.

* Poor State of the Country’s Infrastructure

The state of our infrastructure can be considered a nightmare for both businessmen and the rest of the country’s population. With the existing infrastructure deteriorating and in some places non-existent; the cost of doing business has skyrocketed. The state of the country’s road network makes it difficult for entrepreneurs in the agricultural sector to transport harvested products from farms to processing factories. According to a report published by the World Bank, Nigeria’s rate of growth and socio-economic development is far below what we can achieve. This is mainly due to the erratic supply of electricity which has negatively affected many businesses. The result of power problems has led businessmen to generate power through expensive ways which, in turn, have increased their production costs and made their products uncompetitive due to high prices. Our government should implement policies to encourage Nigeria’s infrastructure in order to promote business success.

* Failure to adapt to the changing business environment

Most of those who venture into MSMEs (Micro, Small and Medium Enterprises) do so because of their need to earn money and in almost all cases, these entrepreneurs lack relevant and adequate information about the businesses they develop. In the event that problems arise, most of these business owners lack sufficient problem-solving skills and ultimately find it difficult to survive. As the telecommunication sector grew by approximately 206.5% between 2002 and 2004 and is constantly expanding, Nigeria has become one of the fastest growing ICT markets, not only in Africa but also across the globe. world. This presents a challenge for entrepreneurs who have not embraced technology and who now have a hard time staying relevant in the competitive business environment. For existing and potential MSMEs to survive and be relevant, we must adapt to the changing business environment and embrace technology.

* Address challenges

Solving the problems encountered requires a combined effort from both the entrepreneur and all interested parties. As small and medium business owners, we need to increase our knowledge and skills of the market through the acquisition of relevant and up-to-date education, particularly in your area of ​​business. Our entrepreneurs need to gather information about their target market by seeking help from consultants and professionals who have experience in the particular market.

One strategy that our small and medium-sized entrepreneurs can use to remain relevant and competitive in today’s market is to come up with fresh and creative ideas for doing business. Due to the increase in technology, business is changing rapidly, so our MSMEs need to constantly reinvent the way they do business.

There is a great need to create a strong link between MSMEs and supporting institutions for Nigeria to fully benefit from such businesses. Although some financial institutions are still reluctant to provide financial assistance to MSMEs, there are some that provide loans at reasonable rates as long as the business appears viable. The key challenge for our entrepreneurs is to prepare solid business proposals. For our country to achieve its goals and stop relying solely on oil, we must focus a lot of attention on the private sector, and our government must create an atmosphere conducive for such companies to prosper and propel the country towards economic prosperity.