What kind of Challenges Nigerian Entrepreneurs Have to Face While planning to get involved in the business
As a matter of fact, entrepreneurship is something that offers our government the opportunity to create more and more employment opportunities for its citizens. There are a large number of challenges that face Nigerian entrepreneurs in our country but with the right strategies at hand, we can overcome the challenges. The alleviation of such kind of problems will create an ample environment for the thriving of entrepreneurship. Of course, the availability of capital is actually one of the major reasons that limit the Nigerian entrepreneurs from starting their businesses. In general, the access to finances for capital in the country of Nigeria through numerous financial institutions might be deemed as a daunting task to many but there is a wide range of funders ready to offer support to young Nigerian entrepreneurs. However, it is also true that in order to get funding, a number of requirements must be met.
In short, the actual problem of lack of funders has been partly sorted out through the emergence of Nigerian angel investors and venture capitalists that invest and ask for returns on investment (ROI) on the venture and simultaneously are involved in the management of the venture partly. This is very advantageous since the entrepreneur may acquire additional skills from the investors. And the main thing is that the returns that are required can be rates of up to 30% on the capital employed. Other companies such as NGOs and the Nigerian Investing Commission also encourage entrepreneurs to venture into this line of business.
It would not be wrong to say that Nigeria is a country that is bracing itself up to shape the future beyond oil manufacturing and this is in fact part of the national agenda. This is something that makes now the best time to invest in entrepreneurship. The oil industry has been dominating the economy by contributing way more than 80 per cent earnings on export not forgetting its 50 percent contribution to the Gross Domestic Product (GDP) of the country. Given that most of the Nigerians are unemployed and considering the present economic realities, we as a country have a great need of constant job creation. The commercial and industrial sectors of the country have to be diversified as well.
In comparison to various other West African countries such as Benin, Ghana, Nigeria, Mali, Mauritania, Sierra Leone, Liberia, Burkina Faso, Niger and Senegal, Nigeria is the most efficient in the implementation of adopted reforms aiming at improving the business environment for entrepreneurs. Simply put, a research carried by Gallup in 1998 showed that 67 per cent of Nigerians were considering opening and running businesses. In actual, this presents the highest rates in these West African counties. In contrast to several other countries in West Africa, the awareness of entrepreneurship among the mass is higher in Nigeria placed at 44 per cent. This clarifies that entrepreneurship is more easily taken up by our country as opposed to various other countries in the western Africa region.
Nigerian entrepreneurs are the individuals who can enjoy the benefit of lower taxes that is offered by the government through tax incentives that primary include lower taxes, tax exemptions and enhanced price ceilings. This directly allows the entrepreneurs of the country to enjoy the returns on the capital they employ on the investments that they undertake.