Business activities are on the rise in Nigeria. This is mainly due to the lack of employment that affects many Nigerians, including university graduates. A study by Gallup showed that 67 percent of Nigerians are willing to start their own businesses. Furthermore, 80 per cent of those interviewed believed that their businesses would be successful in Nigeria. This is a large percentage compared to the results of other West African countries, whose median willingness to start a business was 44 percent. This trend has not gone unnoticed and former Nigerian President Olusegun Obasanjo even mandated that all university students be taught entrepreneurial skills, regardless of major.
All of this is in line with Nigeria’s Economic Policy for 1999-2003 whose purpose is to promote education through the use of technology. The Nigerian president also has big plans for the country, one of them being to see Nigeria as one of the top 20 economies in the world by the year 2020. He expects this to happen if the policy is implemented properly. In accordance with this policy, another way these ambitious goals can be achieved is by partnering with certain agencies, such as the Fate Foundation in Nigeria and the United Nations Transfer of Knowledge through Expatriate Citizens (TOTKEN), which are dedicated to encourage entrepreneurship.
Entrepreneurs in Nigeria face unique challenges that hinder their entrepreneurial spirit and encourage rampant corruption. Nigeria has previously been known as one of the most corrupt countries in the world and this discouraged free enterprise. Nigeria has also been so heavily dependent on oil revenue that other economic sectors have been sorely underdeveloped. During the oil boom period between 1973 and 1980, Nigeria’s GDP rose to $1,100 in 1980 from the previous $220 in 1971. However, due to inappropriate government policies, Nigeria’s economy was left vulnerable. The investment was made mainly with the oil industry in mind, since other sectors, such as manufacturing and agriculture, became uncompetitive.
The fall in oil prices around the world during the 1980s, combined with a general increase in real interest rates in capital markets, greatly affected Nigeria’s domestic and international fiscal situation. This led to a general economic recession that was characterized by a significant drop in GDP from 1,100 in the 1980s to $340. According to the 1994 World Development Report, Nigeria had gone from being a middle-income country to one of the poorest countries in the world. A devaluation of this type generated very high inflation, a general spread of poverty and high unemployment rates.
Other factors that have affected entrepreneurship in Nigeria include poor infrastructure, high cost of doing business, ongoing political, tribal, religious and ethnic violence, gender discrimination and lack of quality education. However, steps are being taken to combat all these negative influences and make Nigeria conducive to entrepreneurship. Despite all the challenges that have hit the Nigerian economy, business development and entrepreneurship have taken root. Individuals of the Ibo ethnic group are especially known to have strong entrepreneurial skills. The number of private companies has increased considerably since the 1980s, although they are quite small in terms of employment, income and capital. Nigeria is currently second only to South Africa in terms of GDP and if the right steps are taken and the right policies are put in place, it could also take the top spot.
Starting any type of business requires planning, imagination or creativity, an inner drive to succeed, and of course, hard work. However, the main traits and characteristics of entrepreneurs that make their businesses stand out from the crowd include; the desire to achieve. Entrepreneurs are people who have a great desire to achieve. An entrepreneur should not wait for things to happen but make them happen. They are also highly competitive and will always try to stay informed about the latest business developments. Entrepreneurs are also entrepreneurs. This means that they motivate themselves to do something. They don’t need an incentive to do anything, but the desire to succeed is enough to get started. They prefer to make their own mistakes and learn from them.
Entrepreneurship also requires hard work. As entrepreneurs, it is important to know that success does not come on a silver platter, but that you have to work to achieve it. Entrepreneurs realize that they have to put in a lot of time and effort to see their dream come true. Focus is also another very essential characteristic of an entrepreneur. Entrepreneurs know what they want and will do anything to achieve it. This is related to positive thinking in the sense that they believe that everything will work out in the end, no matter what. Entrepreneurs are also mavericks and almost always want to stand out from the crowd. A successful Nigerian businessman should also avoid being immobilized by anything and instead set his own goals and objectives instead of working for someone else.
Entrepreneurs are also born leaders. Good leaders inspire confidence in others and motivate them to do something. A good leader efficiently influences, guides and directs people. This trait is especially important when hiring people for the newly founded business. An entrepreneur must possess good judgment skills and be sharp and bright capable of making sound decisions. Good communication skills are also a must for an entrepreneur. This means that a successful entrepreneur can efficiently convey a message that will be clearly understood. This trait only works well if one is also a keen listener. Entrepreneurs are risk takers. Running a business itself is risky because if one doesn’t make calculated decisions, it could easily collapse. Therefore, successful entrepreneurs take calculated risks to succeed. Entrepreneurship also requires dedication. Entrepreneurs tend to stick with their companies no matter what. They don’t give up easily and when they do make a mistake, they learn and move on instead of dwelling on that one failure.
Starting and running a business has its ups and downs and the ability to sustain it defines a true Nigerian entrepreneur. Creativity and innovation is also another trait that characterizes a successful entrepreneur. Entrepreneurs will always look for new ways of doing things. They are not afraid to try new ideas and are very imaginative. Therefore, their products or services often have an advantage due to this creativity. In general, Nigerian entrepreneurs need a strong spirit that will withstand all the trials and tribulations that running a business entails. Therefore, Nigerian entrepreneurs need to make informed decisions before deciding to undertake.
