Big task for Tinubu on entrepreneurship and startups

Nigerian entrepreneurship has the potential to stimulate economic growth and generate job opportunities. Over 90% of businesses in Nigeria are in the category of Micro, Small and Medium Enterprises (MSMEs).

But these businesses face many obstacles that make it difficult for the owners to be successful, scale to next level and contribute their full potential to the national economy.

In this post, we’ll talk about a few of the difficulties faced by Nigerian small business owners and examine their causes.

Some of the main challenges revolve around limited access to finance, infrastructure deficiency, corruption and restricted access to markets.

Therefore this new government must establish policies that aid MSMEs, provide access to capital, and combat corruption in order to foster an atmosphere that supports entrepreneurship.

Nigeria can unleash the full potential of its businesspeople and promote economic growth and development by doing this.

Infrastructure deficit

A key issue for Nigerian entrepreneurs is infrastructure. Roads, electricity, and other essential infrastructure are in bad bad state, especially roads to markets, farms and sources of primary raw materials, a situation which makes it challenging for enterprises to run effectively and efficiently.

Entrepreneurs frequently incur additional costs self-generated power and transportation of their goods, which drive up their overhead. Part of Nigeria’s inadequate infrastructure can be attributed to the government’s lack of investment in the area.

Limited access to funding

Nigerian entrepreneurs have substantial difficulties in obtaining capital. The majority of small business owners and startups struggle to find the funding they need to launch or expand their enterprise. Even when banks and other financial institutions do lend to small businesses, the interest rates are too high, making it challenging for business owners to repay the loans or achieve the business development target for which the money was borrowed. The high risk of entrepreneurship in Nigeria contributes to the lack of access to capital. Due of their lack of experience and weak collateral, most entrepreneurs are undesirable to conventional lenders.

Limited access to markets

Most small businesses in Nigeria struggle with access to market. Majority of business owners operate in the unorganized sector, and they have little access to formal marketplaces. They struggle as a result to gain consumer acceptance and expand their clientele.

A weak legal system and a lack of infrastructure are two factors contributing to the restricted market access. A poor legal system also makes it challenging for business owners to uphold agreements and safeguard their intellectual property rights.

Corruption and bureaucracy

In Nigeria, corruption is a serious problem that has a negative impact on entrepreneurship. It can be challenging for business owners to obtain licenses and business permits or access to government contracts due to bureaucratic red tape, bribery, and other corrupt practices. This frequently results in a circumstance where business owners are compelled to sacrifice their morality in order to launch their enterprise.

Corruption in the nation has a long root and almost all government officials are involved. A lack of transparency and accountability in government has also encouraged corruption.