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Entrepreneurship in Nigeria ~ All you Need to Know

Entrepreneurship have been embraced by in Nigeria by both the citizens and the government.

entrepreneurship in nigeria

This is because it has helped to reduce the rate of poverty among Nigerians and has increased the economic standard of the country.

Therefore, in this article we will be discussing entrepreneurship in the country in full length.

Here, you will find the meaning of the term, the concept, problem, government role, the history, types and what it means to be an entrepreneur. Including their characteristics.

We will also discuss the challenges of entrepreneurs in our country, the role of government policy in entrepreneurship development etc. But first, let’s take a look at the term “entrepreneurship.”

Definitions of Entrepreneurship

The word Entrepreneurship has been defined in so many way by different authors.

We will be taking a look at some of these definitions.

Entrepreneurship is also defined as the process of designing, launching and running a new business.

It is the capacity and willingness to develop, organize and manage a business venture along with the risks of making profit or loss.

Entrepreneurship is the act of being an entrepreneur.

It is the process of creating a new enterprise and bearing any of its risk with the view of making profit.

Entrepreneurship is the act of seeking investment and production opportunity, building and managing a business ventures so as to undertake production function.

It is seen as the ability and readiness to developing, run and manage a business enterprise.

Having defined the word Entrepreneurship in various ways, we will now look into its history in our dear country.

We will go down the memory lane of how entrepreneurship started in recent times in Africa’s most populated country.

History of Entrepreneurship in Nigeria.

The act of Entrepreneurship has existed way back from the 11th century. It was recorded that people exchange volcanic glass for food, tools or any needed items.

This continued to a point where people from different tribes started exchanging their foods. Agriculture happened to be the first call for this business.

Farmers were encouraged to go into commercial farming as their products were of business.

So food items were exchanged for other products such as clothes, shoes, tools and so on.

This trade continued until early 3000BC. When shekel was introduced as currency . Later on Coins were later invented and used and finally paper.

Entrepreneurship started in Nigeria when goods produced were more than the needs of the people. So the extra items were used in exchanged for what was needed.

Afterwards, Nigeria started direct trade with Europe. The Europeans then introduced slave trade in Nigeria. They bought slaves from Nigerians.

Not long, the colonial era changed the Nigeria system. Nigerians were partially receiving training on how to dominate their country.

It was during this period that educational curriculum with no emphases on entrepreneurship was introduced by the colonial masters.

The curriculum consisted of religion, reading, writing, arithmetic and so on.

With this effective the practice of entrepreneurship that started was gradually abandoned as people began to depend on white collar jobs fro survival.

After Nigeria Independence, Nigerians started making effort to revive the entrepreneurship system.

They became aware that the colonial educational system had not only disrupted entrepreneurship in the country, but has also affected the growth of Nigeria economy.

So, they started making effort to reverse it.

In the bid to revive entrepreneurship, some organisations were formed to encourage it, some organisation were formed to encourage entrepreneurship also institutions were formed to encourage entrepreneurship also institutions were raised to fund entrepreneurs.

Organisations established by the government are;

  • National Directorate of Employment (NDE)
  • Entrepreneurship Development Centre (EDC)
  • Nigeria industrial development Bank (NIDB)
  • National Open Apprenticeship Scheme ( NAOS) AND SO ON.

While the funding Institutions include: Peoples Bank of Nigeria, FUSSI- Funds for small scale industries and co-operative societies.

In addition to these, the educational system was changed to encourage entrepreneurship.

A National policy was formulated in 1977, and was constantly revised in the year 1981, 1988, 2004, 2007 and 2004. but now, Nigeria system was formulated in 1977, and was constantly revised in the year 1981, 1988, 2004, 2007 and 2004.

But now, Nigeria system of education have been incorporated with technical subjects.

People can study economics, craft, tourism , automobile, ICT and other subject relating to entrepreneurship.

Types of Entrepreneurship

Having discussed briefly, the history of entrepreneurship, we have so many different types of entrepreneurship that has been ventured and can be practiced in the country.

However, we will take a look at 12 different types o entrepreneurship. They are:

1.) Domestic Entrepreneurship: This type of entrepreneurship, a business owner produces goods and provides services within the boundaries of he country.

They abide by all rules and regulations established by the government in relation to the type of business.

2.) International Entrepreneurship: This entrepreneurship performs the activities of the business across the boundaries of the nation.

This business activities includes opening a new branch of business firm across the country, or exporting products to other countries.

3.) Cultural Entrepreneurship: This type of entrepreneurship produces products that rare culturally good.

They also generate a lot of opportunities or the economy, society and culture.

They work in cultural profession like writers, musician, dancers, artists, advertisers, architects, bloggers etc. Entrepreneurs in this group work on media tools like twitter.

4.) Private Entrepreneurship: These are business organisations owned and manages by an entrepreneur.

Examples of such organisations are hospitals, restaurants, disney, telsa and so on.

5.) Public Entrepreneurship: This business administrative is managed by the government. They were initiated to meet the preliminary shortage of private entrepreneurs.

They also help to solve public and environment issues. They are also bound to government. Rules and regulations.

6.) Individual Entrepreneurship: This is managed and executed by an individual or a member of a family.

This business is initiated with personal motives. Example includes J.K Rollings, Mark Zuckerberg, Steve Jobs and so on.

7.) Joint Entrepreneurship: This is the collaboration of both private and public Entrepreneurship.

It is being managed, controlled and owned by a private entrepreneur and the government.

Example of this type of entrepreneurship is smart phone development by Nokia and Microsoft.

8.) State Entrepreneurship: This is a kind of business that is managed, operated and owned by the state or the government of the state.

All activities carried out are done by the state no individual entrepreneur is involved.

9.) Lifestyle Entrepreneurship: This type of entrepreneurship is executed by passion or love for the profession or business.

They are not fully profit minded by he business was born out of passion. They also abide by government policies.

10.) Agripreneurship: This entrepreneurship is developed when the business owner decides to make development in agricultural field.

It involves all the activities of a business firm. This activities includes production and manufacturing as well as distribution of farm supplies.

Agripreneurship may also include horticulture, sericulture, animal husbandry, floriculture, biotechnology etc.

11.) Large Company Entrepreneurship: This business are large company innovated to produce and manufacture products and establish new technologies.

Examples include- LG,Microsoft, Tata etc.

12.) Small Business Entrepreneurship: This type of business is aimed at earning profits, just like several other businesses.

Here the owner of the business may hire family members or local people to run the services and activities of the business.

Examples are confectionery stores, grocery stores, house cleaners, consultants, hairdressers, electricians, plumbers and so on.

Becoming An Entrepreneur: What It Means

Having discussed the types of entrepreneurship we have, it necessary to consider what it means to become an entrepreneur- the processes involved.

Who Really Is An Entrepreneur?

An entrepreneur is a person who develops a new enterprise or business, and embraces every challenge, profit or loss that may arise for its development.

To be an entrepreneur means to have the ability and capacity to invent a new business. To be a risk-bearer. To organise and manage a new firm initiated by himself.

That is why entrepreneurs are often associated with the terms “initiators, drivers and challengers.”

Characteristics of An Entrepreneur

Here are some of the characteristics of an entrepreneur:

1.) An entrepreneur is creative. Every business starts with an idea. It is entrepreneurs that create new ideas for the development and growth of the business.

2.) Entrepreneurs love what they do. Unless you are passionate about what you do, you may have no reason to work. No drive to do it.

3.) Entrepreneurs are optimistic. They are always positive minded. They always look on the bright side and never accept negativity.

Even when challenges come up, they deal with them and keep moving.

They don’t allow problems or challenges to distract their focus or weigh them down. They always see themselves as having the ability to reach higher always.

4.) They are flexible. They can perform many functions almost at the same time.

Does Entrepreneurship Play Any Role In Nigeria?

Entrepreneurship plays a very important role in the economy of our country. Some of the roles are:

  • It provides job opportunities. This doesn’t need any explanation. The creation of new businesses always provide job opportunities for the youths of the country.
  • It enhances the standard of living of the people
  • It also enhances and promotes research and development
  • It promotes innovation.

Entrepreneurship creates impact on community development in such a manner that it leads to higher level of homeownership, better sanitation standard, and higher expenditure on education and religious activities.

Final Note

Entrepreneurship have greatly contributed to the economic development in Nigeria. It’s role and importance cannot be overemphasized.

Having discussed the topic in several angles, I hope you find whatever it is you need to know about it in this write up.

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