In the United States of America, which is the largest economy in the world, entrepreneurship is responsible for the creation of more than 60% of the jobs in the market. The United States government recognizes business ventures as a critical success factor in the country’s economic strength and recovery leading to a sustainable future. The government also believes that small business ventures improve the country’s competitiveness on a global scale. This led the United States government to develop incentives such as tax cuts, subsidies, and facilities to acquire financial resources directed at this sector in order to improve their services.
Compared with other countries that have developed in recent years, such as China, the rapid development of this country has been greatly accelerated due to the removal of red tape, financial limits, and ownership limits of started business enterprises. by the Chinese. These small and medium enterprises in various sectors like IT, financial sector and retail sector are also responsible for the rapid growth of some countries like Brazil and India.
Efficient management of business ventures has many benefits for the economy. This management can be guided by the skills, resources, vision and resources that the entrepreneur has. The benefits associated with entrepreneurship are the creation of employment opportunities, the diversification of the economy, the equitable distribution of resources and income, rural development, the internal mobilization of savings for investment, the adoption of new technologies, the development of new skills and the development of the economy towards sustainability. development.
Nigeria is a country that is endowed with a diverse amount of natural resources such as minerals and a highly skilled labor force. Despite this, the country faces a number of challenges. The unemployment rate is pegged at 6% and continues to grow by the day and many of the skilled workforce are underemployed. Currently in Nigeria, the oil industry is the main economic engine; the oil industry generates more than 80% of foreign exchange earnings and contributes about half of the country’s GDP. Nigeria’s labor force is also growing at a rate of 2.5% and is estimated at 47 million and growing. The excessive dependence of the economy on oil leaves the country vulnerable in the long term due to price fluctuations in the international market. Such economic realities demand the need to diversify the economy from the oil sector, commercial sectors and industrial sectors towards others. This will create more employment opportunities that will absorb more labor, leading to a decrease in unemployment levels in the country.
Why Many Nigerian Entrepreneurs Diversify
There are several reasons that have been put forward by countless experienced coaches and business specialists as to why people venture into the world of entrepreneurship in Nigeria. Most entrepreneurs want to succeed and get out of poverty or unemployment. They end up embarking on entrepreneurial activities with a lot of enthusiasm to achieve success and financial power. The key consideration that will lead to business success is giving 100% undivided attention to the business. Most successful entrepreneurs have found success through this. The overdependence of the oil sector and the conflict in the oil delta of Nigeria cast doubt on the sustainability of the industry in the economic and political stability of the country.
Aspects that lead Entrepreneurs to failure
Regardless of the many complaints about the tribulations entrepreneurs in Nigeria face when setting up and running business enterprises, some ventures turn into terrible reputations. Consequently, it is very imperative to find information about the causes of failure among entrepreneurs. They include:
* A number of entrepreneurs consume business investment capital rather than profits; This causes the business to have less capital base, which affects the venture and may end in closure. This is attributed to the fact that entrepreneurs are so quick to change their lifestyle as soon as the business starts making a profit.
* The need to get rich faster is the main reason many Nigerian businessmen seek to venture into the business world. This turns them into unnecessary risks that can lead to failure since it distorts the reality of the business.
* Many Nigerian business ventures are also affected by the personal failures of entrepreneurs. This is mostly experienced in workforce management. Other factors such as mismanagement of funds and poor business management skills have been identified as the main reasons why most businesses fail in Nigeria. This was found to cause around 30-35% of many business failures.
* The disparity between access to funds and operational knowledge is one of the reasons that lead to failure. This is due to the fact that many owners who have the capital to start the businesses do not have the necessary experience to run the business efficiently and most of the time the business ends up in bankruptcy due to the interruptions of the owner who insists on becoming in the manager. The Nigerian government should take this into account and address these issues for the success of the country’s entrepreneurs.
* Many of the Nigerian businessmen want to prove that they are successful in entrepreneurship and outshine others. This aspiration to impress others is potentially suicidal for both the entrepreneur and the business venture. Entrepreneurship is mainly a self-gratification project and the entrepreneur should be satisfied with his achievement and neglect the applause that others give to the company.
* Nigerian entrepreneurs want business ventures to be significant and last several seasons and expect demand for their products to be constant. This can cause them to overcommit multiple events to maintain this. This can be detrimental to the company. An entrepreneur must identify an opportunity that offers the required returns and pursue that opportunity.