Enterpreneurship | |
Enterpreneurship | |
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Tuesday, March 10, 2020 / 10:02 AM / For MTN Nigeria
Operating a self-owned business in Nigeria is not for
the faint-hearted, which is why entrepreneurship may easily be viewed with much
trepidation in this part of the world. However, there is increasing attention
on entrepreneurship and its potency in providing employment for the teeming
population of unemployed youths.
Estimates from Trading Economics showed that, the employment rate in Nigeria decreased to 77.3
percent in the third quarter of 2018 from 76.9 percent in the second quarter of
2018. Correspondingly, the country's unemployment rate in Nigeria according to the National Bureau
of Statistics increased to 23.1 percent in the third quarter of 2018
from 22.7 percent in the second quarter of 2018. For Nigerian youths,
(persons aged 15-24), the situation appears to be tinged with bleakness as the unemployment rate in that demography skyrocketed to nearly 20%
in 2019, as opposed to 9.84% six years ago. This calls for concern when
compared to other African countries such as Tanzania (3.4% in 2019), Togo (2.5%), Malawi (7.1%), Gambia (12.3%) and Sierra Leone's ( 8.5%).
Experts recommend entrepreneurship as the foundation
of any developed nation. The Registrar, Institute of Credit Administration of
Nigeria (ICA), Professor Chris Onalo, has stated that the government must
increasingly work to improve the ease of doing business by developing and
implementing more pro-market policies, and making the business environment more
attractive to investors. This also includes startups.
Speaking further on Entrepreneurship and doing
business in Nigeria, he addressed the following questions:
What is the state of doing business in Nigeria, and is
it as troublesome as imagined?
Nigeria has been ranked 131 out of 190 countries by the World bank in the
2020 edition of its Doing Business 2020 report. The report carries an annual
investigation into the regulations that enhance business activity and otherwise
in economies around the world. It analyzes economic outcomes and identifies
what economic reforms have worked, where and why. In spite of the seemingly low
ranking, Nigeria moved up from 146th position in the previous year to the 131st
position. This signifies the country's second-highest annual progress of 11.45%
in a decade. There is still more hope - Nigeria and other countries such as
Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China and
India, have been tagged the top 10 economies with the most noticeable
improvement (they implemented one-fifth of all the reforms recorded worldwide).
How does this affect the average Nigerian graduate
plagued with unemployment two to six years post-graduation?
With all its trappings and the psychological
preparation required, entrepreneurship may still be one of the most feasible
options for the country's rapidly growing unemployed population. Alejandro Cremades, Author
of The Art of Startup Fundraising & Serial Entrepreneur, shared in Forbes
that generally, fundraising is one of the biggest challenges of an
entrepreneur.
Recognizing these variables, MTN created the Youth
Entrepreneurship Development Programme, (YEDP), to aid young Nigerian
entrepreneurs. It began in 2019, with a selection process that streamlined
undreds of applicants to 75 candidates.
These candidates were selected from a pool of
recipients of the Foundation's scholarship schemes - MTN Foundation Science and
Technology Scholarship Scheme (MTNF STSS) Scheme and MTN Foundation Scholarship
Scheme for Blind Students (MTNF SBS). In February 2020, 51 shortlisted
entrepreneurs presented their business plans before a panel of seasoned experts
that included Group Heads and Managing Directors from the Bank of Industry
(BOI) and seasoned entrepreneurs. The businesses pitched were from within the
top 15 most lucrative business sectors in the country, as analysed by Wealth Result.
Akinlawon Abiodun of A & A Integrated Farms shared insights gleaned from his budding pig farm. Bakare Qudus, a graduate of Management Accounting from the Obafemi Awolowo University, is the CEO of Ultimate Solar, an oil and gas business operating from Surulere, Lagos. His in-depth research and analysis into the industry and his hands-on experience in his area were some of the advantages that were easily spotted by the judges.
Ultimate Solar's Bakare Qudus, during his
presentation Fela Akinse presenting Salubata to the panel of judges at the YEDP
Pitch
'Salubata', a shoe sizing app, has already received
awards for its innovation. The company's owner, Fela Akinse, required funds to
push the app from its seedling stage. He and other candidates are seeking up to
2 million Naira each, to enable them either develop their businesses or as means
of pushing already existing businesses.
Omolara Daniel is one of the faces behind Blindtech -
a blind graduate who seeks to aid other blind Nigerians access easily adaptable
technology and information. She has already brokered talks with various relevant
associations across the country.
If their business plans pass the stipulated criteria
as assessed by the Bank of Industry, MTN Nigeria will provide up to 100 million
Naira business support for up to 50 driven young entrepreneurs across varying
sectors. Some participants have been requested to revise their plans based on
learnings from the pitch and actual situational analyses of their sectors such
as their target market, competition, feasibility studies, etc.
Successful participants will receive loan support of
up to NGN 2,000,000 each with a grant of 10% on the principal amount. The loan
is repayable after 36 months at an interest rate of 5% with six months
moratorium. The MTN Foundation engaged the services of the Bank of Industry
(BOI), based on their expertise, as an administrative partner to review the
plans and select eligible businesses for the YEDP loan and drive the
implementation of this initiative.
This programme is another measure that ensures a quota
of the unemployed population stands a chance of operating viable businesses
that can contribute actively to the economy of smaller communities around
Nigeria. This is akin to the domino-effect of the small actions that
reverberate across a nation's economy.
Cross-section of MTN YEDP Participants during the
pitch Akinlawon Abiodun of A & A at the pitch session
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