World Entrepreneurs' Day 2022

The purpose of World Entrepreneurs' Day is to create awareness of entrepreneurship, innovation, and leadership around the world, and August 21 is the day dedicated to the celebration of entrepreneurs that have brought new ideas and innovation to their communities and the world at large.

The industrious nature of Nigerians has made the word "entrepreneur" quite popular in the past decade, coupled with the difficulty of getting white-collar jobs. Young people have no other option than to turn to entrepreneurship to create a living for themselves.

Despite the seemingly forced nature that sometimes brings about the need to become an entrepreneur, entrepreneurship is important for job creation, problem-solving, and increased economic growth.

Small and Medium Scale Enterprises (SMEs) in Nigeria

The number of SMEs in the country has grown in the past few years and they now account for over 95% of businesses, 84% of employment and contribute about 48% of the national gross domestic product (GDP) (PwC Nigeria SME survey).

In spite of this laudable contribution to the country’s economy, there are still some factors that slow down the development of SMEs. Once solutions to these challenges are found, SMEs can reach their full potential, which will enable them to contribute even more significantly to the economy.

Here are a few of the challenges that impede the growth of SMEs:

• Lack of access to capital
  The inability to access funds to start a small business is one of the major hindrances to the growth of SMEs around the country. Some commercial banks do not provide loans to new SMEs, and when they do, business owners are unable to provide the required collateral. In other cases, the high-interest rate can be quite discouraging.
  
  However, the federal government and several state governments have played significant roles in helping people with funding and equipment to start their own businesses. More of these initiatives are welcome around the country.
  
• Multiple levies and taxes
  Too many levies and taxes from the local, state, and federal governments can end up discouraging people from starting their businesses. Ensuring a low bar of entry through fewer levies will help to get more people to start their businesses without fear of being taxed to the detriment of their business.
  
• Poor physical infrastructure
  Even though the government has put in some effort to improve infrastructure around the country, so much more still needs to be done. These problems include epileptic power supply, improper waste disposal, lack of water supply, faulty transport systems, and bad roads. Unfortunately, not many businesses can survive without electricity and this severely hinders business growth.

The journey so far

To help with job creation, the government, with a lot of help from private businesses, offers a lot of skill acquisition programs that can be taken in person and online to reduce the dependence of a large population of youth on government jobs. By starting up businesses of their own, entrepreneurs contribute significantly to the growth of their country’s economy.

Are you an innovator, designer, manager, or founder who has an established business? We celebrate you today for the great work you're doing and your contribution to the economy.

Become an entrepreneur by becoming a BuyPower Merchant.

Setting up a business does not have to be difficult, but if you have been struggling with an idea, here's one that is easy to set up - become a BuyPower merchant.

Interested? Check out our guide HERE on how to get started.

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