‎Part 2. Entrepreneurship is a scam in Nigeria as well as a Multiplier of Poverty and Unemployment.



For those who need to read the first part, go through the link below.‎ ‎
https://www.nairaland.com/2983340/entrepreneurship-nigeria-scam-multiplier-poverty‎


Entrepreneurship is the only solution the government has shown for the eradication of mass unemployment. Entrepreneurship in Nigeria is scam, an inherent failure, because it has failed to create jobs while it has also handicapped our graduates and youths from creating jobs.


Firstly, why are graduates being persuaded into vocational education and entrepreneurship? The reason why graduates are told to engage in entrepreneurship (businesses such as making pop-corn, liquid soap, plantain chips, cakes and so on) is not of a fact that there are no jobs, it is because graduates are poorly educated to create jobs.


Consider a typical electrical engineering graduate of a Nigerian university/polytechnic, who has adequate classroom/theoretical training but lacks requisite practical training, would find it difficult securing a job that needs practical experiences in electrical engineering. Likewise, he will find it almost impossible to set up an electrical engineering business. 


However, the difficulty in securing job opportunities as well as job creation is not only limited to electrical engineers, it is a fact that graduates of other courses are not left out in this precarious situation. The electrical engineering graduates are supposed to be in the fore-front of design and manufacturing of solar panels, electricty generating turbines, transformers and other power generation, transmission and distribution facilities to help solve the power problem in Nigeria. Unfortunately, the typical Nigerian electrical engineering graduate went to a campus blessed with empty labs and obsolete worshops, so how could he have acquired practical skills to invent, innovate or replicate?


Employers don't make things easy for the fresh graduate, cos it is being required of him to have about five years working experience before he can get employed. As a result of the inability of successive governments to provide jobs for fresh graduates, entrepreneurship and vocational education was postulated. So the electrical engineering graduate starts thinking of how to become an entrepreneur in car wash, frying akara, hair dressing, laundry and so on. What an abberation!


His counterpart in advanced contries has both classroom and lab/workshop experiences, so he is welcome in any establishment over there. He doesn't need to have one year of field experience before he can secure a job opportunity.  He is equipped to innovate, invent or replicate any electrical engineering component as a result facilities available to him. He has the enabling environment commercialise his prototype, starting as a small business then growing to become a global venture.


At this juncture, I have categorised  the types of entrepreneurs that exists in the world into four.
1. Capital entrepreneurs: They are people with capital to invest in any kind of business they love. Many are into importation of finished goods while some are into manufacturing and service provision. Some are 'Dangote-like', because they invite expatriates as well as import machines to set up large companies. They 'sometimes' invest in research (especially in developed countries) in order to have innovative products.


2. Conditional Entrepreneurs: ‎They are people who became overnight entrepreneurs due to unemployment, profiteering and availability of extra income. They are mostly novice when it comes to entrepreneurship. This is the category our graduates belong, as they are being forced to acquire vocational skills because the government has no job for them.


3. Innovative entrepreneurs. They are products of qualitative education as well as research in science and technology. They make prototype products, form enterprises by commercialising their products, later grow them into large scale ventures. Microsoft Corporation, General Electric and Facebook are few examples of innovative entrepreneurship.


4. Traditional entrepreneurs: These are the entrepreneurs we have always been having around, such as restaurants, retailers, taxi, drivers,  bricklayers, event decorators, bakers, carpenters and mechanics. Only few small scale entrepreneurship of these kind of do grow into medium ones. No nation has ever achieved development by laying emphasis on this type of entrepreneurship.


‎Capital entrepreneurship as well as enormous investment in innovative entrepreneurship are the two major focus of nations that have achieved rapid development. Nigeria spends so much on the development of traditional and conditional  entrepreneurship but has totally neglected the development of innovative entrepreneurs. This is why poverty and unemployment is being multiplied in Nigeria. Capital entrepreneurs are so few in Nigeria, so their imapct on the economy is very limited.
‎

The mere conditional entrepreneurship we practice in Nigeria is 'kobo wise, Naira foolish'! The government saves so much money (spend too little on education) by denying students qualitative training in higher institutions, and then offering huge loans during NYSC in order to start fictitous businesses. The innocent corps members do a lot of brain-storming on the kind of businesses they can start, but alas, only a handful can think make positive attempt. So how do we measure the success of the meagre investment in schooling, when students graduate without job creation capabilities?


Entrepreneurship is a failed remedy. A remedy provided for unemployed graduates after they have spent many years in the higher institutions without having job creation capabilities. Graduates don't need monies to be turned chin-chin entrepreneurs overnight, they needed the monies for intensive trainings, highly eqipped laboratories and workshop while as undergraduates.


Most people do not know that our kind of entrepreneurship is responsible for the perpetual importation of toothpicks, soaps, wheelbarrows, vegetable oil, rice and so on.  There are only two ways these products can be massively produced in Nigeria, it is either capital entrepreneurs import the machines to make the products or the innovative entrepreneurs invent (or replicate imported) machines. Unfortunately, capital entrepreneurs prefer importing finished goods to importing production machines while our graduates are poorly equipped to invent (or commercialize their prototypes) machines as well.


The present fall in the value of naira is basically a problem caused by the types of entrepreneurship we practice. The major foreign exchange earner Nigeria has is crude oil, but capital entrepreneurs import almost every other item, even items produced locally in large quantities, such as toothpaste, shoes, palm oil, drinks and furniture. For example, if Nigeria earned 1000 dollars daily when crude oil was sold at about 100dollars per barrel in 2013, entrepreneurs made demand of goods worth 500 dollars same day, no thanks  items they needed to import.


 But Nigeria now earns 400 dollars daily in 2016 when crude oil sells for 40 dollars per barrel and dollar demand for importation remains the same. It is practically impossible for the government to release the whole income for importation. So this results in scarcity of the dollar which culminates into attempt to devalue the naira. Capital entrepreneurs keep importing almost everything cos they make huge profit from the perpetual importation.


Nigeria's natural resources have been left to lie untapped over the years, no thanks to the continuous policy of capital entrepreneurship which awaits foreign investors and capital entrepreneurs invest before resources are tapped. Asian Tigers have achieved rapid development by laying less emphasis on traditional entrepreneurship, but by making entrepreneurs out of the professions of their students and graduates as well as providing conducive environment for foreign investors. 


Higher institutions and research centers in the Asia Tiger nations are heavily equipped for students to acquire practical knowledge and this has culminated into having graduates who later created jobs. Graduates of higher institutions in Asia Tiger nations have become innovative entrepreneurs in line with the courses they studied on campuses. 


Though they have little natural resources yet they are known to have SMEs in hi-tech products and not in beer palour, cake baking, and hair dressing businesses. Nigerians have erroneously believed that SME was used to develop the Asian Tiger nations without finding out the types of goods and services they produce as well as how their production capabilities were built.


Undergraduates studying agricultural courses should be empowered (both with finance and modern implements) to own farms before and after graduation. I believe funding of our agriculture student/graduates is possible since the government can pay huge sums to medical students during their internships. We need to fix the graduates of agriculture into our agricultural sector, as in people who can access information, modern tools and techniques for abundant job production as it is done in advanced countries.


Finally, with my four years of active engineering practice after my NYSC program, all I can see is that tackling the problems of unemployment and poverty may be difficult unless there is a paradigm shift in our job creation approach from having more traditional and conditional entrepreneurs to turning our graduates into innovative entrepreneurs.

Twitter @oneolajire
oneolajire2000@yahoo.co.uk
From Philippian Solutions


Also by the OP, Eradicating mass unemployment with realistic job creation strategies

https://www.nairaland.com/3060620/eradicating-mass-unemployment-realistic-job

Eradicating mass unemployment with realistic job creation strategies, also by OP

https://www.nairaland.com/3060620/eradicating-mass-unemployment-realistic-job

This is fantastic! One of the best articles on Nairaland. OP you've done a very wonderful job.


Frontage pleaseeeeee

Policy makers in Nigeria, over to you

Its shameful that the children of the rich who have access to large amounts of capital and sound technical advice wil never go into enterpreneurship. Rather their parent will fix them in CBN

The OP made some very valid points, one of which is that there is no substitute for quality education. And while I agree that we need more of capital and innovative entrepreneurs seeing as they create more in both the short and long run than traditional and conditional(?) entrepreneurs, we also cannot ignore the positive role that they play in the economy. Today, in the Nigerian economy, there is the prevalence of the primary and tertiary sectors while the secondary sector, which should be at the vanguard, is actually at the backstage, and therein lies the problem. Good job, OP!

Gmajor:
Its shameful that the children of the rich who have access to large amounts of capital and sound technical advice wil never go into enterpreneurship. Rather their parent will fix them in CBN

Don't mind them. While they fix their wards in positions of paid employment, they fill our ears with the beauties of soap-making and subsistence farming.

solutionsnow:
This is fantastic! One of the best articles on Nairaland. OP you've done a very wonderful job.


Frontage pleaseeeeee

Policy makers in Nigeria, over to you

thanks, I appreciate

Ghost01:
The OP made some very valid points, one of which is that there is no substitute for quality education. And while I agree that we need more of capital and innovative entrepreneurs seeing as they create more in both the short and long run than traditional and conditional(?) entrepreneurs, we also cannot ignore the positive role that they play in the economy. Today, in the Nigerian economy, there is the prevalence of the primary and tertiary sectors while the secondary sector, which should be at the vanguard, is actually at the backstage, and therein lies the problem. Good job, OP!

you dont need to develop traditional and conditional entrepreneurs, they automatically find thier place in the economy. If you take a good look at developed countries their natives are innovative entrepreneurs while foreigners are the traditional and conditional entrepreneurs. The foreigners do meanial jobs that the natives don't do.

Conditional and traditional entrepreneurship has never developed and nation, I mean no nation.

Ghost01:
Don't mind them. While they fix their wards in positions of paid employment, they fill our ears with the beauties of soap-making and subsistence farming.

God bless you, they are all lairs.

Gmajor:
Its shameful that the children of the rich who have access to large amounts of capital and sound technical advice wil never go into enterpreneurship. Rather their parent will fix them in CBN

see what innocent and helpless Nigerians are facing in the hands of the rich.

solutionsnow:


see what innocent and helpless Nigerians are facing in the hands of the rich.

That's serious

;Dseriously this makes me laff in Portuguese lang..pot...pot...pot....imagine laid muhd pikin dey barb for abuja...ldkmd

oneolajire:


you dont need to develop traditional and conditional entrepreneurs, they automatically find thier place in the economy. If you take a good look at developed countries their natives are innovative entrepreneurs while foreigners are the traditional and conditional entrepreneurs. The foreigners do meanial jobs that the natives don't do.

Conditional and traditional entrepreneurship has never developed and nation, I mean no nation.

truthfully, pop corn and chin chin entrepreneurship does not develop a nation.

balarabe01:
;Dseriously this makes me laff in Portuguese lang..pot...pot...pot....imagine laid muhd pikin dey barb for abuja...ldkmd

Meaning what? Pls this is an intellectual discussion, you are permitted to contribute constructively.

Until we attain a firm consensus, and all encompassing meaning of Entrepreneurship, we'd continue to dabble into endless arguments.

I'll like you to define the following:

Trader
Merchant
Sole proprietor
Entrepreneur
Intrapreneur
Social entrepreneur
Industrialist
Self-employed
Businessman
Enterprise
Company
Start-Up
Corporation
Business
SME
Organisation
Trade


Upon completion, we can then begin to talk about the accuracy of your article sir.

Acidosis:
Until we attain a firm consensus, and all encompassing meaning of Entrepreneurship, we'd continue to dabble into endless arguments.

I'll like you to define the following:

Trader
Merchant
Sole proprietor
Entrepreneur
Intrapreneur
Social entrepreneur
Industrialist
Self-employed
Businessman
Enterprise
Company
Corporation
Business
SME
Organisation
Trade


Upon completion, we can then begin to talk about the accuracy of your article sir.

since you are here, I don't need to waste my time replying the op

Acidosis:
Until we attain a firm consensus, and all encompassing meaning of Entrepreneurship, we'd continue to dabble into endless arguments.

I'll like you to define the following:

Trader
Merchant
Sole proprietor
Entrepreneur
Intrapreneur
Social entrepreneur
Industrialist
Self-employed
Businessman
Enterprise
Company
Start-Up
Corporation
Business
SME
Organisation
Trade


Upon completion, we can then begin to talk about the accuracy of your article sir.

You have not even got the perspective of the OP and seems you dont want to get it. He is really talking of how to we can greatly reduce graduate unemployemt by making innovative entrepreneurs out of them.
Nigerians love to recycle policies and that have lesser than 10% success. Lets grow this country like South Korea grew hers.
The result of our policies will tell in ten twenty years to come.

Besides your comment seems argumentative without proferring a curative solution to the endemic problems of poverty and unemployment in Nigeria.

solutionsnow:


You have not even got the perspective of the OP and seems you dont want to get it. He is really talking of how to we can greatly reduce graduate unemployemt by making innovative entrepreneurs out of them.
Nigerians love to recycle policies and that have lesser than 10% success. Lets grow this country like South Korea grew hers.
The result of our policies will tell in ten twenty years to come.

That he can achieve without demeaning other stakeholders in the value chain. He can condemn the lack of innovative entrepreneurs without necessarily dragging those who love social entrepreneurship or trade to the mud.

Some of these firms he mentioned are older than Nigeria. Besides, I think an innovative entrepreneur would excel independent of the government. Nobody succeeds on 100% handouts from the government.

Acidosis:


That he can achieve without demeaning other stakeholders in the value chain. He can condemn the lack of innovative entrepreneurs without necessarily dragging those who love social entrepreneurship or trade to the mud.

Some of these firms he mentioned are older than Nigeria. Besides, I think an innovative entrepreneur would excel independent of the government. Nobody succeeds on 100% handouts from the government.

the OP is saying we should Major in creating millions of innovative entrepreneurs from our higher institutions each year, and MINOR in creating traditional entrepreneurs. If the OP has to 'demean' the alarming rate at which Nigeria grows traditional and conditional entrepreneurs, he is correct. Really correct.

Acidosis:
Until we attain a firm consensus, and all encompassing meaning of Entrepreneurship, we'd continue to dabble into endless arguments.

I'll like you to define the following:

Trader
Merchant
Sole proprietor
Entrepreneur
Intrapreneur
Social entrepreneur
Industrialist
Self-employed
Businessman
Enterprise
Company
Start-Up
Corporation
Business
SME
Organisation
Trade


Upon completion, we can then begin to talk about the accuracy of your article sir.

What do you call this? To find definitions for those words? Am not on nairaland for arguments and you are not forced to believe my opinion.

What am saying is that we don't need the gospel of entrepreneurship if our students are given qualitative education cos they will naturally create jobs as a result of facilities available to them.

oneolajire:


What do you call this? To find definitions for those words? Am not on nairaland for arguments and you are not forced to believe my opinion.

What am saying is that we don't need the gospel of entrepreneurship if our students are given qualitative education cos they will naturally create jobs as a result of facilities available to them.

All around the world, majority go to school with the aim to obtain a job in Microsoft, GTB, GE, etc.

Had it been the gospel of entrepreneurship started earlier, Nigeria must have grown beyond this level. While Dangote was building his edifice, how many of our parents had the guts to launch a startup. Go and ask anyone within the age group of 60 - 70, they'll tell you the fact that JOBS were readily available for even primary school leavers. They practically begged people to take government jobs.

My dad fired himself on a Friday and got another job with the Kwara State Govt on Monday without stress or connection.

If the gospel of entrepreneurship, innovation and technology was preached 40 years ago, we would have gone beyond this level.

Nobody in Nigeria ever thought about owing a private university until 1996! Just imagine!! Meanwhile, the oldest private university in the world opened its gate in 1636 (LOL!).

Let the message of entrepreneurship sink deep into ALL. Nigerians presently have some innovative entrepreneurs (e.g. founders of Jobberman, Konga, etc), it will get better with time.

What I think you should address is the inadequate number of Industrialists. Some students have great plans, but it takes series of "traditional entrepreneurial" tasks to achieve their aims. No bank in the world fund "innovative ideas", especially those raised by 'poor students'

Acidosis:


All around the world, majority go to school with the aim to obtain a job in Microsoft, GTB, GE, etc.

Had it been the gospel of entrepreneurship started earlier, Nigeria must have grown beyond this level. While Dangote was building his edifice, how many of our parents had the guts to launch a startup. Go and ask anyone within the age group of 60 - 70, they'll tell you the fact that JOBS were readily available for even primary school leavers. They practically begged people to take government jobs.

My dad fired himself on a Friday and got another job with the Kwara State Govt on Monday without stress or connection.

If the gospel of entrepreneurship, innovation and technology was preached 40 years ago, we would have gone beyond this level.

Nobody in Nigeria ever thought about owing a private university until 1996! Just imagine!! Meanwhile, the oldest private university in the world opened its gate in 1636 (LOL!).

Let the message of entrepreneurship sink deep into ALL. Nigerians presently have some innovative entrepreneurs (e.g. founders of Jobberman, Konga, etc), it will get better with time.

What I think you should address is the inadequate number of Industrialists. Some students have great plans, but it takes series of "traditional entrepreneurial" tasks to achieve their aims. No bank in the world fund "innovative ideas", especially those raised by 'poor students'

Firstly am not sure you read my post. I assume you commented based on the topic or your assumptions.

Jobberman (Opeyemi) is a 2009 graduate of computer Science from OAU. Is that not an innovative entrepreneur? What am saying is that we need graduates from all disciplines to become job creators in line with the courses they studied on campus.

Pls read part 1 of my article, the link is on the first paragraph of this article.

Your points does not show that you have read books of how nations got developed. You can read them on-line anyway. I have read a lot of them, I know what those nations are doing now.

Acidosis:


All around the world, majority go to school with the aim to obtain a job in Microsoft, GTB, GE, etc.

Had it been the gospel of entrepreneurship started earlier, Nigeria must have grown beyond this level. While Dangote was building his edifice, how many of our parents had the guts to launch a startup. Go and ask anyone within the age group of 60 - 70, they'll tell you the fact that JOBS were readily available for even primary school leavers. They practically begged people to take government jobs.

My dad fired himself on a Friday and got another job with the Kwara State Govt on Monday without stress or connection.

If the gospel of entrepreneurship, innovation and technology was preached 40 years ago, we would have gone beyond this level.

Nobody in Nigeria ever thought about owing a private university until 1996! Just imagine!! Meanwhile, the oldest private university in the world opened its gate in 1636 (LOL!).

Let the message of entrepreneurship sink deep into ALL. Nigerians presently have some innovative entrepreneurs (e.g. founders of Jobberman, Konga, etc), it will get better with time.

What I think you should address is the inadequate number of Industrialists. Some students have great plans, but it takes series of "traditional entrepreneurial" tasks to achieve their aims. No bank in the world fund "innovative ideas", especially those raised by 'poor students'

firstly, it seems you are very young and you don't know the effect of unemployment in Nigeria, especially graduate unemployment.

Secondly, you need to read wide, you can search the internet about points am going to raise now.


First industrial revolution
second industrial revolution
OECD countries
silicon valley
Asian Tigers
Newely Industrialised Economies

when you read these, you will fully agree with the OP

solutionsnow:


firstly, it seems you are very young and you don't know the effect of unemployment in Nigeria, especially graduate unemployment.

Secondly, you need to read wide, you can search the internet about points am going to raise now.


First industrial revolution
second industrial revolution
OECD countries
silicon valley
Asian Tigers
Newely Industrialised Economies

when you read these, you will fully agree with the OP

You forgot to include emerging economies/markets (BRICS), and the fact that Nigeria is barely referred to as an emerging economy. We still have a very long way to go.

Thanks though, I'll read more.

Acidosis:


You forgot to include emerging economies/markets (BRICS), and the fact that Nigeria is barely referred to as an emerging economy. We still have a very long way to go.

Thanks though, I'll read more.

Why does he need to add emerging economies as well as BRICS when he had alreay added Newly Industrialised Economies?

solutionsnow:


the OP is saying we should Major in creating millions of innovative entrepreneurs from our higher institutions each year, and MINOR in creating traditional entrepreneurs. If the OP has to 'demean' the alarming rate at which Nigeria grows traditional and conditional entrepreneurs, he is correct. Really correct.

Yea,

Thanks for your emails. I appreciate

one word for graduate. BUILD YOUR DREAM OR SOME ELSE WILL HIRE YOU TO BUILD THIERS

Morewealth121:
one world for graduate. BUILD YOUR DREAM OR SOME ELSE WILL HIRE YOU TO BUILD THIERS

what the OP is saying is that most graduates of developed countries built their dreams in-line with the courses they studied on campuses, so they were able to create abundant job opportunities. But Nigeria wants all graduates to build their dreams along the same chin chin and liquid soap production.

Besides, why should we turn out graduates if we can make them white collar job creators?

Pls what are the dreams, special dreams you have for today's graduate? Thank you

wonderful write up op. I could remember when I gained admission into FUTO to study my dream course which is mechanical engineering. I had the mentality that when I entered school, I would look for a professor to work as a lab assistant or help with his research work and most likely become very good in my field, I never knew that watching Hollywood movies and trying to replicate it in Nigeria is a waste of time.
I just finished serving and I could remember vividly when the society of Engineer members representing Ekiti came to camp to address us, I asked them if they had any platform for young graduate engineer to learn or practice something related to engineering and they where all talking up and down. it was absolutely disheartening.
presently, I am searching for job and truthfully if can also get anywhere were I could practice my profession even if I am not paid, I would gladly take the offer.
I have been saying this, if Nigeria wants to grow, that one year NYSC could be restructured so that engineering students use that period to learn practical things for one year in camp. imagine learning how to use CNC machines, learning foundry, welding, various type of fabrication technology, mechatronics, etc. I would be able to proffer solution to so many problem in my immediate environment.
this was what developed countries did.

cooljude:
wonderful write up op. I could remember when I gained admission into FUTO to study my dream course which is mechanical engineering. I had the mentality that when I entered school, I would look for a professor to work as a lab assistant or help with his research work and most likely become very good in my field, I never knew that watching Hollywood movies and trying to replicate it in Nigeria is a waste of time.
I just finished serving and I could remember vividly when the society of Engineer members representing Ekiti came to camp to address us, I asked them if they had any platform for young graduate engineer to learn or practice something related to engineering and they where all talking up and down. it was absolutely disheartening.
presently, I am searching for job and truthfully if can also get anywhere were I could practice my profession even if I am not paid, I would gladly take the offer.
I have been saying this, if Nigeria wants to grow, that one year NYSC could be restructured so that engineering students use that period to learn practical things for one year in camp. imagine learning how to use CNC machines, learning foundry, welding, various type of fabrication technology, mechatronics, etc. I would be able to proffer solution to so many problem in my immediate environment.
this was what developed countries did.

Brother, your story is not different from that of most graduates, especially those who studied engineering. It is so pathetic that dreams have been cut short, cos there were no avenues for to explore and develop their ideas. May God give us divine help

Nice write up Engr,
From the aforementioned and holistic approach culminating into curative measures with respect to our country's pressing challenge of job creation and provision of Employment opportunities for our teeming graduates that have been withal job placements ...
I agree totally with this master piece as lack of innovation, invention and productivity should not be tolerated in a setting where currency appreciation and economic boost is desired.
I commend you sir and it's worthy to note that if adhered to... Then massive improvement in the state of our nation is not far-fetched.
#kudos