IMPACT OF BUSINESS AND ENTREPRENEURSHIP ON NIGERIAN ECONOMY

At the end of this post, you would have learned the impact/effect of business and entrepreneurship on our economy in Nigeria.

I hope you will get inspired to start your own business and play your role in improving our economy.

Before we proceed, I’d love to define business and entrepreneurship in simple terms.

BUSINESS AND ENTREPRENEURSHIP DEFINITION

Entrepreneurship is the act of organizing and managing a business enterprise in a bid to make profit

Business is the act of producing goods and services for the consumption of the public in a bid to make profit.

The Economy of a country or region is based on the production and consumption of goods and services and the supply of money.

INTRODUCTION.

Several and recent researches have shown that economic growth and development in the world largely require the full participation of the entrepreneurs. Another research also revealed that entrepreneurs own over 30 percent of total wealth in the economy.

The impact of entrepreneurs cannot be relegated in our economy. Their contributions have affected the economy tremendously in the following ways:

1. INNOVATION:

Innovation is very important to the economic progress of any country.  They benefit consumers and the economy as a whole. It is the effective use of ideas, skills, creativities and technologies to improve the supply and the quality of goods and services offered to the public. They embrace changes and employ dynamic and evolving technologies to make profit thereby resulting in the growth of the economy.

2. DISTRIBUTION OF WEALTH:

The power of the economy is embedded in commercial activities. The concentration of economic power on a few has been reduced by the emergence of entrepreneurship. Several entrepreneurs that are known in the world are not elites, they didn’t know the forewalls of any educational institution but through entrepreneurship, they have created wealth for themselves and the society. Enterprise is a force that is necessary for the good of our economy. Aliko Dangote being a great entrepreneur is an example and his businesses are developing the economy in Nigeria

3. ERADICATION OF POVERTY AND UNEMPLOYMENT:

Developing Countries are successfully alleviating poverty in their countries by government creating businesses and encouraging the citizens to create wealth. Countries like India and Nigeria rates high in the poorest countries in the world but creating more businesses may help develop our economy and reduce dependence on the developing countries. Inadequate innovation and technology necessary for advancing the economy is also a big problem.

4. GENERATION OF REVENUES FOR GOVERNMENT:

Businesses generate large revenues for government through the payment of tax, dues and duties thereby increasing the amount of money in circulation and leading to the growth of the economy.

Businesses in Nigeria generate more than 30 percent wealth for the Government through The Company Income Tax.

5. COMPETITION:

Competition helps improve the economy by promoting productivity. Producers are put on their toes to give the best which results in dynamic markets and economic growth. The most important benefit of competition is that it results in goods and services being provided to consumers at competitive prices

CONCLUSION:

The future of any country’s economy is dependent largely on the entrepreneur. Governmental policies must be made to provide a sustainable environment for these businesses.

The development of big countries like the USA, UK, CHINA may be traced to the innovative and competitive nature of their entrepreneurs. When there are more businesses, the economy improves and the country develops.

Nigerians must be encouraged to create more business. Women-owned businesses have a credible impact on the economy. Women constitute the majority of the poorest in Nigeria and some of the wealthiest people in the world are women too.

Some success and influential women in business include Folorunsho Alakija, Oprah Winfrey. Etc. Women are the preservers of what is good, pure, and true in humanity and they are capable of transforming our country by creating more productive businesses.