Entrepreneurship in Emerging Economies (Paperback) | Released: 30 Dec 2022

Sub-Saharan Africa remains one of the poorest and least industrialized regions in the world. The reasons for the poor performance of the African nation have ranged from external shocks, underdevelopment of the private sector to flawed domestic policies.

The private sector which includes Small and Medium Enterprises (SMEs) constitutes the most feasible vehicle for self-sustaining industrial development from experiences especially in developed countries. SMEs indeed possess enormous capability to grow an indigenous enterprise culture more than any other strategy. From all accounts, SMEs represent the sub-sector of special focus in any meaningful economic restructuring programme that targets poverty alleviation, employment generation, food security, rapid industrialization and reversing rural-urban migration. Strengthening the private sector is thus a major priority for governments in any assistance strategy.

Although Nigeria is Africa's largest oil producer, petroleum production and consumption has probably brought out the best and worst of modern civilization in the country; petroleum has contributed enormously to the country's economic growth, but it has also resulted in the neglect of various other economic sectors and has had profound adverse impact on the Nigerian SME sector in particular.

Despite many development activities implemented in the past and potential opportunities available in Nigeria, the Nigerian economy at present is undergoing severe difficulties. Declining employment opportunities, a deteriorating situation of the infrastructure facilities, and increasing poverty have all worked together to constitute difficulties to the Nigerian economy. It is in this context that the SME sector can find its priority position in the development of the economy to strengthen a sustainable economic growth of the Nigerian nation.

The attitudes towards the SME sector and entrepreneurship in Nigeria is disappointing. Consequently, the future of many SMEs in Nigeria remains bleak, these firms continue to function in an unfavourable environment. The reality is that Nigeria lacks a comprehensive and effective strategy document for entrepreneurship practice and policy. Nigerian SMEs are not as innovative or productive when compared with SMEs in other countries. Nigeria lags behind top performing countries in generating and sustaining high-growth businesses and their involvement in export-oriented products and services is insignificant on a global scale when one considers the country's export-output against its vast human and natural resources. Nigeria boasts of a variety of policy initiatives, which have thus far failed to achieve any real or meaningful change in the sector. The Nigerian government has danced to the beat of the same senseless proverbial drum for the past six decades.

A large share of government support for SMEs and entrepreneurs is provided through theoretical incentives that have so far failed to be realized rather than targeted practical programmes. The problem is also exacerbated by the absence of good practices in entrepreneurship education across schools and universities. There is a dearth of best practice tools for entrepreneurial experiential learning in schools and universities and there is little support for developing entrepreneurial mindset and skills in the vocational education system. Co-ordination of policy vis a vis Nigerian female entrepreneurship also requires improvement. There are inequalities which affect women's entrepreneurship activities. Successive Nigerian governments have failed to advance the status of women and address these inequalities. There is a need to introduce a nuanced approach in line with 21st Century thinking to address some of the issues faced by the sector.