Samuel Adebiyi, the pioneer director of enterprise promotions at Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has revealed that it is a fallacy for one to think that he or she cannot start a business without money.
Adebiyi explained that there are many potential businesses that do not see the light of the day in Nigeria because of over-reliance on having enough money before starting a business.
“Finance, no doubt, is needed to weather the storm of bad times and to consolidate opportunities in good times. Without money, one cannot procure the inputs- men and materials needed for the business operations or comply with many regulatory specifications.
“Be that as it may, the truth must also be told that just like there are many business ideas that could not be birthed for lack of funds, there are many small business initiatives that have been suffocated to death by finance; albeit the conditions associated with the finance,”
According to the Nigeria Bureau of Statistics (NBC) report, the total number of enterprises in Nigeria is estimated at 41.5 million. The breakdown further shows that microenterprises constitute a high 99.8percent (41.4 million) of total small and medium scale enterprises (SMEs)
The statistics further reveal that SMEs contribute 48 percent of national gross domestic product (GDP), account for 96 percent of businesses and 84 percent of employment.
However, despite the significant contribution of SMEs to the Nigerian economy, there are bundles of challenges and fears that tend to hinder younger entrepreneurs from venturing into businesses.
Many potential entrepreneurs who spoke to BusinessDay revealed that their fears are rooted in not having enough money to prosecute the business, unanticipated change in government policies, fear of failure, among others.
Ayoposi Olateju, a property consultant disclosed that most times people are weighed down with the thought of how to raise the starting capital and how to sustain the business in midst of competitors.
Similarly, Joseph Olaoye, an entrepreneur in the transport industry stated that his worries are rooted in the fact that he failed in a previous business, and he does not want to take the risk again.
Obinna Okonkwo, a store owner said he could not start his intended business simply because he does not have enough money to kick start.
“In fact, I am looking for where I can borrow money at a low-interest rate,” he said.
For Bisola Babatunde, the challenge is that of location and space; and not necessarily money.
Read also: SMEDAN, NCC open digital academy for small businesses
According to the former SMEDAN boss, “Finance at usurious interest rates, finance with mismatched tenors, finance from inappropriate sources, finance with hidden or ‘small letter’ clauses, etc, are all business killers.
“Consequently, my concern here is that as vital as finance is to start a business, it is not by any means the first consideration for starting a business. As a matter of certainty, finance is not as important as the business idea itself.
“Come to think of it, before you will need money to prosecute a business, you must have gotten the business idea. Whenever there is a vision, there will invariably be a provision,” he said.
Adebiyi explained that every business starts as an idea fuelled by desire. “Ideas rule the world”, it is said. Many successful businesses all over the world came to be via ideas.
“To look for finance before the business idea formulation and business plan preparation is like putting the cart before the horse, acting before thinking, or leaping before looking,” he noted.
Furthermore, he pointed out that there are many business ideas that can be started with little or no financial investment, but which can later be converted into money-making ventures. Hence, it is purely a question of ‘good thinking, auspicious business.’
Adebiyi moreover explained that from such a non-cash dependent business, savings can be made to trigger the money dependent business. Besides, he went on to say, “Beyond and besides money in starting a business are certain fundamental qualities or attributes which the entrepreneur must possess before venturing into any business.”
The chief executive officer of R&S Foundation, a non-governmental organisation encouraged potential young entrepreneurs to first develop business ideas, have passion for the business, and then be optimistic about succeeding in the business, among other qualities.
“It is suicidal for one to venture into a business he does not have passion for, and criminal to be in business without having the confidence/optimism to succeed,” he noted.
He also encouraged young businessmen and women to go into networking in situations where they do not have all that is needed to start well and sustain the business.
“No man is an island, just as no business is meant to be an island. Successful entrepreneurs are those who are able to get into a network and remain there. Business owners need sharp social instincts to be able to effectively network.
“While the list as above is not exhaustive, it must be noted that all the requisite success attributes may not be found to reside in one person per time. When that happens, the dynamic entrepreneur will seek to fill the gaps by further self-development, or seek critical compliments from other like-minded people, he said.
