Introduction:
As a seasoned entrepreneur and former Senior Assistant to Governor Gabriel Suswam, I have witnessed firsthand the challenges faced by entrepreneurs and identified key areas where government interventions can boost business growth. This presentation focuses on unlocking the entrepreneurial potential in Benue State through strategic policies, infrastructure development, and leveraging innovative technologies.
The Quest for Foreign Investors: The Reality
The government of Benue State has been actively searching for foreign investors to bring much-needed capital and expertise into the region. Previous governors have embarked on trips to Netherlands, India, and the United States, in addition to foraying into China in the last dispensation. Despite announcing over 35 Memoranda of Understanding (MoUs) with various governments, there has been no direct response or investment from these invitations. The quest for foreign investors, while important, should not overshadow the potential that lies within the homegrown entrepreneurship potential of Benue State. Ignoring local entrepreneurs and solely focusing on attracting foreign investment is a missed opportunity for growth and development.
Challenges Faced by Entrepreneurs in Benue State:
- Poor Infrastructure: The inadequate road network, unreliable water supply, and limited access to telecommunication facilities make it difficult for entrepreneurs to operate efficiently and expand their businesses.
- Unfavorable Tax Environment: Despite minimal government incentives, entrepreneurs bear the burden of high taxation, which hampers their ability to reinvest and grow their businesses.
- Electricity Supply: The irregular and often non-existent power supply in Benue state restricts business operations, resulting in higher costs due to the need for alternative power sources such as generators or solar energy.
- (a) Lack of Deliberate Policy on Entrepreneurship: Benue State lacks a comprehensive policy framework that incentivizes entrepreneurship, leading to missed opportunities for economic growth and development.
(b) Lack of data and statistics information to project profitability and business performance analysis. Lack of access to capital/high rates of credit. Bank credit is very expensive and the conditions to access credit is mostly a big factor affecting businesses in the state. Many businesses don’t own property or estates to use collateral for accessing back credit.
Furthermore, it is crucial to emphasize the importance of government policy in either fostering or hindering business growth. A personal anecdote vividly illustrates this point.
Two years ago, I made an investment in a diesel truck to start a haulage business.
Excited about this venture, I shared the news on my Facebook page, receiving numerous encouraging comments from friends and well-wishers.
However, my elation quickly turned to disappointment when the price of diesel dramatically skyrocketed from N185 to an astounding N900 per liter. This sudden price hike rendered my truck idle, as the cost of operating it became exorbitant. Such an unexpected, adverse policy change severely impacted my business prospects and serves as a cautionary tale for the critical role government policies play in the success or failure of entrepreneurial ventures.
Government policies must be carefully crafted and implemented to promote a conducive business environment. Stable and predictable price regulations on essential commodities such as fuel are crucial to enable entrepreneurs to plan and invest in their respective industries confidently.
By developing transparent policies that encourage investment, the government can foster business growth, generate employment opportunities, and expand revenue streams, ultimately contributing to the overall development and prosperity of Benue State.
The abrupt removal of fuel subsidies by the current government reflects a reckless and unplanned approach to governance, with severe consequences for businesses and individuals alike. While the intention to curb corruption and ensure transparency is commendable, the sudden pronouncement led to a skyrocketing increase in fuel prices, causing widespread economic disruption. Within a matter of seconds, the prices skyrocketed from N187 to N540 per liter, today it’s selling at N617, speculations are rife with a new price at N720 catching consumers off guard and resulting in a surge in food prices and transportation costs.
This unforeseen outcome has had a ripple effect throughout the economy, with businesses struggling to stay afloat and citizens burdened by soaring expenses.
To mitigate such damaging effects, it is imperative for the government to adopt a more strategic and long-term approach to policy-making.
2. A well-planned and phased removal of fuel subsidies, coupled with comprehensive infrastructure development, could have softened the blow on businesses and citizens this would be achieved by investing in the construction of railways connecting major cities, such as from Lagos to Kano, and Port Harcourt to Maiduguri and improving federal highways nationwide, the government could have facilitated the movement of goods and people at a lower cost.
Additionally, the introduction of affordable and secure national luxurious bus alternatives to private cars would alleviate the burden on citizens while promoting public transportation and reducing congestion on the roads with the use of private cars and haulage services.
Furthermore, it is crucial for the government to ensure that all transportation routes and stations are adequately secured, with proactive measures to address incidents of insecurity including but not exclusive to using surveillance systems combined with good and modern policing etc. By creating a safe and reliable transport network, businesses would be able to operate efficiently, citizens could travel with peace of mind, and the overall economy would experience less disruption.
This strategic, planned approach to government policy would minimize the negative impact on businesses and citizens, ultimately leading to sustainable economic growth and development thereby creating a wealth by increasing investment opportunities.
Strategies for Government and Entrepreneur Interventions:
- Improve Infrastructure: The government must prioritize investing in infrastructure development by rehabilitating roads, improving water supply, and expanding telecommunication networks, building of railways to conveyance of heavy duty haulage and provide affordable but efficient travel alternatives etc providing entrepreneurs with a conducive environment for business operations and growth.
- Tax Incentives: Creating a favorable tax regime for entrepreneurs, such as tax breaks, exemptions, and simplified tax procedures, can encourage business expansion, increase government revenues in the long run, and promote job and wealth creation.
- Enhance Electricity Supply: The government should collaborate with private investors to improve electricity generation, transmission, and distribution infrastructure, enabling reliable and affordable power supply to businesses.
Leveraging Information and Communication Technologies (ICTs) for Economic Growth:
- E-commerce: Entrepreneurs can leverage ICTs to establish online marketplaces, enabling them to reach a wider customer base and overcome geographical limitations, thus contributing to increased sales and revenue.
2. Digital Marketing: Utilizing AI-powered tools, entrepreneurs can target specific consumer groups more effectively, optimize marketing campaigns, and develop personalized strategies tailored to customers’ preferences.
3. Online Delivery Services: Leveraging ICT infrastructure can facilitate the establishment of delivery services, ensuring timely and efficient distribution of goods to customers in remote areas, thereby expanding market reach.
4. In a meeting like this, we can begin to immediately form synergies and partnerships to raise capital for startups. There is no gain owning 100% stakes in your company and having no capital, it is better to own only 2% stakes and with huge capital base than nothing at all.
5. Overcoming the lack of bank credit and high cost of capital can be challenging for small startups, especially when they lack collateral. However, there are several strategies and government initiatives that can help in this regard.
Here are a few suggestions:
Seek alternative financing options: – Startups can explore alternative financing options such as crowdfunding, angel investors, venture capital firms, or microfinance institutions. These sources of funding may be more flexible in terms of collateral requirements and can provide the capital needed to kick-start your business.
Develop a strong business plan: A comprehensive and well-researched business plan can demonstrate your startup’s potential for success to potential investors.
This can help you secure funding from individuals or organizations that believe in your vision and are willing to invest
Leverage government support programs: Many governments offer various support programs specifically designed for startups. These programs often provide funding, mentorship, or low-interest loans to help small businesses grow.
Research and engage with government entities or agencies that offer such programs and take advantage of the resources available.
Collaborate with business incubators or accelerators: Joining a business incubator or accelerator can provide startups with access to funding networks, mentorship, and resources to help overcome financial barriers. These programs often connect entrepreneurs with investors and offer tailored support to accelerate business growth.
Advocate for supportive policies: Engage with local or national government bodies to advocate for policies that promote easier access to credit for startups.
Lobby for initiatives that reduce barriers to capital, such as tax incentives for investors, loan guarantee schemes, or relaxed collateral requirements.
Foster a supportive entrepreneurial ecosystem: Governments can help by fostering an environment that encourages the growth of startups through supportive policies, regulations, and infrastructure. This can include streamlining bureaucratic processes, creating innovation hubs, and establishing mentorship 4 programs or networking events to connect entrepreneurs with potential investors.
It is essential for startups to be proactive in seeking out these opportunities, building strong relationships with investors and government entities, and continuously refining their business models to enhance their credibility and attractiveness to potential investors.
By leveraging the available resources and support, startups can overcome financial challenges and pave the way for success.
Personal Success Story:
In conclusion, let me share my personal journey as an entrepreneur in Benue State. Starting with photography and videography services at events, my business evolved to selling GSM phones, and then to computers and accessories. Through continuous adaptation and engagement with opportunities arising from everyday activities, I successfully navigated the challenges present in our current business environment, leveraging technology and grabbing growth prospects where available.
A well framed timely legal operational environment that protects business owners and investors must be in place, else when investors have issues that require legal redress or protection, a delay in judicial proceedings can hamper and kill businesses and business vision. I have two cases in this regards I want to share with you in this regards.
Frozen yoghurt and fruities/smoothies place.. in 2011 I birthed this vision.
Palm oil factory and plantation farm..birthed in 2013. This case is still in courts so I will not comment much on it except within context of time frame to deliver judgements.
To foster economic growth and overcome the obstacles faced by entrepreneurs, it is imperative that both the government and entrepreneurs collaborate. By implementing the proposed strategies and harnessing the potential of ICTs, we can not only transform
Benue State into a thriving hub for entrepreneurship but also drive sustainable economic development, leading to enhanced government revenues, increased job opportunities, and heightened wealth creation.
- Inyom Dooyum Gideon, a forormer Senior Special Assistant to Governor Gabriel Suswam on Information and Communications Technology (ICT) and the CEO of ICompliance Tech Nig Ltd, presented this paper at a one-day Entrepreneurs Impact Forum in Makurdi on August 25, 2023.
DISCLAIMER
The OPINION / COLUMN is authored by independent contributors to the National Accord Newspaper. While contributors adhere to our editorial guidelines, they are not employed by the National Accord Newspaper. The perspectives and opinions expressed herein are solely those of the author and do not represent the views of the National Accord Newspaper or its staff.
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