Entrepreneurship is primary element of socio-economic development – Dr Dikwa
Founder and President of Al-Ansar Foundation, Dr. Mohammed Kyari Dikwa has described entrepreneurship as the primary element of socio-economic development in a country, adding that it contributes immensely to the social, economic, financial, and otherwise development of any country.
Dr. Dikwa stated this in his paper presentation titled “Entrepreneurship and SMEs as a panacea for National Development” at the maiden Annual General Conference of the FCT branch of the University of Maiduguri Alumni Association, which held in Abuja on Saturday.
Accoring to him, entrepreneurship is known to be a leading vehicle of job creation and economic growth all over the world. As such, countries pay special attention to the needs of entrepreneurs by creating strong infrastructural frameworks, conducive policy and strong legal and regulatory environments, improved access to capital, and protecting intellectual property rights and infant industries and technologies from unfair competition.
“Looking at the economic development of America, one cannot but admire the vision, courage and impacts of the so-called “Men Who Built America”. Cornelius Vanderbilt in railroads; John D. Rockefeller in oil and pipelines; Andrew Carnegie in steel; J.P. Morgan in finance and electric power; and Henry Ford in cars; names that represent industrial enterprise and big businesses in America.
“In Asia, the story is not much different today even though the business environment may be. Jack Ma of Alibaba, Wang Jianlin of Dalian Wanda and Liu Chuanzhi of Lenovo lead the way in a centrally planned economy. And in India, you have a string of successful family entrepreneurs including the Tatas, Ambanis, Birlas and the Mittals among others.
“I believe that in Nigeria, and indeed in Africa, a few good men and women can replicate and surpass these models and set the country firmly on the path of economic diversification, industrialization and self-sufficiency in food and other basic commodities, while also supporting millions of smaller entrepreneurs, service providers and innovators,” he said.
Tracing the history of entrepreneurship in Nigeria, Dr Dikwa said “Entrepreneurship in Nigeria started when the goods produced by its citizens exceeded their needs. They exchanged surplus items for what they needed. For instance, a farmer started selling out his farm produce in exchange for meat from a hunter.
“Farmers started selling their farm produce and engaging the services of their family members for greater output. While farmers farmed, non-farmers engaged in other activities like craft work. These entrepreneurial activities improved Nigerian economy until the colonial era.”
He added that Small and Medium Enterprises (SMEs) occupy a place of pride in virtually every country or state. He said as a result of the significant roles of SMEs in the development and growth of various economies, SMEs have aptly been referred to as “the engine of growth” and “catalysts for socio-economic transformation of any country.”
In his words, “SMEs represent a veritable vehicle for the achievement of national economic objectives of employment generation and poverty reduction at low investment cost as well as the development of entrepreneurial capabilities including indigenous technology.”
He said other intrinsic benefits of vibrant SMEs include access to the infrastructural facilities occasioned by the existence of such SMEs in their surroundings, the stimulation of economic activities such as suppliers of various items and distributive trades for items produced and or needed by the SMEs, stemming from rural urban migration, enhancement of standard of living of the employees of the SMEs and their dependents as well as those who are directly or indirectly associated with them.
Dr Dikwa, however, expressed worry that despite the incentives, policies, programmes and support aimed at revamping the SMEs, they have performed rather below expectation in Nigeria.
“From this view point, the development of SMEs can be seen as one of the necessary condition for economic development. Presently, SMEs in Nigeria operates below the expected optimal level. These problems have reduced remarkably the volume and variety of production and employment possible for SMEs in the national economy. Small and Medium Enterprises (SMEs) in Nigeria have not performed creditably well and hence have not played the expected vital and vibrant role in the economic growth and development of Nigeria,” he lamented.
He called on governments to include vocational and entrepreneurial training in the education system of their respective states so that their people are exposed to entrepreneurship from childhood.
He also urged governments to offer targeted incentives to entrepreneurs for the development of major sectors that are presently underserved and business development services to set up business support services firms.