Coming from the perspective that you don’t ask an addict to stop an act without encouraging the replacement of a more beneficial practice, Africa must forget about aid and then build entrepreneurs if she must grow and become prosperous. Since it’s a known economic fact that entrepreneurship aids the economy in such a way that foreign aid can’t, be it in a developed or developing economy, African nations must encourage market as a better replacement for this economic addiction that has so far done more harm than good to the entire continent.
Entrepreneurs through innovation create new businesses that generate jobs, first for themselves, and then those they employ, and by so doing they give security to many. Small businesses in the United States for instance provide over 70 percent of the new jobs added to the American economy each year. In fact small businesses represent over 90 percent of employers in the United States.
Entrepreneurs are world changers, basically because their input to a large extent goes far beyond creating jobs and paying wages. At the point of solving problems, they drive quality innovation that enriches the life of the people by making life much easier and enjoyable. They provide us with services and products for needs we never knew we had. For example after the invention of computers and mobile phones, we really never considered that we would need ipads and other mobile tabs, but today, our lives greatly depend on them. Entrepreneurs discover new products and services that open new businesses that broaden citizen participation in the society.
Entrepreneurship by itself has a magnificent way of creating and increasing healthy competition. And in an environment where there’s healthy competition, productivity increases. All these and many more are the basic requirement that African nations need to foster sustainable economic prosperity and development.
Aid agencies should rather look into ways in which their funds can make market efficient in Africa, ways in which small businesses can break barriers and boarders by building permanent structures that connect local producers and exporters to global consumers in international market – something that can actually benefit both parties economically. They can as well be of special assistance to small and medium scale businesses, which ultimately are the building block for growing economies.
African nations must come to the reality that the most powerful tool to eradicate poverty is strengthening local entrepreneurs in the nooks and crannies of the city, towns and villages. All they need is an opportunity and environment to compete. They can bring massive turn around to any poor nation.
Major barrier to the progress of market in many developing nations is overbearing policies and inadequate infrastructure to enhance businesses. Governments need to set the environment to make it conducive for people to innovate and become entrepreneurial. It was Dr. Cheick Diarra, a former executive for Microsoft Corporation, who made it clear that entrepreneurs can only build wealth only if bureaucratic obstacles are removed. I sincerely agree with him over and over again. Looking into Nigeria’s case for instance, the 2012 Ease of Doing Business Index ranks Nigeria 133 out of 183 other economies. In terms of starting a business at all, Nigeria ranks 116, in getting electricity 176 and then in terms of access to credit 78.
Without an enabling environment, aspiring entrepreneurs struggle and waste so much effort within a corrupt and bureaucratic system and that doesn’t encourage entrepreneurial progress and innovation. Even when some individuals thrive in such an environment, healthy competition that promotes market growth still remains alien in to the entire system.
Out of the over I billion people in Africa, the World Bank says nearly 70% is actually under 30. Nigerian youths constitute a large part of that 70%, since two-third of the 160 million Nigerians are under 30. This large number of youths represents a promising demographic dividend for Africa, provided it will be harnessed for economic prosperity and growth; provided the youths have an enabling environment to develop their entrepreneurial skills.
It starts with education, seeing to it that courses like Business Studies and Entrepreneurship are included in school curriculum. And to those who are not in for formal education, they should be encouraged to get involved in vocational trainings and apprenticeship.
Until all these structures are put in place, asking African nations to drop their begging bowls is like asking a blind man to do away with his walking aid, while he walks alone.
I am @Lanre_Olagunju on Twitter
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