- Introduction/Definition of Concepts
It is worthy of note to consider what motivates people to begin new businesses particularly when one reflects on what it takes to start a new one in the Nigerian environment. It should be understood that new businesses are not created by accident, but clearly intentional. Entrepreneurs are driven by challenges which they pursue and overpower. These challenges in Nigeria include the fears of funding, hardworking, complete failure and universal delayed profit in the stabilizing years.
With the current problems of joblessness, poverty, miss-trained graduates and graduates in unneeded courses, many Nigerians are venturing into entrepreneurship without considering their personality. Only your interest to be an entrepreneur is not enough, your personalities, whether in-born or developed in skills, experiences, lifestyles andresources along with your individual suitability for the different available options; majorlydetermine your success at business creation. Your personality has a lot do indetermining the choice of business that is right for you.
In Nigeria, a lot of successful entrepreneurs today failed at several attempts in businessbefore achieving the desired outcome in just one or two. They always claim to ‘hit it’ inthe successful one. Yet a lot are still beginning theirown businesses on daily basis.Besides the personality, certain factors available to individuals also assist to motivatethem to begin a business. What are these factors?
Factors That Motivate People to Begin New Businesses
As students the main factor that could motivate you tobegin a new business on graduation is non-availability of Government or privatejobs in Nigeria. However, there are several other factors motivating people to beginbusinesses.
The necessity to be rich legally and fast maymotivate someone to begin a new business. His interest is the financial reward that entrepreneurship can bring him. It has to generate enough profit. This is verycommon in Nigeria.
Desire to Control the Economy:
There are some entrepreneurs whowant to control the entire or certain aspects of the economy of their people. In Nigeria today, Odua Group of Companies, JimohBraimoh, Wale Tinubu, Otedola,Dangote are individuals being motivated by their desire to control certain aspectsof the Nigerian industry. Today is controlling the building industry, haulage; petroleum and food industries. The desire of such persons or their group motivates them to continue to start new businesses.
Desire to pursue a business idea:
A business idea may occur from anysource to a prospective entrepreneur. He may eventually be motivated to pursuethis idea and begin a new business.
Advantage of an opportunity in the market:
When an opportunity opensup in the market, some entrepreneurs could take advantage of this, explore it andeventually get motivated to start a new business Inherited Family Business: An inherited family business can be amotivating factor for the establishment of a new one.
Desire to be their own boss:
An employee could be motivated by hisdesire to be his own boss and become an entrepreneur. He/she eventually begins a new business that will be under his or her full control. They want to be their ownboss and in charge of all of the day-to-day operations of a company. The entrepreneur wants to be the one making the important business decisions,determining the direction the company will take, making the call on product development and marketing and being responsible for every aspect of the company’s operation.
Replicating a Business Idea found in Another Environment:
Someentrepreneur who travel may come in contact with a business idea that is new tohis environment. This may be replicated in the new place by the entrepreneur onhis own or with the assistance of the original environment.
Frustration with low Pay:
A worker frustration in a company may decide to get out to establish his own outfit which he believes can compete favourably withhis previous employer. Note that he must have acquired enough experience fromthem. He knows the weaknesses and strength of the previous company.
The desireto control their own destiny, Preference for a Smaller Company Environment: The preference for asmall company environment with the desire to put a personal touch back into doingbusiness may be a motivator for beginning a new business. The drive to start a business comesfrom. Someone might feel upsetworkingin a largecorporation/company, can become very impersonal.
Lack of opportunity in previous employer:
Just like being frustratedwith low pay, an employee that lack opportunities one way or the other may befrustrated. This may be the motivating factor that will turn him into an entrepreneurwith a new business. A talented person that the employers could not retain couldbe motivated to begin a new business.
The desire “to make things improve the world”:
someone can be motivated to begin a new business if he/she feels highly pressed to make thingsthat will improve the lot of common man in his society.
Invite to begin someone else’s business:
There are situations wherean entrepreneur invites someone to begin a new business for him/her.
Maintain own ethical values which their employer didn’t share:
The desire by a prospective entrepreneur to maintain his own ethical values maymotivate him to establish a new business. The mis-match between the values, goals and ambitions of these entrepreneurial spirits and their employers is a verystrong motivating factor for establishing a new business
Desire to be involved in operations:
Some entrepreneurs could be frustrated in a business and feels confident that he/she possesses the necessarycapacity and interest in running a successful business. This motivates him/her tostart his own and be directly involved in all operations – the design team, sales,marketing, engineering and production.
Exposure to Some Available Fund:
The availability of some excess fundthat is not being used may motivate the idea of beginning a new business. A lot of bankers, civil servants politicians retire with a lot of gratuity to becomeentrepreneurs.
Spirit of returning to the society:
Whilst a number of motivations couldcome from entrepreneurs driven by the spirit of returning to the society whoalready feels accomplished but now want to contribute back to the society byoffering valuable services to their customers. He/she may then decide to start forthem new businesses that may or not even compliment his/her original business
Life after Retirement:
The fear of what to do to augment their pension salary challenges retirees to begin a new business. Retirement age in Nigeria is between 60 and 70 year depending on one’s profession. To prevent their earlydeath, medical doctors have recommended that retirees at that age range shouldbe involved in continuous activities like that of their offices while in service. Retirees are therefore motivated by these two challenges to begin their own businesses.
Favourable Government Policies and Procedures:
A favourable Government policies and registration procedures can motivate entrepreneurs to begin new businesses. The Nigerian Government has a lot of polices in place to assist entrepreneur. These include the establishment of special banks like the bank of commerce, agriculture and industries, Government policy tolerates Civil Servants to venture into any area of agriculture while still in service and the protection of creativity and innovations of original works with the Nigerian. Copy right Law policy. Several registration rules and procedural requirements of businesses in Nigeria are also made less cumbersome and majorly and electronically online.