Entrepreneurship is increasingly recognized as an important driver of economic growth, productivity, innovation, and employment in Nigeria and it is widely accepted as a key aspect of economic dynamism.
An entrepreneur can be seen as people who have the ability to see and to evaluate business opportunities to gather the necessary resources to take advantages of them and to initiate appropriate action to ensure success.
An entrepreneurial spirit is characterized by innovation and risk-taking and is an essential part of a nation’s ability to succeed in an ever-changing and increasingly competitive global marketplace.
For an entrepreneur to be successful in term of establishing any form of small scale in Nigeria, certain factors must be put into consideration that can boost the inspiration of the entrepreneur for effective and efficient management of his or her business in achieving the set objectives or goals.
1. Behavioural and personal traits
A business leader’s characteristics such as behaviour, personality and attitude can certainly have an impact of the growth of the business. Furthermore, their capabilities, including education and training create higher expectations in some industry sectors, while their social capital influences access to resources. Management experience, family history, functional skills, and relevant business sector knowledge are also ingredients that will influence the recipe of a successful business in Nigeria.
2. Business structure and management
How the business is structured, its goals and the performance of its management team, in particular, their ability to make rational decisions about its operation, will highly impact the successful development of the business.
3. External factors
While the above two considerations can be managed to an extent, external factors over which we do not have control over also have an effect on the business’ growth. Such factors are the cultural, political and economic conditions of the country or region in which the company operates.
Variation in size, scope, and buoyancy of demand in local markets is likely to affect growth opportunities. On the supply side, variation in the cost and availability of labour, premises, and services are also influential. Nevertheless, owner-managed businesses are often adaptable, employing different strategies to deal with these local variables so that their impact is minimized.
Thus, the success of a business is due to many factors, but among the greatest determinants of business success is the entrepreneur.