This document discusses entrepreneurs as the creative force in the economy and how governments can help or hinder them. It defines entrepreneurship and notes that entrepreneurs drive innovation and economic growth. However, they face challenges from business environment factors like government policies. The document examines how the Nigerian government has implemented programs to support entrepreneurs through training and loans to foster job creation and economic development, but still presents hindrances such as high interest rates and lack of basic infrastructure. It concludes that while support is given, more must be done to reduce barriers facing entrepreneurs.

1. Title:
Entrepreneurs are the Creative Force in
the Economy. Is your government helping
or hindering them?
By:
MADAYESE, John Oluwashola
Department of Management and Accounting
Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria
john.madayese@gmail.com
+234(0)8181576559
2016

2. Entrepreneurs are the Creative Force in the Economy. Is your government helping or hindering them? Page 1
ABSTRACT
“Far and away, the best prize that life has to offer is the chance to work hard at work worth
doing” (Theodore Roosevelt). The chances to create, innovate, take moderate and calculated risks and
live one’s passion for the promotion of national economic development. This is the spirit possessed by
entrepreneurs, the formative horsepower in a nation’s economy. Good entrepreneurs can create a strong
economy (Ihugba, Odii, & Njoku, 2013), however they are surrounded by internal and external factors in
the business environment, which tend to help or hinder their activities. One of such external business
environmental factors is the government, which comprises among others it’s fiscal, political and social
policies. This essay takes into account the reasons that make entrepreneurs the creative force in the
economy and how the Nigerian government’s activities help or hinder these indispensable entrepreneurs.
Keywords: Entrepreneurs, economy, entrepreneurship, government(s), development and unemployment.
INTRODUCTION: ENTREPRENEURSHIP, ENTREPRENEURS AND THE ECONOMY
“Entrepreneurship is the journey of opportunity exploration and risk management to create value
for profit and/or social good," said Ajay Bam, a lecturer at Berkeley's Haas School of Business,
California. Entrepreneurship is seen as a method for bridging the gap between science and the
marketplace, creating new enterprises, and bringing new products and services to the market (Durowoju,
2014). Entrepreneurs, who are made through trainings and skills acquisition, are the key players on this
journey of Entrepreneurship in a particular Economy. The state of these three-Es are however determined
by the decisions and policies made and executed by the government(s) of a country or continent. That is
why in ensuring that entrepreneurs thrive in a particular economy, one of such things that must be
considered is the government activity, whether this will help or be an impediment.

3. Entrepreneurs are the Creative Force in the Economy. Is your government helping or hindering them? Page 2
TRAITS AND QUALITIES OF ENTREPRENEURS: CREATIVE FORCE DETERMINANTS
“My will shall shape the future. Whether I fail or succeed shall be no one’s doing but my own. I
am the force. I can clear any obstacle before me or I can be lost in the maze. My choice. My
responsibility. Win or lose; only I hold the key to my destiny (Elaine Maxwell).” This statement describes
the traits and qualities of a “Schumpeterian” entrepreneur, who is above else an innovator. Schumpeter
(1950; 1961) sees entrepreneurs as the coordinator of production and agents of change. According to the
Nigerian Institute of Management (NIM), certain psychological, sociological and economical
characteristics including leadership, public relations and risk taking qualities are possessed by
entrepreneurs. These have been able to equip them with the needed tools and techniques including
methods to enhance their viability as creative force in the economy.
Another determinant is the level of freedom of entrepreneurs. They take decisions on their own
according to their free minds and Adam Smith has recognized that freedom creates prosperity. It
unleashes human talent, invention and innovation, creating wealth where none existed before. Societies
that have embraced freedom have made themselves rich. Those that have not have remained poor (Butler,
2013). For example individuals in China have certain levels of freedom in deciding what, how and to
whom to produce and this among other reasons has made China the second largest economy in the world
as at 2015 due to the disruptive innovations this individual freedom gave birth to.
PREVAILING FACTORS THAT BRING ENTREPRENEURSHIP TO THE FORE IN NIGERIA
The role of entrepreneurship in economic development and job creation can’t be overemphasized.
Many global and local factors have also contributed to making entrepreneurship an important issue of
discussion in Africa and in Nigeria specifically. Some of these include but not limited to the following:
1. Consistent increase in unemployment rate: The International Labour Organization (ILO) defines
the unemployed as numbers of the economically active population who are without work but
available for and seeking work, including people who have lost their jobs and those who have

4. Entrepreneurs are the Creative Force in the Economy. Is your government helping or hindering them? Page 3
voluntarily left work (World Bank, 1998). Unemployment rate in Nigeria increased to 10.40% in
the fourth quarter of 2015 from 9.90% from previous period. Out of over 76.95 million labour
force populations, over 8 million people are unemployed (Trading Economics, 2016).
2. Global trend of countries tending towards capitalism: Private enterprise is at the heart of
capitalism. The concept stresses entrepreneurship and ownership of private properties (Suleiman,
2015).
NIGERIAN GOVERNMENT POLICIES AND PROGRAMMES THAT HELP EXISTING AND
POTENTIAL ENTREPRENEURS AND ITS ACTIVITIES THAT HINDER ENTREPRENEURS
One of the cardinal objectives of every government is job creation. Job creation helps an economy
to achieve full employment and economic growth and development, which is one of the four
macroeconomic objectives of every nation. Nigeria has been bedeviled with high unemployment rate,
which has become worrisome to government and other stakeholders (Suleiman, 2015). Due to this
critical state of the country’s economy, many policies and programmes have been established to help the
increase in the number of passionate entrepreneurs in the country.
In 2011, the Federal Government launched an entrepreneurial initiative, called YouWin, which
marked a quantum leap for the youths of the nation with four (4) editions of the initiative executed
between the years 2011 and 2014. Over 4,000 Nigerians were empowered with funds between 1million to
10 million naira each to start businesses with effective monitoring and controls done by the federal
government. 4,000 was the number of cash awardees, however about 24,000 youths across 6 geo-political
zones were trained in entrepreneurial skills and an estimate of over 500,000 Nigerians below 41 years old
actually participated. This revolutionary program helped the entrepreneurs awarded with funds to employ
many unemployed directly and indirectly, thereby causing a significant rise in the nation’s Gross
Domestic Product (GDP). More employment opportunities have been created which significantly (among

5. Entrepreneurs are the Creative Force in the Economy. Is your government helping or hindering them? Page 4
other factors) contributed to the reduction of Nigeria’s unemployment rate from 23.9% in the first quarter
of 2012 to 8.1% as at the end of 2014 (Trading-Economics, 2016).
Also, in the 1st
quarter of year 2016, President Muhammadu Buhari’s administration launched a
N10 billion Youth Entrepreneurship Support (YES) Programme. The scheme will allow each of the
eligible beneficiaries to access a maximum of N5 million loan for the procurement of machinery and
equipment, including working capital. Also, it was designed to help entrepreneurs to create minimum of
6,000 direct jobs and 30,000 indirect jobs annually as said by the Minister of Trade and Investment, Dr.
Okechukwu Enelamah during the inauguration of the Bank of Industry (BOI)’s N10 billion- Youth
Entrepreneurship Support (YES) scheme. The government intended to create 3.5 million jobs in the next
three years and entrepreneurs have been identified as the potential drivers of this objective, that’s why the
YES programme among others have been established.
Furthermore, although many activities of the government have helped entrepreneurs over the
years, however there are some which do not tend to help but hinder the growth of entrepreneurs in the
country. Government inconsistency is really a challenge an entrepreneur will have to tackle if he must
succeed in Nigeria (Ihugba, Odii, & Njoku, 2013). Charging of high interest rates which deter aspiring
and existing entrepreneurs. Lack of regulation by government to comply banks to reduce their lending
rates from the current average. Also, the absence of infrastructure facilities for smooth running of the
business, for example, regular electricity supply, qualitative technological and network systems, etc.
CONCLUSION
“We need to make a shift from talking about creating jobs for youth to talking about inventing
jobs by youth” says Ban Ki Moon. Barriers and impediments wherever they exist can be broken and
sustainability of the policies already in place which are supporting entrepreneurs’ successes can be
encouraged so that more opportunities can be opened and threats minimized to facilitate the possibility of
inventing jobs by youths. In the journey of Entrepreneurship, tenacity of purpose is supreme (Aliko

6. Entrepreneurs are the Creative Force in the Economy. Is your government helping or hindering them? Page 5
Dangote). Entrepreneurs need to be tenacious in order to be able to cut through the complexities of
entrepreneurship in the midst of numerous barriers. Several regimes of government have been giving
levels of support to entrepreneurs, however more effort should to be geared towards a drastic reduction of
the actions of government that tend to hinder the business of entrepreneurs.
References
Butler, E. (2013). Foundations of a Free Society. The Institute of Economic Affairs.
Durowoju, S. T. (2014). Roles of Enterpreneurship in Small and Medium Enterprises Development in
Nigeria. Review of Public Administration and Management, 3(5).
Economics, T. (n.d.). www.tradingeconomics.com/nigeria/unemployment-rate. 2016.
Ihugba, O. A., Odii, A., & Njoku, A. C. (2013). Challenges and Prospects of Entrepreneurship in Nigeria.
Academic Journal of Interdisciplinary Studies, 2(5), 25-36.
Schumpeter, J. (1950). Capitalism, Socialism and Democracy. New York: Oxford University Press.
Suleiman, E. B. (2015). Entrepreneurship For Development. 2015 Kaduna State University's Convocation
Lecture.
Trading-Economics. (2016). Nigeria Unemployment Rate, 2006-2016.
www.tradingeconomics.com/nigeria/unemployment-rate.
www.afterschoolafrica.com/4706/how-i-won-in-the-youwin-business-plan-competition-a-must-read-
interview-with-utibe-etim/
www.businessnewsdaily.com/2642-entrepreneurship.html#sthash.4pKIqGWd.dpuf
www.thisdaylive.com/index.php/2016/03/18/fg-launches-n10bn-youth-entrepreneurs-support-
programme/