Government culprit to unemployment
Two years ago we mulled the idea of starting a Keke Napep (tricycle) venture in Abuja. I was the lone voice that challenged the idea, although the rest of the stakeholders did not like it, we jettisoned the idea. Fast forward to today, the whole tricycle activity was banned in the entire FCT. It wasn't a difficult thing to see that coming.
Entrepreneurs in Nigeria must learn to study the government body language as it affects businesses. Forget about the shout for 'ease of doing business' and 'creating job opportunities' by the government. The truth of the matter, and verifiably so, the government is more concerned with big businesses. Ironically, small businesses creates more jobs and impact more on the overall economic growth.
In Lagos State for example, Gokada had employed nearly a thousand people in their chain of bike hailing business. They further bought 2,000 units of the bike at $1,500 a piece to expand growth and drive home opportunities for jobless Nigerians. But in one fell swoop the government banned the use of bike in Lagos State citing safety concerns.
Between Gokada, Oride, Max.ng, nearly 5,000 people had lost their means of livelihood over 'con erns for safety'. In contrast to this allegations, Punch had reported Max.ng saying that they have "completed over two million trips, with less than 100 incidents, out of which, less than seven, were serious, requiring a hospital visit".
Government can not come up with a policy and enforce it within days without giving a prior template for rules and regulations. It is not only bad for business but it sounded intentional in jeopardizing the efforts of entrepreneurs. This policy somersault have thrown a number of entrepreneurs into deep holes of debts from banks, investors and has eroded trust in the start-up ecosystem.
What happens when the current government leaves? Will the next government lift ban on all the products that were banned by the previous government? Will there be more incentives for domestic entrepreneurs and investors? These and more are questions ravaging the minds of business owners in the country.
High unemployment in the country has a link to the complete disconnection of policy implementation between the national government and the respective states. Executive orders of the president too must be legislated to protect investors loosing money by a policy change of incoming governments.
Entrepreneurs in Nigeria must learn to study the government body language as it affects businesses. Forget about the shout for 'ease of doing business' and 'creating job opportunities' by the government. The truth of the matter, and verifiably so, the government is more concerned with big businesses. Ironically, small businesses creates more jobs and impact more on the overall economic growth.
In Lagos State for example, Gokada had employed nearly a thousand people in their chain of bike hailing business. They further bought 2,000 units of the bike at $1,500 a piece to expand growth and drive home opportunities for jobless Nigerians. But in one fell swoop the government banned the use of bike in Lagos State citing safety concerns.
Between Gokada, Oride, Max.ng, nearly 5,000 people had lost their means of livelihood over 'con erns for safety'. In contrast to this allegations, Punch had reported Max.ng saying that they have "completed over two million trips, with less than 100 incidents, out of which, less than seven, were serious, requiring a hospital visit".
Government can not come up with a policy and enforce it within days without giving a prior template for rules and regulations. It is not only bad for business but it sounded intentional in jeopardizing the efforts of entrepreneurs. This policy somersault have thrown a number of entrepreneurs into deep holes of debts from banks, investors and has eroded trust in the start-up ecosystem.
What happens when the current government leaves? Will the next government lift ban on all the products that were banned by the previous government? Will there be more incentives for domestic entrepreneurs and investors? These and more are questions ravaging the minds of business owners in the country.
High unemployment in the country has a link to the complete disconnection of policy implementation between the national government and the respective states. Executive orders of the president too must be legislated to protect investors loosing money by a policy change of incoming governments.
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