The Limitations of Entrepreneurship Tools Distribution-Why Entrepreneurial Development is the Way Forward

The Limitations of Entrepreneurship Tools Distribution- Why Entrepreneurial Development is the Way Forward.

In Nigeria, politicians and well-meaning individuals often embark on entrepreneurship empowerment programs, distributing tools, machines, and other resources to beneficiaries. 

While the intention is noble, the outcome is often disappointing.

 A staggering 80% of beneficiaries end up selling these goods for instant cash, rather than using them to build sustainable businesses.

This phenomenon raises questions about the effectiveness of entrepreneurship tools distribution as a means of promoting economic growth and development. 

Is it possible that we're focusing on the wrong approach?

The Problem with Tools Distribution

1. Lack of Entrepreneurial Mindset: Many beneficiaries lack the entrepreneurial mindset and skills necessary to build and grow a successful business.

2. No Follow-up or Support: Once the tools are distributed, there's often no follow-up or support to ensure the beneficiaries use them effectively.

3. Focus on Short-term Gains: Beneficiaries prioritize short-term gains over long-term business growth, leading to the sale of distributed goods.

The Benefits of Entrepreneurial Development

1. Holistic Approach: Entrepreneurial development programs focus on building the entrepreneurial mindset, skills, and knowledge necessary for business success.

2. Sustainable Business Growth: By emphasizing business planning, management, and marketing, these programs promote sustainable business growth.

3. Access to Finance: Entrepreneurial development programs can provide access to finance, but only after beneficiaries have demonstrated a clear understanding of business principles and practices.

A Better Approach

Rather than distributing tools and machines without a clear plan, we should focus on entrepreneurial development programs that:

1. Build Entrepreneurial Mindset and Skills: Provide training and mentorship to equip beneficiaries with the knowledge and skills necessary for business success.

2. Establish a Robust Follow-up Methodology: Regularly monitor progress, provide support, and make adjustments as needed to ensure sustainable business growth.

3. Provide Access to Finance: Offer loans or grants to beneficiaries who have demonstrated a clear understanding of business principles and practices.

By adopting this approach, we can create a more sustainable and effective entrepreneurship ecosystem that promotes economic growth, job creation, and development.

Olubunmi Oluwadare .

Founder. 

 www.uni-preneur.com www.getajob.ng 

Author. I SEE MONEY IN AFRICA.