“ENTREPRENEURSHIP IS A PROCESS, NOT AN EVENT”

By

Alhaji Bature Umar MasariDirector-General of Small and Medium

Enterprises Development Agency of Nigeria [SMEDAN]

Outline of Presentation• Protocols• Definitions• Typical Entrepreneurial Process• The 3 ‘C’s of Entrepreneurship• Myths of Entrepreneurship• Stimulants to Entrepreneurship• Entrepreneurial Philosophy• Challenges of Entrepreneurship in Nigeria• Rewards of Entrepreneurship in Nigeria• About SMEDAN• Conclusion

Protocols

Entrepreneurship Definitions

1. Self-employment through business ownership that includes significant elements of risk, control, and reward (Coleman Foundation)

2. Organizing a business venture assuming a certain amount of risk to make a profit (Burns and Bolton)

Entrepreneurship Definitions• Entrepreneurship is the process of creating value

by putting together a unique package of resources to exploit an opportunity. It is the ability to create and build something from practically nothing. It is initiating, doing, achieving, risk-taking, and building an enterprise. (Stevenson-1985)

• Entrepreneurship involves the organising, managing, and assumption of risks associated with self-employment and the operation of a business enterprise. (Dr. Okpara-2000)

What is Process?

• A series of things that are done in order to achieve a particular result [Oxford Advanced Learner’s Dictionary, 7thEdition, 2005];

• An on-going stage-by-stage activity with a targeted outcome.

What is event?

• Something that happens at a given place and time [Advanced English Dictionary and Thesaurus];

• A phenomenon located at a single point in space-time[Advanced English Dictionary and Thesaurus;

• A one-off activity.

TYPICAL ENTREPRENEURIAL PROCESS

• STAGE 1: Searching for and selection of opportunity;

• STAGE 2: Idea generation or conception• STAGE 3: Project Identification• STAGE 4: Feasibility Study/Report• STAGE 5: Business Plan Preparation• STAGE 6: Sourcing for Fund

TYPICAL ENTREPRENEURIAL PROCESS [cont’d]

• STAGE 7: Project Execution and Implementation;

• STAGE 8: Sales/Marketing• STAGE 9: Evaluation and Control• STAGE 10: Feedbacks/business development

The 3‘C’s of Entrepreneurship• Concept or Idea

• Capacity [skill-set] – vocational and business management skills Technical skills; Business Management skills; Human skills; Design skills; Conceptual skills; Communication skills; Leadership skills Team skills; and Time management skills.

• Capital [Land, Building, Machine/Technology, Raw Materials, Inputs and Money]

MYTHS1. Entrepreneurs are driven by money2. Entrepreneurs are high risk- takers3. All entrepreneurs are wealthy and successful 4. Entrepreneurs are born, not made5. Anyone can start a business6. Entrepreneurs are gamblers7. Entrepreneurs want the whole show to themselves.8. Entrepreneurs are their own bosses and completely independent.9. Entrepreneurs work-longer and harder than managers in big companies.10. Entrepreneurs experience a great deal of stress and pay high price.11. Starting a business is risky and often up in failure.12. Money is the most important start-up ingredient.

• Removing fear and dealing with these myths is the first step towards Promotion

Stimulants to Entrepreneurship

• Increasing levels of unemployment• Fewer vacancies in choice enterprise• Inclusion of entrepreneurship studies in our

school curriculum• General economic reforms• Legacy• Growing awareness• Favourable government policies

Stimulants to Entrepreneurship

• Job insecurity• Strong encouragement from friends and

associates• Conducive economic environment• Ambition

Entrepreneurial Philosophy

• Positive attitude• Accept responsibility• Stepping stone• Failure as a learning process• Accept yourself as you are• No impossibility

Challenges of Entrepreneurship in Nigeria

• Inadequate research and publications on entrepreneurship development programmes

• Access to Finance• Bureaucracy• Poor access to market• Poor utilization of Research & Development

results• Poor access to modern equipment

Challenges of Entrepreneurship in Nigeria [cont’d]

• Low access to information• Lack of access to appropriate technology to

add value• Lack of dedicated sites for industrial purposes• Poor management skill and knowledge • Poor state of rural infrastructure

Rewards of Entrepreneurship

The four major benefits of starting a successful business are:

• Financial Reward• Independence• A sense of Achievement• Freedom to be creative

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) was created vide the Small and Medium Scale Industries Development Agency (Establishment) Act 2003 and charged with the responsibility for promoting and facilitating the development programmes in the small and medium scale industries sub-sector.

The Act enacted by the National Assembly came into force on 19th June, 2003.

Mrs Modupe Adelaja was appointed in June 2003 as pioneer Director-General of SMEDAN. She was succeeded by Alhaji Muhammad Nadada Umar in 2008. The incumbent Director-General is Alhaji Bature Umar Masari.

The incumbent Director-General/CEO, Alhaji Bature Umar Masari, assumed duties on 13th May, 2013.

We were under the Presidency from 2003-2009. We are now under the Federal Ministry of Industry, Trade and Investment. Our Minister is Dr. Olusegun Aganga.

ABOUT SMEDAN

Vision and Mission

VISION:The vision of the Agency is to establish a structured and efficient micro, small and medium enterprises sector that will enhance sustainable economic development of Nigeria.MISSION:To facilitate the access of micro, small and medium entrepreneurs/investors to all the resources required for their development.

Key MandateInitiating and articulating ideas for micro, small and medium enterprises (MSMEs) policy thrusts.Serving as a vanguard agency and focal point for rural industrialization, poverty alleviation and eradication; technology acquisition and adaptation, job creation and sustainable livelihood.Promoting and facilitating development programmes, instruments and support services to accelerate development, modernisation, networking and linkage of micro, small and medium enterprises;Mobilising internal and external resources, including technical assistance for micro, small and medium enterprises, their support institutions; trade associations, and non-governmental organizations;Overseeing, co-ordinating and monitoring development in the micro, small and medium enterprises sub-sector;Designing, packaging and promoting cottage and micro, small and medium industrial projects;Providing industrial extension services to micro, small and medium enterprises, fabricators of machinery and beneficiaries of micro-credit;

Key Mandate (Cont’d)Establishing liaison between research institutes, local fabricators and small and medium enterprises;Linking MSMEs to sources of finance, technology, technical skill development and management;Facilitating and promoting the development of standard designs and quality assurance for machinery and equipment, and commercialising them to end-users;Promoting and providing access to industrial infrastructure, including estates and layouts; and incubators;Providing necessary assistance to micro, small and medium enterprises in the marketing of their products;Promoting ancilarisation, sub-contracting, clustering and networking relationship;Encouraging and promoting strategic linkages within the micro, small and medium enterprises, and between the micro, small and medium enterprises and large scale enterprises;Establishing and co-ordinating the institutional development and activities of lndustrial Development Centres in Nigeria;

Key Mandate (Cont’d)Collaborating with the Agricultural Research and Mechanisation Centres and Agro-industrial Schemes in Nigeria;

Liaising with external agencies for support and development of micro, small and medium enterprises in Nigeria;

Listing products that micro, small and medium enterprises have substantial internal capacities to manufacture to meet domestic market for Federal Government's patronage and deletion or restriction on the schedule of importable goods;

Recommending to the Federal Government, from time to time, in consultation with other relevant agencies and organizations, on applicable tax and tariff regimes and other financial incentives for promoting the development of micro, small and medium enterprises;

Key Mandate (Cont’d)Monitoring the implementation of and compliance with Federal Government directives, incentives and facilities for the development of the micro, small and medium enterprises in order to promote government policies in or outside Nigeria;

Provision of and facilitating technical and managerial training to micro, small and medium enterprises;

Carrying out such other activities connected with or incidental to the other functions of the Agency in order to promote government policies in or outside Nigeria

Core Values

DisciplinePassionIntegrityTeam workProfessionalismService DeliveryTransparency

Operational Strategies

• Entrepreneurship sensitization and awareness creation;

• Needs Assessment;• Entrepreneurship and vocational training;• Provision of Business Development Services

(business counselling and advisory services, information and assistance on acess to raw materials, machines, equipment, market, legal and regulatory requirements, government policies, finance;

Operational Strategies (cont’d)

• Monitoring and Evaluation• Re-planning• Implementation/Fresh Intervention

Conclusion

• From the fore-going, it is evident that entrepreneurship is a process and not an event.

• It is a way of life. For us at SMEDAN, it is a tradition and culture.

• It has challenges as well as rewards.• It is worth going into. We can help you get

there.• Welcome on board!

Thank You