Entrepreneurs: Are You Clueless To The Role Of Government In EntrepreneurshipOluwaseun Olayisade
What is the role of government in entrepreneurship development?
As an entrepreneur you may have been wondering “what is the role of government in entrepreneurship?”
So have I. Let’s find out together.
Most startup companies fail and it is smart public policy to help entrepreneurs increase their odds of succeeding.
But the biggest loss to our economy is not all the start-ups that did not make it.
It is the ones that might have been created but weren’t – Eric Ries
Entrepreneurs are the bane of economic growth in any society.
And the existence of these entrepreneurs depends on how encouraging the sitting government is.
Therefore entrepreneur relevance can not be disputed.
Also to facilitate entrepreneurial development and sustainable economic growth by creating a symbiotic relationship between these entities.
Entrepreneurs drive growth by creating employment, new markets, new products via innovation and tax revenues.
Entrepreneurs are risk takers, willing to roll the dice with their money or reputation on the line in support of an idea.
They willingly assume responsibility of the success or failure of a venture and are answerable for all its facets – Victor Kiam.
Hence government should support by playing their role as the distributor of opportunities, wealth and basic amenities.
The law entitles entrepreneurs to the following :
- Policies to mandate financial institutions to lend SMEs funds.
- Security of Lives and Properties.
- Law and Order.
- Good Road Networks for easy movement of raw materials and finished products.The Colonial masters understood this pretty well which was why their first assignment was to connect the hinterlands to the ports.
- Easy Registration and Freedom To Do Business.
- Training and Skills Acquisition Programs.
- Grants, Loans, Government Seed Investments (Funds set aside by different tiers of government to help small and medium scale businesses kick-start).
Consequently funds are needed to establish the business and cash flow for sustainability .
- Quality Education and Manpower Development.
- Enabling Export.
- Stable Economic and Political Atmosphere.
- Constant Power Supply: This is to enable increase in production and reduce cost of production.
- Tax Holidays: Temporary removal of tax (mostly Sales Tax) for a certain period to encourage entrepreneurship.
Presently in Nigeria there is a tax holiday of the first 5 years of business (Pioneer Status). Excluding Corporate Tax for new businesses.
Also an extra 3 years based on meeting some criteria.
Though in 2015 government moved a motion to reduce it to 3 years.
All tiers of government should endeavor to finance the different stages of business.
Ranging from when it needs Seed Capital to when it needs cash flow for continuous operation.
I would say raising capital is one of the weakest things for most entrepreneurs – Robert Kiyosaki
Role of government in entrepreneurship.
Over the world governments are actively thinking of ways to encourage upcoming businesses.
Until our government embraces entrepreneurship as an Engine of Growt requirements to foster entrepreneurship development will not be provided.
Innovation and development will grow rapidly when the role of government in entrepreneurship is properly played.
Join the conversation to tell us more roles you think the government should play in entrepreneurship on this side of the planet.