Starting a Business Development Center in Nigeria

 

A goal of helping Nigerian entrepreneurs takes passion and motivation. To make it happen, you'll need a thorough business plan—and plenty of patience

by Karen E. Klein

I just relocated to my native Nigeria after 17 years studying and working in business management in the U.S. I returned to a country ablaze with budding entrepreneurs and privatization. I desire to set up a nonprofit center for entrepreneurship and business development here in Nigeria and will appreciate any advice you may be able to render.—K.B.O., Lagos, Nigeria

Congratulations on your drive and interest in helping entrepreneurs! It takes passion and motivation to devote oneself to such an important societal goal, notes Adam Toren, co-founder of YoungEntrepreneur.com. "Helping build a community of entrepreneurs by giving them the tools, support, and solutions they require in order to build successful companies is extremely important for building sustainable communities," Toren says.

Let's start with some expert advice and conclude with a list of resources and organizations.

Phil Borden, a longtime entrepreneurial consultant who worked for the U.S. State Dept. on small business development in Iraq in 2007 (BusinessWeek.com, 3/26/08), notes that you'll need to define a specific purpose for your center and set it up as a viable entity.

"On the African continent, there are more versions of business centers than there are countries. For example, Angola has at least two: One is a library of relevant training and reference materials backed by a staff of counselors to accommodate walk-in clients, and another restricts itself to industries related to oil production and export in order to help build a specific economic sector," Borden says. "In Egypt, four deal with microbusiness and another two with larger ventures."

In order to understand who you are going to serve, why and how they will pay, you'll need to conduct a community-needs assessment and feasibility study, Borden says. You'll also need to establish how the center will sustain itself financially, so you'll need to identify funding sources and an annual budget.

"Write a business plan that addresses the usual issues of marketing, competition, finance, and governance," Borden advises. The plan will help as you establish a nonprofit (or for-profit, which is becoming a popular model for entrepreneurial training) entity. "The rules governing for- and nonprofit or nongovernmental sector legal and organizational issues vary significantly from country to country, as do the methods for setting them up and the time needed to do so. Many countries do not have clear legal definitions of nonprofit or nongovernmental entities, or require excessive time and effort to create them," he says.

If you can't find a local professional to guide you, Borden recommends that you check the Web site of the World Bank, which maintains a detailed list of operational steps needed to form a business in Nigeria, along with the challenges of doing so, labor and tax issues, the impact of corruption, and time needed to make it happen.

Nigerian-born Benjamin Akande, now a U.S. citizen who is dean of the School of Business & Technology at Webster University in St. Louis, recommends that you engage universities in Nigeria, as well as local business groups, for help with your plan. "At the moment, there is a favorable climate for entrepreneurship, but even those with good ideas don't have access to capital," Akande says. "Convene a meeting of business groups and have a clear conversation about your vision and dream. Then ask them how they can be part of this center, which would be breaking new ground" in Nigeria, he advises. If you can find kindred spirits in Nigeria and outside, you can share your perspective and ideas, and challenge them to participate.

Avoid getting taken in by the criminals often referred to as "419ers" (the number references a fraud law in Nigeria). These are the perpetrators of the global e-mail scams who "have no real ambition to introduce innovative ideas but will work diligently to rip you off," Akande says. "Be aware that there may be folks within the Nigerian landscape who will try to take advantage of your nobility."

Finally, be patient, do your due diligence, and be opportunistic. "The business culture in Nigeria is not accustomed to the concept of angel entrepreneurs, so make sure that you design a process and standards that would enable only the best, well-intentioned ideas to rise to the top," Akande says.

He advises that you push ahead even when you become discouraged. "Pioneers must have vigilance and constructive impatience," he says. "Nigeria has tried everything, but they realize that government cannot sustain economic growth and NGOs [non-governmental organizations] are not sufficient to move the country forward. The only hope left is the empowerment of entrepreneurs through ideas."

Akande recommends the following resources:

Join the American Nigerian Chamber of Commerce. "Your membership will give you access to people and organizations with similar interests," he says.

Ask the U.S. Embassy's commercial attaché to help you vet relationships.

Braun Mincher, an author and entrepreneur who has traveled in Africa, recommends:

The FATE Foundation, a nonprofit group encouraging entrepreneurial education for youth in Nigeria.

Harvard Business School, which sponsors an annual Africa Business Conference.

*[http://www.internationalentrepreneurship.com/] a Web site that lists information and resources about entrepreneurial markets throughout the world.

AdamToren of the Young Entrepreneurs suggests:

The Nigeria Network of NGOs, which may be a place for you to meet with like-minded individuals receptive to your ideas.

Kiva, a person-to-person online lending site that funnels microloans from donors in the U.S. and elsewhere to entrepreneurs in the developing world.

Borden recommends:

The World Bank's International Finance Corporation subsidiary, which publishes extensive basic training materials.

The Aspen Institute, which evaluates the best international programs in its annual FIELD publication.

The Center for International Private Enterprise, which has information and studies on a country-by-country basis.

The U.S. Agency for International Development, which has a Sub-Saharan Web site, plus numerous studies on the impact of entrepreneurial support programs.

Good luck!

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.