Types of entrepreneurship in Nigeria

Types of entrepreneurship in Nigeria

Types of entrepreneurship in Nigeria

This article explores the different types of entrepreneurship in Nigeria.

The types of entrepreneurship in Nigeria are similar to what you’ll find in other places. Entrepreneurship is the process of creating a new idea, new market or possibilities, and the process comes in different forms.

Types of entrepreneurship in Nigeria

Types of entrepreneurship in Nigeria – corporate entrepreneurship

Corporate entrepreneurship involves creating new processes, products and ventures within large organisations. It is also known as intrapreneurship.

Entrepreneurs within organisations or intrapreneurs are those individuals who seek ways to improve current structures and processes through innovation.

Types of entrepreneurship in Nigeria

Intrapreneurs like other entrepreneurs identify opportunities and create value by building teams that enhance corporate competitiveness and profitability.

Not many corporate organisations support intrapreneurs. Many fear that encouraging employees to be more entrepreneurial would encourage them to leave the company and start their own.

Very few organisations encourage corporate entrepreneurship, even fewer acknowledge and reward intrapreneurs beyond the normal remunerations and compensations.

It would be a great idea to celebrate intrapreneurs when corporate organisations celebrate their latest innovations.

Types of entrepreneurship in Nigeria – small business entrepreneurship

This mode of entry into entrepreneurship could involve buying an existing small business or the entrepreneur could start from scratch using a small business model.

In the first case, buying an existing business that has goodwill is a less risky approach than starting from scratch. The business is already known, and the entrepreneur brings the needed growth through innovation.

In the second case, the entrepreneur starts with a small business model because it is easy to manage the business process. This model is particularly useful where existing businesses are “giants”, and the entrepreneur cannot afford to buy or run a bigger business.

In such an instance, an entrepreneur can grow their business using a small business model and move from small and sometimes inauspicious beginnings to creating jobs for thousands.

Many entrepreneurs in Nigeria started small and have managed to grow their businesses into international relevance.

Types of entrepreneurship in Nigeria – franchise entrepreneurship

Many entrepreneurs in Nigeria, especially in the food sector, entered entrepreneurship using the franchise model. Fast-food chains are examples of businesses operating as a franchise business, where although there are different owners of different outlets, the branding is the same.

Franchising gives an entrepreneur (the franchisee) a head start because they are able to trade under the name of an established company (a franchisor).

Operating a franchise business can be encumbering because the franchisee does not have the kind of freedom an independent entrepreneur would have.

However, a franchise business has the chance to succeed because of the strength of the brand.

Types of entrepreneurship in Nigeria – inside entrepreneurship

Inside entrepreneurs are similar to intrapreneurs. However, unlike the latter that exist in corporate organisations, inside entrepreneurs function in any type of organisation.

They exist in government agencies, SMEs, religious organisations, cooperatives, educational institutions, etc.

Their defining qualities are that they have the desire to create something of value and they bring marketable ideas to their organisations. They, however, need support for their initiatives from senior management and other team members.

Types of entrepreneurship in Nigeria – social entrepreneurship

This type of entrepreneurship lies between the for-profit and the not-for-profit organisation. The founders are called social entrepreneurs.

Social entrepreneurship involves making money for social causes. These initiatives address issues such as education, poverty, health and global warming.

Microfinance organisations fall within this space, providing simple and affordable financial solutions to the poor.

Types of entrepreneurship in Nigeria – serial entrepreneurship

Serial entrepreneurship is a type of entrepreneurship where the entrepreneur has the habit of starting several businesses simultaneously or one after the other.

The rapid growth in technology, has encouraged serial entrepreneurship and many new entrepreneurs are successfully starting and selling multiple businesses.

Such entrepreneurs are called serial entrepreneurs. They are people who love to explore possibilities across a range of ideas.

They typically build a business, sell it or go public and then move on to another idea or venture.

Types of entrepreneurship in Nigeria – family entrepreneurship

Types of entrepreneurship in Nigeria

A family enterprise is owned and managed by family members from more than one generation. As a family business, an organisation is controlled and managed by members of a family (be it monogamous, polygamous or extended households).

Family enterprises have made a reasonable mark in the business scene in Nigeria, for example, the empires of Alhaji Yinka Folawiyo, Alhaji Aliko Dangote, Dantata, Isiyaku Rabiu, Bashorun M.K.O. Abiola, Chief Ashamu, The Ibrus, Okoya-Thomas, the Ojukwu family, Chief Odili, Bobby Benson, Sanusi Brothers, Henry Fajemirokun, Dehinde, Fernandez, Bank-Anthony, etc.

These types of businesses may grow and thrive for years because of the enterprising spirit and mindsets passed on through generations. However, in many cases, such enterprises suffer from succession problems due issues such as lack of strong succession structures by the founders and cultural issues that limit the ability to identify a right successor.

While this article looked at different types of entrepreneurship which could have positive impact on society, some entrepreneurs use their business irresponsibly, read more in this article.

Mofoluke Akiode