‘Every need in society represents business opportunity’  

 

 

The LBS entrepreneurship fair seeks to showcase profitable business start-ups and ideas by our MBAs (full-time and Executive MBAs). The high point of these businesses is that they are all built around pressing problems identified in society, which they aim to solve in a profitable and sustainable way.

 

This entrepreneurship fair shows that every need or problem in society represents a profitable business opportunity and that one can make even more money from doing good. The MBAs will showcase that the businesses they started less than three months ago are all profitable. We hope to attract investors, who can contribute to scaling up these businesses and thereby increase their social impact and profitability. It is, however,

important to note that, while investors are welcome, all the businesses are structured to grow organically and can survive even without investments.

 

                                  

One clear common factor among the YouWin start-ups I have mentored is that they all started really small and have grown organically. They are therefore attractive investments, because you can see a track record. Many start-ups fail because people make large investments in areas where they have little or no experience. While starting small allows you learn and make manageable mistakes, which you can overcome and continue, starting big leads to expensive mistakes that are

difficult to overcome. Unfortunately, it is difficult to remove the mindset that a lot of money is required to start business.  

 

They will be inspired by what they see, because I provide only N5000 for the MBAs to start the businesses they will be showcasing. This amount forces them to be creative. The surprising thing is that some of them don’t even use any money at all and they tend to be the ones who make the most money. They will make a paradigm shift from the mindset that one needs a bank loan or a lot of money to start a business.

They will also learn that a good source of business ideas are the problems we see or experience, and that all problems represent profitable business opportunities.

 

 

 I would say they have made some efforts, but need to have a more holistic approach to achieve the desired results. They need to create an ecosystem that allows start-ups to succeed. The funds they have been providing should be accompanied with management training to ensure the entrepreneurs learn how to manage businesses, otherwise, the funds will likely be poorly employed and the SMEs/start-ups will eventually die. Basic training in aspects such as book-keeping, inventory management, marketing and people management, will go a long way in helping start-ups survive. Furthermore, it is not sufficient to have skill acquisition centres.

The trainees need to be helped with access to wider markets; otherwise they cannot sell their products, no matter how good. Most trainees come from

low-income background and if they cannot reach higher income clients, they can get discouraged and abandon the business. In summary, the elements of skill acquisition, management training, funding and access to markets, need to be linked to achieve stronger SME performance

 

 

 

 An opportunity for everyone to know that you do not need a lot of money to start making a difference in society or to start a business.

 

People will learn that everyone of us can contribute to making Nigeria a better country through profitable businesses. Our MBAs have touched thousands of lives through their various businesses, which started with just N5, 000 or nothing. They have experienced the joy

of transforming lives, while being profitable. 

 

 The biggest problem is lack of adequate preparation, which can be provided through apprenticeship and mentoring. In addition to these are poor management skills and inadequate infrastructural facilities such as poor power supply and access to potable water and bad roads. Even with the poor infrastructure, start-ups are more likely to survive and thrive if they are either willing to start by apprenticing in the area of business they wish to go into, and eventually start really small and grow progressively. With some basic training in book-keeping and management, they can build a better structured business. I have encouraged some of my MBAs to start basic business training schools, especially in locations like Computer Village as well as Balogun and Alaba markets. This will help start-ups and local marketers become even more successful, while providing good income to the trainers.

 

 I think government’s role should be restricted to providing an enabling policy frame-work. Government should provide policy incentives to encourage the private sector to provide training, mentorship and funding to SMEs. SMEs represent great investment opportunities when they are de-risked through training and mentoring. For example, if organisations that focus on SME training and funding are given tax incentives or some form of recognition by government, more companies or even banks will work in that direction. SMEs are the engine of social and economic growth, so the sooner we strengthen them, the faster we will attain inclusive growth and our potential as the giant of Africa.