By RARZACK OLAEGBE
Are you a digital native? Or a digital dinosaur? Where do you belong? As digital natives, Nigeria’s youth are deploying digital tools to solve challenges and moving into entrepreneurship. Technology has helped the youth to expand digital frontiers, going beyond the local environment. This was not possible before the advent of technology. With ready access to ubiquitous mobile devices and the internet, the pathway to economic freedom is here. It is birthing new businesses. It is opening new doors of prosperity.
On the one hand
A report by the Fate Foundation, 2024 State of Entrepreneurship, has confirmed that birthing of new business in Nigeria has declined in three years. It stated that birthing new business rate fell to 24% in 2024. Down from 30% in 2023 and 32% in 2022. This is due to economic challenges. You know the usual suspect. Inflation. Insecurity. Poor power supply. Limited access to finance.
On the other hand
Despite this, the report shows, the female entrepreneurs accounted for 47% of new businesses. Youth-led enterprises made up 44.4%. This shows a growing role for women and young Nigerians. Youth entrepreneurs led in technology adoption with 72% integrating digital tools, which supported business growth. The report confirmed that more Nigerian youth are embracing digital literacy. Innovation. Entrepreneurships.
In the long term
The report noted that female-led businesses suffered more with only 63% reporting growth compared with 74% for male-led businesses. Nigeria’s entrepreneurial index dropped to 0.46 in 2024. It was 0.52 in 2023. The report recommended government should ensure macroeconomic stability. Implement business-friendly policies. Simplify business registration. Create platforms for public-private dialogue to support entrepreneurs.
Technology has demystified the myth about starting a business endeavour with a swathe of funds. Many thriving businesses attest to this. Some of these are Precise Financial Systems [PFS]. Andela. Uber. Professor Tunde Ope-Davies, founder of the Centre for Digital Humanities at the University of Lagos, also attested to this.
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At the Lagos Spring School in Digital Entrepreneurship and Digital Culture recently Ope-Davies explained that launching innovative businesses do not require large investments. For instance, two individuals [a software developer and a chartered accountant] birthed PFS. Two persons with laptops built Uber. Andela toed a similar path.
Technology adoption plays a great role in business growth. In healthcare application. Telemedicine. Logistics. E-commerce. Many young entrepreneurs are embracing technology to drive economic growth. Without technology, many businesses would be demise. Technology is the catalyst. A fertiliser.
Many chief executives in banks, fintech, and other financial institutions have embraced technology to enhance operations. This culture has helped many businesses to bridge the digital divide gap to achieve scale. Tim Akano, CEO, New Horizons urged young Nigerians to develop digital skills to compete in the AI-driven world. Nigeria, he advised, must move from the backseat of humanity to the front seat in technology.
In the short term
Are you a digital native or a slave? Knowing the difference matters.
*Oleagbe ([email protected])
