By Omoruyi Edoigiawerie, Esq
Start-ups have become the backbone of economic growth and innovation in today’s world and here in Nigeria, they show the hope and promise for a future built unassailably on innovation and technology capable of moving.
With their ability to disrupt traditional industries and create new jobs, supporting and nurturing start-ups should be a top priority for any government.
As President Bola Tinubu’s administration takes charge, it is crucial to proffer an all-inclusive strategy to empower start-ups, fuel entrepreneurship, and foster a thriving ecosystem. In essence, provide a blueprint for the new government to ensure the success and growth of startups in the country.
The start-up ecosystem comprises Nigeria’s brightest minds and innovators, who have not allowed obvious challenges and infrastructural deficits to inhibit their creativity, they have rather found ways to thrive despite these challenges.
However, the ecosystem will be better off if the challenges that affect their growth are tackled decisively. It is therefore on this premise that I propose that the Tinubu Administration focuses on the following cardinal areas:
1. Foster a favourable regulatory environment:
One of the primary challenges faced by startups is navigating complex regulations thankfully the Start-up Act was enacted by the outgone President Muhammadu Buhari administration, but it is not yet ‘Uhuru’ as the Act is at the implementation stage and there is the need for all concerted efforts and intentional implementation. One thing that comes to mind, is the need for the new administration to work closely with private sector practitioners and stakeholders in the ecosystem to ensure that the implementation is not derailed or haphazardly implemented. There is also a need to prioritize creating a supportive regulatory environment that minimizes bureaucratic hurdles and encourages innovation. This will be achieved by a holistic implementation of the start-up engagement portal which will streamline licensing processes, reducing compliance burdens. Regular engagement with the start-up community especially creating a robust interaction between Government and the start-up consultative forum and other stakeholders in the ecosystem to understand their needs and concerns is essential to ensure the regulatory framework remains responsive and adaptive to evolving technologies
2. Promote access to capital:
Access to capital is vital for startups to grow and scale their operations. The Tinubu Administration should establish mechanisms to enhance funding opportunities for startups, including the immediate allocation of the start-up investment seed fund provided for under the Start-up Act, promote access to venture capital funds, provide support and an enabling business environment for angel investor networks, and support for crowdfunding platforms. Encouraging collaboration between startups, financial institutions, and private investors will also facilitate easier access to capital, and therefore the introduction of the Tech Board by NGX should be encouraged. The Tech Board will facilitate exit opportunities for startups through initial public offerings (IPOs). This allows investors to realize returns and encourages a cycle of reinvestment in the start-up ecosystem. The government should also explore innovative financial instruments, such as tax credits for angel investors and venture capital firms, to incentivise investment in start-ups.
3. Enhance entrepreneurship education and support:
Entrepreneurship education plays a crucial role in nurturing the next generation of start-up founders. Government should collaborate with educational institutions to incorporate entrepreneurship courses and programs at all levels of education. Providing mentorship programmes, incubation centres, and co-working spaces can help create a supportive ecosystem for aspiring entrepreneurs. It is important to mention the commendable work that accelerator and incubator hubs across the country do to help propel and develop tech talent; this should be encouraged. There is also an urgent need for entrepreneurship development funds that can provide financial support and training to individuals from underrepresented communities, promoting inclusivity and diversity in the start-up landscape. As the visioner of the Nigeria Start-up Act, Oswald Osaretin Guobadia, puts it, “The next ground-breaking idea and solution can come from that young talent in the village who has never been to the city, but has access to the information and support he needs to innovate thanks to the Start-up Act and State Start-up Law”
4. Encourage research and development:
Investment in research and development (R&D) is essential to foster innovation and technological advancements. The Tinubu Administration and all the State governments should introduce policies that incentivize startups to invest in R&D activities. This starts with activating the incentives under the Start-up Act, grants for collaborative research projects, and partnerships between startups and research institutions. By bridging the gap between academia and industry, startups can benefit from cutting-edge research while contributing to the growth of the knowledge economy.
5. Improve digital infrastructure and connectivity:
The incoming administration must ensure the improvement of the digital infrastructure in Nigeria, there is an urgent need to increase broadband penetration and make internet services more affordable and accessible, in today’s world, no business can thrive sustainably and compete globally without access to fast and reliable internet connectivity. At the end of the day, a strong digital infrastructure, including reliable internet connectivity and access to advanced technologies, is pivotal for start-up growth. It is therefore imperative for the government at all levels to invest in expanding broadband coverage and promoting the adoption of emerging technologies.
6. Promote international collaboration:
Global collaborations can provide startups with access to international markets, talent, and resources. The new government should actively facilitate partnerships between domestic and foreign startups, encouraging knowledge exchange and cross-border collaborations. Launching initiatives like start-up exchange programs, international start-up competitions, and trade missions can foster a vibrant ecosystem where startups can explore global opportunities and leverage international networks.
7. Encouraging public procurement from startups:
Every start-up needs money to thrive and grow and it is imperative that in addition to providing funding opportunities, the government should put policies and mechanisms in place that promote and encourage patronisation of start-ups, and public procurement policies that prioritize procurement from startups and small businesses. This not only supports the growth of startups but also encourages innovation and competition within the public sector.
*Bottom line
I am certain that a supportive environment for startups is essential for economic growth, job creation, and technological advancements. The Tinubu government must recognise the immense potential of startups and craft policies that nurture their growth, enable them, and equip them to create innovative solutions that will not only benefit the ecosystem but also contribute to the overall prosperity and competitiveness of Nigeria in the global arena.
Omoruyi Edoigiawerie is the Founder and Lead Partner at Edoigiawerie & Company LP, a full-service law firm offering bespoke legal services with a focus on startups, established businesses, and upscale private clients in Nigeria. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. His firm can be reached by email at hello@uyilaw.com
