By Omoruyi Edoigiawerie Esq
I have always maintained that start-ups are borne out of necessity. They are often created to fill the gap, solve a problem and provide quick and viable solutions to public needs. In essence, it is often the economies with the greatest needs that present the biggest opportunities.

Start-ups are known to thrive even better in developing and underdeveloped countries, nations in conflict, and those countries new to entrepreneurship – the reason is simple they are innovating solutions to problems that plague their environment. Each of these environments offers untapped problems which start-ups take advantage of not just to make a profit, but also to create impact.

Today, more and more start-ups are growing leveraging modernisation and creativity and loaded with the potential to positively impact the economy. As it is often said, entrepreneurship is the only way to augment the economic growth of any nation.

A small start-up idea can be turned into a big innovative solution that will change the future of the Country; companies like Paystack, flutter wave, Piggyvest, Opay, and Andela to mention but a few are proving this to be true as they provide cutting edge solutions for the public through innovation.

Being small entities, start-ups play a dominant role in economic growth. The reason behind this is that they generate jobs, which means lower unemployment rates, and lower unemployment means an economy that is refining and improving. They also generate competition and inspire individuals to be more pioneering, inventive, and innovative.

Start-ups as catalysts for economic prosperity
Even as small companies, start-ups play a significant role in economic growth. With the number of start-ups growing daily, competition between them is also increasing and healthy competition is significant to the ecosystem to enable a sustainable start-up environment and enhance inclusion.

Presently, many start-ups have introduced modern and up-to-date technologies like the Internet of things, Artificial Intelligence, and Robotics. Most technology-driving establishments work closely with many start-ups to provide value to their customers, even agencies of government now work with start-ups to create tech-driven solutions for the benefit of the citizenry and improve governance.

It is therefore an undisputed fact that start-ups are catalysts for economic prosperity and wealth creation, this assertion is buttressed by the fact that:

• Start-ups are the centres of innovation;

• Start-ups create jobs which means more employment, and more employment means an improved economy;

• Start-ups have a direct impact on the cities where they operate. They improve employment patterns by providing job opportunities to both experienced and young professionals;

• Start-ups boost the economy with revolutionary technology and create new industries over time. When they go public, they truly become money-making engines for not just the owners but also the employees and shareholders;

• Start-ups also contribute to improving the image of the country. Today some of our start-ups and their founders are highly sought after by Venture Capitalists all over the world.

Start-ups as disruptive tools for Economic transformation.

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New technologies often create new opportunities that start-ups take advantage of to create immense value over established businesses, inspiring competition and disrupting the economy to evolve.

Let us picture a post-COVID-19 world without zoom, WhatsApp, or telegram, the world would have been far less productive and less connected – these platforms are entrepreneurial innovations that morphed into start-ups and presently improve the standard of living and economic development.

Start-ups may be small. But they create ripples in the economy that change people’s way of living. They create new markets or completely transform old markets by introducing products that change the world. Giants today like flutter wave and Pay stack were once small but ambitious start-ups.

By supporting and encouraging more start-ups, the government makes it possible to generate more revenue domestically and consumer capital will also flow around the country.

Developing a talent pool of creative entrepreneurs

With the start-up boom also comes a dearth of adequately equipped start-up founders and entrepreneurs.

With the increase in innovative entrepreneurship and expansion of start-up activity, there is the need to create a talent of creative entrepreneurs through meaningful collaboration with educational institutions and youth-based groups to identify, encourage and support the sort of talent pools that initiate start-ups.

Again this is where the start-up bill is a welcome development and it is expected that the creation of acceleration and incubator programs, start-ups and innovation clusters, and physical and virtual hubs will spur the growth and development of start-ups.

All over the world, even though start-ups start small, they self-create more opportunities to grow, and certainly contribute to a country’s economic prosperity, whether the country’s economy has been developed, developing, or improving from a recession. The government of developing countries like Nigeria needs to invest more in research and development to fuel the next start-up boom.

Our educational institutions should pay more than theoretical attention to entrepreneurship and digital innovation by creating a mentorship link between students and active players in the start-up community along with project-based learning to spur entrepreneurial thinking.

Creating an enabling environment for start-ups

As integral as start-ups are to economic development and the improvement of our GDP, they must be allowed to grow and thrive in an environment that enables sustainable growth and development.

For meaningful growth and sustainability, start-ups require a multi-pronged approach based on support, including:

1. Increasing access to capital;

2. Improving access to talent;

3. Opening up access to markets; and

4. Cutting red tape and instituting a pro-innovation regulatory and fiscal policy. This is very important because start-up-friendly policies require the government to do things differently.

The above proposition once again underscores the importance of the recently passed Nigerian start-up Bill and the need for States to adopt the bill and contextualise its benefit for start-ups in their states.

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 start-ups, 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