Entrepreneurship creates jobs, not welfare

RESEARCH has proven that welfare is largely ineffective in a developing economy. By some estimates, more than $2 trillion has been spent fighting poverty since seven decades, with little direct impact. Entrepreneurs, however, are changing the world. Since 2005, an estimated half-billion people have been raised out of poverty through entrepreneurship. In China, Pakistan, and Indonesia, they have booming local economies, without any form of Aid, which are creating millions of jobs. Between 2005 and 2015, records reveal that India, Bangladesh, Vietnam, and Ethiopia have grown by at least 6.3 per cent per year, and in the process, saw an estimated quarter of its population lifted out of poverty. Entrepreneurs, not aid spending or welfare, are driving these economic growths. Our president obviously has good intentions, but his economic advisers need to do more. They ought to advice him that welfare will not create jobs, rather, entrepreneurship will. Also, by understudying other countries that have made considerable progress in this regard, and borrow such policies. The igbo traders apprenticeship style can also be adopted.

President Bola Tinubu has always been a benevolent person and hates to see people suffer. His advisers must encourage him to capitalise on emerging entrepreneurs for Nigeria’s development. The Federal Government can set up four to five programmes like the You Win programme to channel these funds to existing and emerging entrepreneurs to create jobs. Imagine if some selected emerging fashion brands receive 25 million each; the fashion industry alone can create thousands of jobs in thier factory, or coffee brands receive more funding, the coffee industry in Nigeria which is largely untapped can create thousands of jobs and drive economic growth, raising many out of poverty.

Aid spending has never developed any country in the world. The Federal Government should put to good use the 800 million dollars loan. Transfering N8,000 To 12 Million Poor Households For Six Months is like throwing a glass of water into the ocean. This will have little or no impact on our economy. If I may add as a balance to both sides, welfare isn’t totally bad, countries like USA has food stamps for the poor, and also the UK has subsidized health care through NHS. But, alongside this, Nigeria needs to develop the small scale industries to create employment and remove more people from poverty, that will have much more impact than given out a stipend every month. Also note that countries like USA are developed, they give welfare of over 1500 dollars a month to their citizens, because this amount is sustainable, and can be useful to start a business, or stay afloat, because they have a solid economy.

On the other hand, the Nigerian economy is still underdeveloped and in a growth process, we need to build institutions, create jobs and a stable economy that can power a more sustainable welfare system, that will not be dependent on loans.