Report: 3 in 10 Nigerians are Entrepreneurs in 2024

OWNING a business in Nigeria has consistently been an attractive option for individuals across generations. However, as the nation’s economic challenges intensify, entrepreneurship has shifted from being a choice to a necessity for many.

A recent report by Nigerian fintech Moniepoint highlights the growing prevalence of informal businesses in Nigeria. This surge stems from the country’s high unemployment rate and the significant challenges associated with running formal enterprises. Many aspiring entrepreneurs sidestep bureaucratic hurdles, including prohibitive taxes, by venturing into the informal sector.

‘Adults in Nigeria are increasingly keen on business ownership, whether formal or informal,’ the report states, pointing to a resilient entrepreneurial spirit in the country.

A new study by another Nigerian fintech, PiggyVest, reveals that three in ten Nigerians are entrepreneurs in 2024, a trend fuelled by factors such as:

Increased access to the internet.
Rising unemployment.
A burgeoning youth population.

This growing entrepreneurial drive is not evenly distributed across generations. According to the study, Generation X leads in business ownership, with around 40 percent of respondents reporting they own a business. Millennials follow at 32 percent, while Boomers demonstrate moderate engagement at 26 percent. Notably, Generation Z lags, with just 16 percent involved in entrepreneurship, likely due to their younger age and limited professional experience.

Women leading the charge

Interestingly, women slightly outpace men in entrepreneurship. The study found that 27 percent of Nigerian women are business owners, compared to 23 percent of men, showcasing the growing role of women in shaping the nation’s business landscape.

Microbusinesses dominate

Despite the entrepreneurial growth, most Nigerian businesses remain small-scale. Eight out of ten entrepreneurs run microbusinesses with fewer than nine employees. Meanwhile, only 10 percent operate small firms with 10 to 49 employees, highlighting the limited scale of most ventures.

Entrepreneurship’s appeal spans generations, but economic realities influence how each generation participates:

Generation X: Dominates entrepreneurship due to their established careers and financial stability.
Millennials: Leverage digital tools and a youthful drive to create thriving ventures.
Baby Boomers: Maintain moderate involvement, often focusing on legacy businesses.
Generation Z: While least involved, they show potential to innovate as they mature.

A complex future

The rise in business ownership reflects resilience amidst Nigeria’s economic adversity. However, the dominance of microbusinesses and the challenges of formalising enterprises underscore structural issues requiring attention. Addressing these barriers could unlock even greater economic potential, particularly for younger generations poised to reshape the entrepreneurial landscape.