Restrategising to Entrench Longevity in Entrepreneurship

Restrategising to Entrench Longevity in Entrepreneurship

Charles Ajunwa writes that participants at the just concluded Aba Business and Leadership Summit identified and proffered solutions to problems militating against the growth of businesses in Aba, the commercial centre of Abia State

With a population of over two million, Aba, the commercial centre of Abia State is renowned globally for its comparative advantage in textiles, palm oil, pharmaceuticals, plastics, cement, cosmetics and famous for its handicrafts, making it the second largest market in Nigeria after the Onitsha Main Market in Anambra State.

Regrettably, 10 to 30 years down the line, many of these businesses Aba used to be known for have become shadow of themselves especially with the demise of their founders.

Worried by this development, the Abia State government in conjunction with Aba Chamber of Commerce, Industries, Mines and Agriculture (ACCIMA), recently organised a one-day Aba Business and Leadership Summit with the theme: ‘Transferring Tested and Proven Business Models to the Next Generation’ with a view of identifying the problems hindering the growth of businesses and proffering solutions to their growth.

Not even the early morning rain could stop the young start ups and other participants from making their way to the main auditorium of Aba Sports Club, venue of the summit which was filled to capacity.

Setting the Agenda

Setting the tune for the summit, Director General of the Abia State Marketing and Quality Management Agency (ASMQMA), Mr. Sam Hart, in his welcome address espoused that Aba was a test case and model for progressive development.

Mr. Hart attributed the collapse of businesses in Enyimba City to the refusal of businesses to accept entities, nepotism and lack of structure.

“Aba is a renowned business and entrepreneurship centre of West Africa, the city is renowned globally. Aba is a test case and model for progressive development. But I know that if you ask anybody in this hall today about the businesses that they used to know 10 years ago, 20 years ago, five years ago, regrettably, that business is a shadow of itself. That phenomenon has to stop and that is why we are here today. With all the technological prowess of Aba, with all the popularity of Aba, why is there no company listed on the Nigeria Stock Exchange? He asked.

“Governor of Abia State, Dr. Victor Ikpeazu, has done so much in ensuring that Aba regains its pride of place as the preferred business destination East of the Niger through massive infrastructural mitigation of this city. No administration in the history of Abia State has done the infrastructures that Dr. Okezie Ikpeazu executed in Abia State. To put Aba back on the map, he has opened up the city and marketing of the made-in-Aba products which are sold globally. Since he became governor, everything he puts on is made-in-Aba. He is a complete representation of the enterprise of the Abia people.”

President, ACCIMA, Sir Lawrence Obetta and President of Aba Sports Club, Chief Jerry Kalu, in their opening remarks re-echoed the urgent need to train and mentor the young start ups and established businesses in order to ensure sustainability of trans-generational wealth transfer. To this end, Mr. Obeta pledged the readiness of ACCIMA to train more women and young start-ups on the rudiments of doing business, which he said would make them successful in their different ventures.

Chief Kalu who started business with only N50 advocated apprenticeship practice for the young start ups which he revealed, helped him to learn a lot of business tricks under his master. Apart from being a successful entrepreneur, Kalu said he has founded, nurtured and sustained many businesses in Aba over decades.

Discussants Identify Problems, Proffer Solutions

Former governor of Anambra State, Mr. Peter Obi, who was the keynote speaker, averred that businesses in Aba started to die when children from individual family owned businesses failed to sustain their family businesses especially with demise of their founders.

He identified lack of proper mentorship, lack of proper corporate governance as bane to Aba businesses over the years, adding that government programmes and policies killed many businesses.

Obi, who is known for prudent management of resources having left behind sustainable projects and a robust economy for Anambra, said 80-90 per cent of all the corporations globally were family owned businesses which he said contributed 70 per cent of Gross Domestic Product (GDP). Aba footwear which he compared to be of high quality to the ones produced in Vietnam can turn around the economy of Abia State in particular and Nigeria in general. He said Vietnam makes 140 billion annually from exporting footwear.

“Aba is known for footwear, clothing and for everything. We didn’t do the right thing that is why we are where we are today. No proper mentorship within the family in sustaining family businesses, no proper corporate governance, no company in Aba is listed on Nigeria Stock Exchange. Businesses do well when subjected to the rigours of proper corporate governance,” Obi said.

“Government has a share of the blame too. They don’t have fiscal and monetary policies to support businesses, they are not keen to support businesses, they killed more businesses and even killed what we produced. Ninety per cent of the problem of Nigeria is caused by politicians, government failing to support businesses. No bank today is doing lending, they are doing brokerage. Politicians should swallow their pride and do the right thing because if we fail, society will come back to swallow us.”

Prof. Pat Utomi, a professor of political economy and management expert, said that there was a need to build entrepreneurs for sustainability, maintaining that creative ways of doing business like use of technology should be applied in family businesses to keep them afloat from one generation to another.

Utomi, Founder of Centre for Value in Leadership and a professor at Lagos Business School while acknowledging his passion for Aba entrepreneurship, said he was encouraged by the works of former Premier of Eastern Region, late Dr. Michael Okpara.

According to him, ACCIMA had a duty to drive development in Aba, which he insisted would ensure trans-generational transfer of skills.

“We must be innovative on how you handle businesses. Business owners need to understand the nuances of business and their priority. If Barth Nnaji completes the Geometric power project in Aba, the city in the next five years will explode.”

Prof. Barth Nnaji, a celebrated engineer, innovator and Chief Executive Officer of Geometric Power, the largest independent power project in Nigeria, said as part of his vision to light up the whole of Aba and environs, he has so far invested over half a billion dollars to his Geometric Power Plant located in Aba, adding that business owners should be properly mentored and trained.

Nnaji, who was of the view that business owners should be properly mentored and trained, insisted on following due process in running any business. “We need to think about structure, corporate governance, and think about bringing high quality people to manage any business. When you are bringing investors into your business, they will look at your purse with appropriate accounting and audit. People should be properly mentored and trained, everything I do goes through proper process.”

President/Founder of the Cosharis Group, Dr. Cosmos Maduka, who gave a moving presentation about his growing up, said though his education stopped at Form three he took to apprenticeship at a very young age to improve on his God-given talents. He called on young people to change their mental attitude to life, noting that every problem is a business.

Maduka, who is a Forbes-listed businessman, disclosed that he started business with only N200, adding that nothing on the face of the earth would change a man with the right mental attitude.

“Young people should have vision for their lives and for where they want to go. My mother discovered my entrepreneurial capabilities. The young generation has been spoiled and none of them want to take responsibility. Please, don’t cancel the partnership. Apprenticeship is another thing that helped me. Every problem is a business. Successful people are between the ages of 12 and 28. Many people are occupied with things that are not profitable with their mind. If we build a strong economic force, we will not be depending on the government so much.

Ikpeazu’s Icing on the Cake

Abia State Governor, Dr. Okezie Victor Ikpeazu, who announced plans to establish an Aba Business School, said his decision was informed by the urgent need to preserve the pre-existing entrepreneurial skills and advance the educational capacity of traders, adding that businesses in Aba would only begin to flourish when ordinary traders become trained and certified holders of Diploma certificates. For the seamless transition of the planned Aba Business School, Governor Ikpeazu disclosed that Utomi, Maduka and others would play pivotal roles in the take off of the school. He said Igbo language would be used in teaching the students since many of them have only primary education before they ventured into business.

The governor, who dressed in Akwete outfit, indigenous only to Abia State, said with only 20 pounds given to Igbos after the Nigerian Civil War, they went ahead to dominate most sectors of the Nigerian economy, a feat he attributed to their entrepreneurial spirit, doggedness and resilience. Even with the heavy losses incurred by Igbos during the bloody civil war, Ikpeazu disclosed that eighty per cent of houses in Abuja and Lagos and other cities across the country are owned by Igbos. “When oil, which is the uniting factor, fizzles out, what will hold us together? Ikpeazu asked. He implored Igbos to be their brothers’ keeper.

To make trans-generational transfer of wealth sustainable, Ikpeazu implored parents to concentrate more on the education of their children instead of placing priority on their children getting quick wealth. He advocated apprenticeship as a condition for going into business, noting that it was a long tested and proven business model.

He told the story of Cosmos Maduka who started as an apprentice and later became a billionaire. Apprenticeship system, to Ikpeazu, among other things, teaches procurement, alternatives, packaging and repackaging, times and seasons, storage, warehousing, other peoples’ money, ethics of business, group support, how to save money, corporate social responsibility and personal projects.

Ikpeazu who inherited a peaceful and stable state in 2015 from his predecessor, Senator Theodore Orji representing Abia Central at the National Assembly, acknowledged that the youths were desirous of learning good trade. According to him, less than 24 hours after he enrolled for a leather academy in Aba, over 2,000 young people indicated interest in the same academy. He said learning how to make shoes would add to his various educational qualifications which he acquired over the years.

The panel session anchored by development expert, Nana Nwachukwu, featured Ide John Udeagbala, Darl Uzu, Mrs. Stella Igbokwe, Arnold Jackson, Ikenna Ogbudimkpa, Daniel Chinagozi and others.

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