Promoting Entrepreneurship in Nigeria through Microfinance

Economic prosperity, defined as a movement of people from the economic poor class to the economic middle or rich class of a society, in Africa has been achieved by a few countries. However, most countries, like Nigeria are left still chasing that elusive goal. Entrepreneurs, who spur economic growth in a society, are lacking in Nigeria. Steps taken by the Nigerian government to encourage entrepreneurship has led to uneven results in different sectors of the economy and for different stakeholders. The traditional banking system in Nigeria has also left many entrepreneurs without adequate capital. By comparing Nigeria with Bolivia, an argument is made for more microfinance endeavors and better management of the existing microfinance institutions; this will in turn cover the gaps left by the government and traditional banking system in spurring entrepreneurship.