There seem to be a quorum on the fact that most Nigerian entrepreneurs default to building e-commerce startups, and they do so for obvious and logical reasons. E-commerce startups make the news rounds, get funded, and fit perfectly with the Nigerian cultural behaviour of trading.
Although the water gets muddy when trying to define what an e-commerce startup is, I’d stick with this definition — an online platform(1) with listed products and services(2) that customers can acquire via a shopping cart(3) and are offered payment(4) and delivery(5) options.
Dotun Olowoporoku, an entrepreneur, consultant and founder of Starta, and Lanre Akinlagun, founder and CEO of Drinks.ng have validated that such a fixation exists, and so here is a 3-step recommendation to fix the e-commerce fixation:
The best way to break a baby’s fixation on a new toy is to give it a newer toy.
1. Spotlight alternative viable sectors
Many entrepreneurs venture into e-commerce because it is perceived as the most viable option. A hundred dollars ($100) is more than enough to set up an online store and start making revenue in a matter of hours. However things quickly go wrong due to errors of omission on critical areas such as logistics and inventory management, and so there is need to amplify other viable options entrepreneurs can explore.
This can be effected through publishing white papers, reports and blog posts that showcase other viable sectors yet to be saturated by entrepreneurs. The media has a role to play in this as it’s all about amplifying the narrative of other viable sectors where only few entrepreneurs have ventured.
2. Stimulate entry into alternative sectors
After spotlighting viable sectors for entrepreneurs to explore, an important next step is to stimulate entry into such areas. Now aware of other viable areas other than e-commerce, some entrepreneurs will begin to identify problems and propose solutions. However there is also need to induce or better yet catalyse this process.
Incubators need to take the lead on this through arranging events such as sector-specific hackathons like fintech edition of a Startup Weekend or ideation programs focused on transportation of people, goods and services. These events should translate into communities made up of developers, designers, business minds, subject matter experts (SMEs) and other stakeholders committed to exploring opportunities in said sectors.
3. Support alternative-sector entrepreneurs
With spotlight on alternative yet viable sectors other than e-commerce, and putting in place initiatives to stimulate entrepreneurs into venturing into said areas, the last step is to create supporting mechanism to keep the wheels turning. While this includes more spotlighting and stimulating, there is need to provide dedicated support tailored to these alternative sectors.
Some support that can be provided include: advisory services, funding and co-working spaces such as the CcHub’s “re:learn” for education startups. As you may have deduced, accelerators and investors will need to lead this part of the process.
I hope with these few points of mine I have been able to convince you that putting a spotlight on alternative viable sectors, stimulating entrepreneurs to venture into these sectors, and providing the needed support is the way to fix the fixation Nigerian entrepreneurs currently have with e-commerce.
This post is also published on TechVoize.com
