Low Income Startup cluster; how to employ 50 million people in Nigeria
Earlier in the year as I drove through Makoko area and some other low income areas in Lagos. I discovered that there are small businesses surviving for years on small startup capital and keeping the people gainfully employed.
I’m not an economist neither am I a statistician, but my Africapitalist mindset tells me that, to get good chunk of our population busy (most especially the youths), we can develop a low-income business model with startup capital of 50–100k. They should employ between 2–3people. The sole purpose is to pay the salary and keep the business running. They don’t need to scale, ONLY the model and process should scale. Salary scale of 20–30k for a start and the company should make such at every 30-day circle.
To ensure that the business don’t die after 6 months, we can give the lead/ceo a crash course in business and financial management for a month and mentor their progress for 3 months.
Anyone who works for any of this startups should get access to start their own with less stringent and training. Having gone through the business with the other party as an employee, they should have the grind to take on their own and employ 3 more people.
By the time people are engaged this way, they develop the hunger for more and they will increase their productivity. In an essence; their ability to earn more will be determined by their productivity and dream.
As I logged on to Twitter, this morning, I saw Mark Essien, share same sentiment and I do think that this is critical for the current state of our country. The population is growing astronomically and our young people are idle and hopeless, but they really want to hammer.