Liquidity Constraints and Entrepreneurial Financing in Nigeria: The Fate of Fresh Graduate Entrepreneurs

Abstract

The paper justifies the establishment of entrepreneurship development centres in Nigerian Universities by showing the relevance of entrepreneurship development programme on overall national development of the country. And then focuses on liquidity constraints which fresh graduate entrepreneurs may likely face in an attempt to establish small businesses of their own, after acquiring entrepreneurship training as part of their overall university training. The paper reiterates the importance of financial market development and personal wealth in driving entrepreneurship in a country. It contends that fresh graduate entrepreneurs cannot escape from liquidity constraints in entrepreneurial financing, due largely to the high level of poverty and the underdeveloped nature of the financial market in Nigeria. For the objective of the entrepreneurship development programme to be achieved, the paper recommends that fresh graduate entrepreneurs and indeed startups should possess five strong-will - powers such as mind power, planning power, people power, knowledge power and gearing power. In addition and more importantly, the government should carry out more vigorous reform in the financial market with a view to bringing it to international standards and also establish a special financial institution solely responsible for giving grants to fresh graduates after their National Youth Service Corps (NYSC) year, to start businesses of their choice.