FOOL'S PARADISE: WAREHOUSING WHEN THERE IS NO WARE, ENTREPRENEURSHIP WHERE THERE IS NO ENTERPRISE.
Business can be privately owned, not-for-profit, co-operatively owned or state-owned. Business is an organization or economic mechanism with purposeful activity either: monopolistic, oligopolistic or multiple players, enabling competitiveness in the production of goods and services which is swap via trade by barter or for money.
Most businesses exist to make profit in other words they are profit driven, which is one of the motivating factors why investments are made into such businesses in the first instance.
Business orthodoxy requires that goods and services that would be provided by the entrepreneurial investors must have market(s) with enough customers to whom its output(s) can be sold on a regular basis in order to achieve profitability.
Profitability of an enterprise in a given socio-cultural millieu would ultimately depends on the demand and supply structure side for the products being offered. The marginal propensity to spend/purchasing power, coupled with the dominant economic value system within that specific clime is of significance.
Note that the emphasis here is on consumerism/consumption paradigm of individual and households.
Consumerism is a philosophy that says it is in the interest of individual and households to spend a lot of money on goods and services because the more you spend the better for the society economy and the more hedonistic you are; the happier you become.
I do not agree with this philosophy because of its negative impactness in all ramifications but that is not the subject matter of this piece for now.
Marginal propensity to consume ''In economics, the marginal propensity to consume (MPC) is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers). The proportion of disposable income which individuals spend on consumption is known as propensity to consume. MPC is the proportion of additional income that an individual consumes. For example, if a household earns one extra dollar of disposable income, and the marginal propensity to consume is 0.65, then of that dollar, the household will spend 65 cents and save 35 cents. Obviously, the household cannot spend more than the extra dollar (without borrowing)''. -From Wikipedia, the free encyclopedia
The instructive imperative here is that the dominant economic value system and MPC which is the proportion of additional income that an individual consumes or households consume are key elements to the profitability and equally sustainability of any business that is profit orientated.
Citizens must have extra money to spend in order to buy the goods and services of productive activity from the industries or factories respectively.
The success and growth of any national economy depends therefore on the abovementioned factors.
The question that is ruminating my mind at this juncture is whether we/Nigerian citizenry have the money to spend to boost industrial production taken for granted that we have an innate propensity for addictive consumption or do we as a nation has enough production facilities to churn out goods and services that prospective consumers (Nigerians) want.
These ruminations came about because of the massive migration of our production, factory, and REAL entrepreneurs to neighbouring countries where they experience conducive atmosphere for doing business like good governance, energy supply, business friendly tax regime, security, honest credible banks, rule of law and consistent/coherency of government policy.
Do we really have entrepreneurs in the orthodox full sense of the word or we are dealing with Nigerian shell companies, fake entrepreneurs camouflaging and masquerading. Our portfolio industrialist, businessmen and women running after government contracts or import licenses with their portfolio of corruption.
We cannot forget some of them accusing the CBN of waging war against legitimate business/enterprises, rather what they engage in is an illegitimate enterprise. A business that is not registered in Nigeria, not registered as a legitimate enterprise abroad, neither any documentation to show that they are with CAC Nigeria nor paying taxes to the FIR department or the state tax office.
Most of the so called businessmen and women are not nationalistic in their orientation in respect of establishing production facilities at home, rather they go around importing products that we can produce ourselves in Nigeria there by encouraging imperialisitic domination of our economy.
These are people who have allowed imperialistic Mercantilism with their unbridled importation of every thing from Toothpick, Toilet roll and even Yam into the country.
THOSE WAREHOUSING WHEN THERE IS NO WARE AND ENTREPRENEURSHIP WHERE THERE IS NO ENTERPRISE.
REAL entrepreneurs like Dangote, Adenuga et al must be encourage to go ahead with industrialization and indigenisation of production processes in line with government policy objectives.
They must be given tax breaks and government support to get necessary financing from the international financial marketplace for their projects in Nigeria and in Africa.
https://www.thecable.ng/cbn-policies-boosting-the-local-industry-say-manufacturers
The recent support for CBN and @mbuhari monetry policy by the National Assembly is commendable, we are on the right track to changing the narratives of importation into local production of goods and services and people/Nigerians with innate compulsive addictive consumption syndrome can go about their jolly hedonistic lifestyle in as much as we are not forced to use our hard earn foreign reserves to pay for importation of luxury goods and services.
OTUNBA ADE ILEMOBADE is a philosopher
Twitter: @pearl2prince
Most businesses exist to make profit in other words they are profit driven, which is one of the motivating factors why investments are made into such businesses in the first instance.
Business orthodoxy requires that goods and services that would be provided by the entrepreneurial investors must have market(s) with enough customers to whom its output(s) can be sold on a regular basis in order to achieve profitability.
Profitability of an enterprise in a given socio-cultural millieu would ultimately depends on the demand and supply structure side for the products being offered. The marginal propensity to spend/purchasing power, coupled with the dominant economic value system within that specific clime is of significance.
Note that the emphasis here is on consumerism/consumption paradigm of individual and households.
Consumerism is a philosophy that says it is in the interest of individual and households to spend a lot of money on goods and services because the more you spend the better for the society economy and the more hedonistic you are; the happier you become.
I do not agree with this philosophy because of its negative impactness in all ramifications but that is not the subject matter of this piece for now.
Marginal propensity to consume ''In economics, the marginal propensity to consume (MPC) is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers). The proportion of disposable income which individuals spend on consumption is known as propensity to consume. MPC is the proportion of additional income that an individual consumes. For example, if a household earns one extra dollar of disposable income, and the marginal propensity to consume is 0.65, then of that dollar, the household will spend 65 cents and save 35 cents. Obviously, the household cannot spend more than the extra dollar (without borrowing)''. -From Wikipedia, the free encyclopedia
The instructive imperative here is that the dominant economic value system and MPC which is the proportion of additional income that an individual consumes or households consume are key elements to the profitability and equally sustainability of any business that is profit orientated.
Citizens must have extra money to spend in order to buy the goods and services of productive activity from the industries or factories respectively.
The success and growth of any national economy depends therefore on the abovementioned factors.
The question that is ruminating my mind at this juncture is whether we/Nigerian citizenry have the money to spend to boost industrial production taken for granted that we have an innate propensity for addictive consumption or do we as a nation has enough production facilities to churn out goods and services that prospective consumers (Nigerians) want.
These ruminations came about because of the massive migration of our production, factory, and REAL entrepreneurs to neighbouring countries where they experience conducive atmosphere for doing business like good governance, energy supply, business friendly tax regime, security, honest credible banks, rule of law and consistent/coherency of government policy.
Do we really have entrepreneurs in the orthodox full sense of the word or we are dealing with Nigerian shell companies, fake entrepreneurs camouflaging and masquerading. Our portfolio industrialist, businessmen and women running after government contracts or import licenses with their portfolio of corruption.
We cannot forget some of them accusing the CBN of waging war against legitimate business/enterprises, rather what they engage in is an illegitimate enterprise. A business that is not registered in Nigeria, not registered as a legitimate enterprise abroad, neither any documentation to show that they are with CAC Nigeria nor paying taxes to the FIR department or the state tax office.
Most of the so called businessmen and women are not nationalistic in their orientation in respect of establishing production facilities at home, rather they go around importing products that we can produce ourselves in Nigeria there by encouraging imperialisitic domination of our economy.
These are people who have allowed imperialistic Mercantilism with their unbridled importation of every thing from Toothpick, Toilet roll and even Yam into the country.
THOSE WAREHOUSING WHEN THERE IS NO WARE AND ENTREPRENEURSHIP WHERE THERE IS NO ENTERPRISE.
REAL entrepreneurs like Dangote, Adenuga et al must be encourage to go ahead with industrialization and indigenisation of production processes in line with government policy objectives.
They must be given tax breaks and government support to get necessary financing from the international financial marketplace for their projects in Nigeria and in Africa.
https://www.thecable.ng/cbn-policies-boosting-the-local-industry-say-manufacturers
The recent support for CBN and @mbuhari monetry policy by the National Assembly is commendable, we are on the right track to changing the narratives of importation into local production of goods and services and people/Nigerians with innate compulsive addictive consumption syndrome can go about their jolly hedonistic lifestyle in as much as we are not forced to use our hard earn foreign reserves to pay for importation of luxury goods and services.
OTUNBA ADE ILEMOBADE is a philosopher
Twitter: @pearl2prince
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