Site Loader

The instance survey state used in the analysis is Nigeria, known as a state abundant with natural resources located in West Africa with a long coastline along the Atlantic Ocean. It is graded 32 in the universe in footings of entire country. However, it is a in-between income state with developed fiscal, communicating and oil sector. In the study few points will be looked at which are the internal and external analyses of the concern environment in Nigeria and how it can advance invention and attract investors with assorted economic system constituents. Besides traveling to discourse how National invention system is related to different mechanisms and attacks of invention.

In the concern environment analysis of Nigeria, strategic theoretical accounts will be deployed which are the pestel and sw analysis. This theoretical account will be a usher in giving a well-structured dislocation of the Nigerian economic system, in researching the internal and external environment.

External environment ( pestel theoretical account ) : The external environment of a concern comprises of a set of economic conditions runing outside the concern of an administration or economic system, which structures the life and being of the concern. These conditions could impact the concern positively or negatively. Therefore the pestel will be used to capture the external concern environment of Nigeria.

Political factors: This highlights the function of authorities in the concern environment ; they have been able to use trade limitation, so as to promote production and export of locally made goods. However, the authorities has had an consequence in substructure, wellness and instruction, which in the long tally will pave manner for invention.

Economic factors: These refer to macro-economic factors such as exchange rates, concern rhythms and rising prices rate. These affect how concern operates in an economic system. The exchange rate affects the cost of exporting and importing goods in the Nigerian economic system.

Social factors: This includes the changing civilizations and demographics in the economic system. The development in societal factors affects the demands of a business/company merchandises and how these administrations operate/ work.

Technological factors: These refer to innovation such as cyberspace, rise of new composite stuffs and technological inducements. A technological displacement can impact the cost and quality of concern, which consequences to the stimulation of innovation, invention and diffusion.

Environmental factors: This includes the clime status and environment pollution, which may impact production of merchandises in an economic system. However, may affect creative activity of new market and exist of older 1s.

Legal factors: This embraces legislative alteration on concern operation in an economic system, which might be through wellness and safety statute law or limitation of amalgamations and acquisition.

Internal Environment ( SW theoretical account ) : The internal concern environment of a given state consists of the chief factors which are Strategies and invention, entrepreneurial accomplishments and abilities, and employee abilities. The concern environmental factors of Nigeria will be analysed utilizing the SW analysis theoretical account.

Strengths: The concern environment has a strong fiscal and banking sector, good governed and managed by the boards of banking personal businesss and a vibrant and fast growth oil and telecommunication sector.

Failings: There is deficiency of basic substructure in the economic system e.g. failure of power supply, roads, and engineering. However, with the copiousness of resources it is unable to diversify these resources.

CONCEPT OF NATIONAL INNOVATIVE SSYTEM

The NIS can be defined as the interaction between private and public houses, universities, and authorities bureaus taking at the production of invention, scientific discipline and engineering ( Niosi et al. , 1993 ) .The construct of National Innovation System ( NIS ) has being deriving rational and practical consistence over a figure of decennaries, basking initial acceptance by OECD and most underdeveloped economic sciences. It is the focal point to be able to turn to the recent issues for developing economic sciences. Policy shapers view NIS as a powerful conceptual model that can be used to assist bridge the spread between the developed and the underdeveloped economic systems.

GOVERNMENT COMPONENT

The authorities constituents of the National invention system to further invention are tailored towards constabularies made by authorities establishments steering the personal businesss of merchandise quality and invention. The standard administration of Nigeria ( SON ) focuses its point in affairs of standardization, quality and proficient competency of merchandises through mill review, and NIS merchandise enfranchisement exercising which is organised by ( SON ) for merchandise enfranchisement. There were series of units initiated by the authorities establishments, this promoted merchandise quality and invention. The production enrollment unit helped the economic system through obtaining information on the criterions or engineering bases for merchandises and services, and bar of substandard merchandises produced or imported into Nigeria. These schemes facilitated consumer-protection maps and besides assist in national development programmes. Second the quality system developing units, assisted in organizing particular preparation classs on merchandise quality direction, invention and environmental direction systems specifically for company functionaries in the industry section and commercial sector of the Nigerian economic system. This polices has helped increased the rate of invention in the Nigerian economic system by increasing the rate of foreign direct investing into the state. The 2nd authorities bureau that has helped in making invention and professionalism in the Nigerian economic system is the Nigerian Communication Commission ( NCC ) . The committee is the independent national regulative authorization for the telecommunication industry in Nigeria. However, known as one of the sector executing good in the Nigerian telecommunication industry, the policies and maps of the committee has helped in the addition of invention in the economic system through ; offering, O.K.ing, airing and enforcing proficient specifications and criterions for importing and communicating equipment used in Nigeria. However, it besides helped the economic system, in the advancement and observing of the public presentation criterions and indices associating to the quality of telephone and communicating services. The telecommunication committee created a platform for invention in the industry by presenting advanced services and practises in the industry, in-line with international criterions and best practises. However, this encouraged local and foreign investings in the communicating industry, which helped in the constitution of communicating companies and administrations by natives of the economic system. This facilitated the attempts in developing an effectual research and development section by all communicating industry practicians. The two establishments mentioned above, has helped in the positive addition of invention in the economic system. Although there are assorted authorities establishments in the Nigerian economic system, but these establishments were preferred because of the institutional constabularies and determinations that has had a positive consequence in the economic system. This has created a platform for the advanced procedure of goods delivered and services delivered in the economic system.

FINANCE COMPONENT

There are assorted sets of fiscal establishments that are comparatively involved in the operational degree of finance and the capital market. These establishments are cardinal bank of Nigeria ( CBN ) , security and exchange committee ( SEC ) , and Nigerian stock exchange ( NSE ) . These establishments help in the regulative, monitoring and development of operational fiscal system in the Nigerian economic system. The fiscal sector reforms in Nigeria began with the deregulating of involvement rates in 1987. Since that period, there have been policy steps initiated and implemented. These steps are licencing of new Bankss, capital market reforms, and decrease of involvement rates to SMEs. In recent old ages, the fiscal system has witnessed the amalgamation and acquisition of Bankss and the constitutions of microfinance Bankss in the economic system, for the intent of imparting money to SMEs and other big endeavors in the economic system that will make an administration atmosphere and cut down strategic barrier. The microfinance establishment has had a positive consequence in the Small and medium endeavors in the economic system, through proviso of loan and a low involvement rate in the economic system. Pre-intervention of this policy of the fiscal sector, the SMEs faced series of troubles and jobs in the economic system. This created operational and strategical barriers for a rapid development of the SMEs sub-subsector in crafting invention skills/techniques and development among companies or administrations. Measuring finance has been identified as cardinal challenges that affect SMEs in the Nigerian economic system, because of hapless direction and accounting practises by proprietors ( Anazodo, 2000 ) . However, this besides duo the fact that most concern proprietors do non hold good collateral to acquire a loan from the bank, and most that succeeded in geting a loan found it difficult to pay back. This is because of the high rate of involvement rate attached to the loan antecedently collected. In recent clip, the microfinance bank has helped the SMEs in the economic system through the procedure of easy entree to loan with a minimum collateral and low involvement rate. The cardinal bank of Nigeria late came up with a litany of step ining steps that will do SMEs sub-sector fly economically and globally. The CBN intervened with # 200million SME recognition warrant strategy fund and SMEs refinancing and restructuring fund. However, this was focused on assorted critical factors which include macro-economic stableness, innovativeness, information and communicating engineering ( ICT ) , and fight, strong and dependable fiscal system. The CBN besides supported the constitution of entrepreneurship development Centres ( EDCs ) in Kano, Onitsha, and Lagos as another signifier of inaugural non merely a focal point on support. This in the long tally will make success and better planetary endeavor in the economic system. The fiscal resource allotment of CBN will ensue to invention in the economic system.

SCIENCE AND TECHNOLOGY, AND EDUCATION COMPONENTS

The Universities and the scientific discipline and engineering ( Research ) institute are cardinal constituents of the national invention system responsible for crafting out economic chances and the state ‘s wealth. The economic strength of both establishments in an economic system determines the extent at which there will be comfortable economic development and planetary fight among single states. In developing states like Nigeria, the national advanced system in the country of scientific discipline and engineering does non work efficaciously in the system of the economic system ; this has contributed to the inability of technological development in the economic system. However, the first scientific discipline and engineering was launched in 1986, with the purpose to reassign foreign engineering to local houses through proficient aid, R & A ; D, and preparation and operations. In 1990, there was a demand to associate the scientific discipline, technology and engineering sectors to suit in the macro-economic development activities, which became the cardinal issues of the scientific discipline and engineering community. The policy regulating the scientific discipline and engineering community had specific aims, which includes proviso of attractive investing inducements and a well-structured national innovative system ( NIS ) , and the proviso of skilled work force. Though the acknowledgment of information engineering in economic development, and technological promotion led to the preparation and blessing of information engineering policy in March 2001, and the development of information engineering development bureau established to assist ease the execution of the IT policy. This has brought about promotion of engineering in Nigeria with an addition in big IT and package houses. However, for the economic system to run globally, the UNESCO developed a program of cooperation with Nigeria to help the state in procedure of engineering development ( Nigeria/UNESCO, 2005 ) . The scientific discipline and engineering constituent of the program is tailored towards the capacity construction of reforms and the Nigeria scientific discipline and invention system. This helped in the addition of macro-economic aims, such as employment creative activity, addition in the Gross Domestic Product and besides assist open chances for foreign direct investing. There is small interaction between universities and research institutes in Nigeria. Harmonizing to Bamiro ( 2000 ) observed that countries of interaction between universities and research institutes in Nigeria are focused on wellness ( Development of vaccinums and drugs from local resources ) , nutrient processing ( development of local nutrients and the procedure of engineerings ) and oil processing because of the high demand of oil in the economic system. This has brought about industry competitory among pharmaceutical administrations in Nigeria because of the development in the industry. In the country of local nutrient, it has reduced the rate of nutrient importing and an addition in export in the economic system. This has introduced the procedure of strategic development in the economic system, because of external rivals and high rate of export on oil.

Industry COMPONENT

The Nigerian economic system has assorted industrial sectors involved in the operational system of the economic system. There are two specific industries that have brought invention and hold had a positive consequence on the Gross Domestic Product of the economic system. These sectors are the telecommunication and oil sector which a different multidimensional, integrated and a dynamic position of invention. However, the point of focal point will be on the oil sector, because of the tremendous impact it has had in the economic system. The oil and natural gas industry is the largest industrial sector in Nigeria. Harmonizing to ( Economy ticker, 2005 ) ‘it studies that the oil industry accounts for more than 90 % of the one-year national production and besides generates about 80 % of the authorities gross and besides ranks 8th in the whole universe in footings of oil exportation ‘ . Harmonizing to Nigerian Daily ( Business DAY, 2011 ) ‘Reports that the state ‘s gross from oil export rose 46 % from 2009 to # 9.15trillion ( $ 59 billion ) in 2010, as companies raised economic end product on improved security in the Niger Delta. With these figures at that place have been signifiers of invention and high foreign direct investing within the sector. The sector is controlled by joint venture operations between the Nigerian authorities and six major international companies, which are Shell, Chevron, Mobil, Agip, Elf and Texaco. This has created chance for this joint venture to research invention procedure in the economic system e.g. Shell a MNC operating in Nigeria have been absolutely flexible in the country of advanced scheme in the economic system, because of the high rate of demand on oil. This has created and maintained a strong investing in research and development and besides created a platform for invention in the energy industry. However, the high demand on oil in the Nigerian economic system has created a extremist and incremental alteration of invention in the administrations, particularly Shell. This has added positively to the macro economic development of the economic system and an addition in employment and R & A ; D. This has created a procedure of unfastened invention in shell, because of the strong investing in R & A ; D and an adoptive policy called Gamechanger.

Decision

From the above economic analysis, puting in the Nigerian market will by far be profitable and productive to an investor or enterpriser. On a general note the market policy creates a platform/network for companies/organisations to introduce and use strategic rules. This is because of the guiding rules initiated by authorities establishments on specified merchandises introduced into the market and the choice criterion of communicating in the economic system, which will promote the extremist and incremental alteration of invention in the economic system. There will besides be a diminution in strategic and operational barriers because of the fiscal support rendered to the SMEs by the apex bank of the state ; nevertheless, this will make an chance for unfastened invention and easy start-ups of concern in the economic system. Finally the economic system provides a holistic attack that crates an avenue for investors/entrepreneur to encompass of import determiners of invention, through its economic acknowledgment on of import factors like modus operandis, regulations and Torahs within the system that forms the context in which administration innovates. The lone challenge most investors/entrepreneurs may confront might be corruptness, which the economic and fiscal offense committee ( EFCC ) is battling in the economic system.

Post Author: admin