FINANCIAL INTELLIGENCE; EMERGING PERSPECTIVE TO PRODUCTIVE ENTREPRENEURIAL GROWTH IN NIGERIA

1. FINANCIAL INTELLIGENCE; EMERGING
PERSPECTIVE TO PRODUCTIVE
ENTREPRENEURIAL GROWTH IN NIGERIA
Prof. Godwin Emmanuel, Oyedokun
HND (Acct.), BSc. (Acct. Ed), BSc (Acc & Fin), MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus &
Econs.), MTP (SA), PhD (Acct), PhD (Fin), ACA, FCTI, ACIB, MNIM, CNA, FCFIP, FCE, FERP,
CICA, CFA, CFE, CIPFA, CPFA, ABR, CertIFR, FFAR
godwinoye@yahoo.com
+2348033737184, +2348055863944 & 08095491026
CITN Council Member/Chairman Education Committee,
Chief Technical Consultant/President, OGE Group
Being a Lecture Presented by Professor Godwin Emmanuel Oyedokun, FCA,
FCTI at the Maiden Reunion Party/Annual Symposium of the OSCOTECH
Bankers’ Alumni.
Held at the Henrietta Hotel, Olubadan Estate, Ibadan on November 30, 2019.

2. CONTENTS
This presentation will cover the followings among other :
 Protocol and Appreciation
 Introduction
 Background of the study
 Concepts of Financial Intelligence
 Concepts of Entrepreneur
 The Relationship between Entrepreneurship and
Economic Growth and Development
 The Prospects and Challenges of Entrepreneurship in
Nigeria
 Role of Financial Intelligence to Entrepreneurial Growth
in Nigeria
 Conclusion

3. Protocol and Appreciation

4. INTRODUCTION
 Financial intelligence is crucial to growth, development
and sustainability of entrepreneurship in Nigeria.
 Entrepreneurs need to have management knowledge of
their business’s money, because even profitable
businesses can fail if they don’t have a firm grasp on
their financials.
 However, creating and sustaining a startup requires
certain skills and knowledge, including but not limited to
developing a business model, understanding market
needs, and managing financial resources which are made
possible by financial intelligence. Graduate
unemployment is considered as one of the main social
development problems facing the Nigerian government
(Oyedokun, 2019).

5. INTRODUCTION (CONT.)
 Financial Intelligence is the compiling of
information regarding the financial affairs of
certain significant entities in order to determine
their capabilities and predict their future actions.
 The phenomenon that entrepreneurship is linked to
economic growth finds its most immediate
foundation in simple intuition, common sense and
pure economic observation: activities to convert
ideas into economic opportunities lie at the very
heart of entrepreneurship.
 It is therefore imperative at this point in time to
critically evaluate not just the principles of
entrepreneurship but the practice and its crucial
role in fostering economic growth and development
in a developing economy like Nigeria.

6. BACKGROUND
 Employment generating and the increasing income-opportunity
are some of Nigerian’s top challenges today. This is without
doubt associated with other factors that are impeding the
national development.
 Capital, which is the money needed to start, operate, and grow
a business is important, this could be in form of short term or
long term sources of finance.
 Entrepreneurs do have options when it comes to funding of
their businesses and they must be wary of the implications of
selecting among alternative sources of finance (Oyedokun
2015).
 Financial Intelligence is the gathering of financial information
about the affairs of certain significant entities in order to
determine their worthwhile and forecast their future returns
(Oyedokun 2019).

7. BACKGROUND OF THE STUDY (CONT.)
 The nexus between the financial intelligence and
emerging perspective to productive entrepreneurial
growth in a developing country like Nigeria is
worthy our discussion.
 This lecture would therefore empirically review the
concept, factor and mindset of financial intelligence,
concept, definition, issues of finance and emerging
perspective to productive entrepreneurial of our case
study.

8. FINANCIAL INTELLIGENCE
 Financial Intelligence is the compiling of information
regarding the financial affairs of certain significant entities
in order to determine their capabilities and predict their
future actions.
 Generally speaking, Financial Intelligence is used in the
context of financial crime and law enforcement, but this is
not necessarily the case.
 Financial intelligence is a type of business intelligence
constituted of the knowledge and skills gained from
understanding finance and accounting principles in the
business world and understanding how money is being
used.
 Financial intelligence is to know what to do when making
financial decisions such that we do not have financial
problems.
 It is critical for an entrepreneur to have financial
intelligence if he is to survive, especially during recession.

9. THE MINDSET OF THE FINANCIALLY
INTELLIGENT
 There are certain and specific actions that competent money
managers take in order to build vast amounts of financial wealth
and abundance.
 This naturally leads to an understanding of the differences
between the mentalities of the financially successful and the
financially poor of this world.
 These two findings came together to reveal that our financial
success is very much governed by the underlying beliefs we have
about money.
 The premise is, that if we continue to hold limiting beliefs about
money, then we will likewise continue to suffer the consequences
of holding onto these self-sabotaging forces that will prevent us
from ever reaching the pinnacles of financial freedom.

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ENTREPRENEURSHIP
 An entrepreneur is an individual who creates a new
business, bearing most of the risks and enjoying most
of the rewards.
 The entrepreneur is commonly seen as an innovator, a
source of new ideas, goods, services, and business/or
procedures.
 Entrepreneurs play a key role in any economy, using
the skills and initiative necessary to anticipate needs
and bring good new ideas to market.
 Entrepreneurs who prove to be successful in taking on
the risks of a startup are rewarded with profits, fame,
and continued growth opportunities.
 Those who fail, suffer losses and become less prevalent
in the markets.

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DEFINING ENTREPRENEURSHIP
 Oyedokun (2019) defines entrepreneurship as;
 Self-employment of any sort; the activities that involves
identifying opportunities within the economic system; the
creation of new organization; the willingness and ability of
an individual to seek out investment opportunity in an
environment and be able to establish and run an enterprise
successfully based on the identifiable opportunities.
 Three thinkers were central to the inclusion of entrepreneurs:
 Joseph Schumpeter; suggested that entrepreneurs—not just
companies—were responsible for the creation of new things in the
search of profit.
 Frank Knight; focused on entrepreneurs as the bearers of
uncertainty and believed they were responsible for risk premiums
in financial markets.
 Israel Kirzner; thought of entrepreneurship as a process that led to
the discovery.

12. DEFINING ENTREPRENEURSHIP (CON.T)
 The following were the three obstacles militating against the operation of
Entrepreneurship:
 Overcoming bureaucracy
 Hiring talent
 Obtaining financing

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ENTREPRENEUR AND FINANCING
 Given the riskiness of a new venture, the acquisition of
capital funding is particularly challenging, and many
entrepreneurs deal with it via bootstrapping: financing a
business using methods such as using their own money,
providing sweat equity to reduce labor costs, minimizing
inventory, and factoring receivables.
 While some entrepreneurs are lone players struggling to get
small businesses off the ground on a shoestring, others take
on partners armed with greater access to capital and other
resources.
 In these situations, new firms may acquire financing from
venture capitalists, angel investors, hedge funds,
crowdsourcing, or through more traditional sources such as
bank loans.

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DETAILING ENTREPRENEURSHIP AS A PRACTICE
 As noted by Maris (1972), entrepreneurship is a practical
creativeness which combines resources and opportunities in new
ways and that it involves the application of personal qualities,
finance and other resources within the environment for the
achievement of business successes.
 In the same manner, Odunsina (1975) sees entrepreneurship as
the process of using available capital in any form for business
endeavours in an open and free market economy for the sole
purpose of making profit and its includes all enterprises in new
filed or in older ones at all risk level.
 The success of any business is premised on the amount of fund
available to operate such business, so also the cost of such
available finance influences the bottom line (Oyedokun 2015).
 In the same manner, Scholars such as Carree, and Thurik (1996),
and & Somoye (2013) in Oyedokun 2015, belief that
entrepreneurship development can also be studied according to the
level of entrepreneurship stages and that a distinction can be made
between the micro and macro level of entrepreneurship.

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EVOLUTION OF ENTREPRENEURSHIP IN
NIGERIA
 In the beginning, entrepreneurship started when people
produced more products than they needed, as such, they had to
exchange these surpluses. For instance, if a blacksmith produced
more hoes than he needed, he exchanges the surplus he had with
what he had not but needed; maybe he needed some yams or goat
etc. he would look for someone who needed his products to
exchange with.
 By this way, producers came to realize that they can concentrate
in their areas of production to produce more and then exchange
with what they needed, so through this exchange of products,
entrepreneurship started.
 A typical Nigerian entrepreneur is a self-made man who might
be said to have strong will to succeed, he might engage the
services of others like; friends, mates, in-laws etc. to help him in
his work or production. Through this way, Nigerians in the olden
days were engaged in entrepreneurship.

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DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA
 The post-civil war era (1967-70) announced the significant role of
government in entrepreneurship development in Nigeria.
 At the end of the war the 2nd National Development Plan focused on
the development of the 3Rs objectives of Reconstruction, Re-
development and Reconciliation. The activities in the plan
challenged/tasked the ingenuity and inventive skill of the individuals.
 Since the mid-1980s there has been an increased commitment of
government to entrepreneurship development especially after the
introduction of the Structural Adjustment Program (SAP) in 1986.
 Added to this is the establishment of the National Directorate of
Employment (NDE), National Open Apprenticeship Scheme (NOAS)
and, the Small and Medium Enterprise Development Association of
Nigeria (SMEDAN) (Thaddeus, 2012).
 Fundamentally, the Nigerian government promotes entrepreneurial
culture through initiatives that build business confidence, positive
attitude, pride in success, support and encouragement of new ideas,
social responsibility, providing technological supports, encouraging
inter-firm linkages and promotion of research and development.

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DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA (CONTD.)
 In the past forty years or so, the government had established
various support institutions specially structured to provide
succor and to assist SMEs to contend with some of the hurdles
along their growth path.
 Some of these specialized institutions include the:
 Nigerian Industrial Development Bank (NIDB),
 the Nigerian Bank for Commerce and Industry (NBCI),
 the National Economic Reconstruction Fund (NERFUND),
 the Nigerian Export-Import Bank (NEXIM),
 the National Directorate of Employment (NDE),
 Industrial Development Coordinating Centre (IDCC),
 Peoples Bank, Community Banks, Construction Bank, Family
Economic Advancement Programme (FEAP),
 State Ministries of Industry SME schemes, the Nigerian
Agricultural and Cooperative Development Bank (NACDB),
 BOI [Bank of Industry] etc.

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DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA (CONTD.)
Major problems which have contributed to the poor
performance of SMEs include:
 Limited access to long-term capital,
 High cost of even short-term financing,
 Poor partnership spirit,
 Dearth of requisite managerial skills and capacity,
 Illegal levies,
 Street urchins’ harassments,
 Over-dependence on imported raw materials and spare parts,
 Poor inter and intra-sectoral linkages that make it difficult for
the SMEs to enjoy economies of scale production,
 Bureaucratic bottlenecks and inefficiency in the
administration of incentives that discourage rather than
promote SME growth,
 Weak demand for products arising from low and dwindling
consumer purchasing power Etc

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HOW ENTREPRENEURS IMPACT THE ECONOMY
The impacts of Entrepreneurs includes and not limited to the following:
 Promotes capital formation.
 Moves various resources, both tangible and intangible,
 In a market full of uncertainty, it is the entrepreneur who
can actually help clear up uncertainty, as he makes
judgments or assumes the risk.
 Drive efficient discovery and consistently reveal knowledge.
 Established firms face increased competition and
challenges from entrepreneurs, which often spurs them
toward research and development efforts as well.
 In technical economic terms, the entrepreneur disrupts
course toward steady-state equilibrium.

20. ENTREPRENEURSHIP AND NIGERIAN ECONOMY
GROWTH
Entrepreneurship has been recognized as an important aspect and
functioning of organization and economies (Dickson et al, 2008). It’s roles
includes:
 It contributes in an immeasurable ways toward creating job,
thereby reduce unemployment rate in Nigeria;
 Entrepreneurship promotes and gives strength to SMEs;
 Entrepreneurship through SMEs provides employment income
for Nigerians;
 Entrepreneurship helps reduced the level of poverty;
 Due to the efforts of entrepreneurs by using available resources
in the country to produce goods and services, Gross Domestic
Product (GDP) has increased;
 Small and Medium Enterprises create employment income for
people, thereby accounting for an increase in the per capital
income of Nigeria.

21. THE RELATIONSHIP BETWEEN ENTREPRENEURSHIP AND
ECONOMIC GROWTH AND DEVELOPMENT
Understanding the role of entrepreneurship in the process of
economic growth requires the decomposition of the concept of
entrepreneurship:
 It is widely believed that entrepreneurship is
beneficial for economic growth and development;
 Entrepreneurship has been remarkably resurgent
over the past three decades in countries that
achieved substantial poverty reduction;
 An increase in the number of entrepreneurs leads to
an increase in economic growth;
 This effect is a result of the concrete expression of
their skills, and more precisely, their propensity to
innovate.

22. THE NIGERIAN ECONOMY AND ENTREPRENEURSHIP
DEVELOPMENT
The Nexus between the Nigeria Economy and the Entrepreneurship Development:
 Entrepreneurship is an important factor in the
development of any nation.
 Entrepreneurs are responsible for taking
calculated risk those open doors to progressively
higher levels of economic growth.
 They are the veritable backbone on which the
world and modern ideas continue to develop.
 The return of democracy in 1999 ushered in a
period of economic reforms and a renewed focus
on enterprise development as the only viable
means to sustainable growth.
 Nigerian leaders initiated a massive programme
of disinvestment and financial deregulation
aimed at boosting business development across
the Micro, Small and Medium Enterprises
(MSMEs) space.

23. THE TREND OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA:
VARIOUS GOVERNMENT INTERVENTIONS
Various efforts had been initiated by the government and other stakeholders to provide employment
for the youths in Nigeria. These include:
 The programmes on Universal Basic Education;
 Poverty Eradication; Agricultural Development;
 Economic Empowerment and Development;
 Commodity Marketing and Development;
 The Petroleum Technology Development Fund (PTDF);
 Presidential Initiatives, such as the You Win Programme, N-Power etc
 The National Directorate of Employment (NDE) that grooms
unemployed youths and retired persons in vocational skills,
entrepreneurship/business development, labor-based works, rural
employment promotion and job placement guidance and counseling.
 The Federal Government recently earmarked on N100 Billion Textile
Revival Fund for the Cotton, Textile and Garment Industries.
 The N200 billion Commercial Agriculture Credit Scheme (CACS)
finances
 The Small and Medium Enterprises Development Agency of Nigeria
(SMEDAN) etc

24. ROLE OF FINANCIAL INTELLIGENCE TO ENTREPRENEURIAL
GROWTH IN NIGERIA
 These are some of the roles of financial intelligence:
 Financial intelligence makes an entrepreneur to know
why net cash in a given time period is not the same
thing as profit and why both profit and cash are
needed;
 It includes ability to analyze numbers in greater depth,
this includes being able to calculate profitability,
leverage, liquidity and efficiency ratios and
understanding the meaning of the results;
 It helps interpreting the results of how to use Return-
On-Investment (ROI) tools to analyze big purchase in
order to make sure investment add value to business;
 It allows entrepreneur to be able to interpret his
personal financial statement, that of his family or
business and;
 It allows entrepreneur to know his assets and
liabilities.

25. CONCLUSION
 It can be seen that entrepreneurship entails
identifying, utilizing and maximizing profitable
business opportunities in a sustainable manner that
can foster the economic growth and development of a
community or nation. Business entrepreneurship
usually results in flourishing micro, small and
medium enterprises (MSMEs) which generates
gainful employment, creates wealth and
consequently grows the economy;
 Being financially intelligent helps an entrepreneur
to evaluate opportunities and investment properly.
This helps to be able to solve financial issues to a
large extent himself as numbers are critical to
carrying out daily activities of business.

26. CONCLUSION
 Entrepreneurship is a critical driver of economic growth.
Therefore, fostering entrepreneurship is an important
part of the economic growth strategies of many African
countries, Nigeria inclusive. It’s down on us that the
performance of entrepreneurship growth in Nigeria does
not reflect both government and private investments in
funds and policies, some of those policies were either
poorly postulated or implemented.
 However, with the basic financial intelligence scopes such
as financial psychology, credit and debt, accounts and
budgeting, risk management and insurance, skill
development, income, long-term planning, business
relations, investments, social enterprise and some years of
financial plan will made individual entrepreneur better
off, increase productivity and foster entrepreneurial
growth in Nigeria.

27. Thank you for
listening!