12/03/2025
The Rector of Federal Polytechnic Oko, Dr. Chioma Awuzie, has appointed Engr. Chike Nworum as the new Director of the Centre for Entrepreneurship Development at Federal Polytechnic Oko.
Before his appointment as the head of the Entrepreneurship Directorate, Engr. Chike was one of the entrepreneurship lecturers and a key stakeholder at the Directorate.
As a vibrant young man, a seasoned academic, and an experienced entrepreneur, there is no doubt that he will bring an innovative approach to entrepreneurship within the polytechnic community. Today, he officially assumes his duties, taking over from Dr. Mrs. Ugbo, who has also been appointed by the Rector as the new Director of the National Innovation Diploma (NID).
Congratulations, Engr. Chike!
21/02/2025
If you are an entrepreneur, you can learn something here
Venture capital series: Why does a VC invest in a ? (Summary conclusion)
__Now it's up to you.
In this series about Venture Capital investors, I have challenged some well-held views amongst many of you, but before I go on to other topics, let me go back to one issue: “Why does a VC invest in a business?”
To begin with, get it into your head that a VC is a business, and they make their own money by following a particular business model: They invest and help you increase the value of the company, then they sell their stake to someone else at a higher value than at their point of entry.
They are not interested in staying in for the long term. Whilst they are there, they provide funding and give you mentorship... and if you don’t listen to them or fail to do the things mutually agreed, then they have the power to kick you out of management [but cannot take your own ownership stake]. In such rare situations, they would find a professional manager who can run the business.
Being a VC investor is highly risky and most investments actually go bust or fail to realise their potential. When a VC investment fails, it is not usually because it was a bad idea but because of poor management skills of the entrepreneur. And when the business fails the VC loses everything!
VCs are usually dealing with entrepreneurs who have actually never run anything in their lives and are just full of great ideas. I have told you before that VC invests to make money, and they make their money by selling their shares to someone else. Before they actually invest, they research to see how easy it will be to sell their shares and get their money out.
The ideal situation is to sell to the general public in an IPO. Now if the local exchange is poorly run and rarely does IPOs, then that country is not a VC-friendly environment.
Some people have asked why the VC can’t sell the shares to the founders: It is actually very difficult because a founder who can afford to buy out a VC after increasing the value of the company, never actually needed the VC in the first place. Think about it!
Our message on Venture Capital in Africa is getting through, but you must persist. As I earlier mentioned, I recently attended a function in London where, when the Ambassador of an African country saw me, he immediately referred to my comments at the World Economic Forum in Davos last month. He then asked me to explain in greater detail, which I did:
1. As part of the formal education in our High Schools we need to introduce a course in which is examined in exactly the same way as other school subjects;
2. Students leaving High School must know the formal process of starting a business, including the process to raise money and how to make a to investors;
3. A proper is needed to funnel money into your most promising young entrepreneurs who set up proper businesses with high growth potential;
4. Focus on DOMESTIC Venture Capital mobilisation and don’t rely on external players who are focused on the crème de la crème;
5. Go for mass entrepreneurship; and
6. Transform your local Stock Exchange into a vehicle for mobilising capital for high growth businesses.
On this, my job is done. Now it's up to you.
Image credit: KWB-Ubuntu Hope via AI.
17/02/2025
Wealth is created over time with enough persistence, patience, and perseverance.
