Inflation in Nigeria is propelling citizens into entrepreneurship as a survival strategy, with 31% prioritizing business ventures according to a PiggyVest survey. The economic landscape, characterized by 34.80% inflation, is compelling many to seek additional income streams. Small businesses, predominantly owned by women, play a significant role in the economy. PiggyVest is adapting its offerings to support this shift in priorities.
In Nigeria, rising inflation is driving citizens towards entrepreneurship as a survival strategy. A recent survey by PiggyVest, involving over 10,000 Nigerians, revealed that 31% now prioritize starting business ventures as their main short-term savings goal. This trend, highlighted by Odunayo Eweniyi, reflects the urgent need for many to become entrepreneurs due not just to ambition, but as a direct response to rising costs and diminishing purchasing power.
The PiggyVest survey indicated that initiating or expanding a business ranks as the second foremost short-term savings goal, affecting nearly one in four Nigerians who have gone into debt to sustain their ventures. The report also pointed out that 26% of respondents own a business, with a notable portion being women, who exhibit a higher ownership rate than men.
As of January 2024, Nigeria’s inflation reached 29.90%, peaking at 34.80% by year-end, further eroding purchasing power and highlighting the necessity for diversified income sources. The severe economic challenges, marked by soaring food prices and a fluctuating naira, continue to pressure consumers and businesses alike.
Many Nigerians acknowledged their entrepreneurial pursuits as responses to harsh economic realities rather than choices of ambition. A user on X, formerly Twitter, remarked, “Most Nigerians aren’t entrepreneurs by choice. It’s a necessity…” reflecting the sentiment of many citizens.
According to PricewaterhouseCoopers (PWC), small businesses constitute 96% of enterprises and account for 84% of employment in Nigeria, contributing approximately 46.3% to the national GDP. In insights shared from the report, it was noted that women are more likely to start businesses due to limited inclusion in the workforce, particularly around family dynamics.
Eweniyi emphasized the significance of these insights in shaping PiggyVest’s evolving product offerings. Recent findings indicated a transition from saving for relocation to a focus on starting businesses and achieving financial independence. This has resulted in increased interest rates for SafeLock and the launching of PiggyVest Business to aid in managing business finances effectively. Eweniyi noted, “People are focusing more on getting the best returns for their money.”
The soaring inflation in Nigeria is shifting individuals towards entrepreneurship out of necessity, as highlighted by a PiggyVest survey. With 31% prioritizing business ventures as a primary savings strategy, it’s evident that economic challenges are reshaping financial goals. The increased focus on entrepreneurship, especially among women, emphasizes the resilience of Nigerians in adapting to economic adversities, highlighted by the adjustments made by financial platforms like PiggyVest to support these changing priorities.
Original Source: businessday.ng
