Reason why there are many Private enterprises than they are Public enterprises in Nigeria and other West African Countries
One of the main reasons why there are many private enterprises in Nigeria is because she has laissez faire economy. That is to say that she has free economy in which private individuals are allowed to participate in economic activities. This has made the economy of Nigeria drift to a point of capitalist economic system in which nearly all means of production and distribution are owned and controlled by private individuals and in which the economic activity of the government is at a minimum.
Another reason why there are many private enterprises in Nigeria and West Africa, is because of the fact that private enterprises tend to be more efficient than public enterprises. As a result of this reason, the citizens patronize private enterprises more than public enterprises.
Establishment of private enterprises requires smaller capital than public enterprises hence, the existence of many private enterprises.
Availability of many entrepreneurships in Nigeria and other West African countries, contributes to the existence of many private enterprises. The type of businessmen we have in our country are those that are ready to bear business risks.
Indigenization law of the Nigerian Enterprises Promotion decree of 1972 helped in creating many private enterprises in Nigeria. That decree promoted greater and more effective participation of the citizens of Nigeria in her economic activities.
The liberal foreign exchange facilities available in Nigeria is another factor that encouraged the existence of many private enterprises. This makes it possible for these enterprises to obtain the necessary machinery and raw materials from other countries.
The credit facilities government grants to private enterprises encourage the existence of many of them. This is more now that government of Nigeria is emphasizing more on self-employment and self-reliance.
The existence of many industrial estates encourage the establishment of many private enterprises. Many businessmen who have the required capital find it easy to acquire land in these industrial estates made possible by land use decree in Nigeria.
The rate of official corruption in the public enterprises in Nigeria discourages government from establishing more public enterprises hence the existence of many private enterprises.
Finally, the economic atmosphere encourages the existence of many private enterprises in Nigeria. For instance, we have many large market places, teeming population which constitutes the army of consumers etc, which encourage many private individuals to establish business enterprises in Nigeria.
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