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THE DYNAMICS OF SMALL BUSINESS INCUBATION FACILITIES IN FADAMA

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					THE DYNAMICS OF SMALL BUSINESS INCUBATION
FACILITIES IN FADAMA AREAS OF OGUN STATE IN
NIGERIA: A SUSTAINABLE ANTI-POVERTY DEVICE

                                       Joshua Olusegun Benson
              Institute of Small Business Management and Entrepreneurship (ISBUME)
                         E-mail: isbume@yahoo.com or obencirudi@yahoo.com
                                     Mobile Phone: 0803 405 1708


                                                ABSTRACT

   In order to attain the Millennium Development Goals (MDGs) in African countries, the international
communities through the mento-sponsorial role of the World Bank are presently providing multilateral
support to developing countries like Nigeria. One of the areas of such support relates to the 2 nd National
Fadama Development Project (NFDP – II) of which ten Local Government Councils in Ogun State,
Nigeria, are beneficiaries.

    The main thrust of the World Bank assisted NFDP – II is to sustainably increase the incomes of
fadama users through empowering rural communities to take charge of their own development agenda. In
this way, the project seeks to alleviate the incidence of ubiquitous chronic state of poverty among
beneficiaries in relevant eighteen States in Nigeria; empower the communities through the community
driven development (CDD) approach and thus contribute to laying the foundation for a private sector led
economic development initiatives in the rural and urban areas of Nigeria in general and Ogun State in
particular. The bottom line of this World Bank-assisted project is to increase the per capita incomes of
fadama users in a way that will create a multiplier effects in the entire country.

    The concern of this paper is that the pursuit of an explosion of entrepreneurial and small business
initiatives, through a dedicated development of small business incubation facilities in rural and urban
areas of Ogun State, remains the only viable strategy for sustainably realizing the economic goal of NFDP
– II in Ogun State, Nigeria.

The provision of these facilities in Ogun State fadama areas will become a pivot on which anti-poverty
device, that will put a check on the menace of ubiquitous poverty within the State, can be erected.

                                             INTRODUCTION

   Nigeria, as a country, is faced with a complexity of social and economic issues which now necessitate
intervention of international communities in order to meet its Millenium Development Goals (MDGs)in
the present century. These issues are popularly identified as corruption, poverty and lack of government
capacity to effectively deal with them.

    The current reformation drive of the Federal Government is creating a new atmosphere within which
transparency and accountability in governance can be enhanced. Secondly, the Federal Government is
championing the crusade for an improved environment and services that will stimulate the non-oil sector
of the economy.

    Ogun State, as a part of the Federal Government of Nigeria, is in need of economic reform in order to
liberate its citizens from the shackle of poverty brought about by the general socio-economic distortions
in the country.

   The present dormant nature of Ogun State economy, in spite of its enormous resources for wealth
creation is responsible for its description as a civil servant State. In other words, there is an insignificant
private sector participation in productive or enterprising initiatives within the State. In this regard, its
economy is lame-ducked and continually stand in need of Federal Governmental support. This situation
in the current millennium is a curious one when it becomes realized that the State is endowed with
enormous human and non-human resources.



                                                      1
 Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME). E-Mail: isbume@yahoo.com




    In the context of achieving economic emancipation of Ogun State, there now exist a twin challenge to
its political-economic leadership. These are the challenges of how to stimulate the dormant economic
position into a vibrant economy and to ensure that such economic initiatives grow and mature to the point
of washing away the trace of ugly poverty within its border. This view requires taking steps to maximize
Ogun State territorial advantages among the States making up the Federal Republic of Nigeria.

   In order to achieve this objective the State Government is seeking active collaborative support of the
private sector organizations and international communities in the areas of capacity building, financial
support and appropriate technology transfer. The justification for this objective is found in the World
Bank’s Country Partnership Strategy’s (CPS) document which states that “… Nigeria is at a turning point,
one that requires a significant, consistent response from the international community.” By extension,
Ogun State’s socio-economic reform efforts and development challenges need strong international
support as well.

   In order to sustainably unleash the gateway advantages of Ogun State the stakeholders in the economic
development of the State will have to vigorously pursue economic programmes that will lead to an
explosion of private micro/small business initiatives among indigenes and residents in its rural and urban
areas. This paper is concerned about discussing one of the critical approaches to realizing this goal.

                                           STATEMENT OF INTENTIONS

    The principal focus of this paper is to show that provision of micro/small business incubation centers
equipped with appropriate facilities within the fadama areas of Ogun State will create an economic
revolution that will lead to an explosion of private sector enterprise initiatives. The success of this
initiatives can then be replicated in other States of the Federation of Nigeria to bring about the desired
economic liberation in several other sectors of Nigeria’s economy.

    In the course of arriving at the focus of this paper, the following related issues will be considered in the
following order: (i) general economic conditions of Nigeria; (ii) Ogun State potentials in the non-oil
sector waiting to be unlocked; (iii) challenges of poverty alleviation in Ogun State; (iv) World Bank’s
intervention programme in Ogun State – Second National Fadama Development Project; (v) the dynamics
of small business incubation facilities as a sustainable anti-poverty device in Ogun State; (vi) roles of
development partners in the establishment of small business incubation facilities in Ogun State fadama
areas; (vii) economic benefits of promoting small business incubation facilities as an anti-poverty device
in Ogun State.

   The foregoing issues will lead to making some conclusions and recommendations for actions needed
for actualizing the goal of achieving the millennium developmentr goals (MDGs) in Nigeria in general
and Ogun State in particular.

                                                       DISCUSSIONS

GENERAL ECONOMIC CONDITIONS OF NIGERIA

   Nigeria became an independent country from the British Government in the year 1960 forty-five years
ago. This was celebrated with pomp and peagantry. Unfortunately its adopted socio-economic model of
development was highly defective. Politically it adopted Statism as a model of political governance while
economically it adopted import substitution industrialization model.

   The Statism model ensured that government assumed the dominant role as producer and controller in
the economy at the expense of private sector initiatives. The consequence of this model was the creation
of an environment in which the Federal Government became “the major source of patronage and rent-
seeking”. Expectedly, the desire for public office became a matter of life and death.

    On the other hand, the import substitution industrialization model showed itself defective in the area
of economic growth for the following reasons: (a) it led to a diversion of the country’s attention away
from any serious exploitation, evaluation and development of its own raw material base, (b) shows lack of
capacity to develop indigenous technology needed for supporting indigenous business sector, (c) inability
of the nation to engage in the production of producer goods, (d) perpetuation of a state of low-level skills
within the indigenous industrial sector, (e) encourages perpetual dependence of the country’s economy on
foreign entrepreneurs for the solution of its socio-economic problems and (f) discourages the production


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        Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




and utilization of appropriate grade of scientists, engineers, technicians, craftsmen and other skilled
people needed for domestic technological take-off.

   The direct result of the chosen socio-economic model at the take-off is still evident in this century by
way of an economy that is characterized by perverse incentives, inefficiency and waste in the hands of
political operatives and bureaucrats who are actively interested in easy acquisition of wealth as opposed to
wealth creation through enterprising initiatives. This model heavily penalized private sector initiatives
through its reward system by discouraging accountability and transparency in socio-economic
management.

   It will be apparent that the first decade of the country’s independence was built on weak political and
economic institutions, backed up by “inappropriate development frameworks, poor and frequently
changing policies and programmes, lack of clear development, vision and commitment to the Nigerian
project …”

    With the advent of substantial crude oil in the mid-1970s the stage was already set for gross macro
economic mis-management reflecting negative or slow economic growth rate. According to the National
Economic Empowerment Development Strategy (NEEDS) document on Nigeria, the economy was
among the weakest in the world during the period 1981-2000. During this period, the GDP grew by an
average of 2.8% in the 1990s with the average growth rate for 1999-2003 standing at 3.6%. Another
depressing evidence of the nation’s economy was revealed by the GDP performance which showed that
Nigeria earned about $45 billion in 2001 and yet had a per capita income of about $300. Again, while as
at 2000, Nigeria had earned approximately $300billion from oil exports since the mid 1970s its per capita
income was 20% less than the 1975 level. It is therefore not surprising that Nigeria became heavily
indebted (to the tune of about 70% of its GDP) that it had serious problems servicing its debt.

   As of this century, the real sector of Nigeria’s economy is still dominated by the primary production
sector, with agriculture contributing 41% and crude oil contributing 13%. The secondary sector,
especially manufacturing contributes a stagnating percentage between 5% to 7%. It is the services sector
that appears to be showing fastest growth since independence.

   The foregoing data shows that Nigeria’s economy is least developed to take care of its fast
urbanization rate which is described as one of the fastest in the world. The consequence of this is that as
of March 1999 23.2% of the rural labour force were unemployed while 12.4% of the urban dwellers were
without jobs out of a labour force standing at 61 million.

   Looking at the economic structure of Nigeria, there is a revelation that it remained highly undiversified
with oil export accounting for 95% of total exports while manufacturing sector accounts for less than 1%.

   In view of the foregoing, it is not surprising that the economic environment of Nigeria has been
described as being characterized by Statism or public sector controlled, gross deficiencies in socio-
economic infrastructures, corruption and rent seeking, low access and high cost of finance, weak socio-
economic institutions, and unstable macro-economic policies.


OGUN STATE POTENTIALS WAITING TO BE UNLOCKED

   The purpose of the foregoing description of the general conditions of Nigeria’s economy is to show the
context in wish Ogun State’s economy is located. In this section, we are going to show Ogun State
potentials and needs for economic growth. In other words, we want to show case the need for a
sustainable support from the international communities for the current initiatives of private sector
organizations and groups fighting against the incidence of chronic socio-economic poverty in Ogun State.
The philosophy behind this drive lies in the understanding that an explosion of private small scale
businesses among indigenes and residents of Ogun State’s rural and urban areas remain the only practical
means of unleashing the State’s gateway advantages.

  Brief Profile of Ogun State. The gateway advantages of Ogun State are multifaceted. They have been
grouped into (a) endowment advantage, (b) location advantage, (c) climatic advantage, (d) infrastructure
advantage, (e) public service advantage and (f) human resource advantage. An outline of the these
advantages will now be made.



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      Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




   The endowment advantage of Ogun State include a vast expanse of arable land suitable for the
cultivation of food and cash crops, an extensive lime stone deposits estimated to last for the next 500
years, abundance of industrial mineral deposits such as gypsum, kaolin, feldspar and phosphate, mica,
glass sand, clay, granite, tar sand, kaolin and recently a large deposit of oil and gas in commercial
quantities.

   In its location advantage, Ogun State is uniquely located making it accessible to other parts of Nigeria
through the three major means of transportation, i.e. land, sea and air. Lagos, which is the economic
nerve-centre of Nigeria is only about 100km from Abeokuta, the capital city of Ogun State.

   In terms of climatic condition, the State enjoys an extensive fertile soil of the rain forest which is
suitable for crop farming, while the savannah land in the north-western part of the State is ideal for cereals
cultivation, cattle rearing and other forms of animal husbandry. The rivers and lagoons are also suitable
for fish farming.

   The infrastructure advantage of Ogun State include: (a) good road and coastal network which facilitate
transportation within the major towns and coastal areas of the State; (b) electricity supply is available in
almost all the twenty Local Government areas of the State.

   In the non-oil sector, particularly the agri-business sector, the following agricultural crops and products
are in abundance in all its twenty Local Government areas: yam, maize, cassava, cocoyam, fruits,
groundnuts, rice, coconuts, cocoa, kolanut, oil palm, vegetables, forest products, legumes, sugar cane,
rubber, pineapple, citrus and cashew nuts. (See Appendix I for the map showing the location of these
products in each Local Government area of Ogun State).


    The seedbed of industrial revolution through agricultural development is very much present in Ogun
State. Despite this huge opportunity and the vast industrial enterprise opportunities which they can
generate for creating employment opportunities and explosion of sustainable entrepreneurship many of its
citizens still live in a state of hardened poverty and unemployment.

THE CHALLENGE OF POVERTY ALLEVIATION IN OGUN STATE

   According to the Nigeria’s National Medium-Term Investment Program (NMTIP) document about 70
percent of the people in Nigeria are poor and these live in rural areas. Curiously, poverty in Ogun State is
concentrated in the 36-65 years age group. The document says that “a major concern is that poverty is not
only expanding but also deepening and the poor are getting poorer.” This is explained by the fact that the
top 20 per cent receive nearly 56 per cent of the total national income while the share of the bottom 20 per
cent is very meager standing at 4.4 per cent.

   Despite implementation of various Federal Government development programmes at the State level,
18 out of 19 States existing from 1980-1996 declared that 50% of their respective populations were poor.

Ogun State is not different from this ugly picture. There is a high rate of unemployment,
underemployment and lack of purchasing power with the standard of living of wage earners going down
substantially over the past five years.

   According to the Millenium Development Goals there is an urgent need to arrest the growth and spread
of this cancerous poverty in the State through the process of actively unlocking the potentials of the
people of Ogun State. In order to start this process, we need to come to terms with the definition of
poverty and to profer a broad based government policy needed for articulating proper programme of
poverty reduction or elimination in Ogun State.

   Poverty defined. We are aware of many authorities that have defined poverty and most notable
among them were Rowntree and Townsend. When we talk of poverty in a developing society like
Nigeria, we are not referring to the secondary level poverty defined by Rowntree, neither are we just
mentioning the relative lack of money to buy the essential needs of life. We are talking about the primary
level of poverty in which majority are made worst of than other members of the community in which they
live. We are also talking about their degraded body and polluted environment.




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    Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com



    In this regard, we shall define poverty “as a situation in which individuals, families and groups in the
population are said to lack opportunities to earn an income, lack the resources to obtain the kind of diet
and powerless to participate meaningfully in the main stream of the economic activities and thus shut out
of the living conditions which are customary in the society to which they belong.”

   This definition appears to be self-explanatory of the conditions of many individuals and groups in
Ogun State. As a way of bringing about a change of this ugly picture, we see the need to proffer a broad-
based government policy can actively which take the poor into consideration and which in effect can
guarantee the economic well-being of the poor majority in Ogun State.

  In fact, we are going to suggest a typical broad-based socio-economic policy that can serve as a
foundation for stimulating, developing and unlocking the entrepreneurial potentials of the army of poor
individuals and groups in Ogun State. The idea here is to bail out an army of the poor from the prison
house of redundancy, powerlessness and helplessness

   Broad-based Socio-Economic Policy Suggested. We are aware of the fact that there can be no single
overriding definition of an acceptable socio-economic policy. This is because there are many possible
definitions according to the number of those who care to offer one. This view is confirmed by the various
schools of thought on social policy. These are the residualists, maximalists and the societal blueprint
schools of thought.

   Nevertheless, for the purpose of this paper, we still see the need to suggest a working or operational
definition that can serve as a pivot for launching into the arena of stimulating, developing and unlocking
the potentials of the poor individuals and groups in Ogun State. Our working definition of broadbased
socio-economnic policy is that socio-economic policy in Ogun State is defined as “a dynamic ordering
of the right relationships and behaviour between the rich and the poor individuals and between the
groups of the rich, poor and minority, so that the social and economic opportunities and
independence of the poor individuals and members of the minority groups are guaranteed through
a progressive evaluation of the relationships.”

   The implication of the above definition for Ogun State is that it will facilitate the maintenance of
employment opportunities that will put a stop to a concentrated poverty in certain sectors of Ogun State
community, create opportunity for sustainable entrepreneurship or industrial/commercial activities needed
for the socio-economic growth and development of our rural areas where 70 per cent of the State’s
population are still living.

WORLD BANK’S INTERVENTION PROGRAMME: SECOND NATIONAL FADAMA
DEVELOPMENT PROJECT (NFDP II)

   This project is a loud evidence of the World Bank’s leadership and initiative in the area of poverty
reduction in Nigeria. In fact it is an agriculture-led poverty reduction strategy aimed at addressing the
problems of low productivity, low incomes, unemployment and underemployment, particularly in the
rural areas of Nigeria.

   In order to establish a solid foundation for the understanding of this section of our paper, it is
instructive to explain the critical terminology related to the topic. This is the word “fadama”. Fadama is
an Hausa word meaning irrigable land and flood plains in low-lying areas, underlined by shallow
acquifers which are found along Nigeria river system. The word fadama has gained an international
acceptance in the study of agriculture and as such it is a terminology known to agricultural practitioners in
many parts of the world.

   The economic justification of this project in Nigeria hinges on the understanding that agriculture
provides employment for about 65 per cent of the labour force and thus contributing 40 per cent of
Nigeria’s GDP.

    This project is multilaterally funded by the World Bank, Africa Development Bank and the Federal
Government of Nigeria. It is basically targeted at dry season farming activities and related agro-
processing and marketing. About 18 States in Nigeria are participating in this project. Ogun State is one
of the participating States. Within Ogun State, out of its twenty Local Government Councils, only ten are
recognized as having fadama lands for the purpose of this project. These are: Abeokuta North, Ifo, Ijebu
North-East, Ipokia, Obafemi/Owode, Odogbolu, Odeda, Ogun Waterside, Yewa North and Ijebu-Ode


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        Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME E-Mail: isbume@yahoo.com




Local Government Councils. (See Appendix II showing Ogun State Fadama areas according to Local
Government Council).

Objectives of the Second National Fadama Development Project (NFDP-II)

   The main objective of the NFDP-II as conceptualized by the World Bank, the African Development
Bank (ADP) and the Federal Government of Nigeria is to sustainably increase the incomes of fadama
users or enterprising individuals and groups within fadama communities or areas of Ogun State. These
are people who are dependent on fadama resources for their livelihood. The project aimed at empowering
the following categories of people in the fadama areas: farmers, pastoralists, fisher folks, hunters,
gatherers and service providers so as to take charge of their own development agenda.

  One interesting feature of this project is that it adopts a demand-driven approach which is based on
participatory, socially inclusive local development plans and management of resources.

Project Components. The project has five major components. These are: (a) capacity building, (b) rural
infrastructure, pilot asset acquisition support, (d) demand responsive advisory services, and (e) project
management, monitoring and evaluation.

   In order to appreciate our subsequent discussions on the concept of Small Business Incubation
Facilities (SBIF) as an anti-poverty device in the fadama areas of Ogun State, we need to highlight on the
components of NFDP-II mention above.

Capacity Building. This is targeted at fadama facilitators, fadama users groups (FUGs) and members of
fadama community associations (FCAs) through the partnership support of public/private service
providers on a demand-driven basis. In this regard, the capacity building component of the project seeks
to expose participating communities to project advisory services and financing provided by selected
public/private services providers on contract basis; acquisition of skills and know-how on participatory
project planning, implementation and evaluation; acquisition of skills for carrying out community needs
assessment and preparation of local development plans (LDPs) by the community people – this plan
provide the basis for support under the project; and acquisition of skills in savings mobilization and credit
management.

Rural Infrastructure Investments. This is the second component of the NFDP-II and it is derived from
the local development plans prepared by the community people. They relate to small scale infrastructure
projects specified as priorities in the local development plan documents submitted to the State Fadama
Development Office (SFDO) for fund support through the Fadama Community Associations (FCAs) of a
given community. The following are eligible rural infrastructure projects or investments that may be
demanded for support in the local development plans:
     - construction of cattle troughs
     - purchase of fish drying equipment
     - construction of boreholes or tube well for irrigation
     - water catchment facilities
     - construction of drainage system
     - purchase of irrigation facilities
     - purchase and installation of agro-processing machinery and equipment
     - resting points or transit camps along stock routes
     - construction of livestock water points such as boreholes, water pumping machines, overhead
          tanks and water troughs.
     - Construction of rural market stalls, shops and related facilities.
     - Construction of storage facilities
     - Construction of fish spawning pools

Pilot Asset Acquisition Support. This is the third component of the NFDP-II. It is aimed at enhancing
the productivity and income level of fadama users in that it provides support to beneficiaries by providing
50 per cent of the cost of asset needed for identified enterprises to be operated in the local fadama areas.
Beneficiaries are to bear the balance of 50 per cent of the cost of the asset. The following assets are
eligible under this component:
     (a) investment in tube wells, pumps, pipes and sprinklers for irrigation.
     (b) Hunting equipment and traps
     (c) Fishing traps nets and canoes


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      Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




    (d)   Agricultural machines and equipment
    (e)   Purchase and installations of equipment for the processing of agricultural raw materials
    (f)   Gari processing equipment/plant, fruit processing equipment and fish smoking plant
    (g)   Construction of local storage facilities including sheds and milk cooling equi9pment
    (h)   Milk processing plant and machinery
    (i)   Honey collection and processing equipment
    (j)   Local transport facilities, such as hand carts, ox carts, bicycles etc.
    (k)   Tools and equipment for building or servicing any of the foregoing capital assets

Demand-Responsive Advisory Services. This is the fourth component of the project which translates into
a wide range of possible support services in veterinary medicine, agriculture, engineering, management,
agro-industrial, marketing, training and other related professional services. The objective of this
component is to facilitate the adoption of output enhancing techniques and a more profitable marketing
practices by fadama entrepreneurs. In this regard, this component finances:
    (a) advisory services that will generate new and innovative enterprise activities in fadama areas
         which may be requested for by the fadama users.
    (b) Advisory services that will support on-going activities as requested for by fadama users.

Project Management, Monitoring and Evaluation. This last component of the project consist of: project
management, coordination, monitoring and evaluation and environmental services. This component is
aimed at reducing the effects of distressed and abandoned enterprises which may be due to adverse
business, political and economic climate. It also seek to facilitate a situation in which there will be
constant feedback to agricultural and non-agricultural entrepreneurs operating in the fadama areas through
the system of periodic reporting, analytical and unbiased project monitoring and evaluation.

  THE DYNAMICS OF SMALL BUSINESS INCUBATION FACILITIES AS A SUSTAINABLE
             ANTI-POVERTY DEVICE IN THE OGUN STATE NFDP-II
   The objective of this section is to show that promotion of small business incubation facilities in Ogun
State fadama areas has the capacity to sustainably alleviate chronic poverty in the State. In this regard, we
will discuss the concept of small business incubation facilities and from there proceed to apply the
concept to the Second National Fadama Development Project in Ogun State.

Concept of Small Business Incubation Facilities. In crystallising the concept of small business
incubation facilities and its strategic importance in reducing poverty level in Ogun State, it should be
pointed out that the poverty reduction policies of the government can only be achieved through a credible
and pragmatic program of Operation Sustainable Small Enterprises Explosions (OSEE). It is only in this
context that an army of small business operators skilled in the art and science of applying the principles
and practice of starting, running and developing small scale businesses can be raised.

   At this juncture, we need to clarify the nature of small business incubation facilities as an anti-poverty
device. In doing this, we are going to adopt a human anatomic perspective as an illustration.
Small Business Incubation Facilities (SBIF) defined. SBIF is an enterprise development and
protective system against unpredictable and irregular shocks from the economic environment with
facilities for factory and office spaces, secretariat, fund sourcing mechanism, production
plant/machine/equipment, utilities and storage/warehouse provided at a subsidized rate for weak
and vulnerable potential and existing entrepreneurs for a specific period of years in order to attain
maturity to stand on their own in a competitive business environment.

   From the foregoing definition, it will be clear that our concept of small business incubation facilities
has some features that call for mentioning. These are:
     (a) enterprise conception, development and protection
     (b) provision of subsidized enterprise development facilities
     (c) strengthening of weak and vulnerable entrepreneurs
     (d) specified period of incubation/strengthening
     (e) facilitating fund sourcing for incubatee entrepreneurs
     (f) birthing of enterprises after incubation

   By way of illustration, below is an anatomic representation of small business incubation facilities
needed for the mass production of competent entrepreneurs within Ogun State economy.




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        Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




         Anatomic Representation of An Enterprise Incubation Facilities




         Anatomic Representation of a Small Business Incubation Facilities: Segun Benson, 2005

Small Business Incubation Facilities In The Context of Ogun State NFDP-II

   The objective here is to discuss small business incubation facilities (SBIF) as a device for alleviating
poverty in the context of the current NFDP-II in Ogun State, Nigeria. We want to show that promoting
entrepreneurship and small business initiatives through small business incubation facilities in the ten
Local Government areas where NFDP II activities are currently operating will spark off a tremendous
amount of entrepreneurial activities that will consequently improve the income level of the poor and the
economic well being of many in the State.

   Presently, the major constraints to the development of the non-oil sector in Nigeria can be traced to (a)
poor access to finance, (b) lack of access to business development services, (c) poor investment climate
and (d) weak infrastructure. These factors were identified by the World Bank in its Project Information
Document (PID) No. AB157 on Nigeria’s micro/SME programme.

    On the question of poor access to finance, the World Bank mentioned the existence of capacity gaps on
the part of SMEs to present bankable projects and to handle external financing properly. Secondly, there
is an acute shortage of competent business development services, such as in the areas of qualitative
training, consultancy and advisory services, marketing assistance, information, technology, development
and transfer and business linkage promotion. This situation has been compounded by weak infrastructure,
particularly electricity.

   In order to increase private sector growth and to address the foregoing constraints to micro/small
business development in Ogun State, there is an urgent need for a radical and innovative approach to
facilitating practical and sustainable entrepreneurship in the State. In essence we need a sustainable and
composite system of entrepreneurship development programme that incorporates access to finance, supply
of competent business development services, micro/macro investment climate and enterprise monitoring
and evaluation to micro/small business entrepreneurs in Ogun State.

   The concept of the small business incubation facilities discussed earlier in this paper has the
framework of a composite system suitable for the development of practical entrepreneurship and
small business initiatives as opposed to the disintegrated approach that is currently in practice.

Framework of Small Business Incubation Facilities. Small Business Incubation Facilities as a concept
for promoting small scale agro-industrial enterprises that will lead to substantial reduction in poverty level
in Ogun State has the following characteristics:



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      Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




    (i)       It consists of the empowerment of weak and vulnerable potential and existing entrepreneurs
              in the rural an urban areas who are interested in processing and marketing of available
              agricultural raw materials in the fadama areas of Ogun State.
    (ii)      Provides for an Incubation Secretariat (IS) that is made up of multi-disciplinary team of
              professionals and experts who are competent and dedicated to serve as mentors to the
              incubatee entrepreneurs in the community.
    (iii)     Provides a mechanism for time-bound incubatee entrepreneurs and service providers that are
              constant and dedicated to facilitate as mentors and developers.
    (iv)      Provides for enterprise infrastructures that are owned, run and managed by generations of
              entrepreneurs. These include facilities like: factory/office space, storage and warehouse,
              electricity, water, telecommunication, road and distribution vehicles.
    (v)       Facilitates better monitoring and evaluation of enterprises as incubatee entrepreneurs are
              localized and easily identifiable by development partners, financiers and customers.
    (vi)      Incubatee-entrepreneurs are incubated to maturity within a period of two/three years in
              diverse areas of enterprises, such as, production, marketing and sales, enterprise
              management, fund sourcing and management
    (vii)     Incubatee-entrepreneurs are protected from the harsh business environment during
              incubation until maturity period to compete in the open market.
    (viii)    Facilitate the incubation of another set of weak and vulnerable existing and potential
              entrepreneurs.
    (ix)      Provides a shock-absorbing mechanism to incubatee-entrepreneurs from the unpredictable
              and irregular economic shocks from the business environment.
    (x)       Provides for a secretariat that provides all that the incubatee-entrepreneurs need to start, run
              and develop an enterprise sustainably.
    (xi)      Incorporates an Integrated Industrial Multipurpose Cooperative Society which serves as a
              mechanism for accessing grants, loans and other form of assistance from Federal, State,
              Local Government, Government specialized financial institutions, commercial banks,
              indigenous and international donor agencies on behalf of incubatee-entrepreneurs.
    (xii)     It has a participatory stakeholders committee that functions in an advisory capacity to the
              Board.
    (xiii)    The stakeholders committee is made up of (a) representative of financial institutions chosen
              by the collective of the incubatee-entrepreneurs and the Secretariat, (b) representative of
              medium and large scale enterprises dependent on the products of the small business
              incubation facilities and (c) representatives of tertiary and research institutions
    (xiv)     The Secretariat and the incubatee-entrepreneurs operate the small business incubation
              facilities in a democratic fashion with little or no interference from the Government in its
              day to day administration.

Functions of the SBIF Secretariat. The roles of the Secretariat in the context of incubating micro/small
businesses in the facilities include the following:
    (a) Identification of the entrepreneurial components of various courses or disciplines offered in
         tertiary institutions in Ogun State for the purpose of contributing to the development of students
         for entrepreneurship after their formal education.
    (b) Carry out needs assessment of incubatee-entrepreneurs for the purpose of ensuring their maturity.
    (c) Facilitate the promotion of locally fabricated agro-processing plants/equipment/machine and
         tools manufacturers.
    (d) Carry out regular entrepreneurial education and training services for incubatees.
    (e) Provision of domestic and overseas marketing assistance and information for incubates.
    (f) Provision of management counsel and linkage to accounting, legal and other professional
         services.
    (g) Advisory and public communication on behalf of micro/SME operators in the Small Business
         Incubation Facilities.
    (h) Facilitating government patronage and procurement for the incubatee-enterprises.
    (i) Facilitating product innovation and standardization of the products of the incubatee enterprises.
    (j) Carrying out effective and efficient internal services and administration of the Incubation
         Facilities.
    (k) Facilitating the establishment of appropriate climate within which the incubatees can grow and
         flourish in readiness for competitive business environment.




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            Joshua Olusegun Benson    Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com



        LOCAL RESOURCE-BASED ENTERPRISES THAT ARE INCUBATABLE BY THE FCAs
        THROUGH SMALL BUSINESS INCUBATION FACILITIES CONCEPT

           Under the Second National Fadama Development Project in Ogun State, between August 2004 and
        February 2005, 38 Fadama Community Associations (FCAs) were formed out of the ten Local
        Government Councils involoved in the project. The 38 FCAs were made up of 241 Fadama User Groups
        (FUGs) located in the rural areas where the food baskets of the State are produced. Table 1 below shows
        the formation of FUGs and FCAs in each participating Local Government Councils in Ogun State.

            Table 1: FIRST BATCH OF FADAMA COMMUNITY ASSOCIATIONS (FCAs) AND
         FADAMA USER GROUPS (FUGs) FORMED IN OGUN STATE BETWEEN AUGUST 2004 and
                                       FEBRUARY 2005.

S/N    NAME OF LOCAL                     NAME OF FCA                    PLACE WHERE FCA IS                       NO OF FUGs
        GOVERNMENT                     FORMED IN THE                        LOCATED                               FORMING
             AREA                             AREA                                                                THE FCA
1.    Odeda LGC                      Orile Ilugun FCA               Orile – Ilugun                                   10
                                     Ojebiyi FCA                    Ojebiyi village                                  06
2.    Odogbolu LGC                   Aiyepe FCA                     Aiyepe Village                                   07
                                     Okunowa FCA                    Okunwa Village                                   05
                                     Ijesha/Ijebu FCA               Ijesha/Ijebu Village                             05
                                     Ibefun FCA                     Ibefun Village                                   04
                                     Ibido FCA                      Ibido Village                                    05
                                     Akio FCA                       Akio Village                                     06
3.    Ijebu North-East LGC           Isanyin FCA                    Isanyin Village                                  05
                                     Atan FCA                       Atan Village                                     06
                                     Ijari FCA                      Ijari Village                                    05
                                     Odosimadegun FCA               Odosimadegun                                     06
4.    Ipokia LGC                     Ogosha/Ajegunle FCA            Ogosha/Ajegunle Village                          07
                                     Agosasa FCA                    Agosasa Village                                  09
                                     Magbora FCA                    Mogbora Village                                  06
5.    Ifo LGC                        Aransi Oluwa FCA               Ogungbade Village                                05
                                     Coker FCA                      Coker Village                                    05
                                     Solu FCA                       Solu Village                                     05
                                     Lumesi FCA                     Lumesi Village                                   05
6.    Yewa North LGC                 Igbogila FCA                   Igbogila Village                                 12
                                     Iwale FCA                      Iwale Village                                    08
                                     Oja Odan FCA                   Oja Odan Village                                 06
                                     Sawonjo FCA                    Sawonjo Village                                  05
7.    Abeokuta North LGC             Agoka FCA                      Agoka Village                                    06
                                     Tibo FCA                       Tibo Village                                     05
                                     Idi Emi FCA                    Idi Emi Village                                  06
                                     Ibara Orile FCA                Ibara Orile Village                              06
                                     Ilewo Orile FCA                Ilewo Orile Village                              06
8.    Obafemi Owode LGC              Oba FCA                        Oba Village                                      08
                                     Eriti FCA                      Eriti Village                                    11
                                     Aluoge FCA                     Aluoge Village                                   05
                                     Ijana Alapako FCA              Ijana Alapako Village                            05
9.    Ijebu North LGC                Italuwo FCA                    Ijebu- Igbo                                      08
                                     Agbelere FCA                   Ago-Iwoye                                        07
                                     Iselogunise FCA                Ijebu-Igbo                                       08
                                     Idekan FCA                     Ijebu-Igbo                                       07
10.   Ogunwaterside LGC              Aiyegbami FCA                  Aiyegbami Village                                05
                                     Tobalase FCA                   Tobalase Village                                 05

        THE FUGs AND FCAs ARE COMMUNITY LEVEL PROJECT IMPLEMENTATION GROUPS.

        Fadama User Groups (FUGs). Members of the FUGs are the primary beneficiaries of the project and
        are organized along household formation. Each FUG is expected to consist of a minimum of ten
        households. At the level of FUGs the community people are formed into various economic interest


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    Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




groups such as: (a) gatherers of edible and non-edible plants, (b) food and crop processors, (c) marketers
and distributors of products, (d) farmers: food and cash crops, fish farming, vegetable; (e) animal
husbandry and (f) other economic interest groups.

    The FUGs also perform some administrative functions through constitution of a monitoring committee
to be responsible for:
     (a) representing members at the FCA level.
     (b) Identification and prioritization of investment opportunities.
     (c) Preparation of sub-project proposals that concerns members investment priorities.
     (d) Operation of the account of the group.
     (e) Operation and maintenance of the groups project.

Fadama Community Associations (FCAs). This is the apex organization of economic interest groups at
the community level. It is a constitution of all FUGs in a given community with the following
responsibilities:
    (a) registration of the apex group as a legal entity in accordance with the existing Local and State
         laws.
    (b) Election of management and monitoring committees of the apex group.
    (c) Identification of priority investment at the level of FCA.
    (d) Preparation of sub-project proposals.
    (e) Facilitate training of members
    (f) Enter into appropriate agreement with service providers on behalf of the members
    (g) Performs book-keeping and project record keeping functions in respect of members projects.

    The FUGS and FCAs enjoy the support of fadama facilitators and service providers. Within each
community the facilitators assist in the formation of FUGs and FCAs; liaise with the Local Fadama Desk
at the Local Government Council; assist in the preparation of the Local Development Plans (LDPs) and
also provide assistance in the implementation of community projects.

   Service providers are the public and private establishments providing support services on contract to
the FUGs and FCAs. These include:
     (a) government agencies in charge of training and research, e.g. Agricultural Development Projects.
     (b) Tertiary institutions
     (c) Private artisans and entrepreneurs
     (d) NGOs and qualified civil associations.

   The foregoing project implementation structure appears well suited for the first stage of stimulating the
entrepreneurial capabilities of the rural population. The system of contracting service providers that are
not resident with the community people is not likely to promote adequate dedication required for an
explosion of micro/small scale businesses among the poor. The sense of mentorial committement needed
for accelerating economic growth and well-being of the people will remain a remote idea under the
present system.

   In order to make the NFDP-II in Ogun State realize its socio-economic goals, there is the need to
institutionalize the concept of Small Business Incubation Facilities as discussed in this paper in each
Local Government area involved in the project.

Incubatable Small Scale Agro-Industrial Enterprises Under NFDP-II

   In each of the participating Local Government Council there are incubatable agro-industrial enterprises
according to the type of agricultural raw materials produced by the FUGs and FCAs. These are shown in
the table below.




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            Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




           Table 2:    INCUBATABLE SMALL SCALE AGRO-INDUSTRIAL ENTERPRISES IN THE TEN
                         PARTICIPATING LOCAL GOVERNMENT AREAS OF OGUN STATE

S/N   NAME      OF            AVAILABLE                                  INCUBATABLE SMALL SCALE AGRO-
      LOCAL                   AGRICULTURAL CROPS                         INDUSTRIAL ENTERPRISES IN THE LGC
      GOVERNMENT
      COUNCILS
1.    Odeda LGC               Maize, Oil palm, Kolanut,                  Enterprises engaged in the production of or supply of
                              Sugarcane, Cocoyam, Cassava,               raw materials to industries manufacturing: macaroni,
                              Yam, Fruits and Vegetables.                custard, soya ogi, glucose, syrup; animal feeds,
                                                                         starch, pectin, alcohol, adhesive and cornflakes;
                                                                         vegetable oil, paints, soap, cosmetics; soft drink and
                                                                         stimulants; sugar and derivatives, bagasse and
                                                                         molasses; modified starches, alcohol, chips, yam
                                                                         flour and maize flour; fruit drinks, jams and
                                                                         marmalades, fruit concentrate, fruit flavours and
                                                                         colouring; tomatoe powder and chillie pepper.
2.    Odogbolu LGC            Cocoa, Rubber, Yam, Cassava,                  Enterprises engaged in the production of or
                              Vegetables and Maize.                      supply of raw materials to industries manufacturing:
                                                                         cocoa-butter, body creams, lotion, animal feeds,
                                                                         wine; rubber lumps, sheets and crumbs; cocoa
                                                                         beverages, fertilizers, industrial starch; tomatoe
                                                                         powder, chillie pepper.
3.    Ijebu-North     East    Oil palm, Yam, Citrus, Maize,                 Enterprises engaged in the production or supply
      LGC                     Cocoa.                                     of raw materials to industries manufacturing:
                                                                         vegetable oil, animal feed cake, paints, soap,
                                                                         cosmetics; citric acid, juices, essential oils, flavour;
                                                                         starch, adhesives, corn oil and cornflakes; cocoa
                                                                         butter, body creams, wines, dehydrated juice,
                                                                         marmalade and squashes; tomatoe powder and chillie
                                                                         pepper.
4.    Ipokia LGC              Cashew Nut, Yam, Maize and                    Enterprises engaged in the production of or
                              Cassava, Vegetables.                       supply of raw materials to industries manufacturing:
                                                                         roasted cashew nuts, juice and oil, superior paints,
                                                                         insulating vanishes, break lining and automobiles,
                                                                         jam jellies, alcoholic and non-alcoholic beverages;
                                                                         animal feeds, starch, adhesives and corn flakes;
                                                                         tomato powder and chillie pepper.
5.    Ifo LGC                 Rice,      Maize,     Kolanut,                Enterprises engaged in the production of or
                              Vegetables, Legumes (Cowpea,               supply of raw materials to industries manufacturing:
                              Groundnut and Soya beans).                 alcohol, rice bran; animal feeds, starch, adhesives,
                                                                         corn oil and corn flakes; soft drinks and stimulants;
                                                                         soya bean meal, milk and soy sauch; plantain flour,
                                                                         wine and baby foods; roasted nuts, salted nuts,
                                                                         butter, groundnut confectionery; soya milk, yogurt
                                                                         and ice cream, chocolate milk and cheese; tomato
                                                                         powder and chillie pepper.
6.    Yewa-North LGC          Yam, Maize, Cassava, Cocoyam,                 Enterprises engaged in the production of or
                              Fruits,   Rice,     Kola     nut,          supply of raw materials to industries manufacturing:
                              Vegetables, Forest products.               yam flour, dried yam chips; corn flakes, starch, non-
                                                                         wheat bread, animal feed and alcohol production,
                                                                         adhesives and pectin; modified starches, cassava
                                                                         chips and ethanol; cocoyam chips; fruit drinks,
                                                                         canned sliced fruits, fruit preserves such as jams and
                                                                         marmalades, fruit concentrates, fruit flavours and
                                                                         coloring and wines; rice alcohol and bran; Kolanut
                                                                         drinks and stimulants; wooden furniture and fixtures,
                                                                         wooden crates and boxes, wooden floor tiles and
                                                                         parquets, sports equipments – cricket and basket ball
                                                                         bats and wickets, hockey sticks, tennis rackets, canoe


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      Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




                                                                              paddles, goal posts, table tennis bats and diving
                                                                              platform, educational and office equipment – duster
                                                                              handles, black boards, laboratory tables, school desks
                                                                              and chairs, book shelves, cupboards and drawers;
                                                                              tomato powder and chillie pepper.
7.      Abeokuta-North            Maize, Cassava, Yam, Fruits,                    Enterprises engaged in the production of or
        LGC                       Cocoyam, Vegetables.                        supply of raw materials to industries manufacturing:
                                                                              animal feeds, starch, pectin, alcohol, adhesives,
                                                                              sugar, corn oil and corn flakes; cassava starch and its
                                                                              derivatives, modified satarches, cassava chips and
                                                                              alcohol; fruit drinks, canned sliced fruits, fruit
                                                                              preserves such as jams and marmalades, fruit
                                                                              concent4rates, fruit flavours, colouring and wines;
                                                                              cocoyam chips/snacks; tomato powder and chillie
                                                                              pepper.
8.      Obafemi-Owode             Rubber, Cassava, Rice, Yam,                    Enterprises engaged in the production of or supply
        LGC                       Colanut, Maize, Cocoa, Oil                  of raw materials to industries manufacturing: rubber
                                  palm, Cocoyam, Coconut and                  lumps, sheets and crumbs; cassava starch and its
                                  Vegetables.                                 derivatives, modified starches, chips and alcohol;
                                                                              rice bran and alcohol; yam flour; Kolanut soft drinks
                                                                              and stimulants; maize starch, animal feeds, pectin,
                                                                              alcohol, adhesives, sugars, corn flakes and oil; cocoa
                                                                              butter, body creams lotion, animal feeds and wines;
                                                                              vegetable oil, animal feed cake, paints, soap and
                                                                              cosmetics; cocoyam chips and flour; coconut fibre
                                                                              mat, jute bag, copra, oil, cake, perfumes and brooms;
                                                                              tomato powder and chillie pepper.
9.      Ijebu-North LGC           Oil palm, Forest Products,                  Enterprises engaged in the production of or supply of
                                  Coconut, Cocoyam, Cocoa,                    raw materials to industries manufacturing: vegetable
                                  Yam, Maize, Cassava, Kola nut,              oil, animal feed cake, paints, soap, cosmetics;
                                  Groundnut and Vegetables.                   tomato, chillies, onion powder, melon shelling and
                                                                              powder; wooden furniture and fixtures, wooden
                                                                              crates and boxes, boat and mechanized canoe
                                                                              building, wooden poles and fencing posts, paper and
                                                                              paper board converting, wooden dustbins,
                                                                              photographic frames; mortar and pestle; coconut
                                                                              fibre mat, jute bag, copra, oil, cake, perfumes,
                                                                              brooms; coco-butter, body creams, lotion, animal
                                                                              feeds and wines; corn starch, pectin, alcohol,
                                                                              adhesives, sugars, corn oil and flakes; cassava starch
                                                                              and its derivatives, modified starches, chips and
                                                                              alcohol.
10.     Ogun       Waterside      Maize, Yam, Rubber, Cassava,                    Enterprises engaged in the production of or
        LGC                       Rice, Fruits, Oil palm, Forest              supply of raw materials to industries manufacturing:
                                  Product and Vegetables.                     animal feeds, corn starch, pectin, alcohol, adhesives,
                                                                              sugars, oil and corn flakes; rubber lumps, sheet and
                                                                              crumbs; cassava starch and its derivatives, modified
                                                                              starches, chips and alcohol; rice bran and alcohol;
                                                                              fruit drinks, canned sliced fruits, fruit preserves such
                                                                              as jams and marmalades, fruit concentrates, fruit
                                                                              flavours, colouring and wines; vegetable oil, animal
                                                                              feed cake, paints, soap and cosmetics; wooden
                                                                              furniture and fixtures, wooden crates and boxes, boat
                                                                              and mechanized canoe building, wooden poles and
                                                                              fencing posts, paper and paper board converting,
                                                                              wooden dustbins, photographic frames, mortar and
                                                                              pestle.

                    The foregoing incubatable enterprises can be promoted by the FCAs under the NFDP-II in Ogun
              State in order to sustainably facilitate reduction in the level of poverty in Ogun State rural and urban



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      Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




areas. This should be done through the establishment of Small Business Incubation Facilities in the
participating Local Government areas.

   In the light of the foregoing, Small Business Incubation Facilities concept discussed in this paper can
be used to achieve reduction in the level of poverty and generation of sustainable employment and wealth
in Ogun State. Substantial will be evidenced in its ability to (a) promote rural productive activities; (b)
facilitate provision of rural financial resources; (c) promotion of resource-based small scale productive
activities in the agricultural sector; (d) facilitate the development of productive activities in other sectors
of the economy such as in the mineral and metal-based rural industries, arts and crafts; (e) stimulation of
support for human resources development through training and skills development; (f) enhancement of
enabling rural infrastructure through stimulation of growth in the rural travel and transportation,
construction of feeder roads and stock routes, rural energy, rural water supply and rural markets for local
goods.

ROLES OF DEVELOPMENT PARTNERS IN THE ESTABLISHMENT OF SMALL BUSINESS
           INCUBATION FACILITIES IN OGUN STATE FADAMA AREAS

   The expected development partners needed for stimulating the development of private sector-led,
owned and managed small business incubation facilities under the NFDP-II in Ogun State are: (a) the
Federal Government, (b) State Government, (c) Local Government, (d) the World Bank and (e) the
international donors. This is a multilateral partnership needed for helping Nigeria make its fair amount of
contributions to the World’s MDGs in the century.

   The following are the expected roles of the development partners towards actualizing the creation of an
explosion of small scale businesses in Ogun State through the system of small business incubation
facilities:

    (a) Provision of land, survey and architectural services of the small business incubation facilities.
    (b) Construction of buildings demarcated into at least 100 factory/office spaces and
        storage/warehouses for each small business incubation facilities in each of the ten fadama Local
        Government Council areas in Ogun State.
    (c) Construction of access roads to the small business incubation facilities.
    (d) Construction of a Secretariat building, being the heart of the small business incubation facilities.
        The Secretariat shall consist of standard office spaces, training hall, telecommunication center,
        business center, cybercafe, computer services, etc.
    (e) Provision of fund channeled to incubatee-enterprises through the Integrated Industrial
        Multipurpose Cooperative Society to which all incubatee-entrepreneurs within the Small
        Business Incubation Facilities belong.
    (f) Provision of distribution vehicles.
    (g) Provision of appropriate small scale agro-industrial tools, equipment, plants and machineries at a
        subsidized rate or on rental basis to incubatee-entrepreneurs.
    (h) Supply of subsidized utilities such as electricity, telecommunication, water and postal services to
        incubatee-entrepreneurs.
    (i) Maintenance services of facilities, equipment and plant.
    (j) Promotion of local fabrication of agro-processing tools, equipment, plant and machineries.

 Expected Roles of Incubatee-Entrepreneurs. Participating entrepreneurs are to be incubated for a
period of two or three years and they will be required to fulfil the following obligations:
    (a) payment of initial enterprise counterpart contribution (ECC) according to the type of chosen
         enterprise. This initial contribution shall be determined by the Board of the Small Business
         Incubation Facilities.
    (b) Option of installing own plant/machine or equipment for production.
    (c) Payment of wages/salaries of own workers.
    (d) Payment of a subsidized utilities bills consumed.
    (e) Procurement of own production raw materials.
    (f) Marketing of own product with active support of the Secretariat.
    (g) Participation in the safety of the environment.
    (h) Responsible for the management of own enterprise with personalized support services from the
         Secretariat of the SBIF.




                                                            14
 Joshua Olusegun Benson   Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com



ECONOMIC BENEFITS OF PROMOTING SMALL BUSINESS INCUBATION FACILITIES AS
                       AN ANTI-POVERTY DEVICE

   The adoption of small business incubation facilities approach as an anti-poverty device in the fadama
areas of Ogun State will facilitate the following benefits to the people of Ogun State:

    (a) Greater employment opportunities for rural and urban dwellers.
    (b) Increased private sector initiatives and investment in the rural areas.
    (c) Maximum utilization of available domestic raw materials which will in turn keep our domestic
        workforce economically engaged.
    (d) Substantial reduction in the level of unemployment in the next three years.
    (e) Acceleration of economic development of the fadama areas through increased entrepreneurial
        activities in the primary production, manufacturing and services/marketing sectors of Ogun State.
    (f) Strengthening of weak and vulnerable entrepreneurs against harsh enterprise forces in the
        national and international markets.
    (g) Facilitate an explosion of micro/small business enterprises that are properly groomed to provide
        quality goods and services in the society.
    (h) Provide a basis for the creation of new jobs, introduction of innovative products, healthy
        competition among micro/small scale entrepreneurs as well as facilitating efficient performance
        of the micro/SME sector of Ogun State.


                                                   CONCLUSIONS

   In this paper attempt has been made to discuss the dynamics of small business incubation facilities as a
device or system for reducing the level of poverty in Ogun State with particular emphasis on the fadama
areas where all the year round agricultural activities are possible. This agricultural possibilities constitute
a basis for a sustained agro-industrial enterprises which can lead to the much needed industrialization and
wealth creation in Ogun State.

   Again, it will be apparent that the successful establishment and growth of small business
incubation facilities in the fadama Local Government areas of Ogun State is dependent upon a
dedicated and skilled professionals at the Secrfetariat. The adoption of the SBIF as an anti-poverty
device remain the only viable strategy for creating and accelerating an explosion of micro/small
businesses that can effectively shore up the wealth of Nigeria’s non-oil sector, starting from Ogun State.

   If the concept of small scale incubation facilities is accepted across the Federation of Nigeria it is our
belief that it will bring about a sharp improvement in the productivity level of the economy and
consequently down scaling the present level of poverty in the society.

    In order to reap the full benefits of small business incubation facilities in Ogun State great emphasis
should be placed on assembling a corps of dedicated team of professionals that possess entrepreneurial
acumen to run the Secretariat of the SBIF. This will be evidenced in the way they apply their skills in
satisfying the service needs of the incubatee-entrepreneurs.

RECOMMENDATIONS

   In the light of the foregoing conclusions, we hereby recommend as follows:
    (a) that the Small Business Incubation Facilities (SBIF) should be strictly owned, run and managed
         by members of the incubatee-entrepreneurs being incubated.
    (b) That the SBIF should be empowered to operate with little or no interference from Government
         functionaries in the affairs of its administration. This means that the government should not
         dictate its Board members and Executives.
    (c) That Government should be limited to the provision of moral support and encouragement rather
         than dominating, regulating or controlling its activities.
    (d) That members of the private sector organizations with extended experience in entrepreneurial
         development should be encouraged to participate in the SBIF.
    (e) That the SBIF should be allowed to operate in a way that it can outlive the present administration
         through provision of a legal backing for its independence. This factor will contribute to making
         SBIF sustainable into the future.



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       Joshua Olusegun Benson    Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com



     (f) That every incubatee-entrepreneur should be made to participate in the Integrated Industrial
         Multipurpose Cooperative Society, which is SBIF’s component for fund sourcing and supply to
         members.
     (g) That NGOs that are active in entrepreneurship and small business development should be
         encouraged to participate maximally in SBIF.
     (h) That at the take-off of the SBIF priority attention should be given to incubatee enterprises that
         will engage in the processing of existing agricultural and mineral raw materials in the State. The
         idea here is to reduce the problems associated with importation of raw materials from abroad and
         to assist the growth of Ogun State agricultural sector.
     (i) That the Integrated Industrial Multipurpose Cooperative Society of SBIF should be the
         mechanism for accessing Federal, State and Local Government support fund as well as seed fund
         from commercial banks, cooperative banks, government specialized financial institutions/banks,
         indigenous and international donors. It is hoped that seed funds from these sources will come by
         way of grants, loans and other forms of assistance.
     (j) That the Board of the SBIF should establish a participatory stakeholders committee that will
         function in an advisory capacity. The stakeholders should consist of representatives of private
         financial institutions to be chosen by incubatee-entrepreneurs, representatives of the medium and
         large enterprises dependent on the products of the SBIF, representatives of educational tertiary
         and research institutions and representatives of Ogun State Government.

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BENSON, Segun: Introduction to Small Business Management: An Entrepreneurial Emphasis for a Developing Society. Jshoben
Publications, Abeoikuta, Nigeria. 2003.

BENSON, Segun. Principles and Practice of Enterprise Management for Professionals In A Developing Society. Jopshoben
Publications, Abeokuta, Nigeria. 1999.

National Medium-Term Investment Programme (NMTIP) Draft Document No. TCP/NIR/2906, November 2004.

OLUDIMU, Femi. “Investment Opportunities In Agricultural Processing and Storage”. Paper presented at the 2 nd Ogun State
Economic and Investment Summit. January 2005.

Proceeding of Ogun State Economic and Investment Summit titled: Harnessing The Gateway Advantage.” Held at Gateway Hotel,
Abeokuta. January 2005.

BENSON, Segun. “Comments On The Stakeholders Consultation Report: A Focus on Ogun State.” A paper submitted to the World
Bank, Nigeria, in respect of its Country Assistance Strategy (CAS) for Nigeria.

BENSON, Segun. “Stimulation and Development of Ogun State Economy Through An Explosive Indigenous Private
Entrepreneurship Programme: Challenges and Prospects.” Paper submitted to the Planning Committee, Ogun State Economic and
Investment Summit held at Gateway Hotel, Abeokuta, Nigeria. November 2003.

Brochure on World Bank Assisted Second National Fadama Development Project.

World Bank Updated Project Information Document (PID) Report No. AB157, 2003.

Manual for Mobilising Cooperatives. Directorate for Social Mobilisation, 1989.

Investment Profiles for Nigeria, Vol. I. Raw Materials Research and Development Council. 1992.

Raw Materials Sourcing for Manufacturing In Nigeria. Raw Materials Research and Development Council. 1990.

National Economic Empowerment Development Strategy (NEEDS), Vol. 1 Document.

National Fadama Development Project II Document.

ADUBI, A. A. “CDD: Concept and Procedure.” Paper presented at the Technical Workshop for Project Staff of the NFDP II in
Ogun State. 12-14 October, 2004.

BENSON, Segun. Comments/Views on The Draft National Medium-Term Investment Programme (NMTIP) presented at the
Zonal Stakeholder Workshop on NMTIP at Ibadan, Oyo State, Nigeria. 2nd September, 2004.

USMAN, Shamsuddeen. Keynote Address presented at the Workshop on Smnall and Medium Industries Equity Investment Scheme
(SMIEIS), D’Rovans Hotel, Ring Road, Ibadan. 11th September, 2001.

Zonal Training Workshop Document on State Economic Empowerment and Development Strategy, (SEEDS). February 2004.

AZOGU, Ike, “Viable Processing Options for the Fadama Project” Paper presented at the Stakeholders’ Workshop on Sustainable
Fadama Development in Nigeria at Nicon-Hilton Hotel, Abuja: August 1-3 2000.




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    Joshua Olusegun Benson    Institute of Small Business Management and Entrepreneurship (ISBUME) E-Mail: isbume@yahoo.com




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