Startups in Nigeria are waxing stronger by the minute and with the exponential growth of startups in the country, there is a need to put up a startup act.
A startup Act is a set of policies and regulations for startups that are passed as an official bill in a country.
This startup Act is designed to guide the activities of a startup and most importantly encourage startups.
Several other African countries like Senegal, Tunisia have enacted startup acts in their countries and it has led to tremendous improvement in their countries respectively.
Startups in Nigeria are beginning to raise huge seed fundings from both local and global investors, however, there’s still uncertainty as to how favorable the environment is for their investment. With always changing regulations and all whatnots.
Also read, A Review of Startup Act Policy in Africa
Just like the sudden ban of ride-hailing ended various startups whose business was structured around the motorcycle transport business if a startup act were in place such startups would have probably been protected or at least compensated for the efforts they have put in to grow their business.
In the Tunisia Startup Act, startup founders have the right to return to their old jobs should their startups fail. Talk more of a business failure due to the actions or inactions of the government.
Both investors and startup owners need to be assured of their investments and efforts respectively hence the need for a startup Act in Nigeria.
A startup Act helps in fostering the general development of a country’s revenue, if Yabacon Valley, The supposed Silicon Valley of Nigeria has the needed support it requires in form of an enabling environment and policies strongly backed by the government, imagine the influx of people it will attract.
Multinational companies will be established, jobs will be created for citizens and by extension, increased tax revenue which in turn leads to increased GDP and everybody is happy at the end of the day.
Tunisia, in its startup Act, made provisions for creating and sustaining an Innovation Cluster such as that and has already started implementations.
Currently, Nigeria has over two hundred and fifty startups in the fintech sector alone. Combined with other startups that are using technology to offer solutions and services in health, insurance, education, hospitality, logistics among others we have a good number of startups that will leverage this startup Act and scale their businesses.
One might say there are existing regulations, however, these regulations are not peculiar to startups and are not providing the needed support.
Instead, it is capital intensive and time-consuming, the process of applying and acquiring licenses is daunting.
This doesn’t help startups who need time and are still sourcing funds to scale their business.
The Startup Act will free startup founders from the obligatory licenses and other angles of the regulatory system that limits their productivity and innovation, thereby encouraging more people to grow startups as there are many facets of the society that need their innovation.
The startup Act should be seen as an investment into the future to build the economy and society of our dreams because enacting it will open up our horizon for more investments than what we have now.
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