Ausbeth Ajagu

The
Entrepreneur

Academy for Entrepreneurial Studies, Nigeria (AES)

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First published 2005
By Betcy Media
A division of Betcy Group of Companies
Betcy House

ISBN 978 – 067 – 168 – 4

First published, 2005

Copyright © Ausbeth Ajagu 2005

Revised edition 2013

Academy for Entrepreneurial Studies, Nigeria,

Secretariat:
Marble House
No 17 Alhaji Bashorun Street,
Off Norman Williams Street,
Off Awolowo Road, Ikoyi, Lagos P.O Box 80676, Lafiaji, Lagos.
Tel: 01-7642280, 01-4749949, Mobile: 08062839882, 08053335555,
08177092525
E-mail: info@aes-edu.net, aes_nig@yahoo.com
Website: www.aes-edu.net.

All rights reserved. No part of this publication may be reproduced,

stored in or introduced into a retrieval system, or transmitted, in any
form, or by any means (electronic, mechanical, photocopying,
recording or otherwise) without the prior written permission of the
Author and the Publisher. Any person who does any unauthorized act
in relation to this publication may be liable to criminal prosecution and
civil claims for damages.

National Library of Nigeria Cataloguing – in – Publication Data

AJAGU, Ausbeth Nnamdi 1965 –

The Entrepreneur
1. Entrepreneurship – Nigeria. I. Title.

HB 615.A312 338.0409669
ISBN 978-067-168-4 AACR2 2013

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 ENDORSEMENT

This is to certify that the book THE ENTREPRENEUR is endorsed

and recommended by the Manufacturers Association of Nigeria (MAN)
and the Institute of Directors, Nigeria (IoD) for public reading.

………………………… ………………………...

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 TESTIMONIALS

”The Entrepreneur critically enumerates most of the maladies facing

entrepreneurship in Nigeria, and proffers practical and lasting solution
from an informed private sector perspectives. I recommend it to all
prospective and practicing company directors and business leaders.”
Mr. Akin Iroko, M. Inst. D., Director –General, Institute of Directors
(Iod) Nigeria.

“The Entrepreneur is a compendium of the thinking of the organized

private sector. It is a well-researched management book on how best to
move the country forward. It is highly recommended to all and sundry.”
Mr. Jide A. Mike, Ag. Director-General, Manufacturers Association
of Nigeria (MAN)

“The entrepreneur is a rewarding initiative and well worth the effort. It

provides new insight to both the veteran student of the Nigerian
economy and the novitiate. The effort must be appreciated and
applauded.”
Prof. Anya O. Anya, B.sc (Hon), FAS, OFR, NNOM
First DG/CEO, Nigeria Economic Summit Group

“Dr. Ajagu has written a tome that spans from the practical to the
poetic and scales from the ground to the granular… an invaluable
guidebook for the budding entrepreneurs.”
Roger Yeo, CEO, De United Foods Ind. Ltd., Manufacturers of
Indomie Noodles

“ The Entrepreneur, a book of international standard, is a product of

intelligent research and clear thinking”
Pastor Taiwo Odukoya, President, Discovery for Men

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“ Nigeria’s budding entrepreneurs now have a guide, which, if followed
religiously, shall guarantee nothing short of success for the individual
and growth for the national economy. Dr. Ausbeth Ajagu has produce a
master piece, and at the nick of time too.”
Chief Leo Stan Ekeh, Chairman, Zinox Technologies Ltd., OFR,
FNCS

“The Entrepreneur, whose main focus falls within the realm of

industrial management, provides a rich source of inspiration for
entrepreneurs.”
Dr. Chidozie Emenuga, Special Adviser to the CBN Governor

“First of its kind in the Nigerian business world, very serious and
down-to- earth, a chronicle on how to do it once and do it well. The
Entrepreneur is a must read.”
Chukwudi E. Okere, Principal Partner, Method Consultants- (Regd.
Quantity Surveyors)

“A prodigious, convincing work, conceived on a grand scale.”

Dr. Mohammed Hassan, Economic Consultant to the World Bank

“ This is indeed a major contribution to the study of entrepreneurship

development and management.”
Dr. Isaac C. Nwaogwugwu, Consulting Economist & Lecturer Dept
of Economics, University of Lagos.

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 ABOUT THE AUTHOR

Dr. Ausbeth Ajagu, MFR, a political Economist, trained in Political Science,

Legal Studies and Business Administration, is the Group Executive
Chairman of Betcy Group of Companies with interest in Construction,
Manufacturing, Real Estate, Education, Hospitality and Insurance.
Dr. Ausbeth Ajagu, MFR who is an industrialist, entrepreneur, author,
public policy analyst and revered motivational/conference speaker, has to his
credit over 330 published articles and works which include the best-selling
books titled “The Entrepreneur”, “Roadmap to True Greatness”’ “Building
A Virile Nation… The Private Sector Perspectives,” “The Secret of
Winners” and “Great Success Secrets Exposed”
As a highly respected conference speaker, Dr. Ajagu has addressed over 250
different audiences nationally and internationally, for example, just recently
he was elected to deliver the prestigious Chief Emeka Anyaoku 2 nd annual
lecture, which he did excellently and had a thunderous standing ovation. Dr.
Ausbeth Ajagu recently in December 2012 too, in Cotonou, gave a life-
changing management and motivational lecture to over 250 MTN mobile top
management staff and MTN Trading Partners from across West Africa. As
usual, he earned high accolades and standing ovation at the end.
Dr. Ausbeth Ajagu, MFR, has represented The Nigerian private sector
severally in different fora and conferences. For example, he gave the key
note address on behalf of the Nigeria Organized Private Sector (OPS), in
France in 2002 at the Nigeria Investment Forum and Manufacturing
Exhibition (NIMEX 2002), with theme – “State of Security and Quest for
Direct Foreign Investment Inflow in Nigeria – the Manufacturers’
Assessment”, also as the then President of the Nigerian Indonesian Business
Association, Dr. Ausbeth Ajagu addressed the entire Developing Eight
countries representatives in Indonesia at the D8 international summit in 2007
with theme, Enhancing D-8 Intra Trade”. Again on behalf of the Nigeria

vi
Private Sector – “Nigeria Business Landscape: The Industrialist’s
Perspective.
Dr. Ausbeth Ajagu, MFR, is a National Council Member and past alternate
Chairman, SMI Committee of Manufacturers Association of Nigeria. He is
presently the Chairman, Corporate Affairs and Strategy Planning Committee
of Manufacturers Association of Nigeria. Dr. Ausbeth Ajagu, was President,
Rotary Club of Amuwo (1997 – 1998), Chairman, Anambra State Oil Palm
Development Agency Board (2000-2002); Member, Presidential Technical
Committee on Road Maintenance, a 4-Star Paul Harris Fellow of Rotary
International, amongst several others. He was also Chairman of the Institute
of Directors Industry Committee (2003 – 2007); Dr. Ausbeth Ajagu also
served on the Boards of the Nigeria Shippers’ Council and National Inland
Waterways. He was also the Director, Standard Alliance Insurance Ltd.
Dr. Ausbeth Ajagu, MFR, is The Chairman, Board of Trustees of Youth &
Gender Network, a renowned and famous NGO. He is a member of the
National Technical Working Groups of the Vision 20; 2020, as well as a
member of Nigeria Economic Summit Group. He served on the Board of the
Federal Government’s National centre for Agricultural Mechanism
(NCAM). He is also a member of the Presidential Committee on job
Creation.
Dr. Ausbeth Ajagu, is presently serving on the board of the Corporate
Affairs Commission (CAC).
Dr. Ausbeth Ajagu, MFR is a fellow of The Institute of Directors’ (IoD)
Nigeria, Fellow; Institute of Corporate Administration of Nigeria; Fellow;
Institute of Cost Management, Nigeria; Fellow, The Chartered Institute of
Finance Consultants, Fellow and President of Nigeria’s foremost
entrepreneurial Institute, Academy for Entrepreneurial Studies, Nigeria
(AES).
Dr. Ausbeth Ajagu, MFR, is the President of the Governing Council of the
highly prestigious AES Excellence Club (Nigeria’s Intellectual
Organization).
Dr. Ausbeth Ajagu, MFR, has received over 160 local and International
awards which include the award for “The Overall Best Graduating Student,
(Masters’ Degree Programme”) in Lagos State University, Ojo, Lagos,
(1996/97) academic session),” Outstanding Intellectuals of the 21 st Century
Awards (2002)” by International Biological Centre, Cambridge, England;
“Outstanding Entrepreneur of the Year Award” 1999 by Success Digest
Enterprises; “Distinguished Alumnus Award for Leadership” 2001 by
Ambrose Ali University Alumni Association; “Distinguished

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Professionalism Awards” 2002 by University of Nigeria Alumni
Association;
He was also awarded the highly prestigious National Honours of a Member
of the Order of the Federal Republic (MFR) in December, 2007 by His
Excellency, Late President Umaru Musa Yar’dua, GCFR.
He is the Spokesman of the highly exclusive Association of National
Honours Awardees.
Dr. Ausbeth Ajagu, MFR has been happily married to Rev. (Mrs.) Anuli
Ausbeth-Ajagu since 1995 and both are blessed with three Children.

ACKNOWLEDGEMENT

This book is the result of many people’s quality time, energy, ideas,
and suggestions. But first, I whole heartedly give my thanks to God
Almighty who gave me the much needed will, inspiration, wisdom,
virility and good health to come up with this book in spite of the ever-
suffocating time demand in the entrepreneurial world. I pray that His
love, guidance and protection continue to encompass me forever.

The idea of this book was conceived after the love of my life (my wife)
challenged me on same; according to her, taking into cognizance my
humble position and role in the organized private sector. I thank you
Baby, most sincerely, for always prompting and pushing me to my
God-ordained destiny. I also thank you for painstakingly editing every
page of the manuscript gladdeningly. You are indeed a great source of
strength and joy. Your love, support, encouragement and Godly nature
have deeply impacted positively on my being that which I have always
wanted to be. You are truly the best!

The strength of this text is reasonably attributed to the collective

wisdom, reflections, works, articles, and experiences of entrepreneurs

viii
in Nigeria, especially members of the Manufacturers Association of
Nigeria (MAN) and Institute of Directors, Nigeria (IoD), who have
continuously been at the receiving end of the maladies pervading
entrepreneurship in Nigeria. I have listed names of some of these
people inside the text.

Probably this book would not have made great sense but for the selfless
and thorough editing and advice of the editors and reviewers. Notably
amongst these God-sent persons are Dr. John Abaelu, Mrs. Anuli
Chioma Ausbeth-Ajagu, Mr. Abayomi Olusola Awelewa, Dr. Isaac Chi
Nwaogwugwu, Mr. Nduka Otiono and Mr. Augustine Ojiakor.

My inestimable appreciation goes to the legend, Prof. Anya O. Anya,

who in spite of his very busy schedules, happily accepted and wrote the
Foreword. May God continue to bless you richly.

The book certainly would not have been possible if not for the
ingenuity of the production/secretariat personnel, who spent countless
hours, typing, photocopying and packaging the manuscript. These
personnel include Miri Newvelent, Folarin-Lawal Folabi, Emem
Akpan, Victoria Ihuweze, amongst others. To you, I say, thank you
profoundly.

I would like to express my appreciation to my dear parents who taught

me, early in life, that success in life is contingent on one’s degree of
self-discipline and industry, and never to envy anyone but to constantly
focus on God, the author and finisher of our faith. Mum, may God
continue to keep you hale and hearty for us, and may you (Dad)
continue to rest in peace in Jesus’ name Amen.

I wish to also thank some distinguished leaders in our society who

helped me to review the manuscript. These include Pastor Taiwo
Odukoya, President of renowned ministry and programme, Discovery
for Men; Chief Ernest Shonekan, former Head of State and
Commander-in-Chief of the Federal Republic of Nigeria; Dr. ABC
Orjiakor, President of Ordec Group; Chief (Dr) Raymond Dokpesi, the
President of Ray Power/AIT Group, Chief Leo Stan Ekeh,

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President/Chief Executive of Zinox Technologies Ltd; Mr. Roger Yeo,
Managing Director/CEO of De-United Industries Ltd; Chief Festus
Odimegwu, Managing Director/CEO of Nigeria Breweries Plc; Chief
Gamaliel Onosode, Chairman of Dunlop Nigeria Plc; Prof. Charles
Soludo, Governor of Central Bank of Nigeria; Mr. Akin Iroko,
Director-General of the Institute of Directors, Nigeria (IoD); and Mr.
Jide Mike, Director-General of Manufacturers Association of Nigeria
MAN). Your advice and endorsements gave the book the much-needed
professionalism and thoroughness.

Thanks also go to ?????????????????????????, for agreeing to review

the book.

Lastly, I express my deep appreciation to my lovely children –

Vanessa, Ausbeth Jnr and Oscar, for all your prayers and for being very
adorable. God bless you all in Jesus name, Amen.

DEDICATION

To all conscientious prospective

and practicing Entrepreneurs worldwide.

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 FOREWORD

There has been in recent times renewed interest in the subject of

entrepreneurship in the Nigerian economy. With the on-going reforms
in the economic landscape in Nigeria, there has been increased debate
and discussion on the appropriate and relevant initiatives in the search
for sustainable development. Not surprisingly, the place of
entrepreneurship and the small business have been the focus. This
arises from the perception that studies of such successful economies as
the United States, Japan and Taiwan have underlined the vital necessity
of laying the foundation of economic, especially industrial
development, on the vitality and innovative capacity of the small
business. The small business of today, as the history of industrial
development in these nations has demonstrated, is the conglomerate of
tomorrow.

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In the Nigerian context, the debate and the renewed interest have been
conducted against the background that inappropriate changes in
policies and half-hearted pursuit of agreed initiatives had in the past
devastated the emerging industrial capacity of the 1970s and early
1980s. The result has been the abandonment of industrialization as an
essential focus in the effort to build a sustainable economy contrary to
what the 20th century taught us. What is more? The switch from the
ideology and philosophy that relied on the public sector to lead the
change against underdevelopment under the banner headline of the
state controlling the commanding heights of the economy, to the neo-
liberal ideology that demands that the private sector must be the engine
of growth through the pursuit of market-driven initiatives has created a
new climate of opinion in these debates. It has forced a re-examination
of long-held assumptions including such issues of the role of the
entrepreneur and of the small business in the economy. Some of these
debates and discussions have concentrated on the academic and
philosophical rather than the practical realities that the human factor is
the primary determinant of the direction and ultimate success of these
initiatives.

This is where Dr. Ajagu’s book departs from the norm. he has chosen
the path of documenting the profiles and experiences of select and
successful business entrepreneurs in the Nigerian environment in the
implied expectation that we can draw valuable lessons and a
comparative framework that can enhance our capacity to judge and to
select what works in the Nigerian environment. This approach forces us
to recognize that as inclement as the Nigerian business environment
may have been in the past, there are men and women who have
transcended the limiting ad challenging environment to succeed. There
is another dimension to what Dr. Ajagu has done. By bringing together
this collection of successful business entrepreneurs, he has provided
indirectly, the template of what has worked and what could work in the
Nigerian environment. Through his appreciation of these men and
women, he has provided us a glimpse of why he himself is succeeding
as an entrepreneur. It exposes little known facts on these exemplars.

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This book is not only timely but provides us with a rich tapestry of the
diversity of the background of an engaging collection of men and
women whose background and talents have been united by the
challenges to make a difference as the pioneers of a New Nigeria –
industrial, vibrant and competitive. It is a rewarding initiative and well
worth the effort. It provides new insights to both the veteran student of
the Nigerian economy and the novitiate. The effort must be appreciated
and applauded.

Professor Anya O. Anya D.Sc (Hon), FAS, OFR, NNOM

First Director-General/CEO, Nigeria Economic Summit Group

CONTENTS

Endorsement …………………………………… iii

Testimonials ……………………………………. iv
About the Author ………………………………. v
Acknowledgements …………………………….. viii
Dedication ……………………………………… xi
Foreword ………………………………………. xii
Introduction ……………………………………. 1

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 PART ONE:
SECRET OF GETTING TO TOP
AND STAYING THERE HAPPILY, TOO

Chapter 1: The Entrepreneur ………………………….. 7

Chapter 2: Qualities of Successful Entrepreneur ………. 13
Chapter 3: Legal Forms of Business
Organizations ………………………………. 28
Chapter 4: Road Map to Entrepreneurship …………….. 37
Chapter 5: Funding Windows for the
Entrepreneurs ………………………………. 84
Chapter 6: Entrepreneurship: The Nigerian
Experience …………………………………. 95

PART TWO:
AUTHENIC PROFILES OF SELECT
ENTREPRENEURS AND CAPTAINS OF
INDUSTRY IN NIGERIA

Chapter 7: Case Studies: Entrepreneur and

Captains of Industry in Nigeria ……………… 165
Indexes ……………………………………… 355
Feedback ……………………………………. 360

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