Principles of Entrepreneurship: Leveraging on the Heats and the Thrills

http://www.4shared.com/office/GjbbaHmF/Principles_of_Entrepreneurship.html?

ICAN INTERNSHIP AND ENTREPRENEURSHIP SUPPORT INITIATIVE

INTRODUCTION

As we take pride in growing membership profile that is now well above 30,000 , the institute is faced with increasing challenge of curtailing quackery in the practice of accountancy. Twice every year, the institute doles out thousands of qualified chartered accountants. This is even as we continually make effort to increase our student profile through the recently introduced initiative called Students Special Project.

In Nigeria, unemployment is raging like fire. Significant numbers of chartered accountants are unemployed. Gone are the days when being a chartered accountant automatically guaranteed one a plum job. As chartered accountants increase in number, the nation’s economy does not seem robust enough to accommodate them.

In response to growing rate of unemployment however, various agencies of government and Non Governmental Organizations (NGOs) have been putting up entrepreneurship programmes to favourably engage the unemployed youths. A number of vocational studies are being introduced. It is however unfortunate that less has been done to encourage and support unemployed graduates to pursue their professional calling, at least on a small scale practice.

Specifically, it is interesting to note that not all unemployed chartered accountants will be ready to learn new vocations outside their professional leaning. Average chartered accountant being career-driven, loves to practice (at least for a start) what he is professionally trained to do.

Economic pressure can easily tempt unemployed chartered accountants especially among the graduate members of the institute to venture into Public Practice, notwithstanding their audit experience deficiency. And this is the reality. In recent time though, the institute has beefed up its Practice Monitoring mechanisms to checkmate the raging quackery. While that is commendable, the institute could still assist mop up unemployed chartered accountants through professional entrepreneurship as suggested by this initiative.

The above picture is just one side of the problem. On the other side of the coin is the challenge of poor record keeping among Small and Medium businesses. This in effect creates a rowdy and hazy general business atmosphere and economic distortions. Here is a big gap that our great institute could help fill with the services of our needlessly idle members still strapped in the labour market.

STATEMENTS OF PROBLEM

1.      There is increasing pressure of unemployment in the country even among the chartered accountants traditionally presumed to be most sought after in the labour market.

2.      Economic pressure can easily tempt inexperienced chartered accountants to go into Public Practice. And as a result, quackery and sharp practices may not be easily brought under check.

3.      The existing audit firms especially the small sized ones don’t have the financial capability to absorb the increasing number of graduate members into apprenticeship.

4.      Average small and medium enterprises do not keep adequate accounting records and cannot afford to employ accountants, but may still be able to engage the services of low-priced accounting firms.

5.      Lack of accounting records by SMEs, understandable though, add to the distortions in Nigerian business environment.

OBJECTIVES OF THE INITIATIVE

1.      To bring within monitoring focus, professional practice that may otherwise be going on underground.

2.      To provide experience garnering platform for unemployed graduate members.

3.      To improve the employability of unemployed chartered accountants

4.      To promote the entrepreneurship in accounting practice.

5.      To curtail quackery and incompetence in accounting practice.

6.      More importantly, to help SMEs have access to low-cost accounting services.

PROGRAMME MODALITIES

1.      Applications are obtained from suitably qualified candidates who are interested in the programme. The minimum requirement is Graduate Membership of the institute. This shall be a yearly exercise.

2.      Shortlisted candidates are subjected to a written test to prune down the number to a manageable size.

3.      Successful candidates are then posted to the participating audit firms, consultancies and companies for a two-year experience garnering exercise.

4.      During the exercise, a candidate may quit the programme for employment opportunities elsewhere.

5.      The coordinating partner i.e. the institute will on monthly basis give some stipends to the trainee, which here is recommended to be N50,000.

6.      The trainer firms may give them some stipend and employment benefits aside the usual one the institute gives.

7.      After the two-year internship programme, the trainees may either be retained by their firms where they had training or be encouraged to start their practice on limited scale.

8.      If the trainees are to start their own small scale practice, the following conditions shall apply:

i.                    A minimum of two trainees shall come together with a well experienced chartered accountant (minimum of five years audit experience) be required to form partnership firm. The institute does not dictate the choice of partners. The choice lies with the participants.

ii.                  Where the two or more trainees insist on forming the firm alone as against the above said, such firm has to maintain technical relationship with a well established firm. And this must be maintained for not less than two years. The choice of firm to partner with also lies with the trainees.

iii.                In forming the firm, the trainees would be supported both technically and financially by the institute. But to be eligible for the start-up grant, the interested start-up firms present and defend their business plans. They may also be required to have attended some seminars at their own expense.

iv.                 The start-up grant is not limited to the trainees under this initiative alone. It is also open to those who have obtained requisite level of practice experience and ready start their own practice but crippled financially.

In managing this programme, the institute may either create a special department for its operation or handle it in a similar manner the Student Special Project is managed.

The institute only has a duty to provide technical details and initial logistics required by the initiative.

SUGGESTED FINANCING PARTNERS

- World Bank

- Ford Foundation

- DFID

- Theophilous Danjuma Foundation

- Dangote Foundation

- Michael Otedola Foundation

- Bill Gates Foundation   

- State Governments

- Interested Corporate Organizations

 CONCLUSION

The unemployment quagmire facing this nation takes many dimensions and cuts across various disciplines of human knowledge. Just recently the federal government set up a job creation committee under the leadership of business magnate, Alhaji Aliko Dangote to tackle the problem. Our great institute could well support the government in this direction as it affects our profession. It is important we are proactive on this issue before other competing professional bodies outmanouevre us.

GOD BLESS ICAN

GOD BLESS THE FEDERAL REPUBLIC OF NIGERIA

Salami Sikiru Adio (MB28360)  

Strategy Session with Sikiru: Fuel Subsidy Removal & the Politics of our New S&P...

Strategy Session with Sikiru: Fuel Subsidy Removal & the Politics of our New S&P...: It's suprising to note that at a time when public opinion over fuel subsidy was still rife with disaffection and hate, amidst serious secu...

Fuel Subsidy Removal & the Politics of our New S&P Ratings

 It's suprising to note that at a time when public opinion over fuel subsidy was still rife with disaffection and hate, amidst serious security concerns in the country, Standard & Poor went ahead to upgrade the Nigeria's ratings. Undeniably, the rating was premised on the assumption that FGN would fully implement its neo-liberal policies with effect from 2012. No suprise, the government immediately removed the subsidy that as at last week, it was still undecisive about. To me, this Ratings upgrade was a bait, and govt fell for it. 


Come to think of it.Of what use is the rating to the foreign investors when they are readily apprehensive about the security situations in the country? What sort of hardship is this clueless govt trying to subject people to, adopting neo-liberal policies hook line and sinker without regard to the external shocks this country would be proned to? Our economy is too weak to absorb the shocks. Eurozone crisis is already hanging over our cloud. During this economic crisis is when reasonable govts are supporting their economies, shielding them from external shocks. Can't our own govt learn from China and the UK?


FGN has finally removed fuel subsidy even when our own local refineries are almost moribund. The poor masses will now be paying for govt's inefficiency and lack of common sense! The deed has been done, anywayz. What can we do? Revolution? Very doubtful. Nigerians too comfortable with poverty to think of that. Dear colleagues, how does the fuel subsidy removal affect you personally?