Technology Based Entrepreneurship Financing. Lessons for Nigeria

Abstract

Technology entrepreneurship is a form of business leadership based on the process of recognizing high-potential, technology-intensive business opportunities, gathering resources such as talent and cash, and managing rapid growth using principled, real-time decision making skills. Technology based entrepreneurial firms account for a substantial number of essential inventions and innovations in successful countries. Such firms have become an integral part of the development of the global and regional economy. However, they are often characterized by the paradigms liability of newness and resource poverty, coupled with suffering from inadequate technical and marketing know-how, inexperience management, inability to discover initial financing and huge overheads. In view of this, startups in the technology sector encounter the problem of sourcing technical and financial resources and commercialization capabilities required to take their products to market. This study adopts a secondary approach to research methodology through the review of existing articles in this domain of investigation. Articles are sourced from conference and journal papers from reputable database, internet sources, brochures and newspapers. This study concludes that investment and financial decisions play an increasing vital role in economic growth and entrepreneurial new venture creation. Hence, investment and financial policies are part of the main operational resolutions in emerging nations to support investment by domestic firms, particularly technology entrepreneurial firms. Hence, policy makers in Nigeria and other developing countries could evolve ambitious policy framework aimed at developing the equity financing sector through venture capital, particularly for technology entrepreneurs. Also they could build substantial amount of skilled and experienced venture capitalists to identify high potential investments opportunities and be able to nurture and support them to an exit.