LAPO Founder, Ehigiamusoe Admonishes Young Entrepreneurs Not To Use Loans To Start Business

LAPO Founder, Ehigiamusoe Admonishes Young Entrepreneurs Not To Use Loans To Start Business 

By Editor 

The founder of Lift Above Poverty Organisation (LAPO), Dr. Godwin Ehigiamusoe, has advised young entrepreneurs to avoid loans or borrowed money when starting a new business.

He also cautioned  that depending on loans at the early stage  could undermine the survival of a new enterprise and business 

Dr. Ehigiamusoe, gave the advice during a conversation titled:"  From Ideas to Enterprise, organised by DeeMoat Hub Books & Ideas," said young entrepreneurs must first learn to mobilise personal resources and support from family and friends before considering borrowing to finance business expansion.

Speaking on lessons from his book, Twelve Commandments for Business Owners: A Guide to Business Success, the microfinance pioneer stressed that while external funding was important for business growth, loans should not be the starting point for an inexperienced entrepreneur.

“I advise anybody not to begin a business with loans. It is not right,” he declared.

According to him, entrepreneurs should adopt a gradual approach to raising capital, beginning with their personal contributions, followed by support from family and friends, angel investors and, eventually, responsible borrowing.

“You have to put something in it, no matter how small,” he said, recalling that LAPO started with just N300, which he contributed to support three women engaged in small-scale economic activities.

Ehigiamusoe stressed that entrepreneurs must demonstrate commitment to their ideas and convince potential supporters of both their character and the viability of their businesses before seeking financial assistance.

“Your own money may be enough to begin. It will not be enough to expand,” he said, adding that borrowing becomes more appropriate when a business has demonstrated its capacity to operate and generate returns," he said.

The LAPO founder equally identified self-knowledge as another critical requirement for entrepreneurial success, urging young people to understand their abilities before choosing a business.

He introduced what he described as the TITE framework: Training, Interest, Temperament and Experience, explaining that aspiring entrepreneurs should assess these four factors against the demands of a business before venturing into it.

He cautioned against choosing businesses simply because they appeared profitable or popular, noting that an individual’s natural disposition, interests and previous exposure could determine whether such a venture would succeed.

“Who are you? And who you are is not about your name. It’s about what you have to relate to the business,” he said.

Drawing from his experience while establishing LAPO in 1987, Dr. Ehigiamusoe urged young people to identify a problem they are passionate about solving and remain committed to it, even when others fail to understand their vision.

He recalled that his commitment to poverty alleviation began during his university days at the University of Benin, where he joined the Nigerian Socialist Movement and became interested in improving the conditions of ordinary people.

That conviction eventually influenced his decision to become a cooperative officer rather than pursue the more prestigious administrative career preferred by many of his contemporaries.

“I had made up my mind on where I wanted to be,” he recalled, explaining how his ideological convictions eventually found practical expression in the establishment of LAPO.

He therefore urged aspiring entrepreneurs to develop clarity of 00⁰ arguing that business opportunities often emerge from society’s most pressing challenges.

“Every one of our problems is an opportunity,” he said, encouraging young people to look beyond the difficulties confronting the country and recognise the possibilities for enterprise development.

Ehigiamusoe also identified integrity as indispensable to building a sustainable business, describing it as an asset that creates opportunities and protects entrepreneurs when their reputation is challenged.

Illustrating the point, he recounted how his organisation once returned an unspent balance of about N2,000 from a grant to its international donor, an action that strengthened the donor’s confidence in LAPO and subsequently opened the door to a much larger funding opportunity.

“Your integrity opens doors for you, and it is also your defence,” he said.

Another rule he emphasised was delayed gratification, warning business owners against consuming the resources needed to grow their enterprises through unnecessary spending and extravagant lifestyles.

He illustrated this with an experience involving two small organisations that received development grants. While another organisation reportedly spent a substantial portion of its funding on a new vehicle, he chose a more modest approach, acquiring a second-hand vehicle and preserving resources for the organisation’s work.

The decision impressed a visiting German programme officer, who subsequently encouraged LAPO to submit a proposal for a significantly larger grant.

For Ehigiamusoe, the experience reinforced the importance of financial discipline, modest living and reinvesting in an organisation’s future rather than rushing to enjoy the proceeds of its early success.

He also challenged young entrepreneurs to see the difficulties confronting their generation as opportunities to develop resilience, insisting that adversity could prepare them for greater responsibilities.

“People and institutions make progress in a time of crisis,” he said, adding that the ability to withstand challenges was essential to long-term success.

The conversation was moderated by Rev. David Ugolor, founder of DeeMoat Hub, while the programme’s opening remarks were delivered by Onome Ugolor, Programme Lead, DeeMoat Hub Books & Ideas.

Also, introducing the guest, Onome described Ehigiamusoe’s journey from a rural cooperative officer to the founder of institutions operating in financial inclusion, healthcare and social development as an example of how ideas could be transformed into enduring organisations.

The event provided young people and aspiring business owners an opportunity to draw practical lessons from the LAPO founder’s entrepreneurial journey and his book, Twelve Commandments for Business Owners: A Guide to Business Success.