Micro-credit Facility for Graduates of Vocational and Technical Institutions as a Panacea to Unemployment in Nigeria

Abstract

Over the time, lack of adequate start-up finance has been identified as one of the most significant barriers to young people seeking to create their own businesses. Infact, it has been observed that the bulk of the problem being encountered by young entrepreneurs is the impaired access to micro credit that can promote establishment of new enterprises and supporting existing ones. Due to their lack of resources, credibility, credit history or collateral, young people are often seen as particularly risky potential clients and therefore face difficulties in accessing finance.

The methodological approach adopted in writing this paper was content analysis and after reviewing the prevailing situation, the author observed that vocational and entrepreneurial training alone has not led to and cannot lead to establishment of own business after graduation because it is not only the lack of investable skills and entrepreneurial spirit that is preventing graduates of vocational schools from starting own business after graduation but also unavailability or difficult to access start-up capital.

It is therefore suggested that micro lending should be incorporated into vocational education program in order to provide easy to access micro credits for these graduates through micro finance banks for microenterprise development. This will not only ensure that qualified youths with requisite qualification (investable skills and entrepreneurial spirits) have access to such micro credits but also prevent usage of such money for consumption purposes that will lead to no long term benefits.

Keywords: Micro-credit Facility, Unemployment, Vocational Institutions Graduates