Can Low-Capital Businesses Solve Unemployment?

That was exactly what happened when First Lady Oluremi Tinubu encouraged vulnerable Nigerians to use grants from the Renewed Hope Initiative (RHI) to start low-capital businesses such as selling akara, roasted corn and kuli-kuli.

She explained that the initiative provides grants rather than loans, making it easier for beneficiaries to start businesses without the burden of repayment. The programme has also supported beneficiaries across healthcare, agriculture, education, ICT training and other empowerment initiatives.

Almost immediately, the internet reacted.

Social media pages were flooded with memes, edited photos and jokes of young Nigerians dressed as roadside food vendors. Some laughed. Others criticised the remarks as being disconnected from the realities of today's economy, where inflation has significantly increased the cost of even the smallest businesses.

But once the humour faded, a more important debate emerged.

Is starting small really the problem?

Not necessarily.

Some of Nigeria's biggest companies started with very little capital. Across the world, countless successful entrepreneurs began by selling products from their homes, roadside stalls or neighbourhood markets before expanding into larger businesses.

The issue was never whether selling akara or roasted corn is "too small."

The issue is whether people have the environment to grow beyond it.

Starting a low-capital business can provide immediate income, especially for people who have limited employment opportunities. For many households, it can be the difference between having no income and putting food on the table.

But if those businesses remain trapped at the same level for years because of poor infrastructure, limited financing, unstable electricity, inflation, weak consumer spending or lack of market access, then they stop being stepping stones and become survival mechanisms.

That's the distinction many Nigerians were trying to make.

It's about unemployment.

Nigeria continues to produce thousands of graduates and skilled young people every year, while businesses face rising operating costs and struggle to create enough quality jobs.

At the same time, millions of Nigerians have turned to entrepreneurship not because they always wanted to become business owners, but because formal employment opportunities remain limited.

That is why many economists argue that reducing unemployment requires multiple solutions working together:

More private sector investment.

Better support for SMEs.

Skills development and vocational training.

Improved infrastructure.

Easier access to finance.

Policies that encourage businesses to hire and expand.

Small businesses are part of that solution but they cannot carry the entire weight of the economy on their own.

A healthy economy should give people the chance to build businesses that don't stay small.

How do we help small businesses become medium-sized businesses?

How do roadside food vendors eventually own restaurants?

How do local producers become exporters?

How do market traders become employers instead of remaining self-employed?

Because entrepreneurship isn't just about starting.

It's about growing.