apprenticeship
An apprenticeship is learning a trade by working under somebody who has mastered it, and in Nigeria it has built more businesses than any business school.
In plain English
Long before anybody in Nigeria wrote a business plan, we had a system that turned employees into owners, and it worked.
The Igbo apprenticeship system, often called Igba Boi, has a young person work under an established trader for years. They learn the trade, the suppliers, the customers, the pricing, the mistakes. At the end, the master settles them, providing capital and often stock to start their own business.
It has been described as one of the largest business incubation systems in the world, and it has created an extraordinary number of successful traders and manufacturers.
It works because it solves the two problems that kill new businesses. Ignorance, because the apprentice has already made every mistake on somebody else's money. And capital, because they do not start from nothing.
It has real costs and they should be stated honestly. Years of low or unpaid labour. Dependence on the master's honesty at settlement. And abuses genuinely happen.
But the underlying idea is powerful and it applies far beyond trading. If you want to build something, spend a few years extremely close to somebody who already has.
Experience bought with somebody else's money is the cheapest experience there is.
A young trader spends six years learning a business from the inside, making every mistake on somebody else's capital. He is then settled with stock and money, and starts already knowing the suppliers, the customers and the margins.
Questions people ask
Does the apprenticeship system still work?
It remains widespread and has produced an enormous number of successful Nigerian businesses. It also has real costs, including years of low pay and dependence on the master's honesty.
Is it only for trading?
The principle applies everywhere. Working closely under somebody who has already succeeded is the fastest way to learn what the mistakes cost.
What is settlement?
The point at which the master provides capital and often stock so the apprentice can start their own business. It is what makes the system an incubator rather than cheap labour.
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