The article is to address the challenges of attracting quality investors to the tertiary sector venture financing of the third world countries, revealing the major causal factors of this challenges to guide entrepreneurs seeking to launch ‘Service-products’ in the area of IT-Services, consultancies in various field of professional service delivery, to have the wide understanding to influential issues of the service industry as a guide in making critical considerations whenever there is a desire to outsource for equity or debt financier in the early stage of the venture life cycle.

It is generally an entrenched perception globally that the third world countries economic market are the best known for their ‘green’ primary sector industries, with few of such countries been successful to slightly transitioned their economy to the secondary sector industries of which they have the capacity to convert their raw materials extract from their economy into processed goods before export. Leading to a  new economic label as ‘developing’ economies. These two main sector structures, the primary and the secondary, which highly characterized the stylish Africa industrial economy is expected to co-operate with its quaternary sector described as the knowledge-based part of that same economy. The article will discuss in subsequent the detail quaternary sector for a quality understanding as well as its functioning structure of an economy, which should be a compass guide to any start-up ‘services-provider’ from developing and underdeveloped economies. And writing from investors perspective will be a good project service to command investment support, rather than establishing an abstract tertiary-sector-service, projecting it as a brand from developing and underdeveloped economic zones, which is likely to suffer product-market irrelevance and investment proposal rejections.

Let define the tertiary sector of an economy for the understanding purpose of this article, is a sector with an economic focus as the ‘Service producing’ industry for both external and internal market consumption of any nation, which to some extent holds a similar characteristic of the quaternary sector. However, the difference between the tertiary and quaternary sectors in services product offering is, the tertiary sector function as an autonomous industry or independent system of any sovereign state economy but the quaternary sector is a dependent industry per the functioning performance of any sovereign State economy.  

This subtle submission is to admonish you as the entrepreneur seeking for quality financier toward your venture project located in a third world country, to have the following outlined precautionary measure into account as a prescription to well understanding ‘product-service’ parameters to the venture before establishing the business vision and it related mission.

As a business promoter, you cannot provide a product/service, you own not it clients, which means, you cannot promote a type of tertiary sector products with your major target clients outside the country of the business origin and more so without such country having a strong positive historical performance evidence of such type of projected services. And as a promoter hold a conviction that your investors will take such project proposal seriously.

            For example, you cannot establish a venture in any of the West African countries currently, and claim to offer a Space Satellite Engineering Services and proceed with decorative ‘information of memorandum’ for the business and expect competent investors will take you serious of your product to consider it worth for review and go through the process of assessment for funding opportunities.

In the past six (6) months most of the project-services document submitted to my table for a review and assessment of the risk content for funding possesses such stylish weakness in the project model as stated above.  You could realize the project promoters have high enthusiasm and hypothetical confidence towards their project model during submission but seems to have their confidence reduced completely, after the first stage of risk assessment test in the area of the market, operational and finally, the Value-at-risk test.

It never the desire of any competent Investment Banker to kill a dream or beautiful vision that has the ability to propel this world to its pinnacle of civilization. Investment Bankers are professionals who aspire to become a quality medium for great ideas that will stand an adverse effect to the benefit of humanity through capital engineering support. What is always required in the economic market is both the entrepreneur and the investment banker to have a professional intersection of project vision from different angles towards a sustainable enterprise realization.

A quaternary sector of an economy as been briefly defined earlier, as an information center of every economy. This implies any kind of quaternary sector service offers is in the context and benefit of a national economy, like the information and communication technologies, consultancies services, research & development employed, should be national dependents.

When a service provider of a developing and underdeveloped economy is capable to assure quality services in a quaternary perspective, it defines the market-scope with a high degree of certainty and potential corresponding rewards to easily compute the financial metrics and models for the risk assessment test.

It on this level of cogent conceptualization of the business-venture does attract investors’ risk curiosity for funding consideration. If you believe, you have the capacity as a service delivery entrepreneur, whose service offer falls within the Global Industry classification standard, an industry taxonomy accepted by the United nation, which was developed by Morgan Stanley Capital International and Standard & Poor’s in 1999. And have a desire for the support of equity or debt financiers then such service providing entrepreneur needs to design the venture-services innovation in a quaternary sector perspective of the country, which the business originates from to command a strong investment prospect as a domestic enterprise of African origin.


Emmanuel TWENEBOAH SENZU, professor of Economics and Investment Banking at Njala University, School of Social Science. And a technical fellow to Sierra Leone Central Bank. Send him a private mail to or as the Head of Research, Frederic Bastiat Institute of Africa, at | for any technical assistance.

Post source : Frederic Bastiat Institute library

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