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 these 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 critical influential issues of the service industry as a guide in making critical considerations whenever there is a desire to outsource for equity or debt financiers 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 in the capacity to slightly transition 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 major 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 subsequent in detail the 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. An Entrepreneur within a developing economy needs to realize, to operate from an investor’s perspective, easily draw good project services to command investment support, rather than driving an abstract tertiary-sector-service, and project its quality through brand marketing, which, mostly causes a 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 the primary and secondary sector 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 guide a well understanding ‘product-service’ parameters to the venture before establishing the business vision and it related mission.

As a business promoter or Entrepreneur in services delivery, you cannot provide a product/service, you have the least control over the clients’ target and attention, 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. As a matter of fact, it will be difficult to be successful in your venture-service delivery, no matter your competency to deliver that services, and the authority of your conviction, will still not draw investors’ interest in your venture.

          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 procedurals hold such stylish weaknesses 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 any 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 all adverse effects 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 has been briefly defined earlier, as an information center of every economy. This implies any kind of quaternary sector service, have to focus on 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 helps to define the business basic 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, which 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, which is an industry taxonomy accepted by the United nation and was developed by Morgan Stanley Capital International and Standard & Poor’s in 1999. And the Venture through the Entrepreneur has a desire to highly attract the support of equity or debt financiers, then such service providing entrepreneur needs to design the venture-services innovation within the framework of quaternary sector perspective of the country, which the business is sited to command a strong investment prospect as a domestic enterprise of African origin.


Emmanuel TWENEBOAH SENZU, professor of Economics and Investment at Njala University, School of Social Sciences & Law. 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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