AN EXPLAINER
In today’s digital economy, many undergraduates are no longer waiting until graduation before becoming financially active. Instead, they are leveraging social media platforms and digital tools to build online businesses while still in school. This shift reflects a broader transformation in how young people perceive education, income, and career development.
However, beneath the success stories often shared online lies a more complex reality involving pressure, competition, and the struggle to balance academics with entrepreneurship.
DIAGNOSING THE PROBLEM
A key issue driving student entrepreneurship is financial pressure. Many undergraduates face increasing tuition fees, accommodation costs, transportation expenses, and daily living needs that are not fully covered by their families.
For example, it is common to find students running online businesses in hostels or between lectures, not necessarily out of passion, but out of necessity to meet basic financial demands. While this creates opportunities, it also introduces stress and divided attention between academics and business activities.
CAUSES
Several factors explain why online businesses are becoming common among undergraduates:
- Financial Needs
- Rising cost of education and living expenses has pushed many students to seek alternative income sources.
- Flexibility of Online Platforms
- Platforms such as Instagram, WhatsApp, TikTok, and Facebook allow students to run businesses without fixed working hours, making it easier to combine with academic schedules.
- Low Start Up Requirements
- Unlike traditional businesses, online ventures often require minimal capital. A smartphone, internet access, and basic marketing skills can be enough to start.
- Skill Awareness and Exposure
Many students are becoming aware that digital skills such as marketing, branding, and content creation are valuable even beyond school.
Accountability: Who Influences This Trend?
The rise of student entrepreneurship is shaped by multiple actors:
- Economic conditions, including high living costs and limited student financial support systems
- Educational institutions, which often provide limited entrepreneurial training or financial literacy support
- Social media influence, where success stories are frequently highlighted without showing underlying struggles
- Peer pressure and societal expectations, which often glorify financial independence at a young age
For instance, viral posts showing students driving cars or living soft lives through online businesses can create pressure for others to start similar ventures, even without proper guidance.
HOW STUDENT OPERATES ONLINE BUSINESSES
Most undergraduate run online businesses follow a similar structure:
- Product sourcing: Items are obtained from wholesalers, local suppliers, or import channels
- Marketing: Products are promoted through social media posts, short videos, and influencer collaborations
- Customer engagement: Orders are placed through direct messages, comments, or chat platforms
- Payment and delivery: Payments are made via bank transfers or mobile apps, while logistics companies handle delivery
This system allows students to operate flexible businesses without physical shop spaces.
IMPACT OF ONLINE BUSINESSES ON STUDENTS.
Positive Impact
- It Encourages financial independence
- Develops entrepreneurial and digital skills
- It Builds confidence, communication, and problem solving abilities
- Provides practical business experience before graduation
Negative Impact.
- Poor time management can affect academic performance
- It Increased stress from balancing multiple responsibilities
- Exposure to online fraud and unreliable customers
- Risk of distraction from academic priorities
A common example is students who start strong financially but struggle academically due to lack of balance and structure.
RECOMMENDATIONS
Supporting Student Entrepreneurs, To ensure healthier outcomes, the following measures are important:
- Universities should introduce entrepreneurship and financial literacy programs
- Students should be trained in time management and prioritization skills
- Better access to student support systems and grants should be provided
- Social media platforms and influencers should promote realistic expectations of online business success
- Students should be encouraged to view entrepreneurship as long term development, not quick income
FINAL THOUGHTS: BEYOND SIDE HUSTLES
The rise of online businesses among undergraduates reflects a major shift in Nigeria’s digital and economic landscape. While it provides opportunities for financial independence and skill development, it also introduces new pressures and responsibilities.
Ultimately, success in student entrepreneurship is not only about starting a business but about maintaining balance, discipline, and academic focus.
The key question remains: are students building sustainable futures, or simply surviving present economic realities?
The answer depends on how well they manage both worlds.
