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Tuesday, 14 November 2017

Must Read: Challenges facing small Businesses in Nigeria



Business
Being an entrepreneur is not easy, the entrepreneurship journey can be tedious and tiring. 80% of the word shy away from it and they rather prefer to be employed and have regular income. Some are afraid of the risk involved while some are not ready to take responsibility. There are many challenges and uncertainties in business, being an ignorant of the challenges involved in setting a business can lead great failure and discouraged you. To be an entrepreneur can be more difficult comparing to other developed countries, but if necessary measures is taking before setting up business, you will realize Nigeria is the best country to invest your money. The purpose of the article is to equip you with the right knowledge and tools needed before setting up a business in Nigeria, to be aware of challenges must business face so you can know how best to run your business successfully in Nigeria.


                         INADEQUATE CAPITAL

Funds

Raising money is not easy for small business man in Nigeria, most average man in Nigeria cannot afford to feed their family due to the bad situation of the country Economy. Even the lending rate of commercial banks is also exorbitant, most young entrepreneur cannot collect loan which has led to failure in most Nigerian business.


                     POOR MANAGEMENT SKILL

Manage resources

This is the biggest and most frequent cause of business failure in Nigeria. Due to lack of experience, low management know-how or inappropriate management training irrespective of the size of the capital. If the management is incompetent, it will waste resources available for the business. Proper management of business is one of the quality of an entrepreneur, if you don’t manage the available resources business will fail and sometimes lead to debt or something bigger. 


           
       COMPETITIVE WEAKNESS

competitors

Most of the business owners are into same kind of trade. The competitive weakness of small business constitutes are important phenomenon, which ultimately leads to the extinct of the business. If we look around us today, it’s difficult to find something new or business that gives more value to life. It’s the same old business because people are afraid to take risk, life is all about taking risk do something new, be creative and smart. The business operator that is in competition with bigger firms that operate at a higher average cost than other competitors will have more sales and probably affect your own business. There’s nothing wrong in doing business that others have been doing, but you must look into the numbers of competitors and the resources you have to compete in the   

                        LOCATION 

Get sales


The location of a business is usually a decisive factor in its failure or success. In small business, location is often determined by business need not by personal consideration. Taking your business to the place where it will have more sales can cost money. Like, rent, renovation, tax, community funds and other related cost that you may not have at that particular time.

          POOR RECORD KEEPING 


The accounting and inventory records of small business are very poor because majority of them cannot employ competent personnel to handle this and this leads to in availability or scanty of financial data that can use to measure the performance of such business. If you know how your business fair in the market, you will not what to do and how to do it at the right time. 

            GOVERNMENT ACTIONS 

Government demand tax from small businesses depending on the kind of business. Sometimes you pay higher to actual profit and it affects business negatively.
 


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He's the CEO of zaraconnect.blogspot.com He created Zarablog to enhance lifestyle. He believes everyone is a success. He is a success.

Must Read: Challenges facing small Businesses in Nigeria

Being an entrepreneur is not easy, the entrepreneurship journey can be tedious and tiring. 80% of the word shy away from it and they...

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