Starting up a business venture generally comes with its own business risk that may hamper the growth of such business but some problems and challenges are very common to all businesses in Nigeria.
In the previous article we highlighted , 6 top challenges of doing business in Nigeria and elaborated on 2 out of the 6, today we would be going on to talk more on this challenges .
And hopefully at the end of this series we would talk about measures of solution that can be used to tackle this problems/ challenges.
1,Government regulations and policies:
Some Government regulations and policies contribute to some of the challenges small business owners are facing. First, some small business owners find the bureaucratic nature of government too tedious in procuring the necessary certificates, licenses, registrations, and other permits needed to run their business. We also have different levies from different agencies of the government targeted at small business owners. Though these regulations and levies are put in place to check and maintain order in the business space, it has become so much for small business owners.
Various harsh macroeconomic conditions like unstable exchange rate, inflation, and hike in the price of fuel are also contributing factors to the many challenges small business owners face frequently. The government can do more in providing a more conducive macro-economic environment and simplify the process of acquiring licenses and certifications to encourage the growth of small businesses.
2, Visibility and Marketing:
So many small business owners are struggling to reach the critical mass of their target market. A lot of the brick and mortar businesses are located in one corner of the market without reaching its full sales potential. This has led to poor sales, low revenue, and stunted business growth, giving small business owners a lot to worry about.
Small business owners can invest more in platforms and digital solutions that will help get their products or services seen by more of their target market. There are various e-commerce platforms that small business owners can leverage to increase their sales. They should also invest in digital marketing tools like websites and social media channels to improve their visibility. Some business owners are already taking advantage of these platforms to generate sales and increase revenue.
3, Inadequate Public Infrastructure:
The poor state of public infrastructure in Nigeria is posing a serious threat to the growth and development of small and medium scale enterprises. Small business owners are faced with a number of these infrastructural challenges ranging from inadequate power supply to poor transportation infrastructure, insecurity, and access to potable water. But of the many challenges, lack of stable electricity is the most common amongst business owners in Nigeria. The state of electricity has hindered the growth of small businesses with an interest in manufacturing and production, killing a lot of industries, mini-factories, and other businesses.
Read also : Major challenges businesses face in Nigeria and how to overcome them.-Episode 1
In Nigeria, a lot of small business owners have opted to provide themselves with alternative infrastructures. But the cost of providing parallel infrastructural support for the business is higher, contributing to high operational expenses. Besides, some commercial banks in Nigeria have alluded to the fact that these challenges have made SME financing a high-risk venture for them, hence while it is difficult for small business owners to access financing from them.
The government should do more in the area of infrastructural development especially in underserved regions. However, pending when that is done, small business owners must include the provision of necessary infrastructure as part of their cost of production. Take the bull by the horn and salvage your business.
4, Finding the right staff:
Many small businesses have failed not because of the owners of the business but largely because of the incompetence of the people delegated to manage the business or support the business owner.
A lot of people have the wrong attitude to work and so it is always difficult finding people with the right attitude to work and learn in the process. With the right people, a business can confidently navigate through hard times and still emerge strong.
Small business owners can employ the services of an HR expert to help them with their staffing needs. Also, they can explore productivity tools as against employing people. Productivity tools are efficient and dependable and there are a number of them that can help small businesses across different tasks.
Entrepreneurs are the ones who develop and build the economy of a place. We still need more people to embrace entrepreneurship and create small businesses that will contribute positively to our collective economic growth as a Nation. However, we recommend that current and small business owners be aware of these challenges and prepare to confront them. This way we can rewrite the statistics of failure that has plagued small businesses in Nigeria.
