80 percent of new businesses and startup companies in Nigeria fail within the first 3 years. On the flip side, if the business takes off, it will definitely have been worth the trouble.
Nigeria is one of the leading business locations in Africa. While that sounds promising, there are significant challenges to doing business in Nigeria. There are a variety of complications & challenges that arise when starting a new business venture. Whatever your business ideas are in Nigeria, make sure you're aware of the various challenges of starting a business in Nigeria.
Access To Capital & Credit
It is extremely difficult to start up a business without capital, and it's even harder to raise capital. Lack of financial capital is one of the biggest challenges that entrepreneurs face when it comes to doing business in Nigeria.
While Nigeria has designed a variety of financial programs to support businesses, the government is constantly struggling to provide financial capital. This means that Nigerian entrepreneurs will need to find different types of capital in other sectors. This includes personal savings, loans, family, friends or governmental grants.
Hostile Business Environment
Thirty-three percent of Nigerian businesses list “hostile business environment” as an impediment to their businesses growth. This includes unclear business regulations, poor infrastructure, intrusive government policies and more.
Electricity / Power Supply
Gaining access to power and electricity is definitely a hurdle for businesses in Nigeria today. A lot of people in Nigeria only have access to 6 hours of power a day. This is a big reason why generators are a popular choice in Nigeria. Generators cost money to run and can become a daily business expense.
Government Regulations
The government dictates how business is done in Nigeria. Jumping through so many regulatory hurdles makes it difficult for business owners to get business set up & situated. Even with a lucrative business idea, it could take anywhere from 2 weeks to a month to set up a business.
Corruption & Bribery
With Nigeria being among the world's leading investment & business locations, corruption and bribery is still a major concern. Aside from bribes and corruption, organized crime is also a serious obstacle that business owners have to worry about.
Lack Of Market Information & Data
Finding new customer opportunities in Nigeria is a top priority for businesses. If you cannot move your goods and services, then what good is it being in business right? With such a large customer base, it can become challenging to pinpoint your ideal customer base without the correct tools.
With a lack of credible businesses and mediocre market information, lots of business owners find it difficult to target their customers. Most Nigerian businesses also lack the proper insights. In turn, they cannot develop the necessary business strategies to help them navigate potential risks & shortcomings while searching for market opportunities.
In Conclusion
So whether its functioning lucrative businesses in Nigeria or startup companies trying to make their mark, there are a lot of challenges that can impede a business's growth. By remaining aware of these challenges, businesses can use this information to build a reliable strategic business plan. This can help avoid lots of the pitfalls or roadblocks associated with starting a business in Nigeria.
Our data intelligence platform can help you track these trends in consumer behaviors in Africa over time. This provides you with valuable insights that can help you or your business make fast data-driven decisions.
Contact our team today to explore how our economic intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub
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