Top 10 problems for small businesses in Nigeria and solutionJanuary 8, 2022 2022-01-08 17:01
Top 10 problems for small businesses in Nigeria and solution
Top 10 problems for small businesses in Nigeria and solution
There are top problems small businesses face in running a business in Nigeria which include Government policies, cash management, tax compliance, and a lot of problems I will highlight in this article along with solutions to those problems.
There are a lot of Small business owners starting a new business in Nigeria right now, however, only 20% of these small businesses exist beyond 3 years which is very unfortunate and nobody wants to go bankrupt or close their business. In this article, we will share the top 10 problems small business owners face in Nigeria and solutions on how they can tackle such problems
Table of Content
- Top 10 Problems for small businesses In Nigeria and solutions
- 9 Marketing and Visibility
Top 10 Problems for small businesses In Nigeria and solutions
Some problems we are about to outline are caused by both internal and external doctors which will be outlined in this article.
POOR BUSINESS STRATEGY AND PLANNING
The number problem small business owners face is poor business strategy and planning which can lead to total failure from the very beginning of starting a business. Most business owners fail to come up with sustainable strategies to grow their business on a monthly basis. If you have a proper strategy road map this can be followed to grow the business most owners jump on starting a business because they want to also be called CEO/Founder of a company.
Solution: Before embarking on starting a business, it very essential for the small business owners to develop proper market research tend to understand your business unique selling point to grow your business and also by understanding your core target audience and what they want that way you can serve your potential customers better than your competitors.
Access to Business Capital
The most difficult dilemma for small business owners is access to loan facilities, most small business owners can’t meet up with the requirement to access capital to run or start their business from financial institutions based on different regulations and documentations needed to access loans.
SOLUTION: Government should give more grants to small business owners looking to access capital loans to expand and grow their business whenever they need a loan and they should also ensure their interest rate should be minimal for small business owners.
Accessing a good power supply has been a problem to a lot of business owners since we got independence here in Nigeria, virtually all business depends on a good power supply to properly function well.
The high cost of products we currently have in the market is based on cos of fueling plants used for production and that is why the cost of items here in Nigeria is extremely high
SOLUTION: Government should fix all power-related issues we have in this country or provide a cheap alternative power supply for business owners that can be used to continually grow their business on a steady level.
There is no business without competitors and it’s inevitable not to have competitors at all in business, your duties have a business owner are to come up with a strategy to compete with your competitors and also grab some of the market shares with your competitors.
Solution: One of the ways to stand out among the crowd is to use digital marketing strategies to acquire customers convert them and also retain your customers and if you need digital marketing training we have a highly valuable course that walk you through how to market your business online
LACK OF EXPERIENCED TEAM MEMBERS
Having a good and dedicated team is everything a business owner needs to grow their business, not having the right team members makes businesses struggle to hit their target.
Solution: It is important to have dedicated team members with different skillsets to grow and make the business grow not just that as a business owner you need forward-thinking team members when recruiting for a new role always look out for people better than you do when trying to employ a new team member.
Exchange Rate Fluctuation
In Nigeria, we dominantly depend on the dollar for all our major international trades, the instability of naira to the dollar right now is affecting the purchase price of products needed by small business owners.
SOLUTIONS: The Centre bank Of Nigeria should come up with a forex policy that allows business owners to get access to forex funds that can be used to purchase products from international trading commodities.
Not paying proper attention to Legal/Insurance Professional Services
Most small businesses in Nigeria dont pay attention to legal and insurance advice before starting a business which can either ruin their business profitability
SOLUTION: Business Owners needs to understand the service of legal/insurance professional before starting a business in order to create a thriving and growing business Such tax, audit, and business advisory services and also prevents operational failure before or during business operations.
Business Financial Literacy
Business owners, we have now lacked the basic business/financial knowledge needed to build 21st-century businesses that tend to thrive and grow. And business owners should learn how to manage finance to expand their businesses.
Solution: Adequate knowledge should be provided either by attending professional courses or crash courses to elevate their scope/knowledge to be able to manage their finance.
9 Marketing and Visibility
A lot of business owners are struggling to target their audience/market because they don’t know how to reach their target audience. Whether your business is online or offline, you need marketing if your marketing approach is wrong you will experience poor sales, low revenue which a lot of business owners worry about once they dont meet up with their target.
Solution: Investing in digital marketing knowledge will elevate your business beyond measures, once you get the necessary knowledge you need, then you can implement to get sales and improve business overall if once you have the right strategy to deploy to your business.
10. Unrealistic Business Goal
Business owners tend to set unrealistic expectations, always remember that success comes with a lot of expectations and business owners need to set goals that are achievable. Instead of setting unrealistic goals why not break down your goals monthly that way you can track your goals and optimize your goals along the way.
Solution: For your business to succeed in the business world you need to break down your business goal weekly, monthly or quarterly by keeping all necessary resources in place in order to expand your business goal.
In conclusion, challenges and problems in business are inevitable as far as the success in building a business anywhere in the world. Therefore, it is essential for business owners to be resilient or pivot their business values intact no matter what the circumstances are.