Inspite of the importance of Small and Medium Enterprises (SME's) to the economy, and national development, Africa has a high rate of short-lived businesses.
Businesses like local restaurants, transportation services , beauty salons, fashion designing shops, grocery stores, laundry services and some other small ventures operate in an unstructured manner . They have no data or registration bases too.
In some commercial hubs of Nigeria, like Lagos State, most of these small businesses are controlled by people moving in from other states of the country due to various reasons like insecurity and the financial requirements to start up a business in Lagos is low as compared to if they have to start it in their states.
The rate at which small businesses especially, start and fold up is alarming.
Business failures keep getting worse without any help in sight.
The COVID-19 has not made matters any easier.
Some business owners do not even have the idea of how to source for assistance from some financial institutions which can be of help to them.
Any go into businesses because it looks good or their neighbors ventured into it.
Business failure is the last stage of the cycle yet it happens within the first five years of a large number of SME's.
When some entrepreneurs were asked about why their businesses died prematurely, they said it was because they didn't have a good idea , as much as they thought they had, of the business they ventured into,but they had the capital.
There are other factors which contribute to the failure of small businesses around us. Businesses are meant to be groomed.
What other factors could be responsible for businesses folding up untimely ?
**I love being me.**
All you said is correct.
But the truth is that, it is not easy to keep a business running I Nigeria. The condition of the country is not helping at all.
If you must succeed, then you must have a good I dea of the business you are going into.
Sometimes I can't help but wonder how they survive.
Because, the cost of running the bessiness is higher than the profit.
It is well.
**It is well**
Many small businesses don't thrive in Nigeria because many entrepreneurs don't understand business nor are they ready to learn from those who have gone ahead of them.
No doubt, the economy of Nigeria isn't helping small businesses, especially businesses that use electricity. Electricity has been a major problem for Nigerians and the funniest thing is that fueling a generator isn't easy in the country.
The reason why many businesses won't thrive is that small business don't want to start small. You will see many small businesses employing a lot of staff and they won't be able to pay their salary. Why do you hire a lot of staff in the first place?
Don't allow anybody to pressurize you into doing something you are not capable of doing. Learn to start small and grow big! Have a well-structured plan and learn to follow your plans: mind your business and face your business squarely.
**Always put God first **
Many business colapes because of lack of business ideas and ways in other to make the business grow and also no huge funds
First of all, lack of access to capital. Many small businesses struggle to secure funding, which limits their ability to grow and expand. Some business persons don't have the necessary management skills to effectively run and grow their businesses so it will be no surprise if the business fails.
In addition, small businesses may face limited market access due to competition and too much fees and levy.
Limited access to technology and information: Many small businesses may lack access to the latest technology and information, which can limit their ability to compete and grow.
Economic instability too is a factor. Economic instability, such as inflation and can have negative impact on the viability of small businesses.