Around the world, young businesspeople are developing to monopolize the technology sector. Thus, instead of constructing factories, they have just used engineering and information technology (IT) capabilities to generate enormous wealth. While doing so, they have an impact on a wide range of lives. Unprecedented revolution is taking place.
Surprisingly, Nigeria is included in this worldwide change. In fact, in what we might term a brave new world, Nigeria’s youth are leading the way. Smart Nigerian businesspeople have tapped into this innovation economy, which emphasizes the ability of the human imagination to generate company opportunities through innovative entrepreneurial models based on know-how, with very little institutional backing.
Despite this advantage, Nigeria still has several difficulties that may deter entrepreneurs or investors from setting up shop there, despite the country’s expanding economy and potential for great economic possibilities. The many issues or difficulties that a businessperson or investor who intends to operate in the nation may encounter are listed below.
- Transportation and Infrastructure
The infrastructure and basic facilities needed for business growth and survival are lacking in the Nigerian business climate.
For instance, if a potential investor wants to launch or establish a production company, they will learn that they must provide the facility, water supply, logistics, and other facilities required. In the long run, this increases the amount of money spent on the business and the time required to launch it.
- Poor Transport Systems
To help save money and time, most enterprises and organizations set up shop close to their supply of raw materials or target market. But the issue of transportation will surface if this is not viable. The majority of Nigeria’s roads are in poor condition, and the country’s canals and railroads have not yet reached their full potential.
Getting products from a warehouse to customers will be a challenge for a business. In other cases, terrible roads have prevented items from reaching their destinations or have harmed the carriers of the goods, causing products of businesses to become stalled on the roadways for days. As perishable commodities are impacted in these circumstances, this can cause significant losses for businesses.
- Limited Power Supply
Even well-established businesses and organizations in Nigeria deal with this significant issue. The electricity crisis in the nation, which impacts large corporations, including multinationals, down to one-man businesses like barbers and tailors who depend on power to conduct their businesses, has not yet been resolved by government.
The remedy to this is to purchase solar power plants or a generator, which requires the business to spend a significant amount of money even before any sales or production have been made. This has an impact on the company because money that could have been used to develop other aspects of the business is instead spent on fuel and generators, and because whatever the company produces will cost more to the consumer as a result of the need to avoid losing money.
- Limited Access to Funds
A key component of launching or establishing a business is financing. In addition to many other things, purchasing materials, equipment, and supplies requires money. In Nigeria, financing is a significant issue, particularly if an entrepreneur lacks the funds to launch the business. The banks that should be assisting investors are unwilling to lend to start-ups or new enterprises because they do not trust them, do not believe in them, or feel that they lack experience. There is the problem of interest rate or collateral to deal with when such new enterprises or entrepreneurs are fortunate to get a financial institution to help and support them.
In order to attract consumers, banks typically charge high interest rates on the loans they offer. Another issue is that the return period is typically brief, making it very impossible for the organization to repay within the allotted time.
- Insufficient government support
People frequently argue that the government doesn’t do enough to support new firms or entrepreneurs in general.
You must register your business and provide all necessary information before you can launch it.
- POOR INTERNET CONNECTION
Despite having the most Internet users in Africa, the country continues to have subpar internet service. Instead of broadband services, the rise in mobile data users in Nigeria is to blame for the country’s higher internet penetration rate. Although mobile data serves individual users well, it is ineffective for serving huge organizations, such as businesses, governments, and schools, which require a substantial number of individuals to be online at once. As a result, many Nigerians, particularly those in rural regions, are unable to get fast internet (and ICT) services for a reasonable price.
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