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Challenges of starting a business

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BECOMING a successful business person in Nigeria is not easy especially at the beginning stage. Starting a business is associated with many and difficulties. While some of them are minor, others cause a lot of headaches.

In this highly competitive world of business, entrepreneurs are faced with a lot of challenges.

Nigeria has survived tough times from the days of colonisation, which resulted to a lack of entrepreneurial spirit that was suppressed by the British.

According to the dictionary, an entrepreneur is a person who organises and operates a business venture. A person, who involves in a risky activity of any kind and acts substantially in the manner of a business entrepreneur.

As for today’s state of business in Nigeria, entrepreneur development in Nigeria has never been so high in the history of this country.

Nevertheless, despite the increasing need for entrepreneurship, doing business in Nigeria still need to be improved.

According to business experts, one of the crucial problems of entrepreneurship is wrong understanding of the concept.

“While some understand it as just starting a business, it should be understood as the process of providing goods and services to people in exchange for money’.

A businessman in Awka, Cosmos Dike, while expressing his view said, “a businessman is not only a person who acts but someone who is always calculative and thinks ahead. Being an entrepreneur nowadays should involve thinking of new ways of solving problems and creating value. It cannot be imagined without innovation and risk taking’.

Obviously, Nigerians, especially ndi Igbo always have business mindsets and high moral standard of doing business which is why they have been seen as true hustlers.

Fortunately, a lot of attention is being paid to the development of entrepreneurship in Nigeria and huge resources are spent on improving it.

Business analysts have said that lack of capital is one of the top problems affecting the development of entrepreneurship in this country.

Jane Ibekwe, a road side trader, explained that a lot of beginners fail or find it difficult to stand because of lack of investment.

According to her, “lack of funding has made thousands of incredible ideas not to be implemented.”

A business consultant, David Nweke, objecting to the statement above, said,” for business to grow, the business person must show that he is capable to manage the resources he already possess. Besides, every business man must be talented at making money from ‘nothing’ through using different possibilities for his own goal.

Mr. Nweke added by saying “Insufficient potentials/innovation, uncertainty and fear to promote the business has held many people back. As beginners, most entrepreneurs only want to get their businesses running but are not willing to invest their capital in an untested or unpractical idea.

Investors are not ready to risk their money and as such, wants to be sure that a business has the ability or chances of being profitable. Alternatively, they need to see that the business idea is hundred percent sure.”

A Psychologist suggests that when it comes to starting a business, the most important factor is the mindset. Also worthy to note is goals, objective and the target the entrepreneur has mapped out. The confidence in the idea is Paramount.

“Entrepreneurs have been advised on ways to raise money for business startup which is to rely on ones financial potentials or that of friends, family or people who would want to invest in their business.

Another way is to find people who could become partners and invest their money. Some who have become successful in business started with marketing and advertising.

This mode has worked out because to a great extent, business depends on how much the customers are familiar with the product or services, especially in this hustling world.

It takes a lot of experience and time to find out where the money works. Most times, funding is not what the business actually needs. There are a lot of things entrepreneurs could improve to make the enterprise more profitable and efficient.”

A banker, Joseph Okoro, on his part said “securing loans from financial institutions is not as easy as it seems.

Financial institutions and banks do not wish to risk lending money to entrepreneurs, especially those who do not have any experience in running a business.

Banks and financial institutions are more interested and loyal to entrepreneurs who are already well known, experienced and who have the collateral to deposit.

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