Nigerian entrepreneur and Founder of Money Africa, Oluwatosin Olaseinde, took to her Twitter page over the weekend to explain why many businesses can’t kick start in Nigeria.

Poverty and Low Purchasing Power are to blame

According to her, Poverty and low purchasing power are the main reasosn why a lot of businesses fail to kick start in the country.

Sharing further, she stated that even though businesses need to scale, they are often limited because their founders cannot afford the costs that comes with doing that. Moreover, there are way too many businesses fighting for limited and low disposable income, she said.

The need to invest mainly in essential products 

Many of Oluwatosin’s followers agreed with her perspective. Some, however, suggested that in order for Nigerian entrepreneurs to beat the odd and flourish in the Nigerian market, their business models must begin to focus on the production and merchandising of essentials such as food, clothes, and drugs. This is because the need for such items never runs out.

Another follower opined that another way entrepreneurs can beat the market is to either focus on providing essential commodities as enumerated above, or ensure that they earn in dollars; in other words, export their products.

Competition is also a problem 

Meanwhile, inasmuch as it is important for entrepreneurs to focus on the production of essential commodities, the fact remains that the weak purchasing power of most Nigerians remain a major issue to contend with. This is according to another follower of Oluwatosin, who also argued that competition is yet another problem that may be hindering some businesses from growing.

Many other factors could also be responsible for business failure

In Nigeria, new businesses spring up almost on a daily business. However, the unfortunate pattern is that these new businesses seldom last. This is due to a whole lot more factors other than the ones enumerated above.

The truth is that running a business can be tough. Even when a business owner has the most perfect business idea/product, such a business can still fail. This is because there are other factors that can militate against business success. See below:

  1. Lack of long term vision and goal,
  2. Absence of Brand Identity,
  3. Improper account reporting,
  4. Inadequate use of technology,
  5. Poor business packaging,
  6. Lack of ethics and conducts.

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