Every business owner aims to make a profit and excel. Things that can hinder such success, therefore, need to be taken care of.
For an entrepreneur in Nigeria to succeed in starting and managing a business, it is very important to know the major and top factors that have been affecting business growth in Nigeria. This is the reason why I decided to talk about the top 10 Factors that are affecting entrepreneurship in Nigeria.
This article outlines and explains ten factors affecting entrepreneurship in Nigeria. Knowing these factors will help entrepreneurs to be able to fight business failures.
Recommended: 15 Major Reasons Why Businesses Fail In Nigeria
Top 10 Factors Affecting Entrepreneurship In Nigeria
The following are the top ten factors affecting entrepreneurship in Nigeria:
1. Government policies and regulations
Government policies and regulations play a significant role in the growth of entrepreneurship in Nigeria. Unfortunately, the government's policies and regulations in Nigeria are often inconsistent and frequently change, which creates a challenging environment for entrepreneurs. The cost of complying with these policies and regulations is also high, which further limits entrepreneurship growth in Nigeria.
2. Lack of access to funding
Another significant factor affecting entrepreneurship in Nigeria is the lack of access to funding. Access to capital is critical for entrepreneurs to start and grow their businesses. However, Nigeria's financial sector is still underdeveloped, making it challenging for entrepreneurs to access funding.
The high-interest rates and stringent collateral requirements make it difficult for entrepreneurs to obtain loans from financial institutions.
3. Poor infrastructure
The poor state of infrastructure in Nigeria is another factor hindering entrepreneurship. The poor road networks, power supply, and internet connectivity make it difficult for entrepreneurs to operate efficiently. The high cost of electricity and internet connectivity also adds to the burden, as entrepreneurs have to bear these costs themselves.
4. Corruption
Corruption is a significant problem in Nigeria and is one of the major factors hindering entrepreneurship. Corruption creates a challenging business environment, where entrepreneurs are required to pay bribes to government officials and other stakeholders to get things done. This creates an uneven playing field for entrepreneurs and limits the growth of entrepreneurship in Nigeria.
5. Limited access to market information
Limited access to market information is another factor affecting entrepreneurship in Nigeria. Entrepreneurs need market information to make informed business decisions. However, market information is often limited in Nigeria, making it difficult for entrepreneurs to identify business opportunities and develop strategies to exploit them.
6. Limited access to technology
The high cost of technology and limited access to it makes it difficult for entrepreneurs to compete effectively. This puts Nigerian entrepreneurs at a disadvantage compared to their counterparts in other countries with better access to technology.
8. Cultural attitudes
Many Nigerians still view entrepreneurship as a last resort or a means of survival rather than a viable career option. This cultural attitude towards entrepreneurship limits the growth of entrepreneurship in Nigeria.
8. Limited access to skilled workers
Unable to access skilled workers has ruined many businesses in Nigeria. Many Nigerian entrepreneurs struggle to find skilled labor to work for their businesses. The limited access to skilled labor makes it difficult for entrepreneurs to operate efficiently and grow their businesses.
9. Lack of adequate education and training
Inadequate education and training are other factors to look into. Many Nigerian entrepreneurs lack formal education and training, which limits their ability to make informed business decisions. The lack of education and training also limits their ability to compete effectively.
10. Insecurity
Insecurity over life and property is affecting entrepreneurship in Nigeria. The high level of insecurity in Nigeria makes it difficult for entrepreneurs to operate efficiently. The fear of kidnapping, robbery and other security threats makes it challenging for entrepreneurs to do business in Nigeria.
Conclusion:
Entrepreneurship is essential for economic growth and development in Nigeria. However, several factors hinder entrepreneurship growth in Nigeria. The government needs to address the policy and regulatory inconsistencies, provide access to funding, improve infrastructure, and combat corruption to create an enabling environment for entrepreneurship.
Additionally, entrepreneurs need access to market information, technology, skilled worker, education, and training to compete effectively.