WHY BUSINESSES FAIL IN NIGERIA II

Continuation from the Previous Post...

Bureaucracy in Government Agencies: You will agree with me that the bureaucracy in our civil service and the way some of our agencies are structured one would spend longer time than necessary to get certain things done which is relevant to doing business. Case in point those into manufacturing spend a lot of time before they get certification from relevant agencies like National Agency for Food and Drugs Control (NAFDAC) Standard Organization of Nigeria (SON) amongst others it takes years which isn’t healthy for these businesses, though I am not advocating that strict inspection and compliance shouldn’t be adhered to. I know a friend who collected loan to expand production capacity and couldn’t proceed with the expansion process because NAFDAC haven’t given approval even after the loan was made available and interest have started counting.


Inadequate Knowledge: Yes, experience is the best teacher, but having a firsthand knowledge of what to expect will help the entrepreneur prepare. Most people only see the glamorous aspect of entrepreneurship and are totally ignorant to the fact that like everything in life there is a stage and a process and having adequate knowledge saves one from a lot of mistakes. Being actively involved in raising and grooming entrepreneurs I have come to realize that those who passed through our training programmes tend to do better than those who just cut their teeth in the process. That is why I must commend Fate Foundation, Facebook Nigeria, The Tony Elumelu Foundation and RED Media through their Accelerate Labs initiative for the good job they are doing in raising and preparing entrepreneurs for the task ahead. I will also give kudos to the Federal Government of Nigeria in this aspect they are doing their bit in ensuring entrepreneurs are well trained through their various initiatives such as YOUWIN Connect and Youth Empowerment Support Programme (YES-P), they have realized that it is not just okay to hand entrepreneurs grants and loans without training them. It will shock you that some entrepreneurs don’t know that record keeping is such a big deal in business.

It is not just okay to talk about the problems but it also important to proffer solutions to such problems, therefore having discussed some of these problems; I decided to proffer solutions I believe will come in handy. Government have a very important role to play, first by enacting policies that will favour SMEs, do away with unnecessary bureaucracy in relevant agencies and grant SMEs more access to funding at reasonable and friendly interest rates and conditions, furthermore the tax and monetary policy should be designed in such a way that it favours SMEs rather than choke them to death. Amenities needed for smooth running of business such as good road network, stable power supply and provision of potable water should be provided by the government. The excessive charges by banks should be looked into, while the entrepreneurs on their part should get the required skills and knowledge needed to face the challenges ahead. The economy of great nations is driven by entrepreneurs as earlier stated and if as a country we want to be numbered among the great economies of the world then we should rally round our SMEs and encourage them to grow instead of snuffing the lives out of them.

Enyinnaya Iroadumba

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