5 Major Challenges Of Doing Business In Nigeria (2019)
- Access to capital & credit. One of the most difficult tasks, for any entrepreneur that wants to start up their very own small business, is to raise capital for it.
- Electricity / Power Supply.
- Government regulations.
- Corruption & Bribery.
- Market developments.
Basically, the prices of products and services are determined by the interplay of five factors, viz., demand and supply conditions, production and associated costs, competition, buyer's bargaining power and the perceived value. We would like to divide them as Internal Factors and External Factors.
The main internal factors are:
- corporate culture.
- staffing.
- finance.
- current technology.
They include:
- Exposure to hazardous substances in the air, water, soil, and food.
- Natural and technological disasters.
- Climate change.
- Occupational hazards.
- The built environment.
Industrial locations are complex in nature. These are influenced by the availability of many factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.
The following factors will influence your fortunes and your organization's growth over the long haul:
- Trust. At every level of your organization, insist that workers understand the importance of keeping their word and living up to your values.
- Decisiveness.
- Competition.
- Records.
- Network.
- Patience.
- Risk.
- Optimism.
The study examined eight factors that influence the SMEs business success. These factors are: SMEs characteristic, management and know-how, products and services, Customer and Market, the way of doing business and cooperation, resources and finance, Strategy, and external environment.
5 Major Components of Business Environment | Business Studies
- (i) Economical Environment:
- (ii) Social Environment:
- (iii) Political Environment:
- (iv) Legal Environment:
- (v) Technological Environment:
Here are 9 factors that influence your sales results:
- Your competitor.
- The industry you sell in.
- Outside factors – economy / legal / etc.
- Time.
- Your customer.
- Your customer's customer.
- Your customer's competitors.
- The products/services you sell.
We can organize the external forces that affect business into the following six categories:
- Economic environment.
- Legal environment.
- Competitive environment.
- Technological environment.
- Social environment.
- Global environment.
Some of these factors include management functions, structural transformations, competition, socio-economic factors, laws and technology.
- Changes in Executive Management.
- Transformations in Organizational Structure.
- Competition from Other Businesses.
- Social and Cultural Factors.
- Laws and Regulations.
Top environmental factors that will affect your business include storms, loss of resources, inflation, and scarcity of food and water. These economic concerns are likely to be secondary to the risks to human health.
Knowing how internal and external environmental factors affect your company can help your business thrive.
- External: The Economy.
- Internal: Employees and Managers.
- External: Competition from other Businesses.
- Internal: Money and Resources.
- External: Politics and Government Policy.
- Internal: Company Culture.
The challenges of growing a business - and how to meet them
- Keeping up with the market.
- Planning ahead.
- Cash flow and financial management.
- Problem solving.
- The right systems.
- Skills and attitudes.
- Welcoming change.
Nigeria's economic potential is constrained by many structural issues, including inadequate infrastructure, tariff and non-tariff barriers to trade, obstacles to investment, lack of confidence in currency valuation, and limited foreign exchange capacity.
Research and human capital development in Nigeria are faced with enormous challenges. These challenges include: inadequate funding; lack of equipments facilities and material, lack of awareness, lack of implementation of research results, low rating in human capital indices, Brian-drain, etc.
In this post, I will be sharing the key steps and processes of what you need to start a profitable business in Nigeria.
- Evaluate yourself.
- Find a business idea.
- Conduct market research.
- Feedback.
- Create a business plan.
- Get business funding.
- Business Registration.
- Build Your Team.
6 Principles to Deal With Business Challenges in a Complex World
- Find the right problem to solve. Most managers choose the wrong direction because they did not take their time to think about what the real problem looks alike.
- Focus on customers.
- Take a contextual approach.
- Try open innovation.
- Look for multiple solutions.
- Choose the right team.
The term 'business environment' connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government, and the social, political, legal and technological factors etc.
