From the report table below, we observe that Nigeriastill score very low marks in 2017 in all the areas reviewed. Nigeria scores130 out of 145 nations when talking about starting a business; our topic infocus.
Which means getting registration, permits, electricity, credits, andprotection is very challenging. The Nigerian government have failed to makenecessary laws to encourage startup founding. Existing startups are notprotected from foreign investments that are way stronger than them. Minoritycompanies are generally at risk of failure (world, 2017)In conclusion, it is still very difficult doingbusiness in 2017, then let’s think of how difficult it was in 2003 when theEconet wireless company failed. It was 10 times difficult (AYOZIE, 2006).
By this literary review, a number of root causes ofstartup failure in Nigeria have been identified. They are number one, Lack ofsufficient preparation and prospecting which focused on the rough and quickestimates that the entrepreneurs make before starting a business. Secondly,Breakdown in the nation’s Infrastructure have not helped businesses over time.Poorly constructed roads and absence of roads and rail system in many semiurban and rural areas frustrate logistics and transportation. Epileptic powersupply is a significant routine in Nigeria and government have not doneanything about it even when the significance of adequate power supply in Businesscannot be overemphasized.
Thirdly, we talked about how much requisite labour isunavailable in Nigeria and its effect. The Econet group had to fly in about 200foreign experts in 2003. Nigeria have not made any investment in training andformal education. We also looked at the effect of insufficient financing inStartup.
How the Econet group gave out 95% shares to 22 other investors tosecure their license and how it backfired. Poor social integration and supportwhich is also related to problems tagged Indigenous challenges were two otherfactors we looked at. These have to do with traditional, social, behavioral andcultural practices that hinders and kill startup in Nigeria. Language barrieris one of those prominent challenge. When people do not understand themselvesand yet have individual interest there is going to be a problem all the time.Corporate internal factors; how the startup entrepreneurs behave also affecttheir business. Most entrepreneurs are geeky and over ambitious.
They always wantthings done in a preferred way that may not be very realistic on the long run. Corruptionhas been elaborately labelled a key cause of startup failure in Nigeria.Government officials and their agencies are full of bribe takers.
The variousareas government agencies and parastatals exhibit corruption have beendiscussed. And finally, Nigeria ranks 130 out of 145 countries reviewed by theWorld Bank in the getting a business registered index, this is a major concern.Generally, businesses are just trying to survive in Nigeria. Government have alot to do to help progress the nation’s index on the global ratings
