In a very competitive market like Nigeria, most people remain confused about what business idea to start for maximum profit by limiting what could ruin the success plans. In this light, it is easy to wake up in a day and live your life without planning but you will not achieve any tangible result most times when you do that. In the same vein, it is tasking to wake up in the morning to plan your day but when you do that, you will get a good result. The essence of small and medium enterprises (SMEs) cannot be overemphasized in a growing economy like Nigeria and economies around the globe.
Recently, the Nigerian Government has established numerous schemes and programs specifically targeted at MSMEs e.g. SMEDAN, YouWin, TraderMoni, N-Power, etc. For SMEs, the key outcomes are improving revenue growth, increasing employee productivity, and acquiring more customers.
This article takes a deep dive into some of those threats that could leave our businesses in a pitiable state in Nigeria.
Cyber incident is now a larger cause of business interruption for today's networked companies whose primary assets are often data or Service platforms.
Businesses' perception of the threat posed political risks and violence remains relatively unchanged year-on-year. Incessant political conflicts, ethno-religious conflicts, as well as poor governance and accountability in public service, have all worked to make the Nigerian business environment shaky and unreliable.
One aspect of this threat is the epileptic and erratic power supply which affects the operation of businesses. Power blackouts are prominent in the country. As a local business owner, you should ensure a sufficient power backup to avoid missing production halt.
Flabby fiscal and monetary measures, multiple taxations, poor implementation of high-interest rate and unstable foreign exchange as well as high inflation rates. These have weakened the economy and expose it to the impulses of the international capitalist system.
Customs, foreign trade regulations and poor management of business operation due to lack of business management skills.
NEW TECHNOLOGIES (Nanotechnology, Artificial Intelligence)
Businesses also have to plan for new risks and liabilities as responsibilities change from human to machine, and accordingly to the manufacturer or software supplier.
The growth and improvement of SMEs, therefore, represents the key factors of growth tagged to many nations including Nigeria. The SMEs contribute greatly by improving standards of living, generating employment, and reducing poverty as they help in the formation of both domestic and local capital.
The problems that face SMEs in Nigeria are considered hydra-headed, thus, could only be addressed through the use of multi-dimensional approaches which would include different stakeholders, including government parastatals, banks, tax authorities, regulatory authorities, entrepreneurs, employees of the SMEs, donors, and bilateral agencies. The government has the responsibility of facilitating a favorable environment that can encourage investment even at the small-scale level.
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