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Challenges Facing Entrepreneurship in Nigeria

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The current economical state of the country is really appalling. The government seems reluctant when it comes to job creation; the rate of unemployment keeps sky rocketing on daily basis, and to make matters worse many companies and even government organizations are downsizing. 

Entrepreneurship looks to be the only savior of the Nigerian people; therefore people are beginning to look into owning their own businesses rather than just sitting ideal or waiting for white collar jobs.
However, the road to becoming a successful business owner is not so cheerful (at least not at the beginning). There are numerous challenges associated with being and entrepreneur in Nigeria. Some of them are minor and are easily overcome, while other may just have to be tolerated.
In this article, I will help you identify some of the challenges that entrepreneurs in Nigeria contend with, so as to prepare you as you plan your journey into the world of entrepreneurs. Let’s get started.

This is probably the first challenge you might face as a prospective entrepreneur. Yes you have a business idea, yes you are resourceful and can manage your own business, but you need money to start your business or to expand an existing business. Start-up capital would not be a problem if it was easy to get loans from banks, unfortunately most bank feel reluctant to give loans to entrepreneurs. They feel it’s too much a risk to take, considering the uncertain state of the country’s economy. Have you attempted to get a loan from a bank lately, well I can tell you that it is pretty difficult. They would frustrate you with their unreasonable requirement for collateral, and even when you scale through that, the interest rate on the loan is simply too high.

The solution to the problem of generating capital for your business is simple. Bank loans are still an option for getting capital, it is not impossible to get bank loans-just difficult. However, if you cannot meet up to the demands of the bank, you can finance your business from personal savings. Another source of start-up capital is from friends and relatives. I will also suggest you find people with like minds who would like to invest in the same business as you. Forming a cooperative with them will help you with the require capital to start-up your business.

The state of infrastructure in Nigeria is simply deplorable. Take electricity for instance. Most business requires constant power supply, but with the epileptic nature of electricity in Nigeria, most entrepreneurs will have to spend a lot of their finance in buying and fueling generators. As a matter of fact, many businesses have closed shop and move from Nigeria to other countries because of the electricity issues.


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