Reasons Many Small Businesses Fail in Nigeria, 03 continues from part 2.
Harsh Government Fiscal, Economic, and Monetary Policy
Unfortunately, this cannot be avoided. The government will always make policies that will affect you positively or negatively. You must be ready for emergencies. Your exit strategy must be tight. It is not usually easy but don’t let it be the end as many people do. Your corporate reflexes are measured by how fast and well you respond to emergencies. 
The next reason businesses fail in Nigeria is
Inability to Move Swiftly with Trends and Changing Technology
The world is ever-changing. Remember, the only constant thing is change. Naturally, some people are not attuned to change. They hate it. It is okay in politics and fashion, but it is bad for business. Many small businesses fail because of this. You must be ahead with innovations that suit the trend. You must always upgrade.
As people are going digital, don’t remain analog because that won’t help you as an entrepreneur. Remember, the trend is your friend, not your enemy.
Fierce Competition
Many small businesses fail because their owners are afraid of competing with other entrepreneurs. The world is competitive, and you have to compete with the best in the world. If you will be able to compete, you must be creative and innovative otherwise other people will kick your ass.
Wrong Business Location
The location of your business is very important to its survival. Many small businesses fail because they are in the wrong place. You must consider factors such as road network, nearness to high-traffic zones, accessibility and patronage level of customers, population, demographics and so on when choosing your location.
Lack of Knowledge and Experience in the Chosen Field
The biggest risk in business is not knowing what you want to do. It is dangerous. You have to get all the necessary knowledge and experience about a particular business before you venture into it. It is that simple.
Bad Debt
This is another reason why many small businesses fail. When you give too much credit to customers, you are likely going to start having a deficit in your business. An entrepreneur must be able to manage cash flow. You cannot afford to operate on a deficit and your customers are important. You must devise a means to balance the equation.
Mike Ihezuo is an Entrepreneurial and Management Pundit. He’s on FB Page #LX. CONTACT him.
Reasons Many Small Businesses Fail in Nigeria, 03 continues in part 04.
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