Taking Nigerian small businesses to paradise

In the last 40 years, small business owners and entrepreneurs have been receiving
greater recognition as drivers of economic growth all over the word. It has become a
given that, to achieve long-term economic growth and prosperity, participation from
entrepreneurs is very important.  Small businesses have contributed to job creation,
economic growth and poverty reduction. As we have seen in Nigeria in the last two
decades, entrepreneurship is a driving force within the economy because of
entrepreneurs’ innovative nature, among other factors. In developed economies,
corporations and large capital significantly determine the extent of scientific, technical
and production potential. In third world countries with a market economy system, small
enterprises are the most common, dynamic and flexible form of business life. In Nigeria,
they contribute in stabilising the political climate. Yet not every small business
will flourish
Why Small Businesses Fail in Nigeria, a seven-chapter book written by Ayodele Ajayi,
provides sufficient facts why entrepreneurs in the country pack up after a while. In
knowing the hidden pitfalls, as outlined by the author, the writer creates a veritable
platform for small businesses to reinvent themselves and blossom.  Ajayi educates all
that there is a probabilistic indicator to show that not all businesses in Nigeria surpass
their first anniversary. This sounds like a spoiler alert, but the author links this to the
inability to overcome teething problems and other avoidable mistakes.
Talking from experience, Ajayi, whose entrepreneurial journey has been like a yo-yo
experience, says his substantial investment and unwavering effort in the paint business
didn’t yield the much-expected dividends when he set out. Why Small Businesses Fall
in Nigeria, therefore, seeks to empower the reader and the entrepreneur with a weapon
to navigate the intricacies of Nigeria’s business environment. It is also beneficial for big
businesses.
In the first chapter, Ajayi paints a realistic picture of Nigerian entrepreneurship beyond
the hype on some success stories. “When considering starting a small business, one of
the first decisions you must make is whether to operate online, offline, or a combination
of both,” writes Ajayi. He points out that the reality of entrepreneurship is far less
glamorous than many anticipate, part of which includes supporting the lives of team
members and other partners involved in the business. He recommends that, before
setting out, you must study the business environment of the country, because the reality
of doing business in Nigeria differs with many factors he outlined in the book (read the
book).
Part of the reasons for business failures include inappropriate location, hence: “A
solution to that problem may be to change the location to a more strategic area with a
higher demand for the business’s products or services. The structure of the business
can also make or mar it.” Another reason is faulty operation. Ajayi stresses the
importance of learning from others, for nobody knows it all.

The author zeroes in on the pitfalls that crumble businesses in Nigeria. Understanding
and answering the purpose of your business, he says, will help the entrepreneur
navigate and avoid the landmine. Expertise is also important. The author makes a case
for implementing effective corporate governance. Explaining in detail the common
reasons for small business failures in Nigeria, the author highlights inadequate market
research, poor management of business resources, poor cash flow management, wrong
expansion, poor marketing and sales skills.
Offering practical steps to follow to navigate these pitfalls, the author advises business
owners to be disciplined, detach themselves from the businesses, plan and execute
well, learn continuously, build a strong network and stay financially savvy. He
encourages entrepreneurs to guide against having a single product or service in
Nigeria, develop excellent customer service, and adapt to market trends. Unlike Easy
Taxi that crumbled in Nigeria, the author cites Mega Chicken as one that has
successfully stood out in a competitive food market.
The fourth chapter of the book emphasises on financial management.  “Financial
management is a necessary skill for every business, because it deals with how you
account for your money,” says the author. who goes on to furnish us with basic financial
concepts that relate to small business in Nigeria. These include budgeting, cash flow
management, investment management, debt management, financial planning, risk
management, bookkeeping. The book furnishes the reader with strategies for securing
funding and managing debts effectively. It arms us with the right resources for
maintaining financial support, literacy and mentorship in Nigeria.
Ajayi, in the fifth chapter, teaches the power of marketing and sales. This is very
important. You may have a good product yet it is not selling. Like he has done
throughout the book, he offers practical steps for creating a customer-centric approach
and building brand loyalty, including but not limited to personal service, reward system
and getting feedback from customers.  The concluding part of the book x-rays the
demands of leadership. Without reading this book, you may not appreciate the gems in
the publication. I recommend this book to not only businessmen anywhere in the world
but those aspiring to have multiple streams of income in Nigeria.