IENT101 The challenges of small business ownership

  • What particular challenges face small businesses in your country/local area?
  • What have you learnt about small business ownership from Gift Lubele’s story, as described in the YouTube video?

Here in Nigeria,small and start up business faces a lot of challenges. To start with is the area of banks in Nigeria is ready to finance a start up business, so entrepreneurs here have to start on their own.if you are successful and you open a bank account with a local bank,after careful look on your cashflow and turn over they can now decide to extend loan services to your business.
Secondly, Government policies are toxic to business matter the stage of your business be it start up or advance, a single govt policy can shut your company down.
Thirdly most start up business here don’t survive the 3 years mortality phase.A lot is being faced by these new business that makes them to go under within the first three years.These are few of the challenges of small business in Nigeria.

I am from the city in the UK called Bristol. Although not a big city it is very popular and busy and is very popular with small independent businesses, so this is the first challenge competition. Also only short drive to capital city London, so this has made Bristol a popular place to live and has driven up costs in all areas, meaning opening or running a small business is high cost especially in the busy shopping areas.
From the video Gifts drive is to make his town a better place rather than to make money which is both inspiring and I believe key to his passion.

Businesses all over the world face one challenge or the other. Effects of challenges is usually visible mainly on small businesses as if care is not taking the business will die. Some of the challenges that small businesses face in Nigeria among others are,

  1. Inadequate financing: The small businesses find it difficult to raise inadequate fund to run or bring their ideas to reality. Even when they are given a loan without considering the productive stage of the company the bank or the borrower will be on the company for loan repayment.
  2. Unreliable team work it is difficult to see who you can trust to be a business partner and by this so many entrepreneur walk on a lonely road having almost no body to rely on.

Small business basic challenges are basically their, size and popularity. Small businesses basically is small, no one will bother (how will you market it?). Second small businesses are not known (not popular) to start off as a business (and to start small) is a real challenge!. Is it possible to invite customers, particularly when there are existing ones and bigger ones around?? The chances of starting are zero!
To start small is to work hard, to be determined, to be creative and to get into the heart of the people. If you can change the mind of people, you have a good start, you will be getting a bit!