An independent survey carried out in 2010 revealed that about 100,000 new businesses are started in Nigeria every year but generally only about 100 of them survive the first 2 years.Why?
First 15 reasons are:
(1) No creative ideas
(2) Poor planning
(3) Inadequate funding
(4) Wrong business location
(5) Poor production/operation systems
(6) Ingenuine products
(7) Poor product packaging
( High cost of operation
(9) Ineffecient marketing
(10)No detail financial records
(11)Regular and unguided spendings
(12)Bad processes and strategies
(13)Internal and external fraud
(14)Poor business management skills
(15)Nigerian factors-corruption, unstable government policies, inflation, unstable business environment, insecurity etc.

Have you experienced or you are experiencing business failure due to any of these reasons, then lets chat here or call 08034648870 for solution tips.

Olusina

Nigeria factor kill businesses much faster that every other things u've mentioned. especially lacko of electricity

That depends on the type of business.The mistake is that most entrepreneurs think that Nigerian factors are the major causes of their business failure without looking inward for self examination.That is self deception ............

I do not believe that survey. IT IS A LIE!!

Sure, many businesses fail after a couple of years, but 99%? THAT'S BULLSHIT. What methodology was used in the research?

Insightful...

@rossikk, its actually 90%

This figure emanated from a public survey conducted on the viability of new businesses (not expansion of existing businesses) in Nigeria from 2010 to 2012.Though it is only an estimate subject further criticism and verification but the massage is clear on 15 major reasons why new businesses fail in Nigeria. The purpose of the initial post was to sensitize Nigerians on problems facing new businesses