Problems Associate With Start-ups And Some Solutions

It has being recorded that over 30 million small businesses or companies are registered every year in the united state alone. But the Nigerian figure is dwarfing annually. Only about 6000 new companies have being registered this year from the Corporate affairs Commission. What are the likely reasons for this low figure?

The major reason why we don't see mini companies springing forth is the low level of branding in Nigeria business arena. Everybody want to do a quick job so long that money can come out. Also people believe much on starting something from the larger beginning. Nobody want to start small. Capital is not the problems but the brand concept.

Only about 6000 new companies have being registered this year from the Corporate affairs Commission. What are the likely reasons for this low figure?

The process for incorporation of a company in Nigeria is too cumbersome and expensive, plus you'll have to pay taxes, so most people just register business names and operate as sole proprietors or partnerships. That's all!

Access to capital is a key indicator of the degree of business creation, Nigerian entrepreneurs essentially become either small employers or part of management for large companies.

The middle market is made of professionals from the medial, law and business services categories. Only recently has technology/telecoms increased the breath of the middle market by creating new services and products, another key capital user group albeit non-corporate are the practitioners in media and associated services.

Weighting this trend against the number of incorporated companies and you can easily prove that new business creation is rife and dynamic but not adequately monitored, another indicator is the increase in wealth and depth of banking and financial products now available.

You ask what does this big big grammar have to do with creating a brand ? Well even me self dey suffer from brand disease. I have two online projects in the pipline, great products but lacking in execution and branding; so even expert self dey make mistake.

Enjoy

new business creation is rife and dynamic but not adequately monitored

Why does new business need to be monitored? So they can impose unecessary requirements on our operation? Please, I think it's better that they are leaving us alone to prosper. That's a small benefit of business in Nigeria.

I think the general lack of trust is something that's holding us back a bit. I have a friend living abroad who's always telling me that the problem with Nigerians is that they like to go solo. Why won't you go solo when if someone defrauds you there is little recourse from the legal system? Why won't you go solo when no-one is trustworthy?

I am not an economics expert, not to talk of one on Nigerian affairs, but I think the above can be summarized under, but not limited to, the following bullet points:

[list]
[li]Too much govt red tape[/li]
[li]Lack of transparency on the part of the government[/li]
[li]Lack of accountability on the part of some employees[/li]
[li]Lack of trust which leads to too many solo outfits as opposed to rounding up resources to have one big company[/li]
[li]Lack of government policies conducive to survival of such businesses[/li]
[li]*In some cases*, with a country where majority work for the govt so as to qualify for benefits in their old age, there is sort of a resistance to even think of starting up a business - too risky[/li]
[li]Various Unions (most notorious are the commodity unions, like periwinkle and waterleaf unions, etc, which work together such that anyone daring to set off competition is quenched. Prices are then artificially fixed and tend to rise as salaries rise and holidays approach[/li]
[/list]

These are just a few things I had in mind. I won't bore you with anymore. Besides I could totally out of my mind on some of them