From the report table below, we observe that Nigeria
still score very low marks in 2017 in all the areas reviewed. Nigeria scores
130 out of 145 nations when talking about starting a business; our topic in
focus. Which means getting registration, permits, electricity, credits, and
protection is very challenging. The Nigerian government have failed to make
necessary laws to encourage startup founding. Existing startups are not
protected from foreign investments that are way stronger than them. Minority
companies are generally at risk of failure (world, 2017)
In conclusion, it is still very difficult doing
business in 2017, then let’s think of how difficult it was in 2003 when the
Econet wireless company failed. It was 10 times difficult (AYOZIE, 2006).
By this literary review, a number of root causes of
startup failure in Nigeria have been identified. They are number one, Lack of
sufficient preparation and prospecting which focused on the rough and quick
estimates that the entrepreneurs make before starting a business. Secondly,
Breakdown in the nation’s Infrastructure have not helped businesses over time.
Poorly constructed roads and absence of roads and rail system in many semi
urban and rural areas frustrate logistics and transportation. Epileptic power
supply is a significant routine in Nigeria and government have not done
anything about it even when the significance of adequate power supply in Business
cannot be overemphasized. Thirdly, we talked about how much requisite labour is
unavailable in Nigeria and its effect. The Econet group had to fly in about 200
foreign experts in 2003. Nigeria have not made any investment in training and
formal education. We also looked at the effect of insufficient financing in
Startup. How the Econet group gave out 95% shares to 22 other investors to
secure their license and how it backfired. Poor social integration and support
which is also related to problems tagged Indigenous challenges were two other
factors we looked at. These have to do with traditional, social, behavioral and
cultural practices that hinders and kill startup in Nigeria. Language barrier
is one of those prominent challenge. When people do not understand themselves
and yet have individual interest there is going to be a problem all the time.
Corporate internal factors; how the startup entrepreneurs behave also affect
their business. Most entrepreneurs are geeky and over ambitious. They always want
things done in a preferred way that may not be very realistic on the long run. Corruption
has been elaborately labelled a key cause of startup failure in Nigeria.
Government officials and their agencies are full of bribe takers. The various
areas government agencies and parastatals exhibit corruption have been
discussed. And finally, Nigeria ranks 130 out of 145 countries reviewed by the
World Bank in the getting a business registered index, this is a major concern.
Generally, businesses are just trying to survive in Nigeria. Government have a
lot to do to help progress the nation’s index on the global ratings