Once Upon a Start-Up......

CHALLENGES OF STARTING A BUSINESS IN NIGERIA

Starting a business is challenging no matter how prosperous your nation is. There

 are

MD/CEO glancing at the Encyclopedia Biblica.

however some unique challenges peculiar to doing business in Africa and in Nigeria to be specific. My business (Jeshurun Publishing House and Press Limited) will be two years old in June and the journey has been worthwhile, if for nothing else, for the incredible lessons we have learned along the way. We were registered with the Corporate Affairs Commission (CAC) on the 6th of June 2014 and began immediately seeking a reputable bank where we could open a Corporate account. Our thinking was simple and pragmatic. From a study of start-ups in our immediate locality, we arrived at a shocking discovery that most Small and Medium sized Enteprises (SMEs) have an average lifespan of five years after which they wind up and consequently end operations. We were determined that this would not be the case at Jeshurun Publishing House and Press Limited.

Determination would however not be enough. We had to clearly ascertain why small businesses fail in Nigeria. Here are some of the common reasons we deduced from our studies.

• Poor Management
• Lack of Funding
• High lending rates from commercial banks
• Corruption
• Lack of Power (Electricity)
• No Small Business support system and
• Lack of Venture Capitalists     

A combination of this factors make running a small business in Nigeria a particularly precarious proposition. It is even a tougher proposition for those in the book business or in the business of publishing. This is largely because of widespread piracy and little or no regard for intellectual property law. Sadly, most consumers when faced with the option of either buying a fairly priced original product or a pirated cheaper copy will opt for the pirated copy. The onus is hence on the federal government through its agencies like the National Orientation Agency (NOA) to sensitize consumers on the the need to respect the intellectual property of writers and artistes.Fortunately, there seems to be light at the end of the tunnel. The Buhari/Osinbanjo ticket on the platform of the All Progressive Congress (APC) stated as one of its campaign promises, the creation of thousands of jobs. While this is noteworthy, it cannot be achieved without the contribution of genuine entrepreneurs. The government must be proactive in its push for job creation by creating an enabling enviroment for entrepreneurs to thrive. The government in achieving its objectives in the midst of a national recession is faced with the daunting task of working out practical models that can assist the average investor on the street. If this is done, We might yet achieve our collective vision for the year 20/20.

Ubong James Essien is the Managing Director/CEO

of Jeshurun Publishing House and Press Limited and

is the editor of the exciting blog Bongy's Review.

+234-805-094-0103