Starting a small business in Nigeria is a challenging process that requires hard work, high concentration, and resilience. From afar, it appears like starting a business in Nigeria would be a walk in the park, with Nigeria recognized as the largest market in Africa. This piece seeks to highlight the struggles of entrepreneurs and, at the same time, recognize their contributions to Nigeria’s economy through their unending creativity and persistence.

According to The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), SMEs account for 96 percent of businesses, contributing 48 percent to Nigeria’s gross domestic product (GDP) and employing 84 percent of the workforce.

A report published by the Nigerian Bureau of Statistics, NBS, revealed that about 80% of small businesses do not survive beyond five years, due to factors like poor infrastructure, poor or no access to financing, little business knowledge, competition and visibility, government regulations, and polices. However, this does not mean that there are no successful businesses in Nigeria.

The pressure that comes with inflation and the significant rise in operational costs has caused many business owners to try to enter a persistent struggle to find a balance between reducing profit and unpredictable expenses that come in their day-to-day activities.

A very common challenge most small business owners face is the unavailability of funds. It is very difficult for a large number of small business owners to have access to affordable loans. Many cannot afford the interest rates given by banks, leading them to rely solely on personal savings or unreliable lending platforms. Olusegun Emmanuel, a Graphics and Printing Artist and CEO of Fadex kreatifs and kreatifs Hands Academy, explains:

“The reality is that many entrepreneurs are not failing because they lack ideas, but because they lack access to financial support.

For instance, purchasing a machine for digital printing of banners and souvenirs cost 4million naira, so an entrepreneur who fought his way to purchase this machine needs more to service this machine, yet the year gap to procuring another one is thin.”

Another layer of this struggle is poor infrastructure, including irregular power supply, bad roads that affect logistics, and so on. The rise in fuel costs has significantly affected day-to-day operations, making small business owners fail in meeting up with deliveries. Speaking on some of these challenges and how he has managed them, Emmanuel said;

“Running a creative business in Nigeria comes with daily challenges such as unstable power supply, fluctuating cost of materials, and managing client expectations in a tough economy. There’s also the pressure of maintaining quality while still keeping services affordable for clients. Adaptability is key. I’ve had to invest in alternative power solutions and carefully plan production schedules. For rising costs, I review pricing strategically and maintain relationships with trusted suppliers to get better deals. I also try to stock more materials in advance when prices are stable and stay flexible with business operations.”

In a community where hundreds of people are in the same business, competition becomes what many deal with. Small business owners often have to come up with innovations so they can still be recognized in their field, and offer discounts just to keep customers patronizing them.

Many small business owners only start a business with little or no knowledge of business management. Lack of adequate business management knowledge is one of the greatest factors affecting the average small business owner in Nigeria. It reflects in how they run the business without structure or adherence to industry best practices. It also shows in their lack of people management skills, which often results in low profits.

Talking of government programs targeted at supporting SMEs, many small business owners struggle to apply due to complex administrative procedures and lack of awareness of governmental initiatives. Procuring certificates, licences, registrations, and other permits give legitimacy to their businesses is also another bottleneck that limits them.

Speaking on the support lacking from the government, Emmanuel said, “Access to affordable funding and consistent policies that truly support small businesses is still lacking. Many entrepreneurs struggle with high-interest loans, limited grants, and little structured support for creative businesses. Stable electricity and better infrastructure would also go a long way in helping businesses grow sustainably.”

As these struggles continue to hinder business activities in Nigeria, entrepreneurs are still finding ways to create strategic means to help them adapt to these struggles and thrive amidst them. Entrepreneurs now use Digital tools, online marketplaces and social media platforms to their advantage, helping them grow new clients and increase sales.

“Social media has helped me attract clients, showcase my work, and build a strong brand presence. I also use design software, online communication tools, and digital payment systems to make operations smoother and more professional. Training and learning online on YouTube have also helped me stay competitive”, says Emmanuel.

Read Also: World Bank approves $500m MSME finance package for Nigeria

Keeping a small business running smoothly is beyond having enough finances; it is also about investing time, energy, and emotions, finding ways to keep the business running effectively, always at the expense of their personal life. The stories in this piece reflect resilience, creativity, determination, and the unbending spirit of entrepreneurs that have strongly driven Nigeria’s economy forward regardless of the difficulties.

Every business owner believes that every day is a day to keep showing up to their business, making ends meet, taking risks, while trying to stay sane in a gravely challenging marketplace where obstacles are overwhelming; just like swimming against a strong current.