Challenges faced by business start-ups in Africa.

[TOZZIBLINKZ]

In one article written back in the year 2013 it is said that Africa is the Homeland of small and large scale businesses. To some extent this is definitely true, but if we are to dig deeper we would come to see that there is a whole lot of challenges, demerits, as well as disadvantages surrounding and affecting business existence and business startups in Africa. More specifically countries in West Africa are facing a whole lot of challenges during startups, some of these possible challenges include:

* Infrastructure: an individual is totally possible to think that the only problem facing business start-ups and business existence in Nigeria is the lack of sufficient and adequate capital, however another major problem is the lack of infrastructural amenities by the government to businesses. Most Nigerian roads needed for the transportation of raw materials and finished goods are not built. Water and air facilities, that should aid or assist the transportation of perishable and bulky goods from one place to another, are not provided in sufficient amount, thereby restricting the ability for businesses to strive.

* Inconsistent government assistance: the government of most countries in West Africa perform poorly in assisting the existence of existing businesses in the country. One of the major ways they demonstrate their inconsistency, is by not making in provision capable business banks and business financial institution to issue and grant loans to business owners and young entrepreneurs who had the interest to establish businesses.

* Winning customers interest: the cost of living is definitely very high and also the standard of living is absolutely very low in most economies, however this make it very hard for existing businesses to win the interest and loyalty of customers and clients.

 

[Axis]

I think that I have come across that same article mentioned in the thread above which describes Nigeria or Africa to be the Homeland of trading businesses as well as small-scale businesses. It is definitely true that establishing a business in Nigeria can totally be profitable and lucrative due to the vast available population seeking for their needs and wants to be satisfied and for these needs and wants to be satisfied they need to be in West existence businesses who are capable and suitable of satisfying these needs and wants which has an occuring status.

With all these advantages they are also disadvantages associated with the establishment of business in Nigeria especially during the initial stage of the business startup. Newly established businesses are more likely to face environmental trait and also newly established businesses are more likely to feel inconsistent by the government due to no infrastructural amenities that can assist and help the easy passage as well as transportation of goods and services as well as raw materials.

 

[Mikes smithen]

So many small and large-scale businesses exist in Africa and you are definitely right that is correct inaccurate to say that Africa is the Homeland of small and large scale businesses. Due to the increasing rate of unemployment in most countries in Africa majority of individuals have no doubt but to establish both large and small scale businesses in order to keep themselves busy. Establishment of large-scale and small-scale businesses in Africa to be precise Nigeria is absolutely not an easy task and the reason is because Nigeria is very low in business infrastructure which can absolutely have the existence of growing and thriving businesses.

Lack of capital accumulation and inadequacy of the government's consistency on the welfare of businesses is basically one of the major problems majority of business owners and business individuals are facing when it comes to the establishment of businesses. Establishing businesses in Africa is quite a good activity but also an activity that must be done cautiously and carefully.

 

[moonchild]

There are a lot challenges in running a business in Africa, especially government policies, they are not stable and one bad policies can take you out of business and you will be left with nothing, it is very important as a business owner to seek and know these policies and devise a way to attack them, most especially taxes, they are subtle, and not well known.

But even at that there are a lot successful startups out there that are doing amazingly well, I do not think there is any excuse to give, no matter how bad the economy is, there are ways you can actually make your fortune out of it, the first thing is actually going back to basics, which is giving people what they want, you have to fulfill a need and offer value, when you do this, then whatever happens you will be sure of making money.

 

[Augusta]

Possible challenges when starting a business in Africa are almost like business challenges one can faced anywhere. Though ours might be a little worse since we lack infrastructure. The challenges includes lack of security. sourcing for Capital for funding, , you would be faced with competitors, there will be economic challenges same with political instability etc. But as an individual it is always good to make sure that every factors necessary for business is put in place to enhance the success of it.