CONSTRAINTS OF BUSINESS GROWTH IN NIGERIA
Business growth in Nigeria has a range of challenges, the more a business grows, the more different problems surfaces and will definitely require different solutions. The solution that solved last year’s problem may not solve this year’s even though the problem may seem alike. More reason why as a business owner, you need to keep strategizing and providing new solutions. In providing solutions, you need to ensure your decision today will not affect your operation in the future. The following are possible constraints to Business growth in Nigeria, some if detected early can be avoided.
- Finance: Finance is a limiting factor for businesses, it can be in form of no access to loan, inadequate budget allocation, excessive salaries and overhead expenditures. The inability of a company to purchase supply will slow down its operation and therefore restrain their growth.
- Time: Time is a fundamental constraint. This is not only limited to the amount of time required to complete a task but also the amount of time needed to determining location, obtaining supplies, recruitment process, staff management, meetings e.t.c
- Resources: This is an economic, political, environmental or physical limitation of inputs to complete a task.
- Knowledge: Lack of creative team members
- Regulatory Compliance: Government regulations and laws constraint growth, productivity and profitability. Laws which include environmental restrictions regulating materials used. A good example is a ban of bikes (Okada) and a tricycle on major roads in Lagos state.
- Risk Tolerance: Investors may be sceptical about taking certain risks. The level of an investor’s risk tolerance is a great determinant of the business’ growth constraint.
- Organizational Culture: Cultural policies are often intractable, for example, a social hangout for employees may reduce productivity due to time factor but enhance teamwork, cutting down on social hangout may breed a harsh working environment but it is pro-productive
- The Interest Of Stakeholders: Company stakeholders are oftentimes only interested in the outcome of the business because they have invested in one way or the other, the problem is now in their varying interests, making it difficult for the business to satisfy each one.