by Omowunmi Oladokun
It is often said that Rome was not built in a day. Oh yes! It took time, strategies and thoughtfulness to build it into an incredible stage.
Research has shown that there are more small business in every country than large enterprises. Afterall, they are the ones that later grow into big empires. Small business are the life and blood of the economy. The economy cannot survive and thrive without the impact and effect of small businesses.
HINDRANCES AND SOLUTION TO THE GROWTH OF SMALL BUSINESSES IN NIGERIA:
Excess Taxation : large companies pay taxes just like small companies. Despite the peculiarity of the times that we are in, the government still expects every enterprise both small and large to file their annual returns which reveal how they have complied with the requirements of owning a company in Nigeria including the payment of taxes. Ways to reduce the amount of taxes to be paid must be sought carefully by all means. Ways to ameliorate excess taxation may also be employed by paying attention to tax holidays or tax exception policy without necessarily having to evade payment of it.
Procuring Assets: the rates of rent fluctuates year in year out. Even small and start ups spend a lot to procure assets for the use of the company like land, power supply e.t.c
Maintaining Assets: it is very important that small business are able to manage and maintain there assets no matter the season. The amounts that some companies spent in maintaining assets are more than the amount used in procuring the assets. Assets that are consuming excess fees should be trashed and substituted with affordable ones which the company can always squeeze out without running into debt. Better ways of maintaining assets may be sourced for. If generating power is becoming more expensive for a company, it is essential that such establishment sit and reconsider ways of reducing the amount spend
Income: Both daily, monthly and yearly income are very essential to the growth of a company. Any institution or organisations that do not pay attention to the gaining, spending and loss of income may soon crash.
Lack of Investors and Partners: no one man can solely carry the burden of an establishment without breaking his back. Finding partners, contributors and investors help relief the great burden that may sit on one person. There is an adage that says that it is better for two or more to decide than for one to think it through only.
Mastering and Following Ideologies of Large Enterprises : Some large companies have strategies and ideologies that they have mastered and have laid out for years that have helped them to stand firm despite the challenges that may face them. Buying into their concept and adopting them may help small business to thrive and survive during bad times. There is an utmost possibility of taking off and attain levels that they may never have imagined.
RISK MANAGEMENT: this is a new concept gradually gaining ground in the 21st century. It entails identifying and assessing potential risk and devising the means to control or avoid them, in simple word, it’s the ability to get rid of reduce risk that may arise in your business. Just like pumping your car tyre to enable it travel for long, risk management is important for the long run equilibrium of any business. Just like a farmer who has provided water dispensing mode for crop to avoid the drought season consequences or poultry farmer who had immunized the chicken to avoid the spread of diseases.
In conclusion, governmental policies and other factors are shrinking small businesses and enterprises in Nigeria. Adopting safe measures to manage resources both human and non human concepts are able to help ameliorate the difficulties that may face them from time to time.
