Start-ups brainstorm on best ways to tackle business challenges in Nigeria

The number of businesses in Nigeria striving for survival is on the increase and there are so many factors combating the growth of these businesses. These factors include the foreign exchange rate, the interest rate, economic instability, high loan rate, power problem and living condition of Nigeria, among others. These have forced many Nigerian manufacturers to move outside the country where cost of production is relatively cheaper.

This was disclosed by diverse start-ups at Ciuci Consulting Business Round Table press parley, Ikoyi, Lagos recently.

Speaking during the discussion, one of the discussants, Olawunmi Olashire, founder/ CEO Shore foods, a cashew milk producing firm, said that the cost of production in Nigeria is overwhelmingly high with an absolutely poor result.

“The cost of manufacturing in Nigeria is expensive as opposed to producing out of the country. This problem can be related to the forex rate, but not in totality. There are other factors, which include instability of the currency, the high cost of packaging and designs, power problem, labour cost and the likes. These problems led to my preference to manufacture abroad,” Olashire said.

May Ikeora, managing director, L’Avyanna, a facial and body treatment therapy product said, “There is the unprofessionalism on the part of the workers. We are in times where most people claim to be professionals in the jobs and turn out to be the exact opposite. There is the trust issue. Most employees can’t be trusted.

“Once they get the know-how of the products you produce, thy run off to open their own businesses. There are also issues of poor quality in designing, packaging and graphics. These and other limiting factors can lead to capital flight,” Ikeora added.

The impact of social media was emphasised by the discussants, some of who claimed that social media has inadvertently caused a tremendous increase in their sales through awareness but without denying the fact that it can as well cause harm to business if not properly used.

According to Ugochukwu Monye, a fashion designer, “The role of social media can never be over emphasised. It creates awareness. It’s the fastest way to get your business out to the public. But it’s important not to overhype your product out there in the social media so that people don’t feel that your product cannot be afforded.”

Ikeora added that she would rather have her account buzzing than have a million followers on social media who have no sales impact whatsoever on her products.

During the dialogue, the discussants reiterated on the need to stand out and deliver quality products even when the eco-system, economic and political systems are not favourable.

“I am in support of the motion that says perseverance is key. Having the right personal assistant and workers is also key.

“It is important to have the right set of people working for you. It is also of necessity to train your staff to your taste because it is an essential of getting the quality of work we desire,” said Gbolahan Ore, executive director for Perfect PA.

Ikeora added that having the potential for a particular business is key.

In contrast, Chukwuka Monye, managing director, Cuici said,“Theory doesn’t always work. Let us hear the practical solutions to these problems. The purpose here is listening to those that have had experienced this and learn from them so that in all, we can achieve our aims in our various businesses.”

Ifeoma Okeke