10 Problems of Large Scale Business in Nigeria

Young entrepreneurs are faced with many difficulties amounting to Problems of Large Scale Business in Nigeria.

Despite all the efforts of the government, the progress of entrepreneurs who want to delve into large-scale business in  Nigeria is still limited due to financial,  infrastructure, and business climate challenges.

Also Read: Positive and Negative Impacts of Youth Migration in Nigeria

The contribution of small and large-scale businesses in Nigerian enterprises in a knowledge-based economic system is very salient for the economic growth and development of a developing nation like  Nigeria.

List of problems of large-scale business in Nigeria.

CHALLENGES MILITATING AGAINST THE GROWTH OF LARGE-SCALE BUSINESSES IN NIGERIA and Problems of Large-scale Scale Business in Nigeria are as follows:

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Inadequate, inefficient, and at times, non-functional infrastructural facilities, which tend to escalate costs of operation as SMEs are forced to resort to private provisioning of utilities such as road, water, electricity, transportation, communication, etc

Bureaucratic bottlenecks and inefficiency in the administration of incentives and support facilities provided by the government. These discourage would-be entrepreneurs of SMEs while stifling existing ones.

Another Problem of Large Scale Business in Nigeria is the Lack of access to appropriate technology as well as the near absence of research and development.

High dependence on imported raw has a negative impact on large-scale Business in Nigeria which results to materials with the attendant high foreign exchange cost and scarcity at times.

Weak demand for products, arising from low and dwindling consumer purchasing power aggravated by a lack of patronage of locally produced goods by the general public as well as those in authority.

In my opinion, this is the greatest drawback of Large Scale Business in NigeriaUnfair trade practices characterized by the dumping and importation of substandard goods by unscrupulous businessmen.

This situation is currently being aggravated by the effect of globalization and trade liberalization, which make it difficult for small and large businesses to compete even in local/home markets.

Another Problem of Large Scale Business in Nigeria is the High incidence of a multiplicity of regulatory agencies, taxes, and levies that result in a high cost of doing business and discourage entrepreneurs. This is due to the absence of a harmonized and gazette tax regime, which would enable manufacturers to build in recognized and approved levies and taxes payable.

Widespread corruption and harassment of Small, Medium, and Large Business Enterprises SMLEs by some agencies of government over unauthorized levies and charges. This poses a great danger to startups and hence poses Problems for large-scale businesses in Nigeria.

Lack of appropriate and adequate managerial and entrepreneurial skills with the attendant lack of a strategic plan, business plan, succession plan, adequate organizational set-up, transparent operational system, etc on the part of many founders and managers of businesses in Nigeria.

As fallout of this, many of the promoters purchase obsolete and inefficient equipment thereby setting the stage ab initio for lower level productivity as well as substandard product quality with enterprises.

The granting of loans or credit is still a major problem as many of the SMEs are unable to access such funds. Also, there is the problem of information between the loan provider and the loan receiver as to the availability, cost, and mode of assessing such funds.

FAQs

What are the major infrastructure challenges faced by large-scale businesses in Nigeria?

Large-scale businesses in Nigeria often struggle with poor infrastructure, particularly inadequate power supply, inefficient transportation networks, and unreliable telecommunications systems. These issues increase operating costs and reduce productivity, as businesses have to invest in alternative solutions like generators and private logistics.

How do government regulations impact large-scale businesses in Nigeria?

Government regulations can pose significant challenges for large-scale businesses in Nigeria due to bureaucratic inefficiencies, corruption, and unclear or constantly changing policies. Delays in obtaining permits, excessive taxation, and inconsistent enforcement of laws make it difficult for businesses to operate smoothly and plan for long-term growth.

What role does the lack of skilled labor play in affecting large-scale businesses in Nigeria?

The shortage of skilled labor is a major issue for large-scale businesses in Nigeria. Many companies struggle to find workers with the necessary technical expertise or management skills. This can hamper growth and innovation, as businesses are forced to either invest heavily in training programs or hire foreign workers, both of which increase operational costs.

Conclusion

These Problems of Large Scale Business in Nigeria is a very big disadvantage to the young entrepreneur who wants to enter into business, it has been heavily criticized by most government agencies and yet, nothing has been done to curb it.

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