The astute professor highlighted that four key factors
were responsible for the dearth in startup businesses in Nigeria and he listed
them as Finance, ineffective management, environment and corruption. The
prestigious premier university in Nigeria; the University of Ibadan sponsored
2004 environmental business research published ‘The Nigerian factors that make
Startups Fail’. This publication listed several factors but concentrated on
corporate internal affairs such as mismanagement, wrong staffing order,
misappropriation of resource and control, poor remuneration and lack of
motivation of employees.
Although both reports and several others have
attempted to point out some of the reasons Startup Businesses fail in Nigeria
using different methodology not as standardized as mine, non-have been able to
clearly dig into what I call the ‘Root’ causes of high rate of failure of
startup companies in Nigeria. This research will be more on in dept findings
and more beneficial; using findings from
chief executives of 30 Startup companies that failed in Nigeria between 2000
and 2015. Background story will be summarizing the multinational company Econet
that met its very untimely end in Nigeria (Masiyiwa, 2015). This research will be using it as a case
study to express why such high problem companies fail in Nigeria.
So my research will avoid narrow findings which that
of Professor Abiodun A. Abiodun have made as a mistake. There was no in dept
research conducted to dig out the root of the cause. Until the root cause of
something is found, the solution will continue to waver. I will use deeper
methodology and spend more time and efforts to conduct research with the main
contacts of CEO of business owners.
The two researches tipped above failed to give some
social accounts that militate and give rise to fall of startups in Nigeria.
This research will therefore not fail to observe to look into those
socioeconomic, political and conventional causes of startup failure in the
2.2.1 ROOT CAUSES OF STARTUP FAILURE IN NIGERIA
The various factors of startup failure in Nigeria could
be classified under environmental, social, cultural, economic, political and
even traditional. In 2014, the World Bank surveyed over 2000 small Nigerian
Business and outlined the biggest obstacles to doing business in Nigeria and
found the following challenges in the table below.