Undoubtedly, Nigeria has the largest number of start-ups in Africa, but how well are these companies holding up? Over the years, many vibrant tech companies have been launched in the country, but only a few are sustainable. While many people argue the government is not tech-friendly, others say that start-ups are not proficient enough. However, research shows that employee treatment is the top challenge in tech firms. Staff need to receive quality bonuses and e-Health services.
Online sources like liontips.com provide needed information based on experts’ opinions and observations on sports activities. On the same note, this article further explains the top challenges faced by Nigerian start-ups.
1. Insufficient Funding
Funding a tech company is capital intensive, and the best way most owners can acquire enough money is through loans. However, many have been complaining about the difficulty in obtaining loans from banks within the country. The drawback of most Nigerian banks is also because of the bad loan records from small businesses. Hence, to change this perspective, start-up owners need to put a good reputation out there.
2. Poor Internet Connection
No business can thrive in this technology age without maximizing the internet space, either tech-related companies or not.
Is it not ironic that Nigeria has the highest social media presence in Africa yet has a poor internet connection? This setback affects start-up companies from the planning stage to the execution stage.
All tech companies’ activities will take place online, and if there is a shortage during the development period, it can be discouraging. Big companies or organizations cannot survive with mobile data; hence they need large data quantities.
3. Government Policies
There is a need for the government to create friendly policies that support creativity and innovations. It could be frustrating when the policies keep changing, especially about tax and revenues. To exhibit transparency, the government should be responsible for providing a convincing reason for any change in the agreement. When the supposed policy is unsupportive, start-ups will see no reason to keep thriving in such an unhealthy environment.
4. A Challenging Environment
Many states in the countries are undeveloped while facing insecurities and political instabilities. To some extent, the country naturally has a goodwill atmosphere and resources, but it will only become a nightmare without the government’s deliberate effort. More so, Lagos is the most prominent business area, and seems to be overcrowded. With the unfavorable environment, it has been challenging for start-ups to grow their companies.
So many firms have been discouraged due to one challenge or the other. The most recent is the Crypto firms. Nigeria’s government has been unsupportive of cryptocurrencies innovations from foreigners. However, the country built its alternative, which changed the narration of its activities towards technology. Hence, many new theories were drafted, claiming African is tech-friendly but only needs to put the right things in place. Afterward, Nigeria as a country keeps developing its technology alternatives to foreigners’ own.
Nevertheless, this article only emphasizes the existing challenges for start-up companies and has no political backups. The information provided is to help every owner make a better decision or approach to thrive in African countries.