Startups face tough challenges in the business environment. Getting financial support is difficult because banks have strict requirements and high interest rates, hindering small businesses from growing and making a significant impact on the economy.
Startups play a crucial role in creating jobs and boosting economic progress in all countries.
Nigeria’s economic growth and development heavily rely on Small and Medium Enterprises, which account for around 48% of the country’s gross domestic product, according to the National Bureau of Statistics.
Small and medium-sized enterprises participate in different parts of the economy like farming, production, services, and selling goods.
The Director-General of the National Information Technology Development Agency, Kashifu Inuwa, mentioned in July 2023 that the digitization of Micro Small Medium Enterprises could result in a 26% revenue increase, a 22% reduction in operating costs, and a $53bn boost to the Nigerian economy.
At the TechMyBiz Pitch-A-Thon event in Lagos, Inuwa mentioned this in his opening address, noting that the event was a collaboration funded by the European Union and the German Federal Ministry for Economic Cooperation and Development.
Despite economic difficulties, many Nigerians think it’s more beneficial to empower themselves and start their own ventures rather than waiting for a desk job.
Working under someone has never been Mrs. Chioma Nliam’s preference. Since her university days, She said “she has always had a passion for being self-reliant and managing her own pursuits”.
“During my time in Ghana, I had a strong desire to be independent, which is why I chose to take over my mother’s wine business after completing my studies”.
Nevertheless, the Project Management graduate from Zenith University in Ghana acknowledged the difficulties that come with establishing and running a business in Nigeria.
Nliam highlighted the challenges of starting and managing a business in Nigeria based on his experience of more than 4 years in the industry. Securing a loan for startup is a major hurdle, and keeping an existing business operational is equally demanding, especially with the continuous rise in material costs and rent expenses.
There are approximately ten business opportunities available that necessitate only a small initial investment.
Laundry service
Even though starting a laundry business may require a significant amount of capital, it is feasible to commence operations on a smaller scale within your own room. You can begin without a washing machine and gradually acquire one as your business grows. All you need to establish a laundry business are a table and an iron. With an investment of less than N50,000, you can set up a small laundry service.
Graphic Design
Employing creativity to offer graphic design services to individuals and businesses can be a financially rewarding pursuit. Through the creation of logos, flyers, and other visual assets, one can leverage their design expertise to generate income. Equipped with a laptop and printer, you have all the necessary tools to embark on this endeavor.
Writing Content for Marketing
Utilizing your writing skills to offer copywriting services to businesses can result in earning income. Producing compelling ads and marketing content showcases your profitable writing talents. All you need to start this venture is a laptop. You can still find a good used laptop for N200,000.
Food truck and delivery service
Helping busy individuals and students by preparing and delivering meals can be a lucrative business opportunity. Offering quick meals to those who are short on time for cooking can be a successful venture. The essential equipment needed includes a wheelbarrow, a large cooler (priced at around N15,000), and smaller coolers (priced at around N10,000) for different food items. With an initial capital of N100,000, you can establish this business.
Professional Decluttering Agent
The online facilitation of selling unwanted items for individuals can be a profitable venture when acting as intermediaries between buyers and sellers. With the ability to earn a commission on each sale, there are various avenues for revenue generation in this business model.
Financial success can be achieved in Nigeria by having a great idea and working hard. Entrepreneurs can start rewarding businesses by being creative, meeting market needs, and making a small investment.
POS/e-payment services
The establishment of a point-of-sale terminal also known as POS provides a convenient means of electronic payment solutions. This enables individuals to avail services such as money transfers, bill payments, and airtime purchases, which in turn can generate income. Currently, it is one of the most favored businesses among the youth in the country. To acquire a PoS machine from banks, the cost is approximately N30,000. Therefore, by investing N100,000, one can become a PoS operator.
Reselling Internet Data
Obtaining bulk internet data from telecommunication companies and selling it at competitive prices to customers presents a viable small business venture. Offering affordable internet access caters to the increasing demand for connectivity. With an initial investment of N70,000, one can kickstart this endeavor. All that is required is to procure an adequate amount of data from service providers and begin the sales operation.
Mobile Phone Accessories
Phones and mobile devices have become essential in our everyday routines. These devices require accessories to enhance their functionality. With an investment as low as N200,000, you can establish a store specializing in mobile phone accessories, offering products such as chargers, earpieces, phone cases, and more.
Running a Boutique
The idea of retailing trendy clothing items, either through an online platform or a brick-and-mortar store, remains a resilient business venture. Attracting customers and driving sales can be achieved by sourcing and providing fashionable clothing options. In the case of online sales, the prerequisites are minimal; all you need is a good smartphone valued at around N100,000 to capture and upload product images. On the other hand, if you opt for offline sales, you can start by procuring smaller second-hand clothing items for approximately N100,000 and establish a selling spot at a bus stop.
Shawarma
Making use of the shawarma trend, especially with the youth demographic, by setting up a shawarma stand can offer a profitable business opportunity. Offering delicious snacks to customers can result in significant profits. To start this business, you will need about N150,000. You will have to invest in a shawarma machine for N100,000 and purchase hot dogs and other ingredients for about N20,000, depending on the quantity needed.
