Seven Ways to Empower Women Into Business Enterprises

In 2008, the United Nations Population Fund (UNFPA) reported that 52,000 Nigerian women were dying annually due to pregnancy and child-birth related complications. In more comprehensible terms, the number translates to 145 women per day.

Population is a critical asset for any nation, with far-reaching social, political and economic consequences. In Nigeria, it also happens to be a controversial issue because of regional, inter-state and ethnic ramifications. Its dwindling female population however has consequences that go much beyond the immediately obvious effect of a rapidly skewing sex ratio. Nigeria has ambitious rapid development plans to take it to the top twenty world economies by 2020. The eventual success of this endeavor is inextricably linked to entrepreneurial performance, as well as to the management of its womenfolk who comprises close to half its total human resource.

Although there are dissenting voices on the subject, it is widely accepted that women in Nigeria are systematically discriminated against, harassed and abused at home and work, and suffer violent crimes and unequal treatment both within their homes and outside. Deep-set regressive and repressive practices have led to unabated misery for Nigerian women in various forms: social inferiority, economic disempowerment, denial of access to property and inheritance, sexual abuse, trafficking and proliferation of HIV/AIDS.

A 2000 World Bank study titled ‘Can Africa Claim the 21 Century’ sets forth two fundamental premises that hold especially true for Nigeria2:

* Gender inequality is both an economic and a social issue.

* Greater gender equality could be a potent force for accelerated poverty reduction in Africa.

Given the acute poverty situation in Nigeria – where close to 76 million are officially classified as poor and 54% of the citizenry live on less than $1 per day – women’s empowerment and their worthwhile inclusion in the development processes is key to sustainable growth. The country has huge oil and natural gas reserves that have earned it an estimated $600 billion in the past half a century. However, successive decades of political turmoil and government mismanagement have rendered the vast majority of its people destitute, and left facing multifarious problems arising out of unequal wealth distribution and an extreme divide between rich and poor. Illiteracy, unemployment, rampant crime and organized violence are just a few of the outcomes of this unfortunate situation.

The impact of Nigeria’s history has been particularly severe on its women, leading many to take up traditional, village-level enterprises to eke out a meagre subsistence and supplement family income. The motivation here, importantly, is basic survival – food, clothes, household needs – and not wealth creation. Faced with often insurmountable circumstantial challenges, individual and groups of women entrepreneurs have traditionally held on to extremely small scale ventures in the manufacturing and services sectors, largely without any organizational support or guidance.

Curiously, this sad state of affairs is simultaneously an attribute that offers policy makers a substantial if dormant advantage. By virtue of their involvement in cottage and village level enterprises, Nigerian women are already an active entrepreneurial group with uncharted economic and human resource potential. To perhaps overtly simplify, all they need is a policy-level nudge in the right direction to help them capitalise on their accrued talents to bring about exhaustive development across the battered landscape of their country.

The fate of both Nigeria’s 2020 target and Millennium Development Goals hinges substantially on its ability to drive an entrepreneurial revolution that suitably develops and taps the latent abilities of its massive female population. The following are 7 creative proposals that could make it happen:

1. Introducing legal reforms to ensure equal rights of women to ownership, inheritance and financial control; with a view to reinforcing their special skills and advantages and leveraging them for immediate and long-term macro-economic gains, at both local and national levels.

2. Re-prioritising budgetary outlays and official expenditure models with the specific objective of improving gender equality, through the introduction of special schemes and programs that effectively encourage women’s involvement in entrepreneurial activities.

3. Enforcing equitable gender participation through the development of focused entrepreneurial activity for women that takes their socio-cultural, legal and economic constraints into account. Policy changes must be initiated to overcome hurdles in the gainful involvement of women in viable enterprises.

4. Initiating government incentive programs for existing and emerging enterprises that proactively involve women in different hierarchies. Educating present and future entrepreneurs on the unique business and social advantages they stand to derive from this dynamic group.

5. Facilitating partnerships between women and financial, advisory and support agencies; in a way that compensates for their lack of formal business acumen, experience and access to funding. Fostering partnerships between women entrepreneurs in related sectors to help share expertise and resources.

6. Instituting effective start-up and ongoing support structures with safety net provisions to provide continuous financial, technical and know-how assistance and minimize failure rates. Ensuring ground level efficacy of such measure through continuous monitoring and survey.

7. Enhancing accountability on women empowerment issues at both state and federal government levels through unbiased assessment of executive agencies and relevant state-sponsored programs. Suitably highlighting achievements and deficiencies to enable constructive evolution of such practices.

In terms of subjective ground reality, these suggestions are by no means definitive or exhaustive; however, they do hold up the broad framework that any substantial policy redirection must incorporate in order to achieve the sustainable and accelerated economic growth Abuja has projected. Localized adaptation is necessary for each guideline in order to suitably address historical and regional imperatives. Further, there is a considerable amount of introspection and groundwork that must be undertaken before these parameters can be put in place. Basic human development initiatives, especially those related to easy and universal access to health care and modern education, are paramount. Nigeria has inherited a broad spectrum of fundamental deficiencies concerning infrastructure, logistics and power that have to be sufficiently addressed beforehand. There are additional and considerable risks attending to policy changes that have to be both acknowledged and anticipated.

For the purpose of encouragement, what Nigerian leaders and policy makers would perhaps do well to take heart in is an old aphorism: one that says you invest in the entire community when you invest in women!

10 Good Reasons Why Small Enterprises (Small Businesses) Fail

You’ll agree with me that there are so many small businesses which have contributed a lot to the growth of economy. They have created employment opportunities for many families although some remain to be small throughout their operational life.

It is obvious that those who are starting new ventures have objectives to achieve. And to mention each business has got its own objectives to achieve such as maximization of profits and sales, minimize costs, maintain a certain level of production and labor force etc.

Failing of a business opportunity is what an entrepreneur won’t want to happen. Inasmuch as we agree with the fact that there are firms which have succeeded, we should also accept the fact that a good number of them have failed even before two years lapse after they commence business.

If aspiring entrepreneurs addressed the reasons why small businesses fail, then they will not fall to be victims of the same causes of failure. This is because they’ll be in a position to identify these causes and fix them before it’s too late.

Now you may be asking yourself as to why some businesses remain to be small throughout their operational life despite some of them making profits or are capable of growing.

4 Reasons Why Small Business Remain to be Small

1.) The owners of these businesses prefer not to expand their businesses. Some sole proprietors do not want to be bothered with the challenges of managing a big business. They don’t want to employ people to assist them in running their businesses but instead they prefer to be assisted by their family members.

2.) The nature of the product/service the business is involved in doesn’t allow expansion. There are people offering products/services which make it difficult for their business to grow.

3.) Lack of capital for expansion. There are small businesses which are viable and have the potential of growing but they lack enough capital. Such businesses have the challenge of securing funds from financial institutions. Lack of capital plays a negative role in hindering the growth of small businesses.

4.) Very low demand. If the business has a very low demand for its product or service, then at the end of the fiscal financial year/trading period the business won’t realize profits, and if it does, it’s very low, therefore the chances of it expanding are very minimal. Just to mention, realization of inadequate profits as a result of very low demand hinders the growth of small businesses.

However, there must be a starting point and as such, every business starts as a small entity and it gradually grows to a medium entity and eventually it becomes a big business entity which is either a private limited company or a public limited company. Note that a partnership business can also grow to become a big business.

Reasons Why Small Businesses Fail

1.) Wrong Reasons For Commencing Business: People who start a business for wrong reasons haven’t succeeded. Just because another person is making high profits in a certain line of business doesn’t mean that you will also make the same amounts of profits as him/her if you start the same business.

2.) Poor Business Management: When there is poor management of the business it becomes difficult for such a business to succeed in its operations. Finance, marketing, purchasing and selling, planning, hiring and managing employees is what most new business owners fail to execute effectively thus making their small businesses to fail.

3.) Lack of Commitment: Starting a business requires someone who is committed in ensuring that it succeeds. Neglecting the business will cause the business to fail. Many small businesses have failed because the owners didn’t take their time in monitoring performance and in marketing them. Some business owners leave their businesses to be managed on their behalf by incompetent people who lack book keeping knowledge and the knowledge of managing a business.

4.) Lack of Finances: Small businesses have failed because of lack of adequate finances. Some of the owners underestimated the amount of capital required and as a result of this underestimation some ended up running out of operating capital thus ending the operation of their businesses.

There are those who have no reserves which has led them not to be able to take care of loses and disasters when they occur thus making them to quit business.

5.) Over-Expansion of the Business: This has led to failure of many small businesses. This happens when there is borrowing of too much money beyond what the business requires so as to expand the business. Moving to markets that are not profitable is also over expansion of the small businesses.

An ideal expansion is the one that is driven by customers due to their high demand for the products and services which leads to high sales thus the business experiences good cash flow.

6.) Location: The place where the business is located is critical in determining its success. Small businesses have failed because of them being located in areas that are not ideal for business. They should be located in areas that are accessible, populated with people and has demand for their products and services.

7.) Personal Use of Business Money: This is the biggest challenge facing many small business owners. They withdraw money meant to operate their businesses to meet their personal wants and needs. If they continue to withdraw money from their businesses without returning it, their businesses will eventually run out of finances therefore forcing them to end the operations of their businesses.

8.) Lack of Delegation: Small enterprises have failed due to owners not delegating some of the duties to their employees. They think that if they delegate them, then their employees will not perform these duties as they would personally perform them. When such owners fall sick or are away from their businesses, then the operations of some tasks will be paralyzed till they resume to work.

9.) Not Diversifying: Small enterprises which have only one product/service to offer are prone to fail easily compared to those that have a variety of products/services.

10.) Procrastination and Poor Time Management: Postponements of tasks which the small business owners feel to be unpleasant to perform has made the small businesses to fail. An example of such tasks include following debtors to pay their debts (debt collection).

Time management remains to be a challenge for many people who own small businesses. If important tasks like delivering products to customers, purchasing stock etc are not handled in the appropriate time, then the business will lose its customers.

The above are not all the reasons why small businesses fail, there are more reasons.

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