It is a known fact that many entrepreneurs in Nigeria are unable to identify good business opportunities because of the copycat syndrome. A lot of them jump into business without proper research or investigation. For these sets of people, what matters to them is just to start a business.
Nevertheless, as a business mentor I have observed that most entrepreneurs’ ventures began with a
personal problem in the founder’s life therefore, l would recommend that the startup conducts a market research to prove whether the business idea is viable or not. By this I mean, using industry & market research(primary & Secondary) to define the competitive landscape and determine the target audience, as well as interviewing people and carrying focus group surveys who fit into the target demographics. By doing so, the startup/ entrepreneur is able to gather feedback from real people and this will enable them to consider their perspectives and gain a deeper understanding of the customer’s motivations,
frustrations, fears and desires. This process will help to conceptualize whether the idea/product/service addresses a job to be done and the size of the target audience that could benefit from it. So, starting with a personal question can help determine if opportunities are low or high for new market breaks.
Studies have shown that SMEs in Nigeria face various challenges including identifying opportunities around
them. Top on the list of these challenges are Access to Market and Access to finance. Others are; lack of
knowledge of government policies and other environmental factors and how they affect businesses. Then inadequate infrastructure that should help propel the business and of course, political, economic and social/ environmental situations. Last but not the least, is the multiple taxes by the central, state and local governments, respectively. Although many aspiring entrepreneurs start with an idea for a new business, the question remains if the idea is a business opportunity? In other words, will that idea fulfill the needs and solve the problems of the customers or meet the expectations of the customers. So, my advice is to consider the viability of the proposed business. That is to assess if the business idea is viable before thinking about the opportunity therein. Thereafter, to scan the environment to identify economic, political, social and technological opportunities particularly in this era of insecurity and insurgency being experienced in some parts of the country and also to see how the entrepreneur can maximize the identified opportunities so that growth can be established and the business sustained.
It is very important for SMEs generally to regularly monitor political developments, analyze new policies particularly when there is a change in government. They should also monitor the state of the economy as this will help to determine the spending patterns of the customers and stay informed with the social trends as it relates to the insecurity challenges in the country and the respective communities. As a matter of fact, entrepreneurs need to scan their macro and micro environment properly and create a business model and strategy that will help them to solve the problems as it surfaces. Finally, each entrepreneur needs to create a unique business model that will create a good value proposition, build good customer relationships that would encourage enhanced revenue streams.
