Four out of five Nigerian women are doing one business or the other. But three out of four cannot make a living out of their businesses. There are several reasons for this, but a key reason is lack of business structure. Most women owned businesses are not structured. This means that they are not registered with CAC, and they are not properly managed.
Business Registration
Unless a business is registered with the Corporate Affairs Commission (CAC), it cannot access most business opportunities to grow. For instance, it is difficult for businesses that are not registered with CAC to access free business support funds often issued by the government. Banks and lenders cannot also issue loans to businesses that are not registered with CAC. Grant makers cannot award grants to businesses that are not registered with CAC. Investors cannot invest in businesses that are not registered with CAC. Customers, clients, and market actors are reluctant to engage in substantial business transactions with businesses that are not registered with CAC. Most women-owned businesses in Nigeria are not registered.
Business Bank Account
In addition to CAC registration, businesses in Nigeria need business bank accounts to access business opportunities necessary to grow their businesses. For instance, the government requires business accounts to provide financial aids to businesses. Financial institutions issue business credit facilities to business bank accounts only. Customers, clients, and market actors are also unwilling to engage in financial transactions with businesses that have no business bank accounts. But banks require CAC registration certificate to open business bank accounts. Most women-owned businesses in Nigeria have no business bank accounts.
Basic Business Management
Even with CAC certificate, business bank account, good technical skills and enough funds, business will fail without good business management skills. Studies show that most Nigerian businesswomen lack the necessary business management skills to grow their businesses including business plan development, marketing, costing, pricing, bookkeeping and customer service.
Health Insurance
A common setback for Nigerian businesswomen is lack of health insurance. This is because once they become sick or their children become sick, they will use their business funds to pay for medical bills and that’s the end of their businesses. But there is health insurance in Nigeria to protect these business women and their children when they fall sick. Sadly, most of them are not aware of this. All these make it difficult for Nigerian businesswomen to grow their businesses, earn more money and escape poverty.
At YOMI, we are helping businesswomen structure their businesses. Follow link to learn more: YOMI
