Business In Nigeria – Nigeria Business Environment
Nigeria has a unique business environment, despite what seems to be a failing system. The business environment has always been dynamically orchestrated by the interplay among the various elements as well as factors of the environment. Consequently, both the established and budding entrepreneurs are better off when they consciously appreciate the business environment and the interplay of its elements especially as the longevity of their investments depends on the extent to which they understand and respond to the environmental dynamisms.
By consideration one can say that business in Nigeria could be adapted into, however, the business environment presents opportunities and threats to the activities of the entrepreneur. As a result the entrepreneur knowing his strength, weakness, opportunity and threat (SWOT) in the environment attempts to transform his weakness into strength and threat into opportunity in order to remain creative and innovative, which will on a long run keep him in business.
The failure of any entrepreneur to create the confidence between his strength, weakness, opportunity and threat (SWOT) and the various elements as well as factors of the environment craves for avoidable business failure. There is, therefore, need for entrepreneurs to have in depth knowledge of the past, present and most importantly future conditions of environments in which they operate and would operate.
Business In Nigeria And The Concept Of Business Environment
The entrepreneurial environment is seen as institutions, individuals, policies, laws and the like and even the act of God that directly or in directly affects the desired operations of entrepreneurs/intraprenuers.
It is simply the forces that will either make or mar the effective operations of any desired entrepreneurial activities. The forces could be external or internal to the entrepreneur and his operations. Howbeit, knowledge of the business environment with probable attended changes is important to the entrepreneur especially as it enables him to;
- Identify the place where he ought to begin his search for opportunities and threats;
- Intelligently scan and monitor the changing business environment;
- Provide contingently plans to meet with swift and radical changes in the environment;
- Make provisions for buffer stock to cushion the effects of sudden shortage of raw materials and goods.
The business environment is divided into two. One is the external environment, the other is the internal environment.
The external environments – Also known as the macro environment is made up of the forces that directly or indirectly affect entrepreneurial activities but are beyond the control of the entrepreneur. The external environment includes among others act of God, legal, international political, economic, socio-cultural and technological environment (ALI-PEST).
The internal environment – This represents the forces that create opportunities and/or threats to the sustenance of entrepreneurial activities especially as it relates to the intreprenuer. Another name for the internal environment is micro environment. The elements of the internal/micro environment are found within the boundaries of the entrepreneur. The entrepreneur to a great extent has control over the internal environment. These elements are owners, board of directors, employees, customers, suppliers and competitions (OBEC-SC).