Starting a Business or Working for Someone in Nigeria
Are you considering starting a business in Nigeria or looking to work for someone else? The decision is tough and can have different implications depending on the Nigerian business landscape.
The economic situation of Nigeria in recent years has been turbulent. On the one hand, the government has promoted incentives to launch and scale businesses, but on the other hand, employment prospects aren’t always stable or secure. Both potential avenues must be studied to decide what path to take - a business or an employer.
Starting a business in Nigeria carries its share of risks and rewards, as does working for someone else. In this article, we explore the pros and cons of both scenarios so that you can make an informed decision about which option best serves you in pursuit of financial success.
Pros and Cons of Starting a Business
Daily income businesses in Nigeria are prevalent, and you can capitalize on the growing economy by starting your own business. Yet, before doing so, it is important to understand the pros and cons of launching a business in Nigeria.
Pros of Starting a Business
Flexibility is one of the major selling points of entrepreneurship. It allows you to take control of your schedules and accommodate your personal preferences. Scheduling isn’t the only area where entrepreneurs have control; you can also dictate your best working environment. It could be in an office, outdoors, at night, or in the morning.
This level of freedom makes you more productive and efficient with your time. Studies have indicated that entrepreneurial endeavors often lead to diligent workers who prefer to multitask on various tasks simultaneously instead of focusing on one task at a time.
2. Financial Rewards
While starting a business can be challenging, several rewards exist. You don’t have any employees or partners, so you don’t need to worry about paying their wages. However, even if you expand to a small team, fewer people will take a cut from your earnings. Moreover, once your business starts bringing in profits and there is sufficient capital to cover bills and taxes, you, as the owner, can start taking home a salary each month.
Starting a business is great if you have an idea or a hobby from which you want to make a living. You can express your passion like no office job ever could. It also allows you to live according to your values without compromising someone else’s agenda. Instead of dreading every morning waking up for another day at a job you detest, business ownership offers you the joy of creative practice and calls on your ingenuity as an owner.
Cons of Starting a Business
1. Requires Significant Capital
Making the first financial and material commitment to launch a business in Nigeria can be challenging. Even if you have part of the necessary funds in the form of loans or personal savings, you may still require additional contributions from other sources.
2. Requires Time and Hard Work
As a business owner, you may work long hours regularly. This is especially true during the initial stages of starting and managing your business. You will be responsible for overseeing all aspects of running the operations effectively and efficiently, from networking to marketing to customer relations which can add up to many hours of work per day.
3. Risk of Failure
As with any business venture, there is a risk of failure when starting a business. You could encounter financial difficulties due to a lack of capital, poor management decisions, or an unprofitable market. The success of your business can also depend on unpredictable external factors such as the economy, competition, and customer preferences.
Pros and Cons of Working for Someone in Nigeria
Working for someone else in Nigeria has its own unique set of risks and rewards. Here are some pros and cons when deciding whether to become an employee or pursue entrepreneurship.
Pros of Working for Someone Else
1. Financial Security
Having a regular job and knowing you will get paid monthly is an important source of stability. You have the peace of mind that comes with knowing you will receive money to cover your living expenses and any savings or investments. This means you can continue to do your job without worrying about clients not paying, a business project falling through, or other financial catastrophes that could disrupt life.
As an employee, you enjoy many benefits, many of which are unavailable to self-employed people. Employers often offer paid vacations and sick days to ensure that employees get adequate time off to recharge and come back productive and ready to work at the start of a new week. This can make an enormous difference in terms of employee motivation.
3. Definite Working Structure
Working for someone else provides a definite working structure that can benefit in many ways. You have clearly-defined roles and responsibilities with expectations spelled out in advance. Thus, you can plan and anticipate the tasks you will need to complete daily or weekly. It also helps make sure that you are held accountable for your work.
Cons of Working for Someone Else
1. Limited Opportunities for Advancement
When working for someone else, you are limited to what your employer can offer regarding promotions and salary raises. You may also be restricted in terms of the projects you can take on, and the types of activities to explore that would help you grow professionally. Thus, you will have less control over your career growth and advancement.
2. Little Autonomy
You are subject to your employer's decisions and directives as an employee. This suggests that your opinion won't always be considered, even if you have a different position or strong feelings about a certain issue. Also, you are powerless over how you plan your day or when you work.
It doesn’t take long for anyone to feel bored in their job. The repetitive nature of tasks and the same office atmosphere day after day can quickly lead to ennui and apathy. When you come into contact with monotonous activities, mundane procedures, and dull conversations, it is only natural that you become frustrated and eventually lose your motivation to work.
Starting a business or working for someone in Nigeria has risks and rewards. While starting a business can be a great way to achieve financial freedom and autonomy, it risks failure due to a lack of capital, poor management decisions, or unprofitable markets. On the other hand, working for someone else in Nigeria provides more financial security and benefits but limits opportunities for career advancement and autonomy. It is important to consider both sides carefully before making a decision.