Over 80percent of small businesses fail within the first five years—not due to a lack of ideas or funds, but because they lack entrepreneurial vision. As we prepare to step into 2025, the question is: will your business be among those that thrive, or will it falter?
As the year comes to a close, business owners deserve applause for navigating the ups and downs of 2024. Micro, small, and medium businesses have weathered numerous challenges, and while some were consumed by these hurdles, others emerged stronger. As we approach 2025, Nigerian micro and small businesses must recognize the shifting economic terrain—a landscape filled with challenges and opportunities. One of the most critical obstacles business owners face is achieving scalability and sustainability. If Nigerian businesses aim to scale, remain sustainable, and compete effectively, business owners must adopt an entrepreneurial mindset.
2025 is the year for bold moves. Why settle for running a business when you can build a generational legacy?
Running a traditional business is like paddling a canoe upstream, while entrepreneurship equips you with a speedboat to navigate turbulent tides. Traditional business owners focus on daily operations, serving customers, maintaining profitability, and staying within familiar boundaries. While these efforts keep the business afloat, they often limit growth and scalability. For instance, many business owners operating for over five years still have the same assets, customer base, and profit margins.
Entrepreneurs, on the other hand, are vision-driven, innovative, and strategic. They constantly seek expansion and sustainability opportunities. Transitioning from a traditional business model to an entrepreneurial one involves adopting proactive, forward-thinking approaches to growth and taking calculated risks.
The global economy is becoming increasingly competitive, and traditional businesses reliant on fixed models struggle to adapt to sudden market shifts. In 2025, businesses will encounter a surge of opportunities—from emerging markets and untapped customer segments to innovative products and services. Entrepreneurs who embrace these changes will be the ones who thrive.
Entrepreneurs excel at innovation and problem-solving, adapting to evolving trends, customer demands, and technological advancements. This adaptability ensures their businesses remain competitive and sustainable.
The rapid advancement of technology in 2025 offers unprecedented opportunities. Digital tools, artificial intelligence, and automation will streamline operations and enhance efficiency. Businesses clinging to traditional models that resist these advancements risk obsolescence.
Many small businesses operate without a long-term vision. A vision provides clarity on where the business should be in five, seven, or ten years. Without it, growth is nearly impossible. For example, a local business owner offering basic typing and printing services might remain stagnant for years, while a visionary entrepreneur in the same field could expand to multiple outlets or diversify into new services.
Technology is a tool for growth, not a threat. From improving customer experience to streamlining operations, leveraging technology is essential. Business owners must invest in digital tools, learn their applications, and incorporate them into their operations.
Entrepreneurs think outside the box. In 2025, small businesses must avoid monotony, rethink processes, and innovate to achieve better, faster results. Innovation could involve adopting new marketing techniques, creating unique products, or exploring untapped customer segments.
Continuous learning is critical. Attend training sessions, learn modern business practices, and network with other entrepreneurs. A robust network not only provides support but also opens doors to opportunities and partnerships.
Proactivity is key. Instead of reacting to changes, anticipate them. Create trends rather than follow them by identifying opportunities early and acting on them strategically.
For small businesses to successfully transition to entrepreneurial models, the Nigerian government must play a supportive role. Entrepreneurship is not just a tool for personal growth but a driver of national economic development. The Ease of Doing Business Index for Nigeria must improve. Simplifying processes for business registration, tax filing, and permit acquisition would encourage more businesses to formalise their operations.
Introducing and expanding loan schemes with reduced interest rates, simplified application processes, and flexible repayment plans would offer much-needed financial support. The government should also offer grants and micro-credit facilities to foster business growth.
Running entrepreneurship training programs for small business owners would equip them with the skills needed to foster innovation. Incentivising informal businesses to formalize through tax breaks, financing, and training programs would bring more enterprises into the formal economy.
Encouraging large organisations to source goods and services from Nigerian small businesses through enforcement of local content policies would promote local production and growth. It is essential to ensure that funds and initiatives targeting small businesses are free from corruption. Regular audits should monitor the progress of these programs to build trust and accountability.
By adopting entrepreneurial models and with deliberate government support, Nigeria’s small businesses can transform into engines of innovation, resilience, and economic growth. Together, we can make 2025 the year Nigerian businesses rise to their full potential, creating a legacy of excellence and prosperity.
Ejinkeonye-Christian, a certified life coach and business educator, is the CEO of Phebeon Consulting And Media Solutions Ltd., Nsukka, Enugu state, Nigeria. She can be reached at +234(0)708-048-0510 or [email protected].
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