Why Business Partnerships Fail Mostly in Nigeria

Are you looking to form a partnership in your business? Here is the deal,

partnerships are great but they come with so much uncertainties and bottlenecks

but if these are identified in the beginning and taken care of then it's a good deal

because of the positive side to it, you'd have access to more funds, two heads

[or more] they say are better than one and access to more skills, knowledge,

ideas, contacts, easy to establish and other benefits.

 

In past times, a lot of Nigerians engaged themselves in one or two businesses

to promote economic growth and to earn a living for themselves and their families.

Unfortunately it has been observed from past findings and experience that most of

them do not live up to expectations.

 

It is a pity that around here, immediately business is mentioned, the only thing

that comes to the mind of a typical Nigerian is buying and selling of goods.

Business is broader than that. Business is basically any lawful activity one

engages him or herself with lawfully to earn a living.

 

Business ownership is classified into two:

(i)            Public enterprise and

(ii)          Private enterprise

The private enterprises consist of sole proprietorship, cooperative society and

partnership etc.

I would concentrate mainly on issues that surround the partnership business.

A business partnership can be said to be any business relationship between two

or more persons who jointly own and manage a business entity.

The maximum number is usually 20 persons. 

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10 Problems Of Partnership Business In Nigeria

 

1. Poor sources of funds:

The major source of funds for partnership business is from their little savings and

gifts from friends which usually is not enough. 

 

2. Poor feasibility studies:No business survives or has a smooth sail without forecasting and knowing the

future of the business.

 

3. No clear laid down rules and regulations:

Most partnership businesses do not have clear laid down rules as a guide to the

business and ownership and this most of the time, leads to utter disagreements

which in turn leads to disharmony and finally winding up.

 

4. Inability to differentiate between business and personal

affairs:This happens especially where the partners take up the business property as

their personal property. There should be set boundaries and should be clearly

communicated to all the parties.

 

5. Negligence on the part of some partners:

Most of the workers because of numerous engagements easily show a

nonchalant attitude towards defining responsibilities.

 

6. Poor decision making process:This has made many investors wind up. Not having a clear understanding of

government decisions can affect or be a constraint to every other decision.

 

7. Lack of competitive awareness:

Many partners in Nigeria don’t take the reactions of the competitors into

consideration, like issues of price tags, special discounts, social media

trends, and knowledge etc.

 

8. Personal strength and weakness in business: 

Many of the business owners don't assess their personal strengths and weaknesses in business how it affects the growth of the business, hence they experience failure.

 

9. Lack of proper bookkeeping or accounting process: 

This can affect the business negatively. When proper records are not kept or the records lack credibility then the future of the business is threatened. They ignore the accounting procedure of handling business thereby having poor accounting records.

10. Lack of the technological know: 

This also causes businesses to fold up or breeds disputes if terms and conditions are not clearly stated from the on set. Where a partner have more knowledge than the others.

In summary, 

Many people who go into business partnerships have regretted it due to the fact that they did not have adequate training or information before they went into the partnership. Which in return resulted in conflicts and the partnership being dissolved or business folding up. 

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