of experts but could not get them.of experts but could not get them.

of labour will be useful
in every establishment. When startups get founded, they always have problem hiring
the needed labour, especially the skilled labour. Technical companies like the
Econet Wireless needed experts but could not get them. Over 200 foreign experts
were flown into Nigeria and that was a huge investment. If Nigeria had
engineers, would Econet have to do such work to get started? Well no. many
startup face exactly the same challenge even today. Since there’s not enough
investment in education, training and development of the labour force,
businesses have continued to live in the hard truth of either investing in
immigrating foreign experts or using the unqualified local labour. Although the
value of labour force have increased significantly from 30 million in 1990 to
about 55 million in 2014 (CBN/NBS) the international labour organization still
worry about the kind of skill Nigeria population have for some specialized
jobs. Emphasis is being made on ‘what kind of training do our university
graduates have’? The economically active population of working age population
(Persons within ages 15 to 64) has increased to 105.02 million in Q4 2015
according to Nigerian Bureau of statistics Unemployment/Underemployment Q4 2015
report.

Of all the
executives interviewed, 89% agreed that lack of needed labour largely
contributed to one of the reasons why they folded up. That’s a staggering statistics;
it means that the country lacks a very vital factor of production.

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2.2.5:
LACK OF PROFESSIONAL FINANCIAL MANAGEMENT

Most startup
entrepreneurs initially made a confident remark that they had insufficient financing
and that contributed to over 50% of their failure. Nine out of ten
entrepreneurs complained that insufficient funding was one of their major challenge
when they started and I took my time to ask them questions and realized that
they all had enough startup capital; a minimum amount of funds required to
start their business. This research helped all interviewees locate where the
financial problem of their startup lied; it was in their inability to properly
handle basic but very vital financial responsibilities. Financial management is
very important in startup. It involves ability to do accurate business plan, book
keeping and proper allocation of funds. Most startup entrepreneurs take for
granted the need to hire experts to help with accounting and finance. They take
all financial decisions even at the detriment of their own startup companies.

Startup
entrepreneurs differ from medieval business founders in several ways. They are
referred to as geeky and very passionate about their ideas. No matter how smart
they are in creating concepts and ideas, they will always do poorly when they
do not hire the services of professional financial officers who would help them
with financial decision making. Entrepreneurs always see themselves as the
‘boss’ that knows it all. Poor financial management will result in more
liabilities and ultimately bankruptcy. Therefore, poor accounting,
unprofessional business financing and decision making by startup owners makes
them go bankrupt in most cases.