The current economic recession in Nigeria has posed many challenges and many businesses have closed down, but this has led also to prosperity of many who are innovative and strict adherence to business ethics.
Scholarly articles for Entrepreneurs and Economic Recessions
- Global Entrepreneurship Monitor 2009 Executive
- Entrepreneurship, economic conditions, and the great
- Entrepreneurship, small and medium-sized enterprises
- Rural Entrepreneurship in a Time of Recession
- How the Great Recession Spurred Entrepreneurship
- Economic recession leads to increased entrepreneurship
- What Happened To Entrepreneurship During The Recession?
- Surviving the Recession: Nigeria SME and Entrepreneurs Guide
- Economic recession planning in Nigeria - Steps by Step guide
There are certain business steps that are critical to business survival during recession:
Cut Cost:
Start using only fuel-economy cars, learn how to take care of your chores like washing your clothes instead of using the dry-cleaners, reduce the gadgets you use in the house, reduce expenses and identify leakages and block them. etc.
Limit the granting of credit facilities:
Cost of money is high now because money is scarce. It is cheaper not to grant credits, some of which could turn bad if granted. Don’t borrow too for the same reason. It is not easy to pay debts during recession periods when cost of money goes high regularly. Actually looking at the value of money it could be economical to borrow, but certain economic crow-dings may not allow you enjoy such gains that come from lose in the value of the money you borrowed.
Reduce your staff strength:
Many labour costs are variable costs, therefore align your staff strength with the volume of your productivity. It is very true that most skilled labour are in the fixed element of production; a reappraisal of their need may be necessary now. Some of them can go, it is the variable element of the labour which is direct labour of production that is important now.
Apply multiple tasks approach in your outfit using the available staff.Introduce new line of businesses that are cheap to run. Change some wasteful procedures.
Remain Focused:
Consistency and perseverance will enable you remain in business despite the downturn. It is time for you to be personally involved in the business. Business decisions during recession requires entrepreneurial efforts/inputs.
Invest in necessities:
It is when people have extra money to spend that they go for fashions, and luxuries. Such goods that are price inelastic, that is, price does not affect their demand.
Do some farming work:
Even around your compound. Keep a small poultry. Farm crops like cucumber, garlic, ginger etc . These crops make millions for those who farm them.
Do more business:
If your business is not registered, do so today. Get an Accountant today as a business advisor. The accountant will coach and help you put things in order.
- Get your business TCC – Tax clearance certificate is a prerequisite for bidding for government contracts.
- Ensure you have PENCON and Industrial Training Fund certificates. These will qualify you to bid for government contracts.
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Adjust your lifestyle:
This is certainly affecting your business. Do away with some wasteful lifestyles that do not attract any income to you. It is time to avoid luxuries and fashions too.