Head of the Department of Business, Entrepreneurship and Executive Education, University of Ibadan (UI) School of Business (UISB), Dr Siyanbola Omitoyin, has said that poor planning, inadequate financial management, weak documentation and failure to conduct proper market analysis are among the factors responsible for the inability of many Nigerian small businesses to survive beyond their formative years.

Omitoyin, who spoke during an interview with The Guardian yesterday, said that while a viable business idea was important, entrepreneurs must understand the requirements for turning such ideas into sustainable ventures before committing their resources.

She also identified poor documentation, weak financial management, inappropriate staffing, unfavourable government policies and inadequate understanding of the business environment as major threats to business survival.

According to her, many start-ups are established around ideas without adequate consideration of what would be required to sustain them.

The don, however, stressed the need for entrepreneurs to develop comprehensive business plans covering marketing, financial, organisational and technical aspects of their operations.

She, therefore, warned that assigning people to positions for which they lacked the requisite competence could undermine business performance.

Omitoyin said entrepreneurs must also examine their market and operating environment before commencing operations, noting that political developments, insecurity, legal requirements and prevailing economic conditions could significantly affect businesses.

The don, however, cautioned Small and Medium-sized Enterprises (SMEs) regarding lack of credit as their only challenge, saying businesses with viable and well-structured ideas could attract funding from different sources.

She urged entrepreneurs to seek mentorship and explore funding options, including equity partnerships, angel investors, bootstrapping, crowdfunding, and support from family and friends.

The don also urged businesses operating in similar sectors to form partnerships and clusters to reduce operating costs.