Vanishing businesses, changing trends

Underground Economy Is Dynamic, Abhors Stagnation,

The informal market, which involves large amount of economic activities in terms of human, goods and services and, to some extent cash flow, is dynamic and replete with changes. A huge market, it showcases all manner of goods and services, which have strong impact on the nation’s economy and the people, especially the middle class and those in small cottage holdings, who depend on this sector for survival.

Because of its laissez-faire nature and flexible structure, operators in this sector often apply quasi-corporate business rules and still succeed. Here, one does not need to have all the book knowledge in financial prudence, managerial skills or special qualification or licence to excel. All that is required is one’s business acumen and shrewdness to operate.

Operating on all sectors of the economy, from mining to manufacturing, fabrication, thrift and services, the underground service market is controlled by two major elements: technology and market forces.

These elements, aside influencing its modus operandi, have also helped to introduce new businesses, and like the phoenix, has enabled a renewal of old ones, while pushing those that are not grounded in currency towards extinction.

Commenting on these issues, James Jideowo, a computer spare parts dealer, said activities of the underground market are currently unstable. He called for operators to always be ready to flow with the tide, which, though gradual, often arises as a result of shift in demand or technological advancement. According to him, these two variables have more effect on the market than some government fiscal policies.

In his view, activities are dynamic in the market, and no operator can lay claim to knowing what might happen next or which products would be in high demand. For instance, he pointed to the fact that products and businesses that were making waves about 15 to 20 years ago are no longer patronised and operators have to move on other lines of business.

Said he: “Traders are always on the fast lane; trying out and getting involved in different ventures at the same time. The reason for this is not always to make ends meet, but to remain relevant in the market, as well as sustain means of livelihood.”

On the issue of technological advancement, Jideowo explained that some types of vehicles, including bicycles and motorcycles, are fading away and those trading in their spare parts and repairs have to upgrade to enable them remain relevant in the market. According to him, those who were unable to adjust had to either migrate to another venture, which they found easier or become redundant.

“The market abhors stagnation, which is one of the reasons you can hardly find any individual sticking to a particular line of business for long. For instance, I was dealing in metal plates, cups and aluminum spoons some years ago, but since technology introduced ceramic and fibre plates and cups, that line of business became obsolete. So, I had to change to auto spare parts, which also has its own challenges, what with manufactures coming up with different models every year,” he said.

Makanjuola Oyindamola, a front desk officer in one of the telecom companies, explained that before the era of granting special permits to some agencies to print and sell recharge cards, many individuals were operating commercial telephone booths and were making a lot of money. The advent of GSM prompted many people to open shops around campuses, busy areas, as well as communities at the grassroots. That era has come and gone, as there are now other means, of electronic recharge (e-recharge), electronic credit facilities and other means to eliminate middlemen.

While this development has brought about a more convenient way to access and enjoy some facilities that were previously unavailable to subscribers, it has led to the extinction of the thriving small businesses.

So, what became of the operators in that line of business? Have they also gone under?

“No,” said Oyindamola. “They have since moved on to other businesses, which might not even have anything to do with telecommunications. That is the nature of the market. This goes to show that there is need for one to constantly adjust and upgrade his/her skills to remain relevant in the market. This, I believe only a few can do.”

Expatiating on the issue, Oyindamola pointed to the fact that one can hardly find anyone still operating or repairing the former analogue phones because the digital mobile phones have taken over. This fact extends to other areas, where technology is the mainstay of the business. For instance, the manual typewriters have been replaced with computers, rendering those engaged in its procurement and repairs redundant.

Disclosing that some underground market operators are reluctant to acquire necessary skills that would enable them remain afloat, when the tides are down, Ugochukwu Nwaebube noted that the dearth of specialists is responsible for the demise of some businesses. He, however, said with the right skills, some dead businesses could be resuscitated. He explained that while operators in such businesses as photography, fashion, beauty industry and shoe-making among others are leveraging on modern technology to improve on their businesses, others into watch repairs, umbrella mending, tinkers and local hair dye are fading away because of the change in lifestyle. This, he said, is due to the fact that many foreign companies now produce cheaply many of the items people used to repair.

“Remember we used to give our umbrellas to repairers to amend, but these items have become so cheap that it doesn’t make economic sense repairing them,” he stated.

For Emeka Udemba, certain businesses are vanishing because of the value system and failure on the part of youths to learn and sustain some trades bequeathed to them by their fathers.

“The focus has shifted to money. People have thereby shunned training, which is key. Nigerians worship politicians and would honour the rich, regardless of how he/she came about such wealth. So, people, especially the youths are now looking for shortcut to making money, which is currently through politics. Until we change our values, go back to the basics by embracing proper training right from primary to tertiary level, some businesses will continue to vanish, which means that the labour market would remain perpetually saturated,” he said.

Aside poor attitude to learning new things, he said small scale or cottage businesses must pull their resources together with the aim of going into manufacturing, rather than depend on foreign or smuggled goods, which are cheaper and sell faster. He believed that unless these foreign companies are checked, underground businesses would continue to be unstable.

Things To Do To Stay On Top Of Your Game

• There is need to be creative and innovative.
• You must be willing to adjust and flow with the tide, when required.
• Try to acquire diverse skills to be able to cope and excel.
• Be liberal and imaginative.
• Be receptive to new ideas, especially technology.
• Become conversant with government policies to enable you have a good grasp of the market.