A lot of Business startups are failing in Nigeria As the day roll by due to their inability to meet up their expectation hence, businesses are shutting down more frequently.
The shutting down of the startup in a period of few months after the launch is not something new. The question is why do companies shut down within such short while?
There are a number of issues that might lead to this one of them is setting the bars too high. The startup will crumble to meet it set goals forcing it to shut down.
Some don’t set goals that are deeply rooted in its desires. This makes it hard to maintain consistency and stay dedicated to them with time.
Reason Business startups in Nigeria are failing.
Because a lot of them are failing to meet expectations due to one reason or the other Therefore, this forced them to shut down.
It was founded in 2016 by David Edet. It aimed at connecting student entrepreneurs and students through Africa via e-commerce. It started well and it generated above N4 million of revenue within a period of one month after the launch. The startup, later on, shut down due to the high business operational costs in Nigeria and recession prices.
The company started in Brazil. But later on, it becomes the first ever Rocket Internet Companies to be launched in Africa in 2013. Its expansion into Africa and Asia made it receive more than $10 million from Rocket International. The startup closed up in Nigeria after the stepping down of Bankole Cardoso in 2016. Cordoso was the startup’s Nigerian co-founder.
The startup was one of the biggest e-commerce startups in Nigeria. But it announced that it was acquired by Zinox two months after firing 60% of its employers. The announcement came in February 2018. The startup shut down because of the high cost of running the business in Nigeria.
Olx used to offer classified ads. The startup is under the ownership of Naspers which is a South African media company. The company shut down its operations in Nigeria and the whole of Africa just 3 years after entering the Nigerian market. The company stopped its operations after the difficult operating environment in Nigeria.
The startup used to offer classified ads in Nigeria. It closed just after operating for 16 months after the launch. The reason for the shutdown was due to the failure to get returns on investment (ROI). Furthermore, the high cost of data and internet in Nigeria led to the shutdown. This is according to Nils Hammar the founder and CEO of Saltside Technologies.
The startup aimed at connecting 100,000 carpenters in Nigeria to customers. Carpenters were required to display their work on the platform and attract customers globally. The startup decided to close up it activities barely after 12 years of unsuccessful operations. The announcement was made by Sheriff Shittu Showroom.ng’s CEO.