Why is it important to have a list of small scale businesses in Nigeria? Prior to this time, everyone was only interested in office work. Because those jobs haven’t been available, and even when they have been, the fierce rivalry with the few open positions has resulted in people receiving lower pay packages than their qualifications should warrant.
As a result, many young people have been self-employed rather than trampled by their bosses for a salary package that can only be defined as uninspired.
Being self-employed can imply launching a large business venture, but we’re talking about tiny firms here, ranging from one-man operations to those employing two to five people and other fast moving small scale businesses in Nigeria.
What is a Small Scale Business
A small scale business or firm is defined as one that requires less capital investment, fewer employees, and fewer machines to operate or one that operates on a small scale.
Tiny-scale industries, often known as small businesses, are those that create goods and services on a limited scale.
16 Small Scale Businesses in Nigeria
Here is a list of some of the 16 small scale businesses in Nigeria:
- Cassava Farming
- Car wash
- Dry cleaning
- Transport business
- Petty trading
- Sports viewing center
- Barbering/ haircut saloon
- Phone repairs
- Photography
- Catering providers
- Rental services
- Repairing computer/ PC tech
- Daycare Center
- Computer centers or photocopying centers
- Event management and decorations
- Making handbags and shoes
1. Cassava Farming
Do you prefer garri, Fufu, or starch as a meal? If you answered yes, you are one of the many millions of Nigerians and other West African who eat one or more of the Cassava plant’s products as the main meal. Nigeria became serious about food security the day they began breeding enhanced cassava varieties, according to one source. This shows that small scale business plays a vital role in the economy.
People in Nigeria are paying attention to this field of agriculture, not only because they enjoy the food that comes from the Cassava plant, but also because they enjoy the money that comes with it. Cassava farming can, in fact, be a highly profitable enterprise.
Read- 9 Ultimate Guide To Writing A Business Plan (2022).
2. Car Wash
The car wash business is one of the small scale businesses in Nigeria. The good news is that you don’t need any special training or credentials to start a car wash. All you need is an excellent location, a friendly demeanor, and a willingness to go above and beyond to satisfy your customers.
Read- 15 Well-Paying Part-time Jobs That You Can Do Over The Weekend (NO. 9 Is Unique).
3. Dry Cleaning
For reasons we can only guess at, there are those we refer to as “professional dry cleaners.” To be honest, all you need is a knack for doing laundry and you will be fine.
An added benefit is civility, which is learning how to interact with consumers and ensuring that you do not disappoint them. It’s also crucial to find a good location for your business, and your prices should be reasonable.
Read- How Series A, B, and C Funding Works for Your Startup.
4. Transport Business
It is like printing your own money in the transportation industry. However, we must point out that it is best suited to those with a background in vehicle engineering or mechanics.
Although Nigeria’s maintenance culture is generally poor, a mechanic would definitely know better than to let his buses run without oil checks and other essential vehicle maintenance procedures.
Read- Top 5 Most Popular Startup Sectors.
5. Petty Trading
Petty trade is a broad term that encompasses a variety of activities. From raw foods to fast-moving consumer goods and even technology, there’s something for everyone. The keyword, on the other hand, is little. Even now, if you go around your neighborhood, you may find numerous people who are engaged in this industry.
However, sales will only suffer if everyone is selling the same product. Think outside the box, take risks, and present your company in a unique way. Petty trading is also part of a lucrative business idea, with small capital in Nigeria.
6. Sports Viewing Centre
Although a better moniker for this establishment would be ‘football viewing center.’ The vast majority of those who frequent these establishments do so to watch football, not just any sport.
The English Premier League, Spanish LaLiga, UEFA Champions League, and African Nations and World Cups are all popular choices, but Italian Serie A is also gaining popularity. If you live in a region with a lot of young people, you might want to pursue this enterprise.
If you do not have money to start a sports viewing center, you can explore how to raise capital for your small business or grants for small businesses in Nigeria.
7. Barbing/Hair Salon
If a man does not get his hair cut once a month, he begins to appear insane. If a woman neglects her hair for the same amount of time, it appears as if something has occurred to her. That is why this firm is so profitable.
To get into this business, you must first obtain the necessary abilities, as a lack of talent might lead to disastrous results. You’ll also need a nice and accessible location, as well as some basic equipment, such as a reliable power generator, because your business can’t operate without electricity. When you lack money for all these things, you can learn how to get a loan for a small business in Nigeria.
8. Phone Repairs
When you look at phones, like practically all other electronic items, requiring regular maintenance, the proliferation of mobile phones in Nigeria gives us a fantastic chance for us to generate money.
However, you must first master this trade because it is not something you can just jump into. In fact, if you enter this business without knowing what you’re doing, you’ll end up in debt. You’ll also require a nice location and the ability to communicate with others.
Read- Expertnaire Review- Is It Legit? and How to Make Money Through Affiliate.
9. Photography
Although this is more of a talent than a skill, it may be acquired via training. You’ll need a camera, and occasionally a studio, as well as the ability to advertise yourself.
Read- How To Start a Candle Business in 6 Steps.
10. Catering Providers
The catering industry has various facets: some caterers produce cakes, chin-chin, meat pies, doughnuts, and other items for sale in their own stores, while others prepare these items for distribution to supermarkets and shops.
Even more intriguing is the fact that many of them specialize in cooking for parties and other such occasions.
Read- WhatsApp Business: Features, Overview and How it Works.
11. Rental Services
Nigerians love to party, yet there are never enough chairs or canopies when there is a large gathering. This is an opportunity for an astute business person. Canopies, seats, tables, and other such equipment can be rented for a price.
You have an edge if you have a vehicle that can be used as a delivery van. Simply make some noise to let folks know you’re in the industry.
Read- All About Minicorn, Soonicorn, Unicorn, Decacorn, Hectocorn Startups.
12. Repairing Computers
This, like the phone repair business we mentioned earlier, has the potential to be lucrative. People have a limited understanding of the technical aspects of the computers they use on a daily basis, which you may utilize to your advantage.
Read- The Best Way to Get Started When You Have No Connection.
13. Daycare Centres
If you enjoy working with children, there is no reason you cannot open your own childcare center. Every working woman is reliant on childcare, and they will pay you to look after their children. Some people even run their businesses from the comfort of their own homes.
Read- Types Of Startup Exits For Investors- Other Business Exit Plans.
14. Computer Centers or Photocopy Centers
While cybercafes are on the wane (which is why we didn’t include them here), photocopiers and computer centers are still thriving. Depending on your preference, this can be linked with a cyber café or stand-alone.
To run a business, all you need are a few basic products and a convenient location in a popular region.
Read-10 Resourceful Sources of Startup Financing.
15. Event Management or Decoration
Another business that relies on Nigerians’ love of parties and merriment is this one. Do you have an excellent sense of style with decorations and designs?
You might still need to learn more in order to improve your abilities. Following that, it’s simply a matter of marketing yourself to potential buyers.
Read- Top 14 Startups in Nigeria that You Should Know About in 2022.
16. Making Handbags and Shoes
This is also closely tied to the fashion sector, but the main difference is that you deal with handbags and shoes, which you can sell or supply to boutiques. All you have to do here is learn the abilities so you know what you’re doing.
Read- 4 Insightful Ways to Attract Angel Investors as a Startup in Nigeria.
What are the 10 most profitable small scale businesses in Nigeria
The 10 most profitable small scale business in Nigeria are:
- Agriculture
- Furniture sales
- Producing fruit juice
- Production of pure water
- Dry cleaning
- Haulage business
- Hotel industry
- Fast food restaurant
- The Import of Tokunbo Parts
- Buying Real Estate
1. Agriculture
In Nigeria, where millionaires are currently being made, this is the country’s next breakthrough sector. Nigerians in Nigeria and abroad are starting to realise the enormous potentials in agribusiness, a field we had neglected for years due to the oil discovery.
People are starting to look into other sectors of the economy to make money now that the oil is running out. Here are some Nigerian farming practises that are currently seriously profitable for people:
- Chicken/poultry farming
- Cassava Manufacturing
- Snail Farming
- Growing rice
2. Furniture sales
Locally made furniture trading and buying is a gold mine. To do this, you don’t need to be a carpenter; just make arrangements for a consistent supply from reputable carpenters on a regular basis while you showcase and sell your products in your showroom.
Nigeria is a very significant market because only few people can afford the imported designers.
3. Producing Fruit Juice
Fruit juice consumption is highest in Nigeria. Because of this, businesses like La Carcella and Chivita, which entered the country as unknowns, now generate billions of naira every year.
Although this business requires a lot of capital, if you can afford it, it’s well worth it.
4. Production of Pure Water
You are aware of how widely used this is in Nigeria and how many are given out daily.
Even though this business requires a lot of resources, it is definitely worth investing in, particularly if you can run it effectively and professionally.
5. Dry Cleaning
In Nigeria, there aren’t many professional dry cleaners offering reasonable costs. What we have are either extremely expensive professional dry cleaners or subpar dry cleaners who are never able to keep up with demand.
Give them clothes today, and when a week has passed, meet them unwashed. If you balance these companies out, you’ll make money.
6. Haulage Services
In Nigeria, the cost of renting a truck to travel from one location to another ranges from N20,000 to N200,000.
The majority of commodities in Nigeria are transported by road due to a weak rail transportation system, making the haulage industry in Nigeria profitable.
The haulage of petroleum products and the transfer of goods from producers and importers are currently the most lucrative aspects of haulage in Nigeria.
7. Hotel Industry
This is most likely the most exciting way to make money in Nigeria. Make an investment in a modest hotel with only 10 suites and watch the money roll in.
There is simply something about the Nigerian system that makes this industry extremely lucrative for Nigerians; it has nothing to do with any form of tourism surge.
8. Fast-food restaurant
Although it can be killed off by inadequate management, the restaurant industry is another gold mine.
If you wish to start this business, make sure everything is done accurately and bear in mind that it demands some funds and solid management abilities. However, you can get free money if you do everything correctly.
9. The Import of Tokunbo Parts
This business is especially beneficial for you if you live in the United States, Germany, or Denmark. Instead of continuing to import fancy automobiles, collect tokunbo spare parts in containers and send them to Nigeria. In Nigeria, there is a sizable market for used (tokunbo) spare parts.
10. Buying Real estate
In Nigeria, real estate values increase daily. Nigeria is currently one of the nations in the world with the most costly land. Anywhere in Lagos, if you purchase land right now, you will profit 100% in two years.
You have the option to acquire, immediately resell, and profit. Alternatively, you might purchase, hold onto it, and sell it later. Startups can even venture into this business equally.
What Small Scale Businesses can I start with 50,000 naira in Nigeria
According to research, a business should be launched during an economic or financial crisis. This is due to the fact that Startups enter the industry with zeal, creativity, and a mindset for addressing problems.
With as little as 50,000 naira there are profitable small scale businesses you can start and they are:
- Baking business
- Makeup business
- Plantain chips business
- Distributing beverages and water
- Small scale seasonal farming business
1. The Baking Industry
In Nigeria, the baking industry is booming. Nigerians can never get enough of cakes and pastries. Cakes or small chops are required at any party, including weddings, birthdays, and graduations. This baking enterprise can be launched directly from your kitchen.
You may start by preparing miniature cupcakes and chops to sell in order to make money. You may then advertise your baking company on social media to acquire visibility, obtain customers, and start making a lot of money. Check out how to start a small chops business in Nigeria.
2. Make-Up Artistry business
Makeup business is one of the small scale businesses currently. In Nigeria right now, this enterprise is quite well-liked. This is a very lucrative industry to get into if you’re interested in fashion and beauty.
For weddings, parties, and other events, you could apply makeup. It’s also possible to charge for full-day makeup classes. In the future, you might start a makeup studio!
3. The Plantain Chips Business
Plantain chips business is one of the small scale businesses we have in Nigeria. Additionally, this is a very wealthy industry. In Nigeria, plantain chips are a relatively common snack.
You can produce them, sell them, and supply them to various stores or supermarkets to make money every day.
4. Distributing beverages and water
This is another profitable industry because the product is very consumable. A small stand, a cooler, some ice cubes, and your drinks are all you need!
5. Small-Scale Seasonal Farming Business
This is one of the small scale businesses that has the potential to be very successful. You might start farming on a modest scale right in your garden.
With very little money, you might raise poultry, sell veggies, raise peppers, or start a snail farm plus other seasonal products.
3 Objectives of Small Scale Business.
The following are some of the most essential goals:
- Create work for people
- Improve lower-income groups’ per capita income and their standard of living.
- They also assist underdeveloped regions with economic growth.
How to Start a Small Scale Business
You should consider the following to start a small scale business:
- Develop a great business idea
- Make a business strategy
- Choose a location for your business
- Raise funds for a business startup
- Register your business with the Corporate Affairs Commission
- Get your TIN number
- Get a business bank account
- Choose the right people for the job.
1. Develop a great business idea
The most crucial thing you can do is come up with a good company idea. Take your time to figure out what you really want to do and whether you’d be willing to put in the effort to make it happen.
2. Make a business strategy.
The following step is to draft a business plan. Your business plan will assist you in determining what key problem your company will solve, how it will add value to your target customer, the company’s lifespan, how you intend to generate revenues in the short-term and then profits in the long term, and how you intend to achieve market penetration and growth, and much more.
3. Choose a location for the business
You must decide where your firm will be located after you’ve produced a detailed and highly intuitive business strategy. Your company should ideally be near your target clients, not your competitors. If you don’t know where to start, learn how to choose the right location for your business.
4. Raise funds for a business’s startup.
Before you begin your business, you must have a firm understanding of how to finance your day-to-day operations, buy items, market your brand, and much more. To be carried out, these things cause financial resources.
5. Register your business with Corporate Affairs Commission
It is mandatory to register your company with the Corporate Affairs Commission. You’ll need an article of association if you’re planning to register a business. This often provides a great deal of information about your company.
6. Register with the federal and state tax authorities
After you’ve registered your company or firm, you will need to register with the federal and state tax departments.
When you register with the Federal Inland Revenue Service (FIRS), they will give you a Tax Identification number, which you can use for a variety of things, including opening a bank account.
7. Get a business bank account
You’ll need to open a business bank account after successfully registering your firm and receiving your Tax Identification Number (TIN) in order to save your initial money and revenues.
8. Choose the right people for the job.
The next stage is to hire the ideal people to help you run your company.
In Nigeria, if you’re beginning a small business, you probably won’t need over one person to get started.
Reasons Starting Small Scale Business Can Go Wrong?
Here are a few reasons a small firm could fail:
- The company isn’t even attempting to solve problems.
- It solves problems, but it isn’t enough to make you stand out.
- The company isn’t addressing the right issue.
- It’s a problem that needs to be solved, but it’s being approached incorrectly.
- The company is addressing the proper issue but to the wrong individuals.
- It’s giving the right people the wrong solutions to the wrong issues.
Frequently Asked Questions on Small Scale Businesses in Nigeria
Small Scale Business in Nigeria with Low Capital
- Organic Farming
- Nursing
- Microfinance Business
- Mobile Car Wash
- Home Cleaning business
- Video Game Centre
- Start a Blog
Hidden Business Opportunities in Nigeria
- Agriculture
- Social Media Marketing
- Rental Services
- Bead Making
- Small Chops Packaging
- Ice Block production and sales
- Liquid Soap Making
Daily Income Business in Nigeria
- Betting Shop
- Barbing Salon
- POS Payment Service
- Makeup Services
- Selling of Fruits
Conclusion
Small scale businesses asides from improving your financial status and making you a lot more independent relieve you of a lot of constant ragging by bosses who are sometimes just over-demanding and time-consuming.
Look through the small scale businesses in Nigeria provided to know the one you can do. You too can be a boss. Do not forget to make to consider the financial reporting side of your business to make sure you are progressing or wasting money on the business.
