Which small business idea can I start now? Can you tell me the best business idea to start in Nigeria? What business can I start with little capital? These are the type of questions we get daily at Entrepreneurs.ng. Therefore, I will share the best businesses you can start now with little capital.
MSMEs (Micro, Small and Medium Enterprises) are the engine drivers of economic growth worldwide. And here in Nigeria, the reality is not different especially given the high unemployment and underemployment rates.
Dear reader, a warm welcome to you. In this article, I will share some of the best businesses to start in Nigeria. So fasten your seat belt as you dive into the exciting world of entrepreneurship.
You don’t need a huge capital to start some businesses. Entrepreneurship is about having a vision. It’s about creating solutions to problems that your target audience have.
First, look at the advantages of starting a business in Nigeria.
Advantages Of Starting A Business In Nigeria
Operating a business in Nigeria can be challenging, just like anywhere else in the world; however, many great opportunities await you as you start your own business.
Large Market Size
With an estimated population size of more than 216 million people, you are in a position to reach the largest market size in Africa. This is huge indeed, so don’t just think twice about it, do it. Start your dream business today!
Untapped Resources
Nigeria’s economy is still in the developmental stage because for more than five decades after independence, the country’s economy is still solely dependent on crude oil production and export for foreign exchange earnings. However, the current revolution in ICT, together with the COVID-19 pandemic, has opened new opportunities in the gig economy.
So what are the best businesses to start now in Nigeria?
Best Businesses To Start Now
1. On-demand Delivery Service
The rise in internet penetration due to the introduction of the GSM technology in 2001 is presently leading to the explosive growth in e-commerce activities across the length and breadth of the country. And this, in turn, has led to the development of complimentary service sectors like the on-demand delivery service.
Nowadays, any item that can be ordered online has to be delivered to someone, somewhere – from food, clothing, medicines, groceries; the list is endless.
Dear aspiring entrepreneur, the on-demand delivery service is one of the best businesses to start in Nigeria now. So please take advantage of it.
Do you want to know how to start your on-demand delivery business? Here is our comprehensive guide on How To Start A Successful Logistics Business In Nigeria.
2. POS Agent Banking Business
Can you believe 2021 rounded off with a total of N6.43 trillion recorded POS transactions in Nigeria? According to NIBSS, this figure is in sharp contrast to N1.41 trillion recorded in 2017, N2.32 trillion in 2018, N3.2 trillion in 2019, and N4.73 trillion in 2020
The increase in e-payment transactions in Nigeria, a direct consequence of the rise in POS business operations, is wealth making opportunity that has come to stay. This development impacts millions of lives positively. Therefore, it’s time you take advantage of this opportunity because it is one of the best businesses to start in Nigeria right now.
When starting a POS business, you need to work with reliable POS agent banking platforms. So we shared them with you and how to get the POS Machines.
Reasons Why You Need To Start The POS Business
POS or Agent banking services are becoming Nigeria’s mainstay of financial transactions. Here are the reasons why the business is lucrative for millions of Nigerians.
- The inadequate number of functional ATMs which leads to long queues
- Poor network service at ATM points and banking halls has pushed many customers to find alternative means of performing their transactions.
- And for the business operators, the low barrier entry requirements in starting POS business points provide much-needed employment opportunities amid high unemployment rates.
Advantages of Starting a POS Business
Low Barrier Entry
POS business offers low barrier entry for individuals as the startup capital requirement is not as much as that required by other businesses. Therefore, you can start your POS business with a sum of N50,000 or less.
It Does Not Need An Expensive Structure
Everyone knows how expensive it is to afford annual shop rent in most places in Nigeria. But for POS business, there is no need for a fancy structure, at least while starting. Most POS businesses use a simple kiosk as their business office.
Customer Traffic
Large financial transaction volume pass-through POS agency banking business in Nigeria. This means significant business turnover for operators.
Multiple Streams of Income
POS business is a good way of expanding your income net for those that may have a regular job that is not meeting their financial needs. In addition, the business offers a sustainable means of income and may even transition to a primary source of income if adequate attention is paid.
Services You Can Offer As A POS Agent.
- Transfer of funds
- Cash withdrawal
- Utility bills payment like airtime, data, electricity, etc.
- Deposit cash to bank accounts
- Transfer funds to other beneficiaries
Do you learn better through videos? Watch our Comprehensive Guide on How to Start Your POS Business here.
3. Open An Online Store
The e-commerce sector is a multi-billion-dollar industry in Nigeria, and it’s here to stay for good. Technology has made buying and selling very easy. You don’t need to own a physical shop before starting a business. You can start your business online and start selling online. We shared the different businesses you can start online immediately.
You can decide to sell on third-party marketplaces like Jumia and Konga or set up your e-commerce website while leveraging payment processing platforms like Paystack and Flutterwave for your check-out/payment solutions.
Benefits Of Selling Online.
Low Barrier Entry.
Online space offers a very low barrier-entry for new entrants as a productive means of income.
For instance, you don’t have to study or train for five years to start your online business, nor do you need a huge capital to hit the ground running. Instead, you need a working smart device, a stable internet connection, and some money to source the products you intend to sell. Here are hot selling products you can start selling now.
Low or Negligible Business Running Cost.
Online stores do incur far lower running costs in comparison to brick-and-mortar outfits. This is so because subscription fees replace your rental cost to an online marketplace or your web hosting service provider if you run a personal e-commerce website.
Your utility bills, taxes, and staff costs are also significantly minimised. Therefore, you will have a healthier bottom line for your business.
Wider Customers Reach 24/7.
Online businesses are open 24 hours a day and have a global audience reach. Unlike brick-and-mortar businesses, your online shop is not limited by time or geography, mainly if you sell products and services with international appeal.
Instant Feedback Mechanism.
Instant feedback from rating systems left by customers provides valuable insights for prospective customers. Also, you can swiftly act on the feedback and drive your business on the path to profitability.
See also Selling Online – 10 Practical Tips On How To Sell Anything Online.
Niche Products You Can Sell Online.
- Arts and Crafts
- Health and Wellness
- Hair Wig and Extensions
- Customised Jewelry
- E-books and courses
- Customised Phone Accessories
- Fairly used clothes
- Customised Leather products
- Bulk foodstuffs
- Fashion products
- Homemade Foods
- Drinks
4. Ride-Hailing Business
Do you have a car in good condition? Perhaps it’s time you put it to more productive use by enlisting as a partner with ride-hailing companies like Uber and Bolt. Ride-hailing business is part of the gig economy and has huge income potential – up to N150,000 per week for those currently engaged in it.
The ride-hailing business is more than a side hustle because, when you engage in it diligently, you can conveniently make enough money to purchase another vehicle between 6 months and a year. This way, you can have a pool of cars operating under the larger umbrella of Uber or Bolt.
Advantages of Starting A Ride-hailing Business
- You will earn a good income as your average monthly earning can get up to N400,000
- Low barrier entry. Anyone can partner with the big ride-hailing companies – Uber and Bolt regardless of their gender, skin colour, or religion.
- Your time is yours. You operate at your convenience.
- You don’t need any cash deposit; you only pay commission when you earn.
5. Organic Products Production
Organic products production and sales are another one of the best businesses to start in Nigeria. Because of increased awareness of the dangers of inorganic foods and products, people are going back to organic products.
Are you someone with unique culinary skills or a beauty therapy expert? Then, it’s your time to shine forth… Welcome on board!
Organic Products You Produce & Sell.
- Raw honey
- Granola
- Shea butter
- Moringa oil
- Black soap
- Extra virgin coconut oil
- Activated charcoal
- Wheat bread
- Carrot oil and powder
- Sesame oil
6. Digital Marketing
Digital marketing is the new kid on the “online block”. If you have the requisite content marketing, social media marketing, email marketing, or SEO skills, it’s time to step up as a digital marketing agency.
This is so because there is a huge demand for professionals in the digital marketing field as more businesses now have an online presence, especially after the COVID-19 pandemic.
7. Setup A Web Development And Design Agency
Website design and development is another sort after skill presently. So, be rest assured that your services will be in demand for a very long time if you have the tech skills required to function in this sector.
Businesses with an online presence need solid visual appeal for their website and a secure platform for their financial transactions. As a web design and development expert, your responsibility is to provide professional services to your customers. And you can achieve this when you take your skill as a web developer from side hustling to a well-structured business.
Advantages of Starting A Web Development Business
- Starting your own web development agency gives you the independence you need to pursue your dreams.
- You can work remotely worldwide as you do not need a brick-and-mortar space to start your business.
- Your creativity is significantly improved as you work on various projects for different clients.
- As a web development expert, be rest assured that your skills will be in demand perpetually – yah, quite literally.
See also How To Develop A Successful Business Model Using The Business Model Canvas (BMC) here.
Conclusion
The new realities in technological advancement have brought with them huge business opportunities, especially for the technologically inclined individual. As the world economy goes through twists and turns due to global instabilities, the 7 best businesses to start in Nigeria, as listed above, are creating life-lines for millions of families.
Would you like to start these businesses? Which businesses are on your list of best businesses to start now? We’ll want to hear from you. So please write to us in the comments.
Here is our comprehensive list of 35 Booming Business Ideas and How to Start Them.
