Every entrepreneur begins their journey with a vision, an idea that they believe will transform industries, solve pressing problems, or create new opportunities. But did you know that 80% of startups fail within their first five years? While this statistic is often cited, the reasons behind these failures are rarely explored in depth.
In Nigeria, these challenges extend beyond standard business risks, entrepreneurs contend with infrastructural gaps, unpredictable policies, limited funding, and the unpredictability of consumer behavior. Unlike in more developed markets where regulatory frameworks and access to venture capital are relatively stable, Nigerian founders must operate in an ecosystem where policies can change overnight, funding is scarce, and operational costs remain high.
Yet, despite these challenges, some businesses not only survive but scale beyond expectations. What separates these high-growth businesses from those that fold? Resilience, strategic leadership, and innovation.
Recently, Innov8 Hub hosted a LinkedIn Live session where industry leaders and seasoned entrepreneurs shared insights on overcoming these hurdles. Their stories offer invaluable lessons for founders looking to build sustainable businesses in Nigeria’s unpredictable yet opportunity-rich ecosystem. This article unpacks these key lessons, blending expert perspectives with real-world examples to serve as a go-to resource for Nigerian entrepreneurs.
Resilience: The Foundation of Bussiness Survival
A major theme throughout the discussion was the importance of resilience, but not just as an abstract concept. Misapplied resilience can turn into blind persistence, where founders continue pushing a failing model instead of adapting strategically.
Kafilat Adedeji, founder of UFarmy, highlighted that entrepreneurship is more than just launching a business; it is about persisting through failures, market shifts, and financial struggles. According to her, many founders enter the ecosystem with great ideas but little preparation for inevitable setbacks.
“Entrepreneurship is tough. Being a woman entrepreneur in Nigeria is even tougher. You will hear ‘no’ many times, and if you are not resilient, you will give up before you even get started,” Kafilat emphasized.
Her journey illustrates the power of persistence and adaptability. She started as a small agribusiness owner but evolved her venture into UFarmy, a company using 3D printing, IoT, and hydroponic technology to scale urban farming. This transition was not due to innovation for her; it was a survival strategy born from realizing that traditional farming alone was unsustainable in her target market.
Starting and running a business is not for the faint-hearted. Take, for instance, Temidayo Odusolu, founder of Ade + Ayo, a children’s clothing brand that sought to bring African-inspired baby products to the global market. Initially, the idea faced resistance; many questioned whether there was a real demand for such niche products. But rather than abandon the concept, Temidayo doubled down, educating consumers about the cultural and aesthetic value of the brand.
Today, Ade + Ayo has become a recognized name, proving that persistence in an unproven market can lead to success.
That goes to show that businesses that survive the rigors of entrepreneurship are those that pivot quickly, leveraging digital platforms, adapting supply chains, or offering new services, to stay afloat.
The lesson? Entrepreneurial resilience is not just about endurance; it’s about flexibility, calculated risk-taking and knowing when to pivot.
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Sustainability Beyond Buzzwords: The Three P’s – People, Planet, Profit
Beyond resilience, the conversation explored the sustainability mindset. Adejoke Lasisi, Founder of Planet 3R, detailed how she built her business by converting textile and plastic waste into eco-friendly products. She highlighted the importance of integrating the Three P’s:
- People: Businesses should create social impact by empowering communities.
- Planet: Sustainable operations reduce environmental harm and contribute to global climate action.
- Profit: A business must be financially sustainable to scale and remain impactful.
Many entrepreneurs, she noted, focus exclusively on the last P—Profit, often at the expense of the other two. However, she argued that businesses rooted in social and environmental consciousness naturally find themselves positioned for long-term success.
For example, a study on leadership sustainability emphasizes that businesses with strong internal cultures, clear ethical standards, and purpose-driven missions tend to outperform those that operate purely for profit. (Source)
“When you take care of People and the Planet, Profit follows naturally,” Adejoke said.
Her company, Planet 3R, started as a small waste upcycling initiative. Today, it is a recognized sustainability brand, receiving global recognition and funding from international partners. Adejoke attributes her business growth to strategic partnerships, consumer education, and a commitment to quality.
Similarly, Kafilat Adedji also pointed out that many startups fail to consider environmental and social impact in their scaling strategies.
“Investors today are not just looking for high returns; they’re looking for businesses that solve real problems while being sustainable.” – Kafilat Adedeji
The takeaway? Short-term success is great, but true sustainability requires long-term thinking
Scaling a Bussiness: The Role of Research & Innovation
Another key takeaway from the discussion was the role of continuous research and innovation in business scalability. Entrepreneurs who fail to invest in research often find themselves struggling to compete. During the panel discussion, Kafilat Adedeji, emphasized that research should always precede expansion.
“If you don’t understand your market deeply, you’ll build solutions that look good on paper but fail in real life.” – Kafilat Adedji
Similarly, Farmer Samson Ogbole, an agritech expert, explained that despite the rise of mechanized farming equipment, not all innovations are useful for African farmers.
“Just because something is new doesn’t mean it’s useful,” Farmer Samson said on his Twitter Live session. “Every founder must ask: Will this technology actually improve what we do? Or are we buying into the hype?”
He emphasized the need for startups to prioritize research and innovation with local adaptation.
Many startups in Nigeria operate with the “launch first, figure things out later” mindset. While this can work in the short term, businesses that scale successfully rely on data, research, and a commitment to innovation.
Kafilat shared her story of how an international workshop in 3D printing technology changed the trajectory of her business. Initially focused solely on farming, she discovered how hydroponic and IoT-based farming could transform urban agriculture. By integrating these technologies, she was able to expand beyond a single farm into a scalable agri-tech enterprise.
“If you are not constantly innovating, you will be left behind. Research is what ensures that your business remains competitive,” she noted.
Her advice to founders? Prioritize Research & Development (R&D). Innovation should not be an afterthought but a core business function that ensures you stay ahead of the competition.
According to a study by McKinsey, startups that incorporate research and market validation in their early growth phase are 3x more likely to achieve sustainable scalability compared to those that rely solely on intuition
Additionally, innovation is not always about technology. Sometimes, it’s about rethinking business models, finding alternative distribution channels, or even introducing financial innovations like flexible payment structures. The businesses that scale successfully in Nigeria are those that understand the ecosystem and continuously evolve within it.
Avoiding Common Pitfalls: Product-Market Fit & Business Structure
A common mistake Nigerian entrepreneurs make is falling in love with an idea without validating demand. Adejoke emphasized that while innovation is crucial, it must be tied to real consumer needs.
“Your innovation is great, but does the market actually need it? Passion alone won’t sell your product,” she warned.
She urged entrepreneurs to conduct customer discovery interviews before launching, ensuring that their products align with real-world pain points. Businesses should also focus on product design, functionality, and desirability to increase adoption rates.
Planet 3R initially faced resistance, as consumers were skeptical of upcycled products. However, by investing in consumer education and refining product aesthetics, they eventually gained traction and secured major corporate partnerships.
Leadership in Scaling: The Transition from Founder to CEO
As businesses scale, the founder’s role must evolve from a hands-on builder to a strategic leader. Adejoke Lasisi spoke about the moment she realized she could no longer do everything herself.
“I used to be the one making the bags, handling sales, and doing social media. But at some point, I had to step back and bring in people who could do those things better than me.” – Adejoke Lasisi
She emphasized the importance of hiring the right leadership team and enabling a culture of accountability. Many Nigerian founders struggle to transition from a ‘hustle mindset’ to a structured leadership approach, which can either accelerate or hinder business growth.
Both speakers agreed that strategic partnerships accelerate business growth, opening up funding opportunities, distribution channels, and access to expertise.
Conclusion: Scaling Smart, Leading Strong
Entrepreneurship and Scaling a business in Nigeria requires more than having a great product in the market, It also takes resilience, research, leadership, and sustainability to build something that lasts. Our esteemed speakers, Adejoke Lasisi and Kafilat Adedeji, emphasized that the most successful founders are not just dreamers, but doers who continuously adapt, learn, and lead.
Whether you’re a startup at its early stages or a business looking to expand, the lessons from this discussion provide you with a roadmap for growth.
Catch up on the full LinkedIn Live session for deeper insights from our expert speakers – lnkd.in/dRaBkdrK
What’s your biggest challenge in scaling your startup? Share your experience in the comments
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