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Saturday, 8 October 2016

Factors that contribute in making indigenous business firms in west Africa less successful than their foreign counterparts

factors that contribute in making indigenous business firms in west Africa less successful than their foreign counterpartsone of the factors that contribute in making business firms in west Africa less successful than their foreign counterparts is lack of capital. the amount of capital available to indigenous business firms is far less than the one available to their foreign counterparts, no wonder they are less successful. indigenous business units in west Africa are less successful
when compared with their foreign counterparts, because they operate in a system with an ineffective means of transport and communications.less efficient administration of indigenous business firms makes them less successful than their foreign counterparts. square pegs are put in round holes in the administration of indigenous firms.

lack of basic infrastructure available to indigenous firms that operate in west Africa, contribute in making them less successful than their foreign counterparts. infrastructure like electricity, good roads, irrigation dams, railways,air and sea ports etc. are not adequately available to these indigenous business firms

indigenous business firms in west Africa are less successful than their foreign counterparts because, the foreign firms operate in a system with relative availability of adequate and varied skills.

foreign firms emphasis more on accountability than their indigenous counterparts hence being more successful than their indigenous counterparts. unlike foreign firm, indigenous business organizations operate in less stable economic and political systems. we experience a-lot of strikes, public holidays,coups and other political unrest in west Africa than in advanced countries of Europe and America

inadequate raw materials militate against the efforts of indigenous business firms, than their foreign counterparts hence they are less stressful. some of these raw materials come from countries where these foreign firms operate and therefor, they get them in larger quantities and at reduced rates than our own indigenous firms.

further more, foreign firms operate in countries with relatively more developed markets. what we have in west Africa are make shift markets and rudimentary systems of exchange. the fact that foreign firms have high level of technological development than indigenous business firms makes the indigenous firms less successful.

also indigenous firms operate in environments that experiences intermittent power supply that slows down productive process hence, their less success than their foreign counterparts

CONCLUSION

people of west Africa patronize foreign made goods more than local ones and this contributes in making foreign firms successful at the expense of their indigenous counterparts. colonialism was one of the factors that contributed in making people of west Africa to prefer foreign made goods more than locally made ones

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