The current economic realities in Nigeria are triggering a shift in economic activities. More government employees and those in private companies are coming to realize the need to have alternative income. Unemployed youths and concerned parents have considered skill acquisition and entrepreneurship as a viable route. They considered these options to add value to themselves, contribute to the society, and solve some of the enormous challenges facing the country and their immediate environments.
Setting out to have an alternative income involves mostly starting a new business or investing in a company or start-up. Whichever is the case, every business and those engaged in them are governed by laws and regulations. Also, there are agencies saddled with the task of enforcing these laws and regulations. A prospective business, start-up, and entrepreneur must be ready to abide by these laws and regulations. As a matter of fact, the scope of modern ways of starting, running a business, engaging in commercial transactions, and pursuing a breach or assertion of legal rights in corporate and commercial sphere has exposed the fact that there is need to understand various applicable laws and regulatory agencies relevant to one’s chosen area of business.
For instance, some business owners hardly believe that their area of business has much to do with other regulatory agencies other than Corporate Affairs Commission, the Tax Agencies in their business locations, and the Local Authorities. Most times, upon starting their business, they run into problems with these other agencies. The situation gets ugly. The Agencies step up to perform their statutory duties, usually shutting down the operations of the new business. The business owner is usually faced with the bitter option of paying the best of judgment leveled against it; an expense not usually budgeted for at that moment. Meanwhile, it would have cost less if the business owner had averted his or her mind to it from the onset. This is understandable, most business owners are too quick to start-up, profit in mind.
Knowing what to expect and avoid from the start is enough to save a bitter situation. It is worst to work hard, and safe, or to have got funds from friends and relative or obtained loan only to be frustrated to have your venture stalled for failing to take caution and do the right things. It would cause a poor corporate image for such business and its promoters. Their customers won’t take them serious and if they do, it brings into doubt so many issues like the corporate, financial, and managerial. Furthermore, the clients or customers as the case may be and third parties are usually affected directly or indirectly too.
It is important to state here now that laws and regulations, and agencies in charge of them play crucial roles and serve as balancing. Unregulated business may lead to undesired outcomes like unfair market practices, pervasive corruption, financial crisis, and even criminality. Also, Information provided to government agencies is vital for policy-making.
This misunderstanding that a business’s area of operations has much to do with only the Corporate Affairs Commission, Tax Agencies in their business locations, and Local Authorities, and the risks of having the operations of a business disturbed can be rectified by reading up from books, blogs, websites, and following professionals discussions on business start-up and entrepreneurship. Although, information garnered online may need to be taken with caution. However, seeking for relevant legal advice on the laws and agencies relevant to an area of business from the experts is a better option.
Setting out to have an alternative income is important for the economy. Such efforts can change so many things. If a start-up or entrepreneur is successful, such effects may improve the standard of living, create wealth, create jobs, add to national income, create new markets, create social change, and other conditions for a better society. Putting all these into consideration, it is important to do the right things from the onset when starting your business venture whilst keeping the profit in mind.