Nigeria is one of the most entrepreneurial countries in the world. Across technology, agriculture, fashion, trade and services, new businesses are launched daily, driven by necessity, creativity and resilience. From startups in Yaba to agribusinesses in Benue, fashion labels in Aba and service firms in Abuja, entrepreneurial ambition is everywhere.
Small and medium-sized enterprises (SMEs) account for about 96 percent of all businesses in Nigeria and employ roughly 84 percent of the workforce, highlighting the sector’s critical role in the economy, according to SMEDAN and the National Bureau of Statistics. Yet beneath this entrepreneurial energy lies a sobering reality: very few of these businesses will survive long enough to become institutions.
This is not because Nigerian founders lack intelligence, grit or vision. I have worked with too many brilliant entrepreneurs to believe that. The deeper issue is that many businesses are built to survive, not to scale. We often misdiagnose the problem as a lack of capital, innovation or competence. In truth, scaling is rarely about working harder or raising more money. It is about building systems and communities that can carry growth sustainably.
Most Nigerian businesses operate in survival mode. They are shaped by an environment that rewards urgency. Founders do everything themselves. They sell, manage operations, handle finances and resolve customer issues personally. When the founder is present, things move. When they are absent, everything slows down or falls apart. Over time, the business becomes dependent on the founder’s energy rather than being supported by a solid structure.
As a business grows, complexity grows with it. More customers bring higher expectations. More revenue demands stronger accountability. At this point, many businesses begin to struggle even in the midst of excess demand, because the structure to support growth was never built. In many organisations, processes live in people’s heads rather than in documented systems. This is understandable in the early stages. However, in a volatile economy, clarity, governance and process design are not luxuries. The PwC Africa Private Business Survey consistently shows that businesses that invest early in governance, financial controls and operational processes are significantly more likely to achieve long-term growth and attract investment in comparison to those that do not.
Building systems changes how business leaders approach growth. It requires stepping back to see the business as a connected whole rather than a set of isolated activities. It asks different questions. How do different parts of the organisation interact? What behaviours are being rewarded? Where are decisions getting stuck? Where is effort being wasted? This perspective helps founders identify leverage points, where small and intentional changes can produce lasting results. For example, instead of repeatedly hiring to address high staff turnover, a systems-focused leader looks deeper. Are roles clear? Is there room to grow? Is communication consistent?
Funding alone cannot solve structural problems. Many companies that succeed in raising capital still struggle to survive because their internal foundations are weak. Funding cannot fix what structure must. Increasingly, investors look beyond ideas and enthusiasm to assess operational maturity. A business that cannot demonstrate clear processes, governance standards and performance tracking will struggle to attract serious, long-term investment.
In practice, scalable businesses tend to align three core systems. The first is identity. This is clarity about who the business is, what problem it solves and why that problem matters. Identity shapes culture, messaging and decision-making. The second is operations. These are the processes, documentation and delegation structures that allow work to continue even when the founder is not directly involved. The third is learning. In fast-changing markets, continuous learning is how organisations remain relevant. Businesses that learn consistently adapt with intention rather than reacting in panic.
Community is another underestimated factor in business growth. Many Nigerian founders build in isolation. Without mentors, advisory boards or trusted peers, decision-making becomes lonely and emotionally heavy. Challenges such as regulatory uncertainty, cash flow pressure and leadership gaps are often internalised as personal failures when they are in fact common and systemic. Strong business communities, such as The Thriving Circle, are consistently working to change this dynamic. They reduce isolation, accelerate learning and introduce accountability. In environments where formal institutions are weak, communities often become informal ones, spaces where trust, knowledge and opportunity circulate. Globally, resilient business ecosystems thrive not just on capital but on mutually beneficial relationships.
Scaling, therefore, requires a shift in mindset. Founders must move from being constant doers to intentional designers of systems. The questions change. Can this business function without my daily involvement? Which processes can be repeated? Who has decision-making authority, and how is performance reviewed?
For Nigerian businesses to scale meaningfully, three things matter. Founders must invest earlier in systems, including financial discipline, governance, operations and people development. Business communities must be built with intention, prioritising learning and long-term value over performative networking. Investors and policymakers must increasingly reward structure and sustainability rather than short-term expansion alone.
At its core, building systems is an act of empathy. It creates clarity so people can do their best work. It builds trust with customers. It allows organisations to listen, learn and evolve. When Nigerian businesses scale sustainably, they create not just profit, but jobs, resilience and long-term economic confidence.
Oyindamola David Ogundiran is a personal brand strategist and business growth consultant advancing visibility, credibility, and sustainable scale. He founded The Thriving Circle and co-founded Crerare, driving community-based leadership, systems thinking, and strategic branding to strengthen institutions and support Africa’s long-term economic development.
