Poor planning, weak financial management, inadequate documentation, and failure to conduct proper market analysis are among the leading reasons many Nigerian small businesses collapse before their fifth year, the Head of the Department of Business, Entrepreneurship and Executive Education at the University of Ibadan School of Business, Dr Mrs Siyanbola Omitoyin, has said.

Omitoyin disclosed this in an interview, explaining that while a viable business idea was important, entrepreneurs must understand what it takes to turn such ideas into sustainable ventures before committing resources.

She listed poor planning, weak financial management, inappropriate staffing, unfavourable government policies, and poor understanding of the business environment as major threats, noting many start ups are built around ideas without weighing what is required to sustain them.

"A number of start ups in the first five years rise and die because there are so many things that are not taken into consideration. Most start ups come out of just an idea. I have an idea, and I want to execute my idea. You have not taken the time to think about what is required to make the idea survive and become sustainable," she stated.

The don stressed the need for entrepreneurs to develop comprehensive business plans covering marketing, financial, organisational, and technical aspects, adding that assigning people to roles they lacked competence for could undermine performance.

Omitoyin noted that entrepreneurs must also examine their market and operating environment, as political developments, insecurity, legal requirements, and economic conditions could significantly affect businesses. "Business is started without looking at the legal environment and things like that. By the time they start off and all these things start coming in, it becomes very choking, and, at the end of the day, they are not able to survive," she added.

She identified poor capital management as another challenge, noting that some entrepreneurs commit almost all available resources to starting a business without provision for unforeseen circumstances.

The scholar cautioned SMEs against viewing lack of credit as their only challenge, insisting viable, well structured ideas could attract funding through equity partnerships, angel investors, bootstrapping, crowdfunding, and support from family and friends.

She encouraged businesses in similar sectors to form partnerships to reduce overhead, urging entrepreneurs to embrace delayed gratification given that profitability often requires sustained investment.

Omitoyin revealed that UISB was addressing some of these challenges through practical entrepreneurship training designed to expose students to the realities of starting, managing, and scaling businesses.