THE COST OF RUNNING AN UNREGISTERED BUSINESS FOR WOMEN

A very high percentage of women are carried away with the excitement of starting a new business rather than getting information on how to make the business a household name and stand the test of time. They ignore the need for licensing and business registration in most cases. Failing to register one’s business with the appropriate authority right from the beginning is one of the most common mistakes new entrepreneurs make.




Nigeria’s economic growth and development depend on the successful utilisation of its workforce. The World Bank reports that presently less than one in five women are entrepreneurs and majority of them are engaged more in the informal sector. Most of these women do not bother registering their businesses because they are of the view that the businesses are really small and some mostly done at the backyards of their homes. Most of these women choose entrepreneurship based on necessity or due to lack of employment options. While a few who want to expand their businesses have attempted to register, most of them do not complete it as a result of what they call “cumbersome registration process and lack of time” while some claim ignorance of the process of business registration. Licensing and registration of business allows business operators to operate without fear of closure for non-compliance; they are also the foundation to successful business. But in some cases registration is required for tax purposes or to be legally allowed to operate. The benefit of registration is receiving some legal liability protection if you incorporate, and you will not be held personally responsible for certain accidents and other liabilities.



For very small businesses where women mostly operate, registration or an upgrade of your business details with the CAC will cost you little effort. You want to know more on the legal aspects of starting and running your business?