Revealed: Mistakes African Immigrants Often Make in Business

African immigrants fail miserably in business abroad and the question is why hi today's video is directed at African immigrants in Canada the US the UK and all of Europe we are all in the same WhatsApp group as an immigrant myself I understand the fenzy to get a job immediately to start making some money to at least pay those bills that just won't stop not to talk of the black tax bills that come from our home country we need to work and fast and the job is great but the business is even better I always encourage new immigrants to any first world country to start a business if possible with all the barriers to employment that African immigrants face including language barriers and education credentials which lead to low paying jobs many immigrants Lily want to start a business as a way out of the Rat r h now before you R your eyes at me and wonder if I don't realize that starting and growing a business is not easy please know that I understand I understand the odds and I know that there are many immigrants that do want to stud a a business and succeed in a business but it's not that easy in fact it's hard and the statistics prove it in Canada the US and the UK approximately 15 to 20% of new businesses fail within their first year of operation by the end of the second year probably 30% of new businesses have failed and by the end of the fifth year about 50% of this businesses have closed their doors these are stening statistics this alone will discourage a fair share of people from even starting truth is the graveyard of entrepreneurs is filled with businesses that did not make it and sadly African immigrant businesses make up a chunk of the statistics buried in those graveyards with so many skills and knowledge and if this is true then what is the point of this video h i probably didn't think this true but anyway let's address the elephant in the room a chunk of these fos in these statistics belong to African immigrant businesses and with Africans being so industrious and all why do many African immigrants F in business and and have to go back to becoming employees please note I said many not all let's take a look at the peculiar reasons why African immigrant businesses fail and what can be done as an African immigrant to make sure that you are not part of the statistics so grab your favorite drink strap in and let's dive into this conversation I also really would like to hear your own thoughts as we go along so please please drop them in the comments and let's have a discussion the first thing that I want to talk about is cash flow Calamity or cash flow disaster if you may this one is so peculiar to African immigrants and it is one of the most common reasons why we fail at businesses for reasons Africans can relate to in lot of times we start our business without enough capital and before you know it we run out of cash especially in those first few months when the business is yet to take off the reason we lack capital A lot of times is because we may have limited access to traditional sources of capital such as bank loans or Venture Capital due to factors such as lack of credit history or establish networks in the new country this can make it difficult to secure the funding needed to start or even expand a business even those who manage to get the capital to start a business still run out of cash because we usually underestimate expenses or we overestimate Revenue leading to cash flow shortages cash flow problems also come about out because of wrong pricing and that is pricing the product or Services too low because we are desperate to break even and gain ground in the markets and this leads to the second reason which is a lack of differentiation which comes from starting saturated businesses without a unique selling proposition now tell me if you haven't noticed an African immigrant opens a hair salon or a nail salon or even an African store on a street or do start a catering business or it was that bacon and they're doing Fair well and within 5 minutes there are 15 other similar businesses on that street started by other African immigrants this is both Greek and non brick businesses and what do you think is the way that they differentiate themselves and try to get customers yes you guessed it by cutting price and offering ridiculous discounts and before you know it it becomes a price War and who enjoys the customer of course and who sers the businesses and because prize words are not sustainable very soon the businesses will have to close down so am I saying we can't start a similar business to someone else in close proximity I didn't say that you very much can what I am saying is you just need to stand out offer something unique or provide a superior value proposition to attract customers without a clear USP or differentiation strategy your business will struggle resulting in difficulties attracting customers and gaining any market share to overcome this challenge African immigrants should focus on identifying and capitalizing on their unique strengths experiences and even cultural insights this may involve things like niche market targeting personalized customer experiences or leveraging cultural heritage as a point of differentiation we find that African immigrants like to follow this age would advice build a business around your passion well why passion can be a driving force for entrepreneurship it's not always enough to guarantee success many African immigrants follow their passions they follow their passions blindly and do not conduct foral market research to validate the demand for their offering in their new country without understanding the market needs and preferences they might struggle to attract customers and generate Revenue the business landscape in a new country May differ significantly from what we are familiar with in our home countries so there is a need to check whether that passion of yours has a market in that new country of yours family to do so can hinder the long-term viability of any business you start bued simply because it's your passion and that brings us to number four which has to do with regulations and laws regulatory challenges have been known to POS significant huddles for African immigrants starting and running businesses abroad being immigrants a lot of times the business regulations and the legal requirements tends to be complex and unfriendly and navigating the regulatory landscape in a new country can be daunting especially for immigrants who may be unfamiliar with local laws regulations and bureaucratic processes and if we don't understand something we tend not to do very well at it right in some countries African immigrants May face additional regulatory hles because of their immigration status some countries impose restrictions on immigrants starting businesses or they require specific visas or permits for self-employment navigating these immigration related regulations can be complicated and time consuming delaying the Leng and growth of immigrant-owned businesses this is one time when we African immigrants need to explore opportunities for collaboration and Partnerships someone who understands regulations and legal matters partners with someone who is great in sales and systems and marketing and such Partnerships can help mitigate risk and enhance the chances of success in the competitive business landscape that is abroad I am tempted to mention businesses that would be very easy and suitable for African immigrants abroad but I may have to leave that for another video if this is a topic you would like us to talk about please leave a comment below and if there are enough of us I will make that video and we can rob mind on that topic okay now moving on some African immigrant businesses FAL because of family and Community pressure this one is funny picture this in new African immigrant landed abroad and seeing the opportunities want to do business he joyfully informs his family back home expecting them to be as excited as he is but they not family members back home and even family members abroad sometimes discourage us from starting businesses and I think it's because they don't believe that we can succeed I guess considering all the usual challenges of starting and running businesses added to being an immigrant so while we will want to start businesses the pressure to send money back home May Force us to stay at a stable job rather than chasing unstable business opportunities this has discouraged many immigrants from taking the financial risk to invest in their business ventures we talked about just five of the most common reasons why I think African immigrant businesses fail abroad what do you think I missed out what has been your experience or the experience of someone you know in this regard leave your comment and let all learn and grow together now before you go I just want to leave you with this thought it doesn't matter where you're from what matters is where you are going to remember every setback is just a setup for a comeback let's flip the script on these statistics let's rewrite the narrative let's show the world what we're made of knowledge my friends is power so to all my African brothers and sisters out there hustling striving and chasing your dreams I see you I believe in you and together we're Unstoppable don't forget to like share and subscribe for more eye openening content that empowers and uplifts our community until next time stay blessed stay focused and keep growing peace out