Find below a summary of the reasons why there are many petty traders in West African economies. You can use these points to answer any question on why many small-scale firms or businesses still exist in West Africa.
- Inadequate capital
- Lack of proper management skills or organizational know-how
- Existence of mass unemployment
- Petty trading is a ready means of supplementing very low regular incomes
- Very small markets
- Management is easier
- Lack of team spirit and trust to allow for the formation of partnerships or joint-stock companies.
- Sole proprietorships are simpler or easier to start compared to partnerships, for example.
- The provision of direct services is more attractive to people who can’t set up businesses demanding complex products and structures.
- Fear of taking risks makes more people settle down for smaller enterprises.
- Petty traders in West African economies operate in local or remote areas where opportunities for business expansion and growth are limited.
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