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The purpose of starting a business is to make a profit and create wealth.

Many people are becoming frustrated with employment in public service and the private sector. Many are taking a chance in entrepreneurship.

Whereas it feels good to be your own boss, the flip side is that running a business is not for the faint of heart. You need resources, a solid business plan, and a thick skin to fight through the challenges that come along.

Here are eight business ideas that are not worth pursuing because of the high level of risk involved in running them as a business.

Matatu Business

Business in Kenya

For Kenyans, traveling is a part of life. People travel to and from upcountry to the city and within the city itself. People must go and get back home from their jobs, hence the need for shuttle services. There is and will always be a demand for passenger vehicles.

Yet, the flip-side of the business is that a huge amount of money goes to the pockets of the driver and tout. Add to that the traffic police who ask for kitu kidogo, frequent arrests for traffic offenses and maintenance of the matatu.

Issues always emerge that at the end of the day will deny you the agreed bankable money. It is not worth it unless you are part of the matatu crew as the driver, fighting through the thick of things.

The risks associated with matatu business are too high to consider venturing into it. Also, reputation because of bad publicity and news does not help.

Clothing and Accessories Exhibition Halls

Business in Kenya

Exhibition halls for clothes and accessories have been on the increase in Nairobi. There is competition for the same range and type of clothes, handbags and accessories sold in town. At the CBD and downtown, you will not lack exhibition halls after a few meters of walking the streets.

Getting a stall in the strategic locations is a real hustle. It is a costly affair to get the building entrance spaces, with goodwill running to millions. This limits accessing such lucrative spots to few experienced entrepreneurs.

You need to travel for shopping and come with the clothes to sell on either wholesale or retail in your stall. Considering the items are like those of competitors, you have to get your pricing right.

Sustaining the business depends on the traffic flow of customers to the stalls and actual purchases. A strategic location matters too. Many people who start the stall business close shop because of sustainability.

Churches

Business in Kenya

Churches in Nairobi and all over the country have mushroomed everywhere. Men of clothes jump at any opportunity to have their own brands set up.

Churches as littered with scandals, mismanagement and mass manipulation. Insanity has replaced true worship. Many people prefer mainstream churches to charismatic-led ‘show-biz churches.

Churches commercialized, and that has changed the otherwise noble movement. The government has moved in to regulate the rampant expansion of churches. The restrictive measures make it cumbersome to have one now, furthermore the burden of feeding the flock.

Hair Salons

Business in Kenya

You must invest in time and experience to be successful in the saloon business. Over time, you establish a relationship with your clients who visit your salon to get their hair done.

There are many saloons in both ton and the estates. All these saloons have invested in their customers, building on relationships and rates for getting the hair service. The equipment too is pricey to get and install.

Many salons are seeking innovative ways to sustain themselves. Some have opted to operate as colleges. Others sell hair products, while some operate based on demand.

Tenders

Business in Kenya

Tenders appear lucrative. Winning the deal to be a supplier mean guaranteed profitable payment. It is discouraging to invest so much to deliver, only for payments not to come through.

It might force you to borrow funds with the hope that once paid for the supplies delivered, you would payback. Delays of payments to institutions, tiresome follow-up make tenderpreneurship too risky and stressful.

The Taxi Business

Business in Kenya

Uber, Taxify, and Little Cabs emergence changed the taxi industry in Kenya. People would prefer hailing these cabs online on the Google apps to seeking your cab services.

Technology has revolutionized the cab industry. Users now have a far much cheaper option. Their rates are way lower to normal cab rates.

New cab drivers who get loans for the cars have to run on the double to repay back. Making Ksh. 3,000 a day is an almost impossible challenge.

Considering the low rates Uber and its rival online cab companies offer, it is becoming a challenge for the drivers and new car wonders.

There are many work applications for taxi drivers, and these have caused many delays in approval. High competition for clients makes it difficult for newcomers.

Cyber Cafe Business

Business in Kenya

As far as I can remember, it is over 20 years since cybercafes started operating in Kenya. Whereas it has been lucrative, technology has been disruptive, cutting short the rich supply of customers to cyber cafes.

Smartphones, affordable internet at home, and portable Wi-Fi hot spots mean people have internet access on the go, be it at work, in transit, or at home. Cyber Cafes are losing relevance.

Second-Hand Clothes

Business in Kenya

Mitumba is preferable by many Kenyans because of its affordability. A ready market for the second clothes has seen investors in the trade reap from their business ventures.

Yet, the scales are tipping, especially with the Nunua Kenya, Jenga Kenya initiative. Kenya’s EPZ is now manufacturing more affordable and quality clothing that fits most of Kenyan’s purses.

Walking to Gikomba is risky and a big hustle. You can end up with losses for unsaleable clothes bales you ordered for. Eastleigh and Kamukunji traders are offering cheaper new clothes, an alternative to mitumba.

I trust this post gives you useful insight into business opportunities you should avoid if you can. Like and share my post. Comment and share with us your experience and point of view.

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