A
one-man business, as Nigerians like to call it, is a business or a company
owned and controlled by a single individual. It can range from a business in a
small shop to a very big business with hundreds of employees.
A
one-man business can easily be recognised by the share control exerted by a
single individual who can be the chief executive officer and/or chairman of the
company.
Despite
being the foundation of most economies including Nigeria, one-man businesses
are viewed with disdain by a lot of Nigerians. The reasons are many and
diverse, but we will list the most common reasons why a lot of employees
dislike them.
Power
to hire and fire - One-man business is often synonymous with high staff
turnovers. Owners of these businesses can hire or fire at will and without
recourse to anyone. They often breach employment contracts, forgoing an
employee's right to compensation. This is one of the major reasons why
employees hate them.
Frequent
interference in daily operations - A friend was complaining recently about a
radio station where the owner of the business personally selects the song that
will be played by his DJ's. One-man business owners are often guilty of
meddling with business operations in such a way one may infer that they don't
have much trust in their employees.
Lack
of a structure - One-man business often lacks formal organisational structures
common with multinationals or publicly quoted companies. Even when structures
exist, they are often not adhered to, resulting in business owners flouting the
same order they hope to instill with the strictures.
Poor
remuneration structure - Someone once complained to us about not being paid for
months by his employer. What surprises him the most was that the owner of the
business still takes whatever cash is left in the business to fund the
construction of a mansion he is building in Banana Island. He also flies
business class for not just himself but for his kids; yet he can't pay staff
salaries. One-man businesses are quite guilty of this behaviour and this is
another major reason why they are hated.
Over-reliance
on one person - A one-man business that sells furniture and fittings recently
collapsed after the CEO passed on. This is often the case for most one man
businesses and a huge concern for its employees. They see it as a threat to job
security and business continuity.
Financial
recklessness - Owners of one-man businesses are often reckless with their
spending, refusing to accept advice or purposely shielding themselves from
being advised. Their financial recklessness is the main reason for the failure
of these businesses. Employees identify this as a major threat to their job
security
Successors
are always family members - Most one-man businesses, in a bid to keep the
business within the family, often appoint their kith and kin as successors even
though there are more competent hands. The impact this has on the career of an
employee is one major reason why they quit.
Lack
of standard operating processes - They also lack basic operational guidelines
that can be found in most structured organisations. For example a CEO can
decide to spend money from the company's bank account without following the
right process of allowing the accountant to raise a payment voucher.