Overcoming Financial Brick Wall Through Scrap-Dealing Entrepreneurship in Nigeria

Abstract

Many scrap dealers in Nigeria experience rapid financial loss despite the trade’s potential to generate income. This instability not only undermines their livelihoods but also limits the broader socio-economic benefits that scrap-dealing entrepreneurship could provide. This study examined how scrap-dealing entrepreneurship can help overcome the financial brick wall in Nigeria. The specific objectives were to identify the factors that cause scrap dealers to experience rapid financial loss despite initial earnings and to explore strategies that can help them sustain income and overcome financial challenges. A survey research design was adopted, targeting scrap entrepreneurs across Nigeria, with a sample size of seventy-four respondents. Primary data were collected through structured interviews, and thematic analysis was used to examine the responses. Findings revealed that financial losses among dealers are driven by poor financial management, overleveraging, market volatility, intense competition, theft, and operational vulnerabilities, whereas income sustainability is enhanced by diversification, financial discipline, entrepreneurial skills, collaboration, digital tools, and health and safety measures. The study concludes that scrap-dealing entrepreneurship offers significant potential for income generation and resilience, but its effectiveness depends on adopting structured strategies and mitigating the risks that threaten financial stability. Hence, scrap dealers in Nigeria should receive targeted training and support programs that focus on financial management, debt management, and risk mitigation. By providing workshops, mentorship schemes, and accessible financial services, these institutions can equip dealers with the skills and resources to manage earnings, navigate market fluctuations, and protect their businesses from operational risks and losses. This approach ensures that dealers can convert short-term earnings into sustainable income, reducing the frequency of rapid financial collapse while fostering economic stability within the informal sector.