Abundance vs Scarcity mindset

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The mentality we adopt can have a significant impact on our business and professional success. Two of the most commonly discussed mindsets are the scarcity mentality and the abundance mentality. Understanding these mentalities and how they influence our thinking can help us make better decisions and achieve more significant results in our careers.

The Scarcity Mentality

A scarcity mentality is a belief that resources are limited, and there is not enough to go around. In Nigeria, this mentality is often seen in businesses that struggle to survive due to a lack of resources such as capital, infrastructure, and skilled labour. It may sometimes be referred to as a "dog eat dog" mentality. Many small businesses in Nigeria have to compete with larger, more established companies with more resources and funding, leading to a sense of scarcity.

For example, a small restaurant owner in Nigeria may focus on the competition with other restaurants in the area, rather than the potential for growth and expansion. They may be reluctant to invest in their business, hire additional employees or pursue new opportunities due to a fear of not having enough resources to make these changes successful. This can result in reducing the quality of the food and services, which eventually drives away customers. Meanwhile, the neighbouring restaurant may have focused on meeting customer needs and improving services whilst foregoing short term profits. The scarcity mentality may attribute their neighbours success to illicit activities or foul play e.g. "Iya Basira dey put 'jazz' inside her food or she don cover my customer eye" and may proceed to sabotage their competitor rather than focusing on how to improve their value proposition.

Large corporates may also exhibit scarcity mentality. However, this may not manifest like the plot of a bad Nollywood movie, but rather in unethical practices that stifle competition in the industry. Price manipulation, lack of transparency, exploitation of staff, elimination of smaller players, tax evasion etc. These are all practices that exhibit a scarcity mentality.

The Abundance Mentality

In contrast, the abundance mentality is a belief that there are enough resources to go around, and opportunities are abundant. This mentality is characterized by a sense of confidence, creativity, and collaboration. Individuals and businesses with an abundance mentality tend to focus on opportunities rather than challenges, and they are more likely to take risks and pursue their goals.

For example, a tech startup in Nigeria may focus on creating innovative solutions to challenges in the market, even if they are a small company competing with larger, more established tech companies. They may collaborate with other businesses and individuals to achieve their goals and seek out new opportunities for growth and expansion.

Here are a few examples of Nigerian businesses that exhibit an abundance mentality (*Disclaimer*: These are not endorsements of these companies):

Flutterwave: This Nigerian fintech startup has a mission to simplify payments for businesses and individuals in Africa. Flutterwave has raised over $225 million in funding to date, despite the challenges faced by Nigerian businesses in raising funds. They identified the gaps in the market and set out to plug those gaps rather than simply looking for ways to scrape the bottom of the pot. They focused on enhancing their value proposition. This shows that they believe there are abundant resources available to achieve their goals.

Moove: Moove is a Nigerian startup "founded in response to the challenge faced by over 2 million African mobility entrepreneurs - the lack of access to vehicle financing." Initially birthed in Lagos, they have now expanded to over 6 cities in Africa and raised a total of $181.8 million in funding. They saw the opportunities where other established players perhaps simply focused on the risks.

ThriveAgric: This agritech company seeks to address some of the major challenges faced in the Nigeria agricultural sector: access to capital, access to markets and access to technology. Despite the high risk nature of agriculture investments in Nigeria, which has seen financial institutions reluctant to fund the sector, ThriveAgric saw the opportunities in a vital sector of the economy. In March 2022, they raised $56.4 million in debt funding from commercial banks and institutional investors. Additionally, the company received a $1.75 million co-investment grant from West Africa Trade & Investment, which is funded by USAID. This is the definition of abundant mentality!

The Benefits of an Abundance Mentality in Nigerian Business

The abundance mentality is generally considered to be more beneficial for business success than the scarcity mentality. Here are some of the reasons why:
  1. Innovation: Nigerian businesses with an abundance mentality tend to be more innovative and creative. They are more likely to seek out new solutions to challenges and to be open to trying new things.
  2. Growth: An abundance mentality can lead to a focus on growth and expansion. Nigerian businesses with this mentality are more likely to invest in their businesses and to pursue new opportunities.
  3. Collaboration: The abundance mentality promotes collaboration and teamwork. Nigerian businesses with this mentality are more likely to seek out partnerships and to work with others to achieve their goals.
  4. Positive mindset: The abundance mentality is characterized by a positive mindset. Nigerian businesses with this mentality tend to focus on opportunities rather than challenges, which can lead to a more optimistic outlook and increased resilience.

Tips for Developing an Abundance Mentality

If you are looking to adopt an abundance mentality, here are some tips to help you get started:
  1. Focus on opportunities: Instead of focusing on what you lack, focus on the opportunities available to you. Look for ways to grow and expand your business, and be open to new ideas and opportunities.
  2. Collaborate with others: Seek out partnerships and collaborations with other businesses and individuals. This can help you leverage your resources and achieve more significant results. (Make sure everything is well documented though!)
  3. Take calculated risks: Don't be afraid to take calculated risks. Evaluate the potential risks and rewards of each decision, and be willing to step outside of your comfort zone to pursue new opportunities. No risk, no reward as we all know. Emphasis on "calculated"... Get a competent investment analyst to scrutinise any potential investment you wish to do. For a small fee, you may avoid a lifetime of heartache.
  4. Practice gratitude: Cultivate a sense of gratitude for what you have. This can help you maintain a positive mindset and focus on the opportunities available to you. The grass may always look greener on the other side but be thankful that you even have grass or that you can even see different shades of green! It's all about perspective.
The mentality we adopt can have a significant impact on our business success. While a scarcity mentality can lead to a focus on short-term gains and a fear of taking risks, an abundance mentality promotes growth, collaboration, and innovation. By focusing on opportunities, collaborating with others, taking calculated risks, and cultivating gratitude, entrepreneurs and businesses can develop an abundance mentality.

Thanks for taking the time out to read this article. Please feel free to send me a message or comment on the article. I am always happy to discuss other perspectives and explore different philosophies.

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