Finance

How Does Land Tenure Affect Businesses

The land tenure system is mainly described as a legitimate or legal system in which a person owns the land.

The owner is usually called “Landlord” or “Landlady”. And just like the name describes a Land tenure system is a period at which a person holds a piece of land and he or is known as the legitimate owner of it.

The land tenure system in most cases can be a threat to business owners and their businesses and it can be disturbing.

Here in this article, we will be looking at some of the effects of the land tenure system on business owners and their businesses.

Effects of Land Tenure on Businesses

There are several ways businesses get affected by the land tenure system and they are listed below.

Difficulty in getting land for business

Non-members of the community may find it very hard to get land for business purposes.

This is one of the foremost and rampant effects of the land tenure system in any given area. Non-indigenes of a community may find it difficult to get land as other members of the community will only see you as a mere strangers and an intruder.

It does not encourage a business operation for long

It is obvious that the land tenure system doesn’t encourage business activities (operation) for long periods.

Businesses are usually cut short in their operations because of changes in control, management, and authority. Since land ownership is not usually stable for a long time business operations are affected directly or indirectly.

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It is characterized by  misunderstanding

This is the simple truth about the land tenure system.

In most cases, the backbone of the land tenure system is simply misunderstanding amongst members of the community.

And this can drastically reduce business performance since the business is in a community prone to misunderstanding.

  Allotted land can be revoked at anytime

In a land tenure system, the business owner may encounter lots of effects in starting up a business and such effects can hinder or slow down the productivity rate of the business.

One of such effects is that allotted land given out already for business purposes can easily be revoked In the occurrence of new leadership.

Hence, disrupting the operation of the business.

Conclusion

Though a Land tenure system seems to have some disadvantages and effects on businesses both startup and giant businesses alike there are also some advantages business owners can derive and enjoy as they run their businesses.

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