The Nation Newspaper

Category: Small Business and Entreprenuership

  • My success secrets, by entrepreneur

    Miss Efe Imiren,Chief Executive, Service Forts, went into business at an early age. With little capital, she went into information marketing and later veered into imortation, supplying and buying.

    To Imiren, importing is a way to rejuvenate a poor local economy. Her first year in the business was challenging. But today, returns are growing because she took the time to learn about the business. For her success in business is underpinned by trust, responsibility and ethics. She has participated in importation training which helped her to the leads and learn about import procedures.

    She said importing from China is a lucrative business. Her strategy is ensuring that the companies she deals with don’t take shortcuts, and when the consignment arrives, it meets the original specifications which has been agreed to. She makes sure that the supplier truly understands the specification.

    She patronises Chinese companies which recognise quality and integrity. On the Internet there are many scams and dubious traders.

    One of the biggest mistakes aspirant importers make is to assume that just because a product works in one country, it means it will work in another.

    According to her, the first step is to research the local market thoroughly. If there is already a similar product being sold in here, one has to determine how one is going to differentiate the product one imports.

    She advises importers to familiarise themselves with market trends in different products categories.

    She helps new importers conduct market research to determine whether the products one requires or is supplying are competitive in terms of quality, packaging, presentation and price.

    Imiren helps small business owners attend trade shows or conferences that will enable them to meet the right people and talk to them about their ideas.

  • SMEDAN to create five million jobs, says DG

    The Director-General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Alhaji Bature Masari, has reiterated its readiness to generate five million jobs by 2015.

    This is contained in a statement by Masari and made available to newsmen in Abuja.

    He spoke at the inauguration of the National Enterprise Development Programme (NEDEP) in Bauchi State, according to the News Agency of Nigeria.

    He said the plan will be achieved through NEDEP, which was initiated by the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga.

    He said NEDEP is being implemented under three pillars, namely, technical/vocational skills acquisition, business development services (BDS) entrepreneur training and access to finance.

    Masari, who inaugurated the MSMEs in the state, said: “The entrepreneurs training components of NEDEP is being anchored under the Local Government One Product (OLOP) Programme, adding that the aim is to revitalise the rural economy and alleviate poverty in rural areas in Nigeria.

    “This will be done through the establishment of sustainable MSMEs in the 774 local government areas based on comparative and competitive advantages.’’

    He listed the benefits of OLOP to include: the entrenchment of entrepreneurial culture, economic development, industrialisation of rural areas, industrial cluster development and increased MSMEs contribution to the country’s Gross Domestic Product (GDP).

    He listed others as increased export potential, crime reduction, wealth creation and political stability.

    “As you may be aware, the pilot project of the OLOP was conducted in Kano and Niger States between September 2010 and July 2011.

    “Baseline surveys and value-chain analysis were carried out and BDSs were delivered to approximately 50 selected enterprises that had six products.

    “These products are rice, groundnut oil and leather products for Kano State and yam, groundnut oil and shea nut for Niger State.’’

    He said the number of MSMEs dealing with the selected products and the size of businesses in Kano and Niger states were estimated in order to find out the scale of public investment.

    This, he said, would be needed to implement the action plan effectively.

     

  • Ahmed promises artisans in Kwara N200m loan

    kwara State Governor Abdulfatah Ahmed has promised a N200 million soft loan to artisans this year.

    He spoke at the first anniversary of the establishment of state Joint Association of Commercial Motorcycle Riders in Ilorin.

    The governor assured members of the association that they would benefit from the revolving loan to be enjoyed by all small-business owners.

    “Today, as we celebrate the first anniversary of the Kwara State Joint Association of Commercial Motorcycle Riders, I am pleased to note s wrong,’’ he said.

    He said reports reaching him indicated that there were fewer accidents involving commercial motorcyclists.

    The governor also noted that the association’s vigilance and enforcement had reduced the level of crimes involving motorcycle riders in the state.

    “These accomplishments are traceable to the leadership of the association and members’ determination and willingness to sanitise your trade and ensure a safer society.

    “More importantly, you have demonstrated that given the right incentives and conditions, we, Nigerians, are capable of achieving success in everything we do,” Ahmed added.

    He said the state government gave out N100 million in soft loan to members of Kwara Artisans Congress, and had so far disbursed N520 million to tradesmen and women in the state.

    “In our determined effort to create prosperity for all, no part of our population will be left out,’’ the governor promised.

    “We will ensure that everyone benefits directly and indirectly from the new empowerment programmes that my administration will make available from next year.’’

    He appealed to members of the association and the people of the state to remain vigilant and resist any attempt by anyone or group to incite them to violence.

    “We all have a responsibility to keep our streets safe, our neighborhoods crime-free, and our communities harmonious,” he added.

    The governor urged them to be vigilant and report any suspicious persons to the police.

    He urged the leadership of the association to ensure that the association remains law-abiding at all times

     

     

  • Interswitch boss advises entrepreneurs

    Interswitch boss advises entrepreneurs

    Mitchell Elegbe, founder and group managing director of Nigeria’s Interswitch Limited, a pan-African integrated payment and transaction processing company, has some advice for entrepreneurs that not everyone agrees with. He believes entrepreneurs should consider giving up the ownership of their companies when first starting out.

    “This is a very controversial advice because every time I have mentioned it to entrepreneurs they don’t take it seriously. I don’t know if you are aware, but when I started Interswitch, I did not have a single share in the business … and I gave up 100 per cent ownership,” Elegbe told How we made it in Africa.

    He added that the fact that the founder of a company can be fired by new owners “is something I think a lot of entrepreneurs must strive for”. Why? Because this is one way to ensure objectivity when making important business decisions.

    “The man who runs a business cannot distinguish between the business and his private assets. The line is usually blurred,” explained Elegbe. “So my advice to entrepreneurs is to deliberately put yourself in the position where you can be fired for wrong decisions. Overall, it helps you.”

    This raises questions about the decision many entrepreneurs must make when seeking to fund the expansion of their companies through private equity investment, at the expense of losing control and ownership.

    “What I find with a lot of entrepreneurs today is that they want control. So my question is, why do you need control? I believe that every entrepreneur must be under authority, otherwise you will make the wrong decisions,” continued Elegbe.

    “By putting yourself under the authority of other people who are wiser, who can guide you, and (through), you recognising that you could lose your job if you do not do the right thing, is pressure that every entrepreneur should deliberately seek to put themselves under because in the end you end up becoming a better entrepreneur.”

     

    Interswitch’s success

     

    Interswitch started operations in Nigeria in 2002 and was initially financed with N200million (about US$1.2million) from a number of Nigerian banks, not through a loan but through equity. The second round of capital came through private equity investment. Eight years on, in 2010, Interswitch was valued at N26billion ($163million), according to Elegbe.

    The company has become a leader in providing technology integration, advisory support, transaction processing and payment infrastructure services to governments, banks and various corporate organisations in Nigeria. Three years ago, it expanded into Uganda and last year, Interswitch made a move into The Gambia. Furthermore, Elegbe told How we made it in Africa that they are looking into expanding further into Africa.

    Considering Interswitch’s success, Elegbe still has no regrets about giving up the ownership of his company and, in fact, believes that Interswitch would not be where it is today if he hadn’t.

    Three years after giving up ownership, the chairman of Interswitch rewarded Elegbe with shares for his hard work and contribution to the company’s growth. “To me, (owning) one per cent of a very big and successful organisation is more important than 100 per cent of an organisation that is going nowhere,” he said.

    Elegbe has won a number of business leadership and managerial awards. Most recently, he was awarded the Transformational Business Award by the African Leadership Network at the 2013 Africa Awards for Entrepreneurship. The award is in recognition of a notable business leader who has created significant socio-economic impact in Africa by building a business with revenues greater than $50million.

     

    •Culledfrom www.howwemadeitinafrica.com

     

  • ‘Empower MSMEs to reduce unemployment’

    Presiden, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, has attributed the high rate of unemployment in the country to poor funding of Micro Small and Medium Enterprises (MSMEs).

    He said promoting micro and small scale enterprises (SMES) have the potential of generating employment and boosting rural development.

    Addressing the association at a forum in Lagos, Iche noted that SMEs’ ability to absorb a large portion of the country’s workforce has become its main advantage in driving the economy forward.

    He urged the government to pay more attention to SMEs and provide several policies to support its development.

    According to him, if the industry is doing well, unemployment will reduce.

    He said: “If government can encourage MSMEs, the likes of Dangotes will spring up in large numbers.

    “Let the government raise money for us to industrialise Nigeria, if Nigeria must achieve Vision 20: 2020, the micro sectors must not be neglected or the vision will be a mirage.

    On the association’s one-million man- march, he said it was a huge success.

    He said the problem of micro enterpreneurs was finance.

    He mooted the idea of establishing ‘incubation centres’ to encourage youths to set up their own firms.

    He said about 70 per cent, of businesses in Nigeria are micro businesses and informal sector businesses.

    Iche urged the government to co-ordinate its efforts to create infrastructure towards enhancing trade and building a strong domestic business environment to encourage more SMEs to participate in the economy.

  • Budget 2014: SME body gets lion’s share

    Budget 2014: SME body gets lion’s share

    From all indications, 2014 looks to be a promising year for stakeholders in the small and medium scale enterprises as the sector got the largest chunk of allocation from budget allocation to the Ministry of Trade and Investment.

    The Nation can authoritatively report a review of the 2014 budget proposal for the Trade and Investment Ministry shows that the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) got the lion share in terms of capital allocation ahead of other agencies under the ministry.

    A review of the 2014 budget proposal obtained by The Nation from the Ministry of Finance showed that the agency was allocated a total proposed capital budget of N1.24billion, which is the highest to any parastatal under the ministry, but the figure was actually a drop from the N1.66billion it got in the year 2013 budget.

    Besides, there was also a sharp drop from its total recurrent expenditure from N 959.95million in the 2013 budget to N863.44 million in the current budget.

    The Nation gathered that SMEDAN got the princely sum as a result of the quest by Federal Government to reposition SMEs through the National Enterprise Development Programme (NEDEP) which according to the initiator of the programme, the Minister of Industry and Trade and Investment, Mr. Olusegun Aganga, would generate an estimated five million jobs between 2013 and 2015.

    NEDEP is being implemented under three pillars, technical/vocational skills acquisition, business development services (BDS) Entrepreneur training and access to finance and is designed to put the SMEs sector on the right footing.

    The BDS/ Entrepreneurs training components of NEDEP is anchored under the One Local Government One Product (OLOP) programme, which the government said is tailored towards revitalising the rural economy and alleviating poverty in rural areas in Nigeria and would be done through the establishment of sustainable MSMES in the 774 Local Government Areas (LGA’s) based on comparative and competitive advantages.

    Already, SMEDAN under the NEDEP/OLOP has conducted sensitisation/needs assessment programme in 22 states and is presently conducting baseline survey and value- chain analysis in six pilot states of Lagos, Bayelsa, Anambra, Kano Benue, and Bauchi.

    Also it has handed over to the Bank of Industry (BOI) about 1000 cooperative groups and their business plans for appraisal and funding.

  • Success stories in event management business

    Success stories in event management business

    Mrs  Abimbola  Gbolade knew that she needed to make a change in her career and she was attracted to the idea of business ownership.  She was always the party planner among her friends. An idea was born and she started  an event planning company.

    She  said her  company  is  an event management and equipment rental company that provides full event support for all indoor and outdoor events. She said: “Our array of services include exceptional venue styling, catering, sound management, lightings, and special effects. I started two years ago with a little above N300,000. Today, the business is  worth more than  N8 million. One can start small.”

    According to her, to start the business, one needs mainly fabrics and lights, adding that others could be rented.

    “There is a lot ofcompetition in the industry.  Working  hours are flexible, depending on the amount of work at hand. My target clients include individuals, corporate and religious organisations. We are gradually reaching all our target clients. In this business, one needs to have integrity, diligence, and be continuously creative,” she said, adding that one could work on a part time basis.  On funding, she said: “Right now, accessing credit is a big challenge for small players. Training is an essential part  and strength  of any business. Put your heart into what you do and always strive to satisfy your clients.” To gain experience, she  started by planning  friends’  events. Since then  her  business has come a long way. Most of  her  time  is devoted to developing a thorough business plan, which she breaks down into sections and tackles one after the other.

    CEO/Planner Extraordinaire at BusyBee Events, Bisi Sotunde plans  events from start to finish and also provides event needs and supplies for both corporate and social clients from decorations, hostesses, bouncers, rentals, catering services and much more. Sotunde  made a foray into the events business about six years ago.

    She said: “Just before I graduated from the university, I started the business with about N30,000, but today, the business has grown to unimaginable proportion by God’s grace.”

    According to her, while one  could start  an  events planning and management services business  on a shoe string, but  with events decoration services, one needs capital to purchase materials and equipment.

    She said: ”To set up an  events management company, you basically need a laptop, internet modem, mobile phones with camera, your skills and lots of your networks.

    “Yes, events management is quite easy to penetrate. You don’t need specific qualifications to become an events manager. However, you must equip yourself with necessary skills.” According to her, she works 9am to 6pm, Mondays through Fridays and during weekends onsite. Her  work starts very early in the morning and eats late into the night. .She  targets  upper class, middle class and elites, families,prospective couples, individuals, private and public organisations.

    The scope of her business covers Lagos, Abuja and everywhere within and outside Nigeria.

     

     

  • Firm empowers Lagos women

    Participants at the training on basic entrepreneurship and book keeping for 56 women from the Ikorodu community in Lagos have resolved to make the best of the opportunity they were given.

    The training was sponsored by Falcon Petroleumin partnership with Fate Foundation.

    Though all the women were expected, only 28 showed up at the event, which, according to Falcons Petroleum Executive Director, Audrey Joe-Ezigbo, was informed by the good relationship the firm has with its host community.

    .She said: “We looked at how we could add value to Ikorodu. Ikorodu is very dear to us because that is where we have the gas franchise.

    “But we found out that there is a need to look into the womenfolk. We discovered that a lot of them are struggling in many ways. So last year, we decided to do vocational skill acquisition training for women in communities where we have our projects running. So, what we did was engage the community in a town hall meeting and they said they were interested. They looked for women, and the kind of project that would really benefit them.

    “Fifty eight of them were selected from diverse ethnic backgrounds and for four months, we partnered with a vocational institute that offered them training in event planning, catering, cloth and bead making. In the end, we facilitated a one month industrial attachment in different companies. We gave them strata packs at graduation. Beyond the skill acquisition itself, we are also teaching them how to manage business.”

    She said participants would be exposed to entrepreneurship /business-oriented courses such as book keeping, human resources, selling, business management, among others, adding that facilitators would deploy local dialects and pidgin English so as to meet participants level.

    The facilitators will be deploying Yoruba Igbo Hausa and pidgin English in communicating with them, she said, adding that the company have been on a continuous monitoring and evaluation of the programme since January when it started.

     

  • Sustaining the economy through SMEs

    The Managing Director, First Registrars Nigeria Limited, Mr Bayo Olugbemi, has  made a strong case for investments to promote entrepreneurship and promote small businesses to stabilise the economy.

    Olugbemi,who was represented by the Group Head,Business and Development,MrAbayomi  Oluwato,  was addressing the  SME connect conference organised by Business Impact Limited to celebrate the 30th birthday of its Chief Executive,Mr  Olatunde Samson in Lagos.

    He   said the  small  businesses and entrepreneurs  can  promte  determine economic growth and  a number of steps need to be taken to boost their  confidence.While observing development trends in the economy, Olugbemi  noted that the stimulus behind rapid development and sustainability of the economy  is the industrious performance of their Small and Medium Enterprises Sector (SMEs).

    He noted that SMEs stabilize economic growth and drive economic development  as  such businesses comprise a widely divergent spectrum of establishments. He  said they engage in economic activities ranging from small-scale enterprises to modern industrial units using sophisticated technologies.

    Though recognised as a priority sector, Chief Executive ,Business Impact Limited,Mr Olatunde Samson said  small businesses often have difficulties financing growth and innovation.

    He  said  there was  a need to focus on SMEs and their performance – and keep them engaged at all times in order to promote and maintain stability and sustainability in their operations.

    Growth in SMEs ,he  continued broadens and diversifies the foundations of an economy, by creating a large variety of self-sustaining business units. This,Samson maintained  helps to mitigate industrial risks and accelerate commerce towards novel business avenues, while encouraging innovation and differentiation among products. He  said the  Business Growth Conference (BGC), now tagged the “SMEs Connect”; atop-notch quarterly business summit put together by the BusinessImpact Group (BIG).The Objectives of the SMEs Connect,he listed  include:helping participants develop the right skills and attitudes forcreating and growing lasting business and career,providing ready mentorship and support for participants especially inareas such as business management, planning and marketing and connecting participants with seasoned mentors.He  said , every edition of the SMEs Connect is endowed with noteworthy speakers and discussants; personalities who are makingwaves in career and in the business world. The spectrum of personalities include Dr Sunday Ojeagbase (MD/CEO of Chairman ofSuccess Attitude Development Centre and Complete Communications Limited), Mr Fela Durotoye (President, Gemstone Leadership Institute),Olumide Emmanuel, Steve Harris and Niyi Adesanya, Lanre Olusola tomention a few.

    “Today, several millions of people in Africa are immersed in the bog of poverty and unemployment. Hence the need to swing into action tosalvage our common future by developing sturdy entrepreneurs and career giants that will stand the test of time.”

    Samson said  the  conference was designed to bring  stakeholders in the SME sector  to discuss issues confronting entrepreneurs  and look at the various strategies to  support  young  Nigerians trying  to  explore opportunities within  the sector .

    According to him, the sector has huge potential in generating employment and alleviation of poverty.

    The sustained and long-term growth of SME sector,he  noted remains constrained by a number of factors on both demand and supply side.

    Most SMEs face issues such as lack of formal business management skill, poor maintenance of accounts, lack of business planning, etc.

    He said a  sustainable solution requires that  players  take a more holistic view of the problem.

    He  urged   stakeholders  to work together in a coordinated and cohesive manner to ensure sustainable growth of SMEs especially removing the hurdles in the way of their easy access to finance.

    According to him, matchmaking and preparing entrepreneurs for investment were the two main goals of the  SMEs  Connect  conference. He   stressed the importance of defining and evaluating focused strategies to help SMEs  do  business better .

    He  said: “The conference provided a great opportunity for  entrepreneurs  shape the right strategies and support to enable them to successfully  do business .

    Though ,the challenges by economic crisis carry both risk and opportunity for SMEs, the Chief Executive, NEO Media and Marketing, Ehi Braimah  said there are opportunities  for young Nigerians to explore  and make a living.

    According to him, the  key to sustain a high growth rate is self employment and  entrepreneurship. Braimah pointed out that opportunities were available in virtually every sector of the economy.

    Nigeria, he  noted, offers a variety of investment opportunities.

    The event featured a launch of a biography of Mr Olatunde.

  • ‘Artisanal, small scale miners produce 80% of solid minerals’

    The Ministry of Mines and Steel Development says not less than 80 per cent of the solid minerals in the country are produced by the artisanal and small scale miners.

    Mr Obiora Azubike, the Director, Artisanal and Small Scale Mining Department, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja.

    “It will interest you to know that over 80 per cent of minerals (solid minerals) that are in this country are produced by this class of miners.

    “In fact, this group of miners are actually into all the minerals apart from bitumen.

    “We encourage the miners to participate in the extension service training programme that we conduct annually; part of the programme focuses on processing the minerals.

    “By the time you process your minerals properly, your products will add value and by the time you process further, the value is further added.

    “Like the gemstones producers, rather than exporting or selling their products in raw form, we encourage the miners to cut the gemstones.

    “When you cut the gemstones, you get more value for it even when they are for export,’’ he said.

    Azubike said that the ministry was registering the miners to determine their strength and operational capacity.

    “The main thrust is to determine how many of these mining cooperatives are active, and preliminary results already indicate that a substantial number of registered cooperatives are still active,’’ he said.

    Owning 1 per cent of a successful company is better than 100 per cent of a floundering one