The Nation Newspaper

Category: Small Business and Entreprenuership

  • Tips for water business

    Tips for water business

    An entrepreneur, Mrs Oyin Osibodu is making a difference in her bottle water project in Lagos. A United Kingdom(UK)-trained chemist, Mrs Osibodu is the chief executive of Aqua Vitae Water.

    She studied Chemistry at the Brighton University and has a second degree in Water Treatment.

    Considering the large population of Lagos, she decided to invest in water treatment.

    She started the business while working with the Federal Ministry of Works.

    Mrs Osibodu saw that safe, hygienic water was in high demand and she decided to explore the business opportunity to help improve people’s lives. She started small. She got a factory around Sabo, Yaba, Lagos. Today, the business is successful. The proof of this is her venture into juice drinks production. She produces 100 per cent natural juice drinks without additives. She produces table water and supplies water dispensers. She is happy. Her company has become popular with its treated water products and water dispensers.

    Demand for quality packaged water is increasing as the population grows. This offers many business opportunities. Her company has had a positive impact on many lives. She has employed many Nigerians. Her products are available in supermarkets, large format outlets, convenience stores, restaurants and other food service outlets.

    For her and others in the business, increased consumption of bottled water has attracted many investors. Soft drink giants have become distributors of bottled water brands. Competition in the market is intense with soft drink giants selling their own brands at extremely competitive prices. There is also intense competition for shelf space.

    Consequently, bottle water has moved from being a niche or specialty item to a mainstream product. For water bottlers, the domestic market will likely continue to be the most important market for the foreseeable future. The market is sophisticated, and extremely well served which means that competition will continue to be strong.

    Increased competition from other non-alcoholic beverages, such as energy drinks and relaxation drinks, has provided consumers with more beverage choices.

    She faces some constraints which should be addressed to enable her to grow and expand. These include increasing transportation and packaging costs.

     

     

     

    Bottlers are vulnerably to ground water contamination. They are also vulnerable to changes in usage policies and licensing requirements by governments.

    Another problem is unreliable power supply.

    Others include regulations and an inadequate financial system.

    Another challenge is that bottle water competes with various cold beverages, including carbonated soft drinks, milk and dairy beverages, fruit and vegetable juices, soya beverages, energy drinks, relaxation drinks and sport drinks and to a lesser extent with hot drinks such as coffee, tea and hot chocolate.

     

     

     

     

    To this end, Mrs Osibodu is working to launch a fruit juice subsidiary. She has always been eager to make a social impact on the communities around her.

     

  • Palm kernel oil and cake processing

    PALM kernel oil (PKO) and cake are obtained after processing palm nuts.

    The oil is in great demand. It is used for the production of soap, candle, cosmetics, edible oil, margarine and other products.

    Palm kernel cake, on the other hand, is highly demanded by feed millers.

    Both products have very wide markets because they can be consumed locally or exported to earn foreign exchange. There is a very wide supply gap since of high demand for oil and cake for domestic and industrial purposes.

    The main raw material is palm nuts obtained from elaeis guineansis (palm tree), which grows abundantly in Anambra, Imo, Abia, Ogun, Ondo, Edo, Delta, Akwa Ibom, and Rivers states.

    The plant incorporates a nut cracking unit, crushing plant, screw press, bucket elevators, screw conveyors, vibrating screws, main shaft expeller system, pulley system etc. Different models of the PKO plant have capacities for processing 1-100 or even more metric tons per day. It is recommended that the investor consider his capital outlay, sources of raw materials, production cost and extent of the market before choosing a plant of any capacity. In this project a model plant of 10 metric tons per day is the focus. The machines are locally fabricated.

    Two alternative but mutually exclusive methods of processing the raw materials are the mechanical expeller and the solvent extraction system.The former is better and therefore chosen for this project. Decorticated and cleaned seeds are fed into the expeller press where they are grounded, crushed and pressed. The products are palm kernel and palm kernel cake. These are packaged and ready for sale.

    This project should be sited in the rural area, or better still, in a palm tree plantation, in any part of the Southern belt of Nigeria with abundant raw materials. An opened roof structure for the plant and equipment, fenced round will be ideal for a start.

    A small scale project with capacity for a daily output of 10 metric tons of processed PKO and Cake will cost between N470,000 and N1.5 million. This amount can be scaled down or increased depending on the financial ability of the promoter.

    Target markets are aimed at distributors and wholesale dealers in PKO in different parts of the country- they should be contacted. Direct sales could also be made to multi-national companies like Liver Brothers, PZ, John Holt, etc., supermarkets, departmental stores and the open market. Feed miller should also be contacted for the kernel cake. In addition to the above outlets, export opportunities can also be exploited.

    Address of established export markets for the product within the African continent and Europe can be obtained on request.

    If properly sited and close to source of raw materials, no matter the output, the market is guaranteed, and the project is highly profitable.

    For more information contact: krisedbrilliant@yahoo.com or call 08023381900.

     

  • Vision, passion, courage, secrets of success

    Vision, passion, courage, secrets of success

    Innovative ideas are the seeds from which successful businesses sprout.

    Through such ideas, Mrs. Chike Ikemefuna has been able to make her liquid soaps business unique. She put her products in aesthetic packages that appeal to buyers.

    After graduating from the Institute of Management Technology (IMT), Enugu, where she studied Business Administration, instead of looking for a collar job like some her colleagues did, she decided to start a liquid soap business, using exquisite and exotic packs to carve a niche in the market.

    Mrs Ikemefuna,who is the Chief Executive Officer, Somkleen Nigeria, is holds an Higher National Diploma (HND).

    She started in 2011 with an initial investment of N20, 000. But, over the years, the business has grown.

    She believes in entrepreneurship, noting that it is the key to growing the economy.

    For her, the secret of success is having a vision,passion, courage, focus and being disciplined.

    She made her kitchen, hand and toilet wash detergents in handy packs. Besides, she wanted the products to be clean, fight stains and make products bright. This added a new dimension to washing .

    As a result, she has been able to satisfy the consumer – the best cleaning experience ever through a combination of great design, performance and convenience.

    Mrs Ikemefuna is set out to change the industry. Through the use of modern designs and eco-friendly, the ingredients will make her firm a force to reckon in the industry, she said.

    She is focusing her energy on staying one step ahead of her competitors.

    To stand out, she customises her products in designs and presents them at weddings, and other important occasions.

    The acceptance of her products has paved the way for expansion.

    Mrs. Ikemefuna said supporting entrepreneurs with finance and other incentives have helped Small and Medium Enterprises (SMEs) proprietors to grow their businesss, while the provision of training and assistance in research and development have contributed significantly to strengthen their businesses.

    She said one challenge is to ensure that the firm has sufficient capital for its operations.

    Competition, she further said, is also fierce, and the introduction of various imported products has made it difficult for a particular product to be in the market for long. Changes in the economic environment, such as increase in the cost of raw materials and changes in purchasing trend can also adversely impact on sales, she added.

    In facing the challenges, she believes that an entrepreneur must not accept defeat, but on the contrary, become even more courageous in striving to move forward.

    As a savvy entrepreneur, she reacts quickly to market situations by changing her strategies.

    As the business grew, she faced competition from various local and imported brands.

    She believes SMEs’ owners must be bold enough to face competitions. To do so, they must acquire the necessary skills and knowledge to strengthen their operations.

    She intends to venture into production and marketing of products and become a leader in the sector.

  • ‘Inflation, high interest rates affecting SMEs’

    Inflation and high interest rates are threatening Small and Medium Enterprises (SMEs), the President, Association of Micro Enterprises of Nigeria (AMEN), Prince Saviour Iche, has said.

    He told The Nation during the General Meeting of the group in Lagos that small businesses were hit by high bank charges and rising costs. He accused the banks of hiking interst rates.

    According to him, access to finance is key to SMEs’ survival and growth.

    He said this had been exacerbated by the fact that SMEs do not have huge resources to keep them afloat like their larger counterparts.

    According to him, some SMEs will be affected as they endure the hard times, which he described as the “credit squeeze”.

    He said this would lead to a drastic drop in the demand for goods and services, disrupt cash flows as a result of credit tightening, increased payment delays on receivables leading to acute shortage of working capital.

    He advised SMEs’ owners to focus on improving the quality of both their processes and products, if they want to remain relevant and competitive.

    Iche added that AMEN has established a cooperative society to cater for the needs of its members. He urged members to assist in it.

     

  • SMEDAN trains 90 youths on entrepreneurship in Kebbi

    The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has trained 90 unemployed youths in Kebbi State on entrepreneurship skills, its state Manager, Alhaji Ishaq Hamis, has said.

    He said in Birnin Kebbi, the state capital that the training, the agency held with a firm, Bubbles Consulting Nigeria Limited, was aimed at educating beneficiaries on record keeping and business management.

    “We expect the trainees to become experts in marketing strategies and product expansion.

    “The training is part of the Federal Government’s efforts to explore and expose job opportunities to the youths to enable them tap from the opportunities to become self-reliant,’’ he said.

    Hamis also said SMEDAN would sustain the programme, adding that the beneficiaries would be assisted to obtain loans from the Bank of Industries and public finance organisations, to set up their own businesses.

    He advised job seekers in the state to exploit the training opportunities to become self employed.

    One of the participants, Malam Zayyanu Shehu, commended the agency for the initiative, and called for the sustenance and expansion of the training to enable more youths to benefit.

    He urged NDE to provide take-off grants for those who excelled during the training.

  • NDE distributes N2.6m kits

    The National Directorate of Employment (NDE) in Nasarawa State has distributed starter kits to 22 graduates of its Basic National Open Apprenticeship Scheme.

    The NDE Coordinator, Mr Monday Dalyop, said in Lafia, the state capital that the tools worth N2.6 million, are to enable the graduates to establish their workshops.

    “There is high rate of unemployment and the Federal Government is doing its best to reduce the rate to the barest minimum.

    “Most Nigerian youths do not have the requisite skills and the scheme is designed to reduce the rate of unemployment,” he said.

    Dalyop advised the beneficiaries to use the tools for the purpose it was meant.

    The NDE Director-General, Malam Abubakar Mohammed, urged the beneficiaries to justify the government huge investment on the programme.

    One of the beneficiaries, Mr Sunday Audu, thanked the Federal Government for the gesture, and call for its sustenance.

    Items distributed are five computer sets, four sewing machines, nine big generators, a refrigerator and a gas cooker.The others include a printer, catering utensils, hair drier, beads stringing, leather works and GSM maintenance tools, among others.

    Also, in Kano, NDE said it had acquired and rehabilitated 48 skills acquisition centres in 16 states.

    Its Director-General, Alhaji Abubakar Mohammed, stated this at the disbursement of resettlement equipment to graduates of National Open Apprenticeship Scheme (NOAS) training programme of the directorate.

    He said the centres, which had since started operations, were rehabilitated in collaboration with the Millennium Developmet Goals(MDGs) office to provide standard training to unemployed youths.

     

     

     

     

    Mohammed, represented by a Director, Malam Lawal Kuki, said the NDE was currently rehabilitating additional skills acquisition centres in Borno, Cross River, Ebonyi, Kebbi, Kwara, Oyo states and the FCT.

    He said the decision to provide the graduates with resettlement tools was aimed at preventing them from wasting their skills and relapsing back into the unemployment market.

    “This will also enable the directorate to test skills competence acquired over the period of their training.

    “The resettlement scheme serves as a launch pad for building entrepreneurs who have no immediate access to start up capital’’, he said.

    He reaffirmed the readiness of the directorate to enter into partnership with corporate individuals and organisations as well Non Governmental Organisations (NGOs) to fight against unemployment in the country.

    Earlier, the NDE Coordinator in the state, Alhaji Isa Abdu, warned the beneficiaries against selling the materials.

    ‘‘If you use the equipment, you will not only be gainfully employed but will equally be employers of labour,” he said.

     

  • Garri, starch processing plant

    Garri is a staple food. It is eaten by almost everybody. It is a product of cassava. The other end product of cassava is starch.

    Beyond laundry use, starch is a raw material for pharmaceuticals, textiles, batteries and the paper industries. The raw materials for garri and starch production are cassava tubers and water. Cassava tubers are produced abundantly in the country. Equipment required for garri and starch production are cassava peeler, grater, fermentation tank, press, granulator, hammer mill,extraction tank, packaging and sealing machine. All these can be fabricated locally.

    A small scale processing plant that can process about 14 tons of cassava tubers daily is the base of this profile. This plant process garri and industrial starch. The difference comes from divergence in the production process. To process both, the tubers have to be cleansed, peeled and grated. The part for garri will have to be fermented, de-watered, gelatinised drying, milling and sieving. While the starch line will undergo starch extraction, slurring sedimentation, slurry de-watering, granulation cake breaking, drying and milling. Final output had to be well packaged for distribution and sale.

    The project is best located in the rural or semi-urban areas close to the source of raw materials, with all other necessary infrastructure facilities. After setting up the plant, it is suggested that a 50- hectare cassava farm be established to service the plant with cassava tubers.

    Estimated cost for setting up a small scale project of this nature ranges from about N450,000 to N1.5 million, depending on expected output. The viability of this project is not in doubt. Moreover, the returns are high with very short payback period.

    Finish products may be bagged in polythene or jute bags ranging from 10kg to 50kg, and ready for sale through appointed distributors. Starch could also be market through contract agreement with companies that need it as basic raw materials.

    The project is viable since the raw material can be sourced locally and there is an ever-ready market large enough to absorb everything. This project is therefore recommended for investor’s consideration.

    For more detailed contact krisedbrilliant@yahoo.com or call 08023381900.

  • Fishermen decry decline in production

    Fishermen in Taraba State has decried the rapid decline in fish production and expressed worry that this might cause economic problems if not checked.

    Some fishermen, who spoke with the News Agency of Nigeria (NAN) in Donga Local Government Area, called for urgent actions to address the situation.

    One of the fishermen, Mr Awual Sani, said that fish production was always on higher side during September and October every year, adding that “this year is a different and sad experience’’.

    Sani decried the impact of the situation on the economy of the fishermen, adding that many fish farmers were already finding it difficult to pay the school fees of their children.

    “The least I make in a day is N3,000, but now, it is hard to make N500,’’ Sani said.

    Another fisherman, Mr Rapheal Anter, said: “I have been in the fish business for long, but the current situation of lack of fish in the water is strange”.

    Anter noted that the situation posed a dangerous threat to his economic situation as fishing was his only source of livelihood.

    A fish seller, Mrs Hanatu Danladi, equally decried the gross shortage of fish in the market.

    Danladi said that she use to buy directly from fish farmers all year round and that this year had witnessed gross decline in production.

    “I used to buy fish worth more than N50,000 directly from fishermen and sell to retail traders. Now it is difficult to get N10,000 worth of fish at a go.

    “In fact, it is worrisome because some of us depend on the business as our only means of survival,” Danladi said.

    An agricultural climatologist, Mr. Timothy Samuel, attributed the problem to climate change, noting that the seasons had been altered by the advent of global warming.

    Samuel, who is also an agricultural consultant, told NAN that the 2012 flood disasters in parts of the country were due to the effect of climate change.

    He advised farmers to be conscious of the change in climate, which he said, had affected global food production.

  • Kwara to engage youths in agric

    As part of measures to check growing unemployment, especially among youths, the Kwara State Government said it will support the youth in agriculture with the provision of funds and farm inputs as part of its commercial agriculture scheme.

    The state Governor, Dr Abdulfatah Ahmed, made this known at a special media chat focused on youths at the Governor’s Lodge,Government House, Ilorin.

    The governor said government’s responsibility was to create policies that would drive the economy, saying that in order to achieve the objectives of youth empowerment, it embarked on the enumeration ofyouth that would be positioned into various skills including agriculture.

    According to him, the government set up the Malete youth farm with the aim of training youth in agriculture, stressing that already, some of theyouths have graduated and given funds to set up their own farms across

    the state. “Already, they are being compartmentalized into crops andlocations and are expected to go to their locations to become changeagents in agricultural sector”, Governor affirmed.

    “The success recorded would now enable us to begin to expand it bychoosing people from each of the 16 local governments who would largely become “change agents”, the governor stressed.

    According to him, each farmers haven successfully completed his ownfarming skill would now become a master trainer and cluster himselfwith another set of five to ten farmers.

    “The most important part of it was that we have set up an agric mallbecause we have to go into agric business on a commercial bases bylooking at the constraint that disallow people from making success in the agric business,” Ahmed said.

    He said the agric mall would provide access to funding, agricultural inputs, and access to off-takers, adding that farmers can now go tothe agric mall to meet farm extension workers and banking support team for their services.

  • Investment in agric ‘ll boost economy, says Belgore

    A former Chief Justice of Nigeria (CJN), Justice Alfa Modibo Belgore, said increased public investment in commercial agriculture was one way out of Nigeria’s economic woes.

    Belgore stated this in an interview with journalists in IIorin.

    He urged governments at all levels to invest more in agriculture, to create more employment opportunities, thereby addressing unemployment which he described as a major economic challenge for the country.

    “By now, Nigerians ought to have embraced mechanised farming for job possibilities.’’

    Belgore condemned the high rate of rural-urban migration of farmers, saying that many of those farmers eventually become commercial motorcyclists in urban centres.

    He said both the Federal and state Governments needed to increase financial assistance to commercial and small-scale farmers, as well as provide storage facilities to guard against food wastage.

    He added that overcoming food insecurity in the country was hinged on the modernisation of farm storage facilities.

    On the political situation in the country, the former CJN said: “what Nigeria needs now is political stability and not political crisis.“

    With political stability, this country can be one of the leading economies in the world.