The Nation Newspaper

Category: Small Business and Entreprenuership

  • Business women urged to mentor cubs

    President, Women in Business, Management and Public Service (WIMBIZ), Mrs Adeola Azeez, has called on established businesswomen to mentor younger ones.

    Azeez said in Lagos that mentoring was vital for economic growth through the involvement of more women in business.

    “Mentoring is key for anyone intending to go into a venture, particularly business.Without mentoring, it is inevitable for one to fail in an enterprise,

    “Some of the businesses handled by women that have failed could have been strengthened if the owners had good mentors around them.

    “More so, young female undergraduates and Corps members should make themselves available for mentoring in any line of business they would like to go into after school.

    “If all these can be put in place, the worrisome state of unemployment would be reduced.

    “More youths would become independent and that spells an improvement in the nation’s development,” she added.

     

  • ‘Soap making is profitable business’

    The liquid soap business has grown from nothing to something , becoming one of the biggest in the manufacturing industry.

    The domination of the market by multinationals did not deter a micro entrepreneur, Mr Francis Osezele, who is the Managing Director, Freedom Aluminium Company,from trying his hand in the business.

    He believes value lies in transforming simple commodities into highly profitable brands. This is why he has found liquid soap making an area to invest in.

    He said every household need soap for laundry.

    Although he faced financial challenges at the beginning, his ability to persist despite the challenges by adapting to the circumstances of the market was a big part of his success.

    He started with N20,000, after training at the Federal Institute of Industrial Research Oshodi (FIIRO), Lagos. Today, the business is worth about N1 million.

    He has gradually transformed it into a profitable venture. Having understood the art of making a good soap that can meet people’s needs as well as the requisite marketing skills, he decided to raise some capital to start his own business.

    Today, he is doing well. Besides, he has registered the product with the National Agency for Food, Drug Administration and Control (NAFDAC).

    But access to loan remains a big challenge to him.

    In the beginning, he did not start as a soap manufacturer. Initially, he sold aluminum products. But because the business was not growing, he began to search for a more suitable and affordable alternative. He experimented and created a soap that works well. Since then, many doors have opened to him since he started the soap making venture.

    His goal is to provide high quality products that are used by almost anyone and expects the business to grow at a steady pace. Besides, he intends to focus on developing new products and anticipates the business to grow to a level that would require him to hire several full time employees. He said new varieties of soap are being explored.

    Osezele believes success in business is in producing high quality products that either solve a problem or create fun.

    The producer of Kleentex liquid soap has reason not to regret his decision. He said the key issues in the business have to do with one’s ability to produce qualitative soaps and market them in an efficient way.

    There are three types of soaps, namely: detergent, bar and liquid. But he chose to make liquid soaps.

    Many micro entrepreneurs in the business started small in their kitchen. A local welder can help to produce a mould by using a cutting machine and a stamp, through which the soap’s name can be engraved on the soap bar.

    Supplies needed for the business include colorants, melt-and-pour soap, premade bases, containers, colouring, packaging supplies, fragrances, and essential oils.

     

  • NASSI tasks entrepreneurs on skills

    NASSI tasks entrepreneurs on skills

    Small scale entrepreneurs need more skills to become globally competitive, Chairman, Lagos Zone of Nigerian Association of Small Scale Industrialists (NASSI), Mr Segun Kuti-George, has said.

    He spoke at a workshop organised for members of the association on Writing a bankable business plan.

    He said healthy competition was important for businesses to grow as no small business intended to remain small forever.

    “Many other people are doing the same business with you; so, what one needs to have an edge over others is to cultivate some skills that will be peculiar to you and your business.

    “Excellent communication and customer service skills, self discipline, time and people management skills and skills in packaging of business plans are essential now for business growth.

    “While competition is one of the challenges that business owners complain about, whereas they don’t know that it is healthy for them,” Kuti-George said.

    He also advised small business owners to imbibe some of the business qualities of renowned businessmen and women.

    A speaker at the workshop, Dr Olatunji Dawodu, said it was not good to rush into a business without passion for the venture.

    He said making necessary findings about a business and understanding how established businessmen survived in such a business were necessary for survival of such ventures.

    “It is not everyone who cannot get a job that is capable of doing business. Without adequate preparation, businesses failed,” he said.

    He urged banks to produce templates of business plans to assist small business entrepreneurs to get loans from them.

    Dawodu lauded women for their efforts in harnessing their business potential to assist their husbands to sustain their homes.

    “I urge our government at all levels to invest more to support the Nigerian woman,“ he said.

     

  • Group to host forum on July 19

    The Bridge Leadership Foundation (TBLF) third Career & Founder’s Day holds on July 19.

    The event, according to a statement, is scheduled for the Cultural Centre, Calabar, Cross River State.

    As a national platform, the forum is one key event, which will allow the local entrepreneurship community to tap into ideas and contribute to the discussion on how we can make entrepreneurship effective—not just in driving the economy, but also social good.

    The career day seeks to inspire and empower young people in choosing the right career paths and making informed decisions.

    The aim of the event is to provide a platform for young Nigerians and graduates who are; seeking to enter the job market, at the start of their career or aspiring to be entrepreneurs, to learn from accomplished entrepreneurs and professionals (home and abroad) that have made major achievement in different sectors in the society. The career day event will also offer a message of hope, while providing participants with practical examples to help them shape their leadership abilities, inspire their creativity to become thought leaders in their personal, educational and career lives.

     

  • SMEDAN, NPC to partner

    The Small and Medium Enterprises Development Agency of Nigeria (SME-DAN) is to partner  the National Productivity Centre (NPC) to enhance small amd medium scale enterprises (SMEs) output.

    In a statement in Abuja SMEDAN’s Assistant Chief Information Officer, Ibrahim Mohammed, said the collaboration was borne out of an urgent need to develop strategies to ensure that problems associated with productivity potential of (SMEs) were addressed.

    It described SMEs as the engine of growth of the economy, saying they have the potential for job creation and could contribute greatly to Gross Domestic product (GDP) of a nation.

    The statement said that SMEs in Nigeria were constrained by several challenges that limited their impact in the country’s economic development.

    “Such challenges include, but are not limited to weak operating capacities in terms of skill, knowledge and attitudes, lack of infrastructure, reliance on obsolete technology and low market access.   “Others are poor access to credit, poor information flow, weak networking among operators in the segment, lack of safeguards against occupational health and environmental hazards and discriminatory legislation.’’

    The statement said that SMEDAN was saddled with the responsibility of developing and promoting micro, small and medium enterprises (MSMEs) in Nigeria.

    It said that SMEDAN had the compelling role of building synergies with other agencies to tackle most of the challenges bedeviling the sector.

    “In view of this, SMEDAN, in collaboration with the NPC, is organising a two-day National workshop tagged Work Place Challenge in the Nigerian Small and Medium Enterprises (SMEs) sector’’.

    The workshop, according to the statement, is slated for May 8 and 9, 2013 at the Lagos Chamber of Commerce and Industry Conference and Exhibition Centre in Ikeja. The statement said that the objectives of the two-day workshop included identifying workplace transformation challenges, identifying appropriate productivity improvement tools and techniques for workplace transformation.

    The seminar is also to develop Best Operating Practices (BOP) for Nigerian SMEs and train participants to become workplace environment managers.

  • From engineering to flour production

    From engineering to flour production

    Mrs  Jane Kolawole, Director, Janeland Net-works Limited is  a chemical engineer.

    A product of Ladoke Akintola University of Technology(LAUTECH), Ogbomoso, Oyo State, she  became an entrepreneur a quirk of fate. She was given a contract  job instead  of a permanent one in a company  she served  as a Corps member.  Mrs  Kolawole realised that it was difficult for her  to keep the job and her home  as she had to leave early – sometimes at 5 a.m Lekki from her home at the mainland.

    Along the line, she  discovered  that her passion is in production. As she searched for ideas, she began to notice that many homes and small entrepreneurs use beans as an ingredient. The Janeland Networks boss decided to experiment with bean flour and started the  business from her kitchen. After some trials she produced a bean flour product acceptable by people making moin moin and akara.

    Her bean flour is made from beans, which has been cleaned, peeled and milled to a fine flour. The flour is used to prepare dishes such as moin-moin and akara.  Her experience in the chemical  industry along with her passion for good food has made her  a valuable asset in the creation and development of bean based products.

    Mrs   Kolawole started the business around 2010. In the beginning, business was slow. But she has been toughened by the highs and lows of the business.

    Some of the greatest challenges she faced at the beginning were economic. Mrs  Kolawole  started the business with little money. Then shwe bought a half  bag of  beans for  N8000. Now, it sells for between N10,000 and N12,000. She hopes  to run a successful business that will create jobs for friends and families. She has taken the risk, and proven that she has the courage to step up to the edge of the precipice and believes that she can make it. She is continuously look for ways to improve the way  the business  provides services to clients as a startup.

    She attributed growth of the business to her strong spiritual faith. The growth of the business is linked to good word-of mouth from satisfied clients, who continue to give her referrals and kept patronising her.

    Currently, the bean market is not oversupplied, so, she is going to benefit from increased demand, but needs funding to expand and support several products and initiatives to help small scale food producers.

     

  • ‘I started business with N600’

    ‘I started business with N600’

    Not all small scale enterprises (SMEs) are capital intensive. Some require small capital to start.This is the story of Dr. Samson Makinwa, the Chairman/Chief Executive Officer, Techno Quip Limited, Lagos.

    Speaking with The Nation about how he made his breakthrough in business, he said a fresh school leaver should not go into a business that requires a huge amount of money.

    He said with N25,000, a buding entrepreneur can go into the production of liquid soap, laundry soap etc. “I also know that you can produce candles with N50,000, while with N100,000, you can produce garri, toilet rolls, beverages, exercise books and chalks.

    However, he said the production of any of these – nylon, paints, cosmetics, animal feeds – is not cheap, adding that it can take about N500,000 to start any of them.

    Makinwa said he started his engineering business in 1999 with N600, from a room with three chairs, suitcase and other things in Ikotun, a Lagos suburb. Today, experts put the worth of its assets at N3billion, excluding cash. His firm fabricates the following machines: nylon, plastics, soap, laundry, cassava processing, rice processing etc.

    Noting that it’s only manufacturing that we can grow the economy, he lamented: “In Nigeria, we are not producing. We talk only of marketing. We need more of manufacturing; that is the only reason, we will not waste our scare foreign exchange. For example, our bags are from Dubai, France etc and that is where our money goes instead of spending it here.”

    To succeed in business, Makinwa advised that the owner should learn some marketing skills. It is not enough to have the technical knowledge, he said. He further said Nigeria with its wide population has a large market.

    He said: “There is nothing you produce that you can’t sell. Take water, for example. Abroad, when you eat in a restaurant, you get free water. It was like that here before. But now with the advent of satchet or bottled water, water is sold here to those who want to eat and this is helping the business of water.”

    Besides, he asked: “If you produce candles, why sell it in Ikoyi? You can’t sell them there. The people who live there buy mainly generators, not candles. So, you must locate your market and take the product there.”

    Also, he advised that one should go into one’s area of interest, but this must be limited to essential products. ‘’Generally, the economy is down. As a result, people buy mainly those goods that are essential to their living,” he explained.

    He advised SMEs’ owners on prudent management. ‘’You don’t need to have a large space. I told you earlier that I started from a room. Why would I have to rent offices when I can’t afford it?” he asked.

    On how to tackle challenges, he said: “Nothing comes easy. You must be ready to stand, to succeed. Be determined to succeed. If I tell you what I have seen in business, you will be surprised. Since early this year, for instance, we have not made up to four per cent of what we used to get in the same period in those days. Yet, I must pay staff and spend money on other things.”

    For starters, he said prospective enterpreneurs need a consultant who would act as a coach for them. “They don’t charge. I act as a coach to some people. Jimoh Ibrahim used to organise training for potential business. Also, they need the services of government agencies, such as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Raw Materials Research and Development Council (RMRDC), Federal Institute of Industrial Research Oshodi (FIIRO) and the Incubator Centre in Agege, Lagos. Their services in some areas are free. There are several others such bodies.”

    Makinwa, who is a consultant to many organisations and groups, said: “From research,we established that in the last 20 years, 80 per cent of SMEs died between one and the fifth year; the balance we don’t know if they will die. I gave this research to SMEDAN and I also interviewed the people that I fabricated machines for. I discovered that what helped them was that they didn’t start big. “In my time we used to wear only our technical wears to show the profession we belong.”

    He advised retirees not to remain idle. “They must have something to do,” he said. “For the youths, running from the country and going abroad will not help them. Abroad, the jobs are not there as they used to. It is not as rosy as it used to. The best thing is for the youths to stay here and build their country,” he advised.

    He appealed to the government to help the people more through training and funding of SMEs.

    An engineering graduate, Makinwa has come a long way. He was a member of the Family Economic Advancement Programme (FEAP); Chairman, Technical Committee, Lagos State Enterprises Committee in the Otedola administration and a lead Consultant, Ekiti State Enterprises Development Bureau in Oni‘s Administration.

    He has 32 awards to his credit. They include United Nations Development Organisation (UNIDO’s) Africa Industrialisation award and the National Productivity Merit award, which he received in 1996.

     

     

  • Plantain farming for the upwardly mobile

    Plantain farming for the upwardly mobile

    TO Adetifa Olufemi, plantain farming should be an avenue for the Federal Government to get Nigerians, especially the youth, out of poverty.

    This is because many Nigerians eat plantain and its prices are on the rise. The business is attractive due to low labour cost requirement for production compared to maize, rice and yam.

    Modern breeding has produced high yielding varieties.

    Olufemi, who owns a plantain farm off Papa Lanto (on Ilaro/Sagamu) on the old Lagos-Ibadan Expressway, said plantain farming was lucrative. He plants plantain for profit and makes good cash from it yearly.

    He has identified breeds that are more productive, high-yielding and pest-resistant for more profits.

    At the beginning of the planting season, he bought 1,000 suckers at N120 each, which totals N120,000. When he harvested, he got 1,000 bunches of plantain which sold for at least N1400 each. So, he made about N1.4 million from the sale.

    He said after expenses, one could still make 400 per cent profit.

    To improve the quality of his plantains, Olufemi receives improved suckers from the International Institute of Tropical Agriculture (IITA), Ibadan. Prospective investors need to have at least N350,000. This will cover lease of the land, purchase of suckers, labour and other costs.

    He said with an investment of N350,000, one can make more than N1 million in turnover and more than 400 per cent in profit. The profit depends on the quantity of bunches that can be harvested per acre/hectare multiplied by the selling price per bunch of plantain. Olufemi said plantain growing has changed the livelihoods of people.

    He helps the entrepreneurs secure a land, prepare it and get good suckers. Plantain is an all-year round market. It provides monthly income year round.

    He said prospective investors can start with an acre of land, which can contain 800 to 1000 suckers. The market is guaranteed as plantain is consumed by Nigerians. There is also a market to process raw plantains into the ever popular plantain chips for sale in schools and markets. This has proved to be a lucrative enterprise that is raising incomes of entrepreneurs as they improve the market value of their plantains.

    Plantain plantation can last for a very long time if it is well maintained. According to him, constant weeding is the key to reaping big harvest and good quality crops. He received instruction on new planting techniques, pest control, and improved post-harvest practices. The impact on production was remarkable. Though these production improvements have been impressive, one must compete in the marketplace to sell the produce.

    Olufemi is an agricultural entrepreneur looking to the future with enthusiasm and optimism. He aims to increase access to sustainable livelihood pathways for targeted youth through plantain farming.