The Nation Newspaper

Category: Small Business and Entreprenuership

  • Tapping economic potential of Nollywood football

    His first attempt at business was a   company to help people’s  access to reading materials, but  entrepreneur Chike Maduegbuna soon realised the reading culture in his country was low.

    Instead, he spotted an opportunity to help brands reach people beyond traditional media. So he established Fans Connect Online, a digital marketing, social media and mobile app development company which has worked for blue-chip companies including MTN, Cadbury, Friesland Campina, WAMCO and Samsung.

    Successes include building the largest football-based social networking website in Nigeria and developing a mobile application called Afrinolly that enables people to watch short films via their mobile phones. Maduegbuna talks to Dinfin Mulupi about Nigeria’s film and football industries, and the opportunities they provide for technology companies.

    You built the largest football-based social networking website in Nigeria. Describe the football culture in Nigeria and the gaps you filled.

    We launched the football platform early 2010 because football is a huge passion point among young people in Nigeria. We created a platform where they can connect, interact, brag and also be rewarded for just being fans. Tagged “where passion meets reward” the platform allows football fans to win rewards daily, weekly and quarterly as they participate in the different games on the platform. Football is a business where the football associations, clubs, managers, players and others in the delivery line are rewarded, but the only people not rewarded are the fans – the very engine that keeps the game relevant. There was no platform before ours which rewarded fans online the way we did, and it grew rapidly, attracting brands such as Cadbury and Peak Milk who wanted to reach this demographic online for the 2010 World Cup.

    What motivated you to build Afrinolly?

    Afrinolly is a mobile application that gives fans of African content access to movies, trailers, short films and music videos produced in the African movie markets, most especially Nollywood. Users also get access to comedy skits, series, news, gossip, music and Bollywood movies right on their smart phones.

    The app is available worldwide for free download and used in several African countries plus Europe, America and the Middle East. We now have over 4 million downloads and have remained at the forefront of maximising technology and mobile options for distributing African content.

    Tell us about the economic potential of Nollywood. Has it been fully utilised digitally?

    Nollywood has huge economic potential. Nigeria alone has over 130 million active mobile phone subscribers and over 15 per cent of them can spend as much as $10 monthly to view Nollywood movies on their smart phones and tablets. And there are double this number viewing Nollywood movies elsewhere in Africa, not to mention potential viewers in the diaspora. In my opinion this potential has not been fully utilised because of inefficient content distribution systems which continue to erode profitability and discourage reinvestment in the industry. The limited number of cinemas and lack of effective piracy-free distribution systems have been the limiting factors. This is why we have gone mobile first at Afrinolly and are working with telecommunication companies across Africa to get content to users in a way that will benefit all parties, most especially the film makers.

    What are your thoughts on the technology start-up space in Nigeria?

    Technology has evolved a lot within the last 10 years and it has been embraced in Nigeria like in so many other countries. This has given rise to start-ups aiming to solve peculiar problems using technology. The technology start-up space in Nigeria is growing rapidly, funded at various levels by VCs both locally and internationally. We could soon be seeing start-ups being bought by technology companies trying to enter the African market. That, I believe, is the next level for tech start-ups here as companies become profitable, and the need to expand grows. Mobile technology in Africa is a fast-growing market and nowhere is the effect more dramatic than in Nigeria with 130 million subscribers. This has encouraged the development of several mobile applications targeting various sectors of the economy. Mobile technology has increased access in every way imaginable.

    Describe some of the challenges you face running your business.

    Businesses here face challenges brought about by low infrastructure, or in some cases no infrastructure at all. Power generation and distribution is still a major problem. We run generators most of the day and you can only imagine the cost for a technology company running 24/7 operations. The availability of reliable and relatively affordable broadband internet is still a challenge we face in Nigeria. It has improved over the years, but there is still much room for improvements.

    What are some of the lessons you have learnt in your entrepreneurship journey?

    Truth is nothing fully prepares you for the challenges faced as an entrepreneur; you learn and re-learn as challenges are thrown-up. I spent my time in paid employment working in consulting and helping companies/organisations understand how they can improve on what they do by focusing on what really works. This knowledge has been invaluable in running a fast-paced, innovative technology company like ours.

    And your future plans for your company and Afrinolly?

    We are focusing more now on expanding the technological possibilities of Afrinolly. We just moved into Afrinolly Space, a creative hub where film practitioners can learn, collaborate and create. It was opened for the provision of creative platforms and economic opportunities for established and emerging film makers, mobile technology developers, innovative voices, animators, private screenings, industry trainings and events. We want to contribute technological solutions to the development of quality film/video content from Nigeria and the rest of Africa. Our current project is a studio facility which we are setting up in Nigeria to facilitate the production of shows, TV series, music videos and lots more in a controlled environment. Within the next five years we want Afrinolly to be the largest database of African film practitioners in the world, and also a multi-million dollar digital distribution company.

     

    •Culled from

     http:/www.howwemadeitinafrica.com

     

  • All-women’s bank berths in Nigeria

    A great idea without funds to implement it is as good as useless. Sadly, this aptly describes a number of women-owned enterprises which starts as a great idea but suffers an eclipse.

    A number of strategies like group of tens and cooperative societies came to the rescue but the effect here can be comparable to a drop in the ocean.

    This situation is also calibrated by strong cultural barriers and norms which undervalue women’s economic efforts and contribution.

    Accessing bank loans have been a nightmare thanks to the demands for collaterals, which are often not available.

    To break the jinx of poverty for women, women have been going in and out of the drawing board to find concrete opportunities to better their lot.

    One of such initiatives berthed recently with the opening of the NNEW Women’s Microfinance bank located in Ojodu, Lagos.

    You could feel the excitement as the women talked with enthusiasm, laughed and shared tales of exploits to be made.

    Lola Olakunrin who sits atop as the CEO of the NNEW (Network of Entrepreneurial Women) Women’s MFB, the first of its kind in Nigeria and the West Africa sub-region. Happily, she paints the picture of how the idea was borne even as she recounted the support given by Segun Oshinowo, Director General of the Nigeria Employers Consultative Association (NECA).

    “Our Bank was granted an operational license by the Central Bank of Nigeria to provide Microfinance Banking Services to Small and Medium Scale Operators. Our objective is to satisfy our women clients without compromising our standards. Our expansion will take us to other states as an MFB with national spread in four years and as a public quoted company.”

    NNEW, the brain behind the bank is a network of women entrepreneurs established 10 years ago to provide opportunity for women to share information and create linkages that will enhance the growth of her members businesses.

    Going down memory lane, Olakunrin said: “Five years ago, NNEW realised the challenges her members were facing in getting finance for their businesses, hence the beginning of the self help NNEW Cooperative Multipurpose Society Ltd for members only to have a pool of funds through monthly individual savings of between N5,000 to N50,000 and  then lend to members to empower their businesses .”

    Gradually, she said the women began to discover their potential and the many opportunities available.

    “We had a number of intensive trainings using ILO training modules to improve their businesses, many realised that the major challenges were not only access to finance but other issues such as simple book keeping, marketing and putting proper structure in place.”

    Determined to carve a niche for themselves, these women began to structure their dream in order to make it a reality. After several years of contributing to the pool, the CMSL now had idle funds as fixed deposit in commercial banks. Subsequently, NNEW’s Strategic Team gave a report leading to a unanimous decision for the network to establish an MFB open to non member women and youth.

    “Our take is for the MFB to use a combination of savings, loans, investment opportunity and other financial services combined with group solidarity methodology. It is a powerful instrument of change especially for women with both micro and medium scale enterprises. Realizing that, if you change one woman she is going to change 10more and the ripple effect will easily be observed and fast tracked.”

    Olakunrin continues: In January 2014, Nigeria had 820MFBs spread all over the country while a total of 224 were closed down by Central Bank of Nigeria, a staggering 27% were terminally distressed and technically insolvent. That was daunting and at the same time it endeared the women to do a research on what led to the failed MFBs. In our existence since final license was issued on the 8th of March, 2015, we have disbursed loans to almost 200 women while 125 are waiting for verification. I must mention that we have not had any case of default. We are very optimistic that we have started well .we shall do well.”

    At the back of the mind of this Amazon and her colleagues is the fact that banking is not a bed of roses. “We are very alert to the challenges facing MF Banks- poor corporate governance, poor management structure, poor credit administration, lack of adequate capital base, high level of non-performing insider related credits, all leading to insufficient loan-able funds and a whole lot more.

    For Otunba Debola Oshibogun, president Chartered Institute of Bankers: It is noteworthy that the establishment of this bank has positioned Nigeria in the likes of India and Pakistan that also have dedicated banks which caters for the financing needs of women entrepreneurs. This initiative also serves as a direct response to the 3rd and 8th Goals under the Millennium development Goal which are ‘To promote gender equality and empower women and to develop a global partnership for development.”

    Osibogun opines that: “The introduction of microfinance banking in the financial landscape opened a vista of opportunities for micro, small and medium scale business. It offered them a lifeline to boost production, and also support job creation and empowerment. There is hope now, for teaming entrepreneurs who have been laden with difficulties  in accessing finance  from the deposit  money banks to boost their business venture and for rural and urban low income earners, thus providing them with the opportunity to contribute to economic and national development.”

    She adds that: “According to the International Center for Research on women (ICRW) women have the potential to change their own economic status as well as the communities in which they live when given the economic empowerment.”

     The world’s first and only financial institution was established in Pakistan to be the solution to all the financial needs of a woman. The bank was based on the operating philosophy of treating women First class and giving them true empowerment through access to credit.

    For over two decades this bank opened its doors to millions of women and they have been rushing to the bank for assistance. “We have provided her credit against the collateral of her dreams because we believe a woman is bankable. At the 20th year celebrations, our resolve is to keep the stove burning in every house of the country, to educate all the children and create employment because now every woman will have her chance to get her dreams financed by us. Never again will a woman be denied the opportunity to live life on her terms.”

    About two years ago, India’s first women-only bank has launched in Mumbai and six other Indian cities, offering a service aimed at increasing financial inclusion for women in one of the world’s most populous countries.

    Powered by technology from US vendor FIS, Bharatiya Mahila Bank is staffed by 115 employees, most of them female. The board of directors will also be entirely staffed by eight women. The idea behind the business is to help improve economic conditions and social equality in India by making it easier for women to get access to a bank. The country already has 41% overall unbanked population, but the situation is even harder for women, especially in rural areas.

  • Understanding success to be successful

    Understanding success to be successful

    Her story shows that if one wants to build a successful business, one has to understand what success means and be truthful. She has achieved that with agro business, reports. DANIEL ESSIET.

    Miss Mayowa Oluyomi Oguntoyinbo, Chief Executive Officer, A.Y.O Farms, Ogun State  has a high entrepreneurial streak.  A graduate of Veterinary Medicine from the University of Ibadan, with Masters degree in Public Health from Bournemouth University, United Kingdom (UK), she had  a desire  to  create something that will outlive her and  have a greater social impact as an entrepreneure.

    Her  words:” I remember getting paid for packing ready to use bathmate sponges my mother made while growing up as a very young girl, and I have applied one or two informal skills to earn income while leaving abroad.”

    She took up a few jobs and worked as   a Veterinarian Officer and Clinician. The   job entailed Animal Health Management and treatment and health advocacy to clients and the public.

    But her dream was yet to be accomplished. Eventually, she had to quit her job as a Veterinary  Officer and went  into agro business.

    One of the major reasons why she ventured into agric-business was her passion for food.  “I like food, I like good food and I like to enjoy what I eat, I know that in war-times and happy times, food is a need that will always come first after the need to buy fuel at the moment in Nigeria.”

    With N100, 000 in her hand, she decided to start small. She started with growing vegetables such as  green pepper, red peppers, tete, shoko, ugwu, cucumber, ewedu and okro. She added  maize and pilot crops of maize, pineapple and banana and later raised livestock since her vision was  to establish an integrated farm.

    She has since been in the business for three years. Today, the business, according to her,  is self sustaining with a number of staff on her employment.  Through creativity and persistence, she has  found a unique way of growing her business.

    Like other young entrepreneurs, she has faced some challenges as a start up. In all, she identified them as being more of technical and infrastructural than finance.

    While running the business has been deeply enlightening to her, she has also undergone technical training programmes.

    She has delved deeply into the sector, acquiring knowledge and expertise in various components that make up agro business.

    She said she would have loved to work with a mentor in a similar business for a year or average of six months first, carrying out technical analysis on the land to know the basic resources required ahead before going solo.

    Her success, however, has to do with her positive mindset.  ” Of course yes, if I do not believe I can do this and overcome this then I have started failing, if again I do not speak out then I am worse off,” she said. So, what does it take to make a success of any business?  She has learned to overcome the hurdles and barriers, which came from many sources such as family commitments, experience and lack of finance.  She  had always set her eyes on greater things. She never shied away from rejection and had so much faith in the quality of her produce.

    One of the keys to her success is determination and she has a resolute spirit in the face of any challenge. She always looks forward  to finding solutions to any problem confronting her and  her family has been a great driving force,  giving her the impetus to go for her dream.

    However, as much as these attributes are the backbone of her success, it was her pragmatic approach to getting finance and retaining control of her produce that  determined her success.

    She advised young entrepreneurs to   grow with their visions. ” Do not leave any financial or strategic decision to any ‘expert” and do not be afraid to ask for help,” she said.

    Her objectives are to make young entrepreneurs in the agro industry enterprising and productive to earn as much as they can and provide job opportunities for others.

    Her greatest achievement is running a well-established and self-sustaining business.

    Looking ahead, she hopes to, establish a big wholesale business and expand into new areas.

  • Group urges Buhari to address SMEs funding

    Group urges Buhari to address SMEs funding

    Associationof Micro Entrepreneurs of Nigeria(AMEN) president, Prince Saviour Iche  has urged  the  government to address  funding  challenges  of small  and medium enterprises (SMEs) as  the  current economic situation  has placed financial pressure on all companies.

    Speaking  with The Nation, Iche  said, with access to working capital remaining a substantial challenge for most businesses, especially SMEs, there is a  need to create  alternatives  as  the resultant cycle of liquidity shortfalls puts further pressure on their ability to conduct business and service overheads.

    Although many businesses are aware of potential sources of funding, he said,  the costs and requirements for accessing funding are  prohibitive, as a result, many potential entrepreneurs are prevented from accessing secured debt financing from  financial institutions.

    He implored banks to establish SMEs to promote entrepreneurial development and provide finance to local businesses.

    Unreliable electricity supply, poor quality and limited breadth of road and rail networks, and poor communications infrastructure, he said,  are  having a significant impact on the cost of doing business.

    To ameliorate  this,  he   called  on the  incoming  government  to    make  energy an urgent priority to  save enterprises  from collapsing following  increasing  expenditure  on  generators to run their  factories.

    Iche  said businesses have been forced  to depend on generating their power  needs  as  current problems with load shedding is  not helping energy throughput for  industrial consumption.

    While   urging    the incoming government to   explore and bring to fruition opportunities to secure  power supply ,  Iche  stressed  the need  to  intensify infrastructure development such as roads and  electricity, adding  that achieving  the  vision of a more prosperous and productive nation will require successful local entrepreneurs.

    He reiterated  that  SMEs believe that they shared  responsibilities for employment creation, poverty reduction and youth development, but need  the  government support  to  participate in the national  effort  at improving standard of living, reducing crime rate, increase in per capita income and rapid growth in Gross Domestic Product(GDP) among others.

    He noted that  the  economy  needs  industrialisation policies to  favour medium and large enterprises, to stimulate economic growth and development, adding  that renewed emphasis on the SMEs is  a catalyst to the nation’s   industrialisation quest.

  • Rabbits offer big returns on investment

    Rabbits offer big returns on investment

    Investments in livestock are growing, as the sector is becoming a key factor in sustaining the household and flow of income. Many are venturing into rabbit rearing, which has become a silent money spinner, reports DANIEL ESSIET .

    Lamson Opeyemi is the all in all on his rabbit farm in Alagbado area of Lagos State. His daily routine involves cleaning the cages, feeding the animals, tending to them and acting as  a veterinary doctor to them.  He always caresses his   majestic breed of rabbits, which he sees as prized possessions.

    For him, keeping  rabbits or practising cuniculture  in his backyard has been a long time passion.  He loves the idea of stepping into his backyard to see his flock  in their cages.

    Of late, rabbits rearing have become a profitable business venture as people prefer its meat to beef and goat meat classified as red meat. Aside, meat from Rabbits offers excellent nutritive and dietry properties with high protein content and high levels of essential amino acids. People who   looked down on   rabbit farming have come to appreciate the economic and nutritional value of the animals.

    Opeyemi’s decision to concentrate on rearing Rabbits instead of practising computer science, which he read, has been a wise decision that has given him good  income yearly.

    One reason for investing in Rabbits, according to him, is that they are prolific in multiplying and  their gestation period is only 30 days. They grow fast and can be slaughtered after three months. They are noiseless, and are   particularly suited to home  farmers, who may choose to raise them without any fear of constituting a nuisance to neighbours. Cuniculture or Rabbit rearing is growing steadily and is no longer a little boy’s game. It has become a new rave among many local small farmers.

    For Opeyemi, the business of tending to Rabbits can be seen as raising any other livestock such as cattle, piggery and other farm animals that are profitable .

    For starters, there is a need for a 10 x 4ft cage for a unit of rabbits, which consist seven females and three males. Their gestation period is just a month.

    A rabbit  can deliver six times in a year, having three to 10 offsprings at once, which can be sold after 100 days. A matured rabbit weighs about 3.5 kilogramme. With an investment of N50,000 to N100,000, as  Opeyemi explained,  it is possible to make N300,000 to  N500,000 profit in 12 months. But it requires housing them in a spacious and well aerated cages, using materials such as wire mesh, planks and iron sheets for roofing.

    Other requirement is  keeping them in different cages according to their ages and breeding stage, and  feeding  them regularly  with vegetables, vines, grass and water to ensure they gain weight fast. One could also feed them with pellets as their feeds are called.

    According to Opeyemi, the   business is not so expensive to start. His words: “All you need to do as a starter is to get three males and seven females, and give them shelter, which is usually a wire cage, the holes should be large enough in order to keep the place neat. The cage should have compartments and you can put one in each compartment so that they don’t injure themselves. Medium-sized rabbits  breed at 4 to 5 months of age and give birth after a month of gestation. He  said  female ones can produce up to 50 annually, with births high during the summer. One  female, he  said can  produce an average of 9 kits per birth.

    He added: “Because not so many people are into rabbit production, in about a year you will be talking of an income of about N900,000 and more, if you sell  each at eight weeks at  N2000. His profit projection is based on  a  start-up plan with 15 females and five males.

    He expects  525 young/adult rabbits in 12 months   under good management. Rabbit rearing  has brought him a fortune.

    Opeyemi is not only a successful farmer, but an  entrepreneur as well, trying to promote rabbit farming in any way possible. He is always ready to share his experiences with the people and encourage them to start small units.

    Before arriving at cuniculture, Opeyemi  has ventured into other enterprises such as plantain farming and aquaculture. His success as a rabbit farmer and an entrepreneur is in the way  he combines his knowledge and hard work with willingness to meet challenges and move forward.

    What sustained his business till date are his passion and joy to change lives. His is passionate about agriculture and enjoys rabbit rearing.

  • All-women’s bank berths in Nigeria

    All-women’s bank berths in Nigeria

    A great idea without funds to implement it is as good as useless. Sadly, this aptly describes a number of women-owned enterprises which starts as a great idea but suffers an eclipse.

    A number of strategies like group of tens and cooperative societies came to the rescue but the effect here can be comparable to a drop in the ocean.

    This situation is also calibrated by strong cultural barriers and norms which undervalue women’s economic efforts and contribution.

    Accessing bank loans have been a nightmare thanks to the demands for collaterals, which are often not available.

    To break the jinx of poverty for women, women have been going in and out of the drawing board to find concrete opportunities to better their lot.

    One of such initiatives berthed recently with the opening of the NNEW Women’s Microfinance bank located in Ojodu, Lagos.

    You could feel the excitement as the women talked with enthusiasm, laughed and shared tales of exploits to be made.

    Lola Olakunrin who sits atop as the CEO of the NNEW (Network of Entrepreneurial Women) Women’s MFB, the first of its kind in Nigeria and the West Africa sub-region. Happily, she paints the picture of how the idea was borne even as she recounted the support given by Segun Oshinowo, Director General of the Nigeria Employers Consultative Association (NECA).

    “Our Bank was granted an operational license by the Central Bank of Nigeria to provide Microfinance Banking Services to Small and Medium Scale Operators. Our objective is to satisfy our women clients without compromising our standards. Our expansion will take us to other states as an MFB with national spread in four years and as a public quoted company.”

    NNEW, the brain behind the bank is a network of women entrepreneurs established 10 years ago to provide opportunity for women to share information and create linkages that will enhance the growth of her members businesses.

    Going down memory lane, Olakunrin said: “Five years ago, NNEW realised the challenges her members were facing in getting finance for their businesses, hence the beginning of the self help NNEW Cooperative Multipurpose Society Ltd for members only to have a pool of funds through monthly individual savings of between N5,000 to N50,000 and  then lend to members to empower their businesses .”

    Gradually, she said the women began to discover their potential and the many opportunities available.

    “We had a number of intensive trainings using ILO training modules to improve their businesses, many realised that the major challenges were not only access to finance but other issues such as simple book keeping, marketing and putting proper structure in place.”

    Determined to carve a niche for themselves, these women began to structure their dream in order to make it a reality. After several years of contributing to the pool, the CMSL now had idle funds as fixed deposit in commercial banks. Subsequently, NNEW’s Strategic Team gave a report leading to a unanimous decision for the network to establish an MFB open to non member women and youth.

    “Our take is for the MFB to use a combination of savings, loans, investment opportunity and other financial services combined with group solidarity methodology. It is a powerful instrument of change especially for women with both micro and medium scale enterprises. Realizing that, if you change one woman she is going to change 10more and the ripple effect will easily be observed and fast tracked.”

    Olakunrin continues: In January 2014, Nigeria had 820MFBs spread all over the country while a total of 224 were closed down by Central Bank of Nigeria, a staggering 27% were terminally distressed and technically insolvent. That was daunting and at the same time it endeared the women to do a research on what led to the failed MFBs. In our existence since final license was issued on the 8th of March, 2015, we have disbursed loans to almost 200 women while 125 are waiting for verification. I must mention that we have not had any case of default. We are very optimistic that we have started well .we shall do well.”

    At the back of the mind of this Amazon and her colleagues is the fact that banking is not a bed of roses. “We are very alert to the challenges facing MF Banks- poor corporate governance, poor management structure, poor credit administration, lack of adequate capital base, high level of non-performing insider related credits, all leading to insufficient loan-able funds and a whole lot more.

    For Otunba Debola Oshibogun, president Chartered Institute of Bankers: It is noteworthy that the establishment of this bank has positioned Nigeria in the likes of India and Pakistan that also have dedicated banks which caters for the financing needs of women entrepreneurs. This initiative also serves as a direct response to the 3rd and 8th Goals under the Millennium development Goal which are ‘To promote gender equality and empower women and to develop a global partnership for development.”

    Osibogun opines that: “The introduction of microfinance banking in the financial landscape opened a vista of opportunities for micro, small and medium scale business. It offered them a lifeline to boost production, and also support job creation and empowerment. There is hope now, for teaming entrepreneurs who have been laden with difficulties  in accessing finance  from the deposit  money banks to boost their business venture and for rural and urban low income earners, thus providing them with the opportunity to contribute to economic and national development.”

    She adds that: “According to the International Center for Research on women (ICRW) women have the potential to change their own economic status as well as the communities in which they live when given the economic empowerment.”

     The world’s first and only financial institution was established in Pakistan to be the solution to all the financial needs of a woman. The bank was based on the operating philosophy of treating women First class and giving them true empowerment through access to credit.

    For over two decades this bank opened its doors to millions of women and they have been rushing to the bank for assistance. “We have provided her credit against the collateral of her dreams because we believe a woman is bankable. At the 20th year celebrations, our resolve is to keep the stove burning in every house of the country, to educate all the children and create employment because now every woman will have her chance to get her dreams financed by us. Never again will a woman be denied the opportunity to live life on her terms.”

    About two years ago, India’s first women-only bank has launched in Mumbai and six other Indian cities, offering a service aimed at increasing financial inclusion for women in one of the world’s most populous countries.

    Powered by technology from US vendor FIS, Bharatiya Mahila Bank is staffed by 115 employees, most of them female. The board of directors will also be entirely staffed by eight women. The idea behind the business is to help improve economic conditions and social equality in India by making it easier for women to get access to a bank. The country already has 41% overall unbanked population, but the situation is even harder for women, especially in rural areas.

  • All-women’s bank berths in Nigeria

    All-women’s bank berths in Nigeria

    A  great idea without funds to implement it is as good as useless. Sadly, this aptly describes a number of women-owned enterprises which starts as a great idea but suffers an eclipse.

    A number of strategies like group of tens and cooperative societies came to the rescue but the effect here can be comparable to a drop in the ocean.

    This situation is also calibrated by strong cultural barriers and norms which undervalue women’s economic efforts and contribution.

    Accessing bank loans have been a nightmare thanks to the demands for collaterals, which are often not available.

    To break the jinx of poverty for women, women have been going in and out of the drawing board to find concrete opportunities to better their lot.

    One of such initiatives berthed recently with the opening of the NNEW Women’s Microfinance bank located in Ojodu, Lagos.

    You could feel the excitement as the women talked with enthusiasm, laughed and shared tales of exploits to be made.

    Lola Olakunrin who sits atop as the CEO of the NNEW (Network of Entrepreneurial Women) Women’s MFB, the first of its kind in Nigeria and the West Africa sub-region. Happily, she paints the picture of how the idea was borne even as she recounted the support given by Segun Oshinowo, Director General of the Nigeria Employers Consultative Association (NECA).

    “Our Bank was granted an operational license by the Central Bank of Nigeria to provide Microfinance Banking Services to Small and Medium Scale Operators. Our objective is to satisfy our women clients without compromising our standards. Our expansion will take us to other states as an MFB with national spread in four years and as a public quoted company.”

    NNEW, the brain behind the bank is a network of women entrepreneurs established 10 years ago to provide opportunity for women to share information and create linkages that will enhance the growth of her members businesses.

    Going down memory lane, Olakunrin said: “Five years ago, NNEW realised the challenges her members were facing in getting finance for their businesses, hence the beginning of the self help NNEW Cooperative Multipurpose Society Ltd for members only to have a pool of funds through monthly individual savings of between N5,000 to N50,000 and  then lend to members to empower their businesses .”

    Gradually, she said the women began to discover their potential and the many opportunities available.

    “We had a number of intensive trainings using ILO training modules to improve their businesses, many realised that the major challenges were not only access to finance but other issues such as simple book keeping, marketing and putting proper structure in place.”

    Determined to carve a niche for themselves, these women began to structure their dream in order to make it a reality. After several years of contributing to the pool, the CMSL now had idle funds as fixed deposit in commercial banks. Subsequently, NNEW’s Strategic Team gave a report leading to a unanimous decision for the network to establish an MFB open to non member women and youth.

    “Our take is for the MFB to use a combination of savings, loans, investment opportunity and other financial services combined with group solidarity methodology. It is a powerful instrument of change especially for women with both micro and medium scale enterprises. Realizing that, if you change one woman she is going to change 10more and the ripple effect will easily be observed and fast tracked.”

    Olakunrin continues: In January 2014, Nigeria had 820MFBs spread all over the country while a total of 224 were closed down by Central Bank of Nigeria, a staggering 27% were terminally distressed and technically insolvent. That was daunting and at the same time it endeared the women to do a research on what led to the failed MFBs. In our existence since final license was issued on the 8th of March, 2015, we have disbursed loans to almost 200 women while 125 are waiting for verification. I must mention that we have not had any case of default. We are very optimistic that we have started well .we shall do well.”

    At the back of the mind of this Amazon and her colleagues is the fact that banking is not a bed of roses. “We are very alert to the challenges facing MF Banks- poor corporate governance, poor management structure, poor credit administration, lack of adequate capital base, high level of non-performing insider related credits, all leading to insufficient loan-able funds and a whole lot more.

    For Otunba Debola Oshibogun, president Chartered Institute of Bankers: It is noteworthy that the establishment of this bank has positioned Nigeria in the likes of India and Pakistan that also have dedicated banks which caters for the financing needs of women entrepreneurs. This initiative also serves as a direct response to the 3rd and 8th Goals under the Millennium development Goal which are ‘To promote gender equality and empower women and to develop a global partnership for development.”

    Osibogun opines that: “The introduction of microfinance banking in the financial landscape opened a vista of opportunities for micro, small and medium scale business. It offered them a lifeline to boost production, and also support job creation and empowerment. There is hope now, for teaming entrepreneurs who have been laden with difficulties  in accessing finance  from the deposit  money banks to boost their business venture and for rural and urban low income earners, thus providing them with the opportunity to contribute to economic and national development.”

    She adds that: “According to the International Center for Research on women (ICRW) women have the potential to change their own economic status as well as the communities in which they live when given the economic empowerment.”

    The world’s first and only financial institution was established in Pakistan to be the solution to all the financial needs of a woman. The bank was based on the operating philosophy of treating women First class and giving them true empowerment through access to credit.

    For over two decades this bank opened its doors to millions of women and they have been rushing to the bank for assistance. “We have provided her credit against the collateral of her dreams because we believe a woman is bankable. At the 20th year celebrations, our resolve is to keep the stove burning in every house of the country, to educate all the children and create employment because now every woman will have her chance to get her dreams financed by us. Never again will a woman be denied the opportunity to live life on her terms.”

    About two years ago, India’s first women-only bank has launched in Mumbai and six other Indian cities, offering a service aimed at increasing financial inclusion for women in one of the world’s most populous countries.

    Powered by technology from US vendor FIS, Bharatiya Mahila Bank is staffed by 115 employees, most of them female. The board of directors will also be entirely staffed by eight women. The idea behind the business is to help improve economic conditions and social equality in India by making it easier for women to get access to a bank. The country already has 41% overall unbanked population, but the situation is even harder for women, especially in rural areas.

     

  • Stanbic IBTC drives SME in Kano, Abuja, others

    Stanbic IBTC drives SME in Kano, Abuja, others

    The nationwide drive by Stanbic IBTC Bank, a member of Stanbic IBTC Holdings Plc, to help build a vibrant small and medium scale enterprises sector in Nigeria has been taken to more cities across the federation.

    Abuja, Kano, and Onitsha have joined the growing list of locations hosting the Stanbic IBTC forum designed to empower the sub-sector to actualise in Nigeria its globally acclaimed role of stimulating and sustaining economic development.

    While Kano, Onitsha and Ibadan hosted the forum last Thursday May 14, Abuja holds this Tuesday, along with Lagos for the second time.

    In the first phase of the series, Port Harcourt, Aba, Ibadan, and Lagos were host cities, attracting about 3,500 operators in the SME value chain.

    Mr. Lloyd Onaghinon, Head, Business Banking, Stanbic IBTC Bank, stated that the key objective of the workshops is to equip its clients operating in the Small and Medium Scale Enterprises (SMEs) sub-sector with financial, marketing and management skills that they can readily deploy to nurture and grow their businesses.

    “The SME sector is pivotal to the economic growth and development of any nation and Nigeria is no exception. The seminar was conceived to avail SME operators exposure to modern and innovative marketing, financial and management skills that are useful to their businesses and which will help them to attract the necessary funding for growth,” he said.

    Onaghinon stated that Stanbic IBTC Bank, backed by the rich heritage and know-how of the Standard Bank Group, is committed to building a strong SME base in Nigeria and one of the ways it hopes to achieve this is by empowering operators with the right business skills and adequate funding.

    “Stanbic IBTC Bank has a rich pedigree of building capacity for SMEs and providing much-needed support in terms of funding and skills acquisition because we understand the important linkages provided by SMEs to industries and employment generation. This seminar is one of several ways the bank continues to build capacity in the SME sector,” Onaghinon said.

    To ensure effectiveness of the workshops, Onaghinon said the course content and the resource persons have been carefully chosen to ensure participants derive maximum benefits from the seminar.

    “We have streamlined the seminar course content to include essential topics such as Building Financial Records, Achieving Success in Marketing, Business Planning, and People Management, among others. The seminar is a unique offering by Stanbic IBTC to develop and sharpen participants’ business skills,” he stated.

    Stanbic IBTC Bank is a subsidiary of Stanbic IBTC Holdings PLC, a full service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group, to which Stanbic IBTC Holdings belongs, is the largest African bank by assets and earnings. It is rooted in Africa with strategic representation in 20 countries on the African continent, including South Africa.

    Standard Bank has been in operation for 151 years and is focused on building first-class, on-the-ground banks in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, globally.

  • The road to success

    The road to success

    Starting a small business can be rewarding, but challenging. Daniel Essiet writes.

    What made  Emmanuel Anigbate to start his firm – AC Topnotch Communications Limited, Lagos – was that he wanted to be on his own boss.

    To him, life is about creating things. A long time ago, he had the vision to establish an ad agency. His problem was that he had small capital.  He  had  only N60,000.

    Anigbata, who had co-founded another company with a colleague, left because of some unresolved differences. He didn’t make a profit from it, he said.

    His words: “I had invested all my savings in the business and did not get any dime when I left it. It was not that easy, however, for me as the income was scarcely enough to take care of the home needs and at a point, I started doing freelance printing jobs whenever I was lucky to get any to argument my small income. It was by so doing that I was able to start up with  very little amount I had saved.”

    So, he started afresh. With the little  money, he registered the business and printed letterheads and business cards.

    His background in human resources and advertising put him in good stead for when he set up the business.

    People really liked his work and he realised there was a gap in the market.

    As a young agency, Anigbate set out to recruit  staff that were as passionate as he was working towards making the business a success. He assembled staff with varied backgrounds. For him, communications is one industry that one needs a margin, to  succeed because the players are really hard  and  hypercompetitive.

    In an industry dominated by big players, the success of small agencies depends on the ability to develop fresh ideas. To meet the challenge within his team, each member is  an expert at his or her job and they deploy  specialist  skills, depending upon the project. Because of challenges at the market place,  the company is exploring a broad array of tactics and learning  when to use each tool to solve a range of client challenges. Besides, flexibility is the key  strategy  at  every touch point.

    Facing a lot of challenges, he had to brave the unbearable conditions while keeping his entrepreneurial dream alive.

    His hard work and drive – coupled with his ability to see beyond the circumstances and do whatever necessary to get the job done – has helped his company survive the  tight marketing business market place.

    According to him, financing is a challenge because the industry is really competitive and one have to be really significant in terms of scale to break even or be profitable.

     

     

     

  • Group wants SMEs’ ministry

    Group wants SMEs’ ministry

    To ensure a better level playing field for small scale industries, the  President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince  Saviour  Iche,  has  called  on the President-elect, General Muhammadu Buhari(rtd), to create a special ministry for small and medium enterprises (SMEs).

    In an interview with The Nation, Iche  said  the establishment of a special ministry for  SMEs  would  help  the  government   to address the  problems of the  entrepreneurs  in a better way and provide more facilities to the sector to ensure better growth.

    He  expressed concern that the sector has  not been able to record growth in terms of expansion and jobs creation, attributing  this  to  high  cost of managing  the power crisis, which has led to the use of generators to power businesses, coupled with its attendant high cost on business overheads.

    He however said that improvements in the economy could soon be negated if SMEs’ competitiveness levels continued to decrease.

    While expressing  dissatisfaction with access to finance, a long-standing issue in the sector,  Iche  noted  that  the  issue of high business costs remained the key concern, adding  that  small  businesses are rapidly losing  competitive edge and has called on the government to review of all business costs.

    Iche  said  the  SME sector needs an effective financial support scheme and a taxation system to stimulate long-term growth, adding that though the outgoing  administration has  set the foundation, there is need  to  implement  SMEs  friendly  policies as this will provide the backbone for the country’s economy.

    He urged the in-coming government to  put in place import restrictions on certain products to protect local industries. This ban policy, he explained, should be on items like soaps, cosmetics and  other products that can be  made locally. This will help to boost domestic manufacturing.

    According to the AMEN boss, cheap and sub-standard imports from the Asian continent have continued to hurt many companies. He advised that drastci and urgent measures should be taken to curtail this situation before the entire country become a dumping ground for sub standard, finished products from other countries.

    Though the world has become a global village, characterised by a breakdown of trading barriers, he noted there was a need for the Government to protect  the local industry from inferior goods as  small businesses face the challenge of competing with imported products in the domestic market.

    He said the local textile industry has the capacity to compete with their foreign counterparts but were being affected by the smuggling of cheap products into the local market.

    To  this end, he said local companies  were making efforts to improve on production efficiency and quality to be competitive.