The Nation Newspaper

Category: Small Business and Entreprenuership

  • Promoting rural enterprises

    Promoting rural enterprises

    The last two decades have been challenging for the people living in the villages with growing unemployment and dearth of business opportunities. But  social  entrepreneurs  are  emerging to help young  people  to  return  to the rural settings  and  establish  village enterprises, DANIEL ESSIET reports.

    In some surrounding towns, Southwest of the country, young people are now involved in agro businesses and  farms reclaimed from the forests. Towns around Lala, Idiroko in Ogun state and Ogbomosho in Oyo State are welcoming village enterprises promoting cultivation of cucumbers, tomatoes and  watermelon.

    The young entrepreneurs  are  getting better prices for their produce and more control over value chains as they  move them  through  trucks  to Lagos. As  the  waste farmland roads are   changing fast,the creation of rural agro business  growth networks is  helping   rural areas overcome barriers to growth as  more rural business are   starting up, giving a boost to local communities and unlocking the economic potential of rural areas.

    The rugged lowlands are now  taken  over  by  agro enterprises  and plantations  as  businesses  are scrambling for land to invest in large agro-enterprises.  While there seems to be a positive effect  as   local businesses investing in these areas, building infrastructure or buying processing equipment, the  outcome, however is  that some young entrepreneurs are smiling  to banks with a lot of youths now determined to pursue agricultural business instead of a plush job posting.   One  of those  rallying  youths  to go  rural and establish  thriving agro  ventures is  Chief  Executive, X-Ray Farms Consulting, Akinoluwa Abayomi Mogaji,  popularly known as African farmer.

    To  a number  of  youths  scrambling for farmlands  to do  business, Mogaji is a thought-leader in promoting and facilitating economic participation.  Through his mentorship, the nation is  witnessing the explosion of   youth  empowered  agribusinesses. Speaking  with  The Nation,  Mogaji said  he  has  a  divine  mandate  to rid  the streets of  unemployed youths  and  turn  them  into agro entrepreneurs.This is in line with national growth and industrial objectives which aim to increase competitiveness and support for co- operatives and small businesses. His main investment areas are information and communication technology and media, and food and agro-processing.   His  strategic project is focused on increasing the inclusion of young people in early-stage projects. While some crops are identified as important drivers of growth, each project will be judged on economic merit and ability to deliver on the development mandate. The impact is not driven only by financial terms, but by the empowerment dividend.

    One  of the cardinal  programmes of his organisation is  to support   young entrepreneurs wishing to start new businesses access rural lands  to  establish  commercially viable projects that  will  benefit communities in rural areas. He  acknowledged  that many farmers and aspiring ones  contend with high cost of capital such as lands and machineries. However, he  has   discovered  a way youths, workers and retirees  can  explore  government land option  wasting  across  the country. He urged  people not to consider their obstacles to be greater than their dreams.  Mogaji, who started farming about two decades ago while still an undergraduate,  said  he  has  plans to  assist aspiring agro entrepreneurs access cheap land and  affordable  tractors.

    Besides this, he conducts  an x-ray of the proposed farming business, identifying what needs to be done for the business to be productive or more profitable. The x-ray can even be done before the person commits any funds into the business.

    For example, watermelon farming can make  farmers comfortable. This is happening in  areas such as Oyo and Ogun States where  he  has gotten  a number   of  youths     to start  ventures with precision farming, irrigation system and improved varieties  that  help them to attain economic gain. The farmers are  getting almost seven times of what they invested in cultivation practices.

    Years ago, he   faced  many challenges. Today, he has discovered a solution  that is  helping   him produce maize all year round using irrigation; watermelon, leafy vegetables, tomatoes, cucumbers and cassava. He started commercial farming in 1996.

     

     

  • ‘How SMEs can overcome funding challenges’

    ALTHOUGH small and medium scale enterprises face a lot of funding issues but these are surmountable with strategic planning by the entrepreneurs, experts have said.

    Speaking at 5th annual Young Entrepreneurs Network held in Lagos recently, a cross-section of experts advised entrepreneurs on steps they need to take to overcome funding challenges facing their businesses.

    According to these experts, business owners need to keep proper records of their transactions and operations, as such records would be required to support their loan applications whenever it becomes inevitable.

    Speaking at the forum, Head, Women Banking Unit, Access Bank, Ms. Titilola Familoni, said that lenders approved loans based on statistics or information available to them.

    This, she said, was in line with the requirements of the Central Bank of Nigeria.

    Familoni further advised the entrepreneurs to put in place the right structure in businesses, as proper accounting shows seriousness on the part of the business owner.

    She said banks asked for collateral for loans because it was a requirement of the CBN.

    “Entrepreneurs need to get their records right as such would help them in accessing funding from banks. When the records are right, no bank can say no to a loan request,” she said.

    She also emphasised the need for entrepreneurs to invest in staff training. This, she observed, would help prepare employees for challenges they may face in the business.

    “You do not need to reinvent the wheel. See what other entrepreneurs have done and learn from that. Such experience will help speed up your growth and development,” she noted.

    The statement further quoted Familoni as explaining that entrepreneurs did not need to be in hurry to grow their businesses without doing proper homework.

    She said, “Entrepreneurs need to know how banks think. Banks do not like funding a customer’s risk. A bank will ensure that it is protected from whatever risk that lending to a customer carries. Equity is important in business. A customer desirous of a loan needs to have a savings culture.”

    She added, “Entrepreneurs need to prepare themselves before approaching a bank for a loan. Preparation makes the borrower to approach the bank from superiority point of view and he will get the loan.”

    The banker, however, said Access Bank was already exploring ways to assist entrepreneurs to realise their goals.

    This, she said, was being done through identifying and solving of challenges that affect their businesses.

    She, however, reiterated the need for SMEs to structure their businesses properly, saying such would make funding attractive to banks.

    “We have discovered that many SMEs have no business plans and are owned by one person who does all the work and usually has no business plan; this has to stop if they want a bank to take them seriously, especially when it comes to giving out loans,” she explained.

    Familoni gave the assurance that the bank would ensure proper training on basic cash flow forecasting and analysis skills for customers in order to overcome the challenges that come with faulty reports.

    “Most times, people think that banks can just jump in and finance a business. But our approach is different. We need to first know and understand what the customer is doing before giving out loans. Remember that the money belong to the depositors and has to be protected,” she said.

    The founder, HealthPlus Limited, Mrs. Bukky George, was also quoted as saying that entrepreneurs also had to ensure that their products contribute to common good and also build a brand that lasts.

    According to her, entrepreneurs also need to prepare their successor to ensure they have the right workers that can handle sensitive roles within the company.

  • Technology incubators: A boost for entrepreneurs

    Technology incubators: A boost for entrepreneurs

    Technology incubation centres can play a major role in boosting entrepreneurship, writes DANIEL ESSIET.

    IN five years, experts said, the number of small tech firms will increase. These firms will rake in huge revenues.

    However, for this to materialise, the nation needs more technology incubation centres where entrepreneurs will be empowered to rent spaces and nurture their businesses until they can afford accommodation.

    The Centre Manager, Technology Incubation Centre, Agege, Lagos, Mrs Julie Momah said new businesses are given free accommodation  at the Lagos Centre for three years. During this period, she said the businesses are exempted from taxation.

    At the centre, equipped with  fabrication and testing facilities, Mrs   Momah said, young tech entrepreneurs can be mentored.

    So far, many young Nigerians have benefited from the centre, graduating in beads production, anti-bacterial hand wash, starch, multipurpose liquid soap, leather shoes, air fresheners, herbal bathing soap, and body cream making, among others.

    They are also ex-participants who are involved in the production of unripe plantain flour, bean flour, soya flour, spices, packaged pure honey and fruit juice production.

    She said the centre is  committed to the continuous training of entrepreneurs.

    These centres,  she said, has produced small scale entrepreneurs who may emerge as a new class of businessmen.

    Over the last 10 years, the Federal Government has been encouraging innovation and entrepreneurship through the National Board for Technology Incubation  (NBTI). It urged the Board to create more incubators across the country.

    Given the support system provided by the centre, the expectation is that companies stand a chance of reaching their goals.

    At the centres, access to experts across all engineering and management disciplines  is easy.

    She said the centre has contributed to the promotion of awareness on the essential role of innovation, adding that its programme is helping Small and Medium Scale Entreprises (SMEs) and entrepreneurs to be innovative.

    According to her, it is fundamental to identify opportunities and the added value small enterprises can bring, by integrating their own skills and developing training programmes to improve enterprise performance, enhance profitability and growth, and offering technology and management support to SMEs and early movers to maximise the value of their ideas.

    She  said  the centre supports entrepreneurs in building ventures to promote livelihoods, education, healthcare, agriculture, connectivity and financial inclusion.

    Businesses in the incubator fall within some stages – conception, where a first-cut assessment of the strategic environment is made, to development, where feasibility and go-to-market strategies are b explored and, ultimately, commercia, where profitable market opportunities are exploited and the focus is on growing the venture.

    The National Board for Technology Incubation  Director-General, Dr Mohammed Jibrin, said the Federal Government would collaborate with state governments to establish incubation centres in the stes.

    He said the organisation thrives on technology-based and knowledge-driven programmes in fulfillment of its mandate to pursue the commercialisation of research  outcomes.

    It’s the aim of the Federal Government that each state gets a technology incubation centre.

    “We have been having very good success stories. For example, we have Spectra Industries, a graduate of the programme of the technology incubation centre, Lagos, which has been invited for listing by the Nigerian Stock Exchange (NSE).

    “It is into thermocool production, coolers, warmers, and undulated thermo-equipment using local raw materials.

    “We have a graduate from the technology incubation centre, Benin, Austin Laz Nig. Ltd, which is already in the NSE.

    “The company is into food products manufacturing using locally available materials.

    “We have others who have excelled. Sarah Specials has won an award for coming second in a recent entrepreneur’s competition,“ he said.

    Jibrin has expressed the need for the establishment of Technology Incubation Parks (TICs), in the 36 states.

    He said the states with TICs would not only take idle youths out of the streets but help in developing local technology and incubation. He also expressed the need for commercialisation and increment of essential oil and hydrosol production in an effort to scale up research and development in the country.

    As part of its efforts to fulfill its mandate, the NBTI boss said the Board had established new TICs in Nasarawa, Benue, Ebonyi, Gombe, Katsina, Jigawa and Kogi states in line with the Council’s resolutions of 2013.

    He noted that the respective state governments were to ensure best practices of the Technology Incubation Programme, TIP objectives the centres.

    He said the government will encourage the private sector to establish institutional based technology incubation centres to train more Nigerians on entrepreneurship.

    “The government is already embarking on the sensitisation of the interested members of the public so that they can establish private incubators that can be operated with very little or no support from government,” he said.

    He said about 800 research and development results have been incubated by the 27 centres, adding that 500 of them have been worked on.

    Acting Director of Commercialisation Department, National Board for Technology Incubation Mr Isa Yusuf said it generated more than N1.5 billion for the economy from 2005 to 2012.

    He said the amount was generated from its soft loans and grants to entrepreneurs during the period under review.

    Yusuf said the grants and soft loans coordinated by NBTI were invested and that they achieved so much for the economy as well as created job opportunities.

    He said: “Most of the grants are from our Presidential Standing Committee on Inventions and Innovations (PSCII) and, then, some of the soft loans that NBTI coordinated with the Bank of Industry and National Economic Reconstruction Fund (NERFUND).

    “But the funds are being utilised to the best of ability and the repayment is encouraging with little problems here and there because of economic problems in the country and the high cost of production really affecting some of the entrepreneurs in their day-to-day businesses.

    “I can tell you as at now, the net worth generated is more than N1. 5 billion ploughed into the economy. Because of the encouragement and support these entrepreneurs got, the turnover is really encouraging; a lot of people have got employment.

    “In fact, more than N1.5 billion has been ploughed into the economy since the board was established in 2005 to date.”

    He said the agency was making  efforts to ensure that products made by the entrepreneurs who benefited from the agency’s funding and training schemes hit the market.

    Yusuf said many of the products were already in the market, adding that the agency would ensure that those interested in distributing and selling them were given the opportunity to be part of it.

     

  • Making a living from multi-level marketing

    Some Nigerians are earning a living  from  multi-level marketing. One of them is Abiodun Mustapha. Daniel Essiet reports.

    Abiodun Mustapha is a wealth empowerment consultant. It was in his quest for financial freedom that he came  about multi-level marketing (MLM).

    An Islamic  and Integrated  Science  teacher, the  graduate of Federal College  of Education (FEC), Akoka, Lagos was not fulfilled.

    This is because at the end of every month, his take-home pay could not take care of the needs.

    He thought of a way out. He recalled that at college, he was introduced to network marketing.  Then, he began with  selling GNLD products. He finally pitched his tent with Trévo, where he claimed, he made over N160 million in less than four years.

    He said Trévo is network marketing firm with an attractive compensation plan for marketers.

    Mustapha said the company offers eight ways for independent marketers. They include simple retail sales, group volume, bulk pack commissions, pool bonuses, leadership bonuses and charity bonuses. There are also rewards of luxury cars and opportunities to travel abroad.

    The rewards for participating in the Trévo business, he said, are many, including the potential for growth in one’s business.

    What makes the company unique is its compensation package. According to him, almost all the genuine MLM opportunities have a structure where one can earn  residual income.

    By residual income, he meant income that would continue to flow even after one has resigned. This kind of income is earned by sponsoring other distributors.

    According to him, one must make time to recruit new distributors,  if one  is  to enjoy the MLM. For him, MLM is a game of numbers. That means, one would want to add as many people to the organisation as possible. Getting paid a fraction of the work the team does a month, he noted, really adds up if one has a large team.

    This is how some people continue to earn huge cheques, though they do not see build their network marketing business anymore.

    Mustapha said since he joined the firm in 2012, he has been going from place to place, holding seminars on MIM.

    This is an idea he wants unemployed Nigerians to embrace in 2015.

    Such Nigerians must be ready to work. For determination is very important in MLM business.

    Meanwhile, he has got  a follower in a mobile phone repairs, Alhaji Kareem Bankole. Bankole told The Nation he was looking with a lot of hope and confidence in the opportunity the programme is offering.

    Less than eight months in the business, Bankole has made N800,000.

    An ex-banker, he said there are  many MLM firms. But what distinguishes them is their products and  compensation package.

    He sees network marketing as a platform where the ordinary man can do extraordinary things if he understands how it works. If one is patient to build it, it is a system he recommends for people who want to grow capital, people that are determined to succeed.

     

  • Here comes the charcoal merchant

    Here comes the charcoal merchant

    This is the story of a young entrepreneur, who is making it big because of his courage and determination, Daniel Essiet reports.

    Chief Executive, The Thy Global Investment Limited, Ismail AbdulAzeez, owns  a thriving agro export business in Sango Ota in Ogun State. The business started in 1999.

    About 15 years later, it has become a multi-million naira enterprise, employing no fewer than 50 Nigerians working as pickers, quality controllers and helpers.

    The story of AbdulAzeez is that of a man that rose from rags-to-riches story.

    An accountant by training, life was indeed difficult for him when he  first started. He began by strutting the streets of Lagos in  search of a job.

    When his efforts did not pay off, he, resorted to  picking  snails  on  the roads to eke out a living.

    He never had a dream of starting a   business that would grow in a short time.

    From picking snails, he   started a new business  changed the course of his life. The demand for snails  helped him to tap into a market  capable of generating high profit even with little financial outlay.

    With market insight, AbdulAzeez reared giant African snails, which could grow up to 20 cm (7.9 inches).  At  harvest, he  sold to a number of luxury hotels and high-class restaurants  making  good  money. Gradually, the  business of   snails farming  appeared  to him  a venture  that  could help young entrepreneurs climb their way out of poverty. From snails,  his dream of becoming a successful businessman was realised.

    At the small business grew, he sought and found additional training on different sustainable small and medium enterprises, this time  in grass cutter farming. This  became  his  next  destination. He eventually moved into  beekeeping and then food stuff exports.

    So far, it has been a very long journey, working on different business  ventures.  But  in all,  the   success  of  his  agro exports  business  has helped him  to  address the big hurdle of  securing capital.  His   story of success is unusual. But his struggle is common to many of Nigeria’s entrepreneurs.  Chiefly, agro exports has given him a giant leap.   Thanks to trade liberalisation and  the  spiralling  demand for  agro exports  which  are  sourced  from most  parts  of the country.

    As  his  business empire grew, he  was  attracted to  the  lucrative  business of charcoal export.

    According to him, the huge demand for charcoal is informed by  its used in food grilling and bakery.

    Europeans and Americans, he  explained,  generally look forward to having family picnics and on-site barbeques adding that this trend has contributed to the demand for charcoal.

    As a result, he takes advantage of  this  to export to meet the needs of the coming spring and summer seasons.

    Today, the venture is  his  biggest money spinner  and  he is one of the country’s leading exporters of charcoal.

    Within the last few months,  foreign buyers  have  come  to  trust the quality of his products, convinced that he offers them nothing but the best. He   advises Nigerians   to use the opportunity of increasing charcoal import to make money.  For him, charcoal is not  a business that requires more time to make profit.With an investment of N800, 000, one   could make  a profit of N300,000 within 40 days.

    The initial challenge for  new exporters is how to source charcoal because supplies come from as far as Mokwa in Niger State.

    Using his own resources, AbdulAzeez has  established a central depot at  Sango Otta  where suppliers bring in charcoal in large  quantities. There, the raw charcoal are separated, graded and packaged for export.

    That takes a big burden  for those who don’t have time to travel to as far as Kogi State to source  for the commodity.

    He  has taken his business to the next level by engaging farmers and other Nigerians to produce charcoal at various forests, one initiative to help to increase and enhance economic growth within the forest zones.

    While he has resorted  to training more Nigerians  to become charcoal exporters, AbdulAzeez is happy to see the business blossom.

    He said the project  with a vision of improving the livelihood of Nigerians has come this far, increasing  hope for young  people seeking  empowerment through business opportunities.

     

     

  • Her road to success

    Her road to success

    Against all odds a woman entrepreur’s venture is growing in leapt and bounds reports Daniel Essiet.

    Effiong Williams, 28-year old Chief  Executive/Founder, Reel Fruit, Lagos, has  demonstrated the power of grit and determination to succeed in business. Despite the many hurdles encountered, she has been able to build a food processing business in Nigeria.

    She started Reel Fruit three years ago as a snack and beverage company that focuses on locally made and packaged products.

    She said: ”My decision to launch Reel Fruit in 2012 was borne out of my decision to venture into the agribusiness sector. I believe that agriculture has huge untapped potential both in wealth and job creation.  I am motivated by the possibility that I can change lives and create employment and wealth for myself and others.”

    Today, she is one of the nation’s entrepreneurial success stories and the owner of a thriving fruit juice processing business.

    However, her entrepreneurial journey was not an easy one.

    She obtained a BSc degree in Physiology and Psychology in South Africa, and followed up with a diploma in business management. While South Africa, her thoughts were exploring the huge potential in the nation’s agriculture sector which has not been explored.

    Consequently, she decided to quit her job in South Africa and return to Nigeria to start a business full time.

    On her return, she did a research and found that she could start a fruit juice processing company and make it big time.

    However, the venture was capital-intensive and would require more funds than she could raise at the time.

    Having realised this, she decided to start small, though still having her mind on the big dream by providing  dried fruit snacks as a healthy option to unhealthy snacks; this was the beginning of producing the Reel Fruit product.

    Her home kitchen became the launch pad. “I decided to start with my savings. My first cost was applying for registration from the relevant authorities for my products and doing market testing which was around N600, 000. I later invested more money to buy packaging and started sales,” she said.

    She targeted her product at health conscious consumers interested in healthier lifestyles and wants to consume healthier products.

    Before she knew it, she found a hole in the market and launched the product.

    Having a business background, Miss Williams deployed her expertise to build the brand.

    Initially, she faced several challenges, which she considered ‘the  many percularities of doing business in Nigeria.’ She discovered that projects such as hers take a longer time before they can be executed, too many expenses, poor infrastructure and the challenge of getting the right human capital.

    To survive, she became more patient and opened to ideas on how to achieve success. She has also learned to be more confident. “Everything takes more time and more work than expected. I have also learned to expect a little and big miracles and luck along the way, “she added. However, despite these early challenges, the local market responded positively to her product and she could see her dream being realised.

    Since then, the business has been growing. Over time, she has become very savvy  as a business woman and determined to improve on her   efforts to maximise profit.

    But how much is the business worth now? She wouldn’t reveal it. She said: “I cannot reveal our business’ value as we are currently raising funds to expand, but I will say that our growth in the last year has been 400 per cent of our previous year. We have seen quite good growth, launched new products in the market, and we have acquired some large customers. I am hoping that we would continue to drive growth.”

    She said the  corporate  values that drive the  business are rooted in a long term vision to  change lives by  making Nigerian products appeal to global standards that could be sold anywhere in the world.

    Currently, the company has 10 employees.  However, by the end of this year, she hopes to grow the number to 30 when her expansion programme might have been completed.

    She has been able to secure grants from friends and family. She has also won two grants. “That money has allowed us to expand our product range, get office space, expand our sales team and grow our company,” she said.

    With success, her life has changed. “I will say that my life has much more meaning. I have realized that building a large, profitable agribusiness is my life’s purpose, and I wake up every morning intended on achieving that goal. I can withstand many challenges because I am certain of my life’s path.”

    Chief Executive, Reel fruit was a winner of Women in Business Challenge in 2014. She used the money of the competition to develop new products; one is a fruit drink, while the other is a cashew product called snack-pack.

  • Here comes the charcoal merchant

    Here comes the charcoal merchant

    This is the story of a young entrepreneur, who is making it big because of his courage and determination, Daniel Essiet reports. 

    Chief Executive, The Thy Global Investment Limited, Ismail AbdulAzeez, owns  a thriving agro export business in Sango Ota in Ogun State. The business started in 1999.

    About 15 years later, it has become a multi-million naira enterprise, employing no fewer than 50 Nigerians working as pickers, quality controllers and helpers.

    The story of AbdulAzeez is that of a man that rose from rags-to-riches story.

    An accountant by training, life was indeed difficult for him when he  first started. He began by strutting the streets of Lagos in  search of a job.

    When his efforts did not pay off, he, resorted to  picking  snails  on  the roads to eke out a living.

    He never had a dream of starting a   business that would grow in a short time.

    From picking snails, he   started a new business  changed the course of his life. The demand for snails  helped him to tap into a market  capable of generating high profit even with little financial outlay.

    With market insight, AbdulAzeez reared giant African snails, which could grow up to 20 cm (7.9 inches).  At  harvest, he  sold to a number of luxury hotels and high-class restaurants  making  good  money. Gradually, the  business of   snails farming  appeared  to him  a venture  that  could help young entrepreneurs climb their way out of poverty. From snails,  his dream of becoming a successful businessman was realised.

    At the small business grew, he sought and found additional training on different sustainable small and medium enterprises, this time  in grass cutter farming. This  became  his  next  destination. He eventually moved into  beekeeping and then food stuff exports.

    So far, it has been a very long journey, working on different business  ventures.  But  in all,  the   success  of  his  agro exports  business  has helped him  to  address the big hurdle of  securing capital.  His   story of success is unusual. But his struggle is common to many of Nigeria’s entrepreneurs.  Chiefly, agro exports has given him a giant leap.   Thanks to trade liberalisation and  the  spiralling  demand for  agro exports  which  are  sourced  from most  parts  of the country.

    As  his  business empire grew, he  was  attracted to  the  lucrative  business of charcoal export.

    According to him, the huge demand for charcoal is informed by  its used in food grilling and bakery.

    Europeans and Americans, he  explained,  generally look forward to having family picnics and on-site barbeques adding that this trend has contributed to the demand for charcoal.

    As a result, he takes advantage of  this  to export to meet the needs of the coming spring and summer seasons.

    Today, the venture is  his  biggest money spinner  and  he is one of the country’s leading exporters of charcoal.

    Within the last few months,  foreign buyers  have  come  to  trust the quality of his products, convinced that he offers them nothing but the best. He   advises Nigerians   to use the opportunity of increasing charcoal import to make money.  For him, charcoal is not  a business that requires more time to make profit.With an investment of N800, 000, one   could make  a profit of N300,000 within 40 days.

    The initial challenge for  new exporters is how to source charcoal because supplies come from as far as Mokwa in Niger State.

    Using his own resources, AbdulAzeez has  established a central depot at  Sango Otta  where suppliers bring in charcoal in large  quantities. There, the raw charcoal are separated, graded and packaged for export.

    That takes a big burden  for those who don’t have time to travel to as far as Kogi State to source  for the commodity.

    He  has taken his business to the next level by engaging farmers and other Nigerians to produce charcoal at various forests, one initiative to help to increase and enhance economic growth within the forest zones.

    While he has resorted  to training more Nigerians  to become charcoal exporters, AbdulAzeez is happy to see the business blossom.

    He said the project  with a vision of improving the livelihood of Nigerians has come this far, increasing  hope for young  people seeking  empowerment through business opportunities.

     

  • Her road to success

    Her road to success

    Against all odds a woman entrepreur’s venture is growing in leapt and bounds reports Daniel Essiet.

    Affiong Williams, 28-year old Chief  Executive/Founder, Reel Fruit, Lagos, has  demonstrated the power of grit and determination to succeed in business. Despite the many hurdles encountered, she has been able to build a food processing business in Nigeria.

    She started Reel Fruit three years ago as a snack and beverage company that focuses on locally made and packaged products.

    She said: ”My decision to launch Reel Fruit in 2012 was borne out of my decision to venture into the agribusiness sector. I believe that agriculture has huge untapped potential both in wealth and job creation.  I am motivated by the possibility that I can change lives and create employment and wealth for myself and others.”

    Today, she is one of the nation’s entrepreneurial success stories and the owner of a thriving fruit juice processing business.

    However, her entrepreneurial journey was not an easy one.

    She obtained a BSc degree in Physiology and Psychology in South Africa, and followed up with a diploma in business management. While South Africa, her thoughts were exploring the huge potential in the nation’s agriculture sector which has not been explored.

    Consequently, she decided to quit her job in South Africa and return to Nigeria to start a business full time.

    On her return, she did a research and found that she could start a fruit juice processing company and make it big time.

    However, the venture was capital-intensive and would require more funds than she could raise at the time.

    Having realised this, she decided to start small, though still having her mind on the big dream by providing  dried fruit snacks as a healthy option to unhealthy snacks; this was the beginning of producing the Reel Fruit product.

    Her home kitchen became the launch pad. “I decided to start with my savings. My first cost was applying for registration from the relevant authorities for my products and doing market testing which was around N600, 000. I later invested more money to buy packaging and started sales,” she said.

    She targeted her product at health conscious consumers interested in healthier lifestyles and wants to consume healthier products.

    Before she knew it, she found a hole in the market and launched the product.

    Having a business background, Miss Williams deployed her expertise to build the brand.

    Initially, she faced several challenges, which she considered ‘the  many percularities of doing business in Nigeria.’ She discovered that projects such as hers take a longer time before they can be executed, too many expenses, poor infrastructure and the challenge of getting the right human capital.

    To survive, she became more patient and opened to ideas on how to achieve success. She has also learned to be more confident. “Everything takes more time and more work than expected. I have also learned to expect a little and big miracles and luck along the way, “she added. However, despite these early challenges, the local market responded positively to her product and she could see her dream being realised.

    Since then, the business has been growing. Over time, she has become very savvy  as a business woman and determined to improve on her   efforts to maximise profit.

    But how much is the business worth now? She wouldn’t reveal it. She said: “I cannot reveal our business’ value as we are currently raising funds to expand, but I will say that our growth in the last year has been 400 per cent of our previous year. We have seen quite good growth, launched new products in the market, and we have acquired some large customers. I am hoping that we would continue to drive growth.”

    She said the  corporate  values that drive the  business are rooted in a long term vision to  change lives by  making Nigerian products appeal to global standards that could be sold anywhere in the world.

    Currently, the company has 10 employees.  However, by the end of this year, she hopes to grow the number to 30 when her expansion programme might have been completed.

    She has been able to secure grants from friends and family. She has also won two grants. “That money has allowed us to expand our product range, get office space, expand our sales team and grow our company,” she said.

    With success, her life has changed. “I will say that my life has much more meaning. I have realized that building a large, profitable agribusiness is my life’s purpose, and I wake up every morning intended on achieving that goal. I can withstand many challenges because I am certain of my life’s path.”

    Chief Executive, Reel fruit was a winner of Women in Business Challenge in 2014. She used the money of the competition to develop new products; one is a fruit drink, while the other is a cashew product called snack-pack.

  • Rising above his challenges

    Rising above his challenges

    His life is full of challenges. It is a story of a  deprived  Nigerian,  who overcame  adversity to achieve success, DANIEL ESSIET reports.

    John Bull Ojiekpon, Chief  Executive,  JB Shoes, has overcome life challenges to make  a living. Through running a thriving shoe business in Lagos, Ojiekpon, popularly known  as  JB,  has managed to beat the odds to succeed. Since childhood, life has been an endless struggle and it’s only his zeal to carry on that saw him go far.

    From a family of eight  children, Ojiekpon learnt shoe mending while in secondary  school to support himself and his family. Living conditions were harsh with sparse employment opportunities, especially for those living in the rural areas, who make a living daily struggling. His childhood and adolescence were difficult due to the polygamous nature  of  the  family.

    As an apprentice at the shoe factory in Benin, he worked in a variety of footwear roles. Following a successful completion of his  apprenticeship, he  started  a repair  business.  He later relocated to Lagos in search of greener pasture.

    However, his search for a better life in Lagos  was marred when he could not find anybody to offer him accommodation to stay, forcing him to go back to th village. However, he did not give up.  So, on his second coming to Lagos, he had  to take up a 24 hours security  job  because it offered him free accommodation.

    In  the  course  of  his  job, he  met  someone,  who  had  a  failed  shoe repair  business and was looking for an experienced  hand  to revive it. That meeting opened up his journey to self actualisation and success. Ojiekpon  had  to quit his security job, took up the challenge, and within a short time, he was able to   bring the business  back to life and  money  started flowing in.

    Somehow, his partner and  principal  was not honouring his  commitment  to the landlord of the  property where the business was located  and so  the  rents  accumulated. A quit  notice  followed   and they  could not continue there.

    Within  the  period  he  was managing  the  business, he was able  to build  good will. Subsequently, one of his clients offered him a shop to use. But he couldn’t  afford the rent.  On trust, the  shop  owner allowed   him take over the shop with the  understanding  he  could  pay the rent later if the  business picked up. That was  a cheery news. He  took the offer  and  got the  machines  he  was using  in the former shop  on rents.  He  was able  to make money  within a  short time. However,  much of it  went into payment of rent  for  the shop  and  machines.  Eventually, the  owner of  the machines  offered to sell the machines to him on hire purchase basis and he bought the machines.

    Since 1995, the business has been growing steadily. Ojiekpon said that he has been getting busier and busier.

    Customers from all over rely on what he provides. His services include repairing purses, boots, designing and producing belts and bags. He tries to work as reasonable as he  can in order to make his products affordable.

    In the long term, as a shop owner, working with leather, shoes and boots, he is still learning new things on daily basis. For him, it is not just about the new materials shoes are made from, but figuring out which glues and primers work with them. Most of his customers, however, are individuals.

    He thinks one of the reasons the shop   stays popular is because people enjoy coming in. He puts customers first by telling them whether he can or cannot repair their items and by keeping prices affordable, most people are drawn to him.

    What stands his shop out is the ambiance. The scents of polish, dyes and varnishes pervade the air.  On one side of the store are shelves of shoe accessories, leather care and cleaning supplies and on the other are shelves with shoes for sale .

    For him, Nigerians are not getting enough well made locally  shoes. His products- locally-made, solid-looking footwear styles have been in fashion for the last few years, and are not showing any sign of falling out of favour any time soon. To this end, he is   taking advantage of this to design shoes that perfectly complement the more refined, well tailored dresses that today’s style-conscious Nigerians go for. His styles are so unique and they are his signatures. They give their wearers utmost comfort and pleasure, and are affordable and durable.

  • Promoting entrepreneurship through trade mission

    The Ogun State government, in partnership with ASUA International Business Network, United  States (US) and Ogun State Chamber of Commerce, Industry, Mines & Agriculture (OGUNCCIMA), embark on a visit to the US in furtherance of stronger trade relationship. DANIEL ESSIET looks at the impact of the visit on entrepreneurship.

    The industrial giants of the economy are largely small and medium businesses. Such companies will represent nearly 70 per cent of the nation’s enterprises. And there are good reasons to suspect that these companies will remain a more significant part of the economy.

    With the  state of the economy,  empowering them is fast becoming a crucial long-term priority—not only for job creation , but also for would-be investors that must ultimately decide whether and how to support this fast-growing segment of the economy.

    To  this  end, the  government, through the state Ministry of Commerce and Industry,  ASUA International  Business Network, United  States  (U.S) and  Ogun State Chamber of Commerce, Industry, Mines & Agriculture (OGUNCCIMA) took  some  business owners and entrepreneurs on trade mission to  the U.S  early  this  month.

    The  fact  that so many entrepreneurs  were involved demonstrated  the commitment  of the government to develop entrepreneurship by exposing Nigerians to the markets and manufacturing capabilities of the US and learn from leading global companies using the latest technology and business management tools. One  of the beneficiaries  is Alhaji Wasiu Olaleye, Treasurer, OGUNCCIMA.

    Speaking  with  The Nation, Olaleye said  the trip  exposed them as  business owners   to  skills on  how  to  manage their businesses more effectively through improved branding, technology and logistics.

    He said the mission demonstrated the   continued commitment of the  U.S  to help business become more competitive to achieve inclusive and resilient growth for the  economy.

    The  trip, he  explained,  afforded them  the  opportunity to seek  guidance  on  what  capacities  they need  to acquire  as   entrepreneurs as they seek new markets beyond their borders.

    As global competition intensifies, Olaleye said  the programme provided an avenue for  them  to learn  about  best practices and tips on how to maximise opportunities and address constraints as  business  persons.

    He  noted, for instance,  that  e-commerce or technology-enabled commerce, lowers the barriers to trade and levels the playing field for enterprises of all sizes, especially SMEs, who lamented  that  small  businesses  in Nigeria have not been able to leverage   on  such  platforms to reach consumers from global markets .

    Deputy  Treasurer, Mrs  Cynthia Sake  noted  that  the prosperity of SMEs is so critical to job creation, praising the bold reforms carried  out  by  the Ogun State  government  to  improve  the business environment. She said the reforms are a great step in the right direction, adding  that  the  major breakthrough is simplifying procedures for micro- and small business owners, who do   register their businesses within the state. Such reforms, she noted,  is crucial in an  economy where a growing number  of  young  people  are  joining  the ranks of the unemployed, adding  that  there  is  a  need to support the establishment of new businesses to create jobs.

    Comparing the country  to the  U.S, she  observed   that  Nigeria  has some of the biggest barriers and constraints to private business  and  changes to business laws may help pave the way for a more entrepreneurial future. According  to her, Ogun State is  naturally fit for new businesses, with the  government ready to listen and  promote  a thriving economy and  a very successful high-tech sector.

    Concerning the  trip, Mrs  Saka  said  it  afforded  them  the  opportunity to see  the  concentration of innovation and entrepreneurship.   According to her, the influx of intelligence, cultivated by public-private entrepreneurial incubators, has spawned a dynamic environment that changed the business culture of the country.   According  to her, the trade mission could   result  in a memorandum of understanding (MoU), which included incentives for technology collaboration, resulting in business partnerships. As business people, she said,  they were able  to  learn  21st Century negotiation skills and business development solutions that would help  them maximise revenue, generate growth and develop a sustainable competitive edge domestically and internationally.

    According to  her, the  Ogun State  government, OGUNCCIMA, the Africa-U.S.A International Business Network in association with the Warwick International Business Institute facilitated  the  trip.

    A member of the group, Mr Aderemi Ogunyemi said the group participated  in business discussions and meetings with U.S entrepreneurs, adding  that  they  are enthusiastic to do business with their Nigerians  counterparts. According to him, the insights gained from the trip will have a major impact on industrial success.

    The  spread of digital technologies, he noted,  has  raised the productivity of business and agriculture, redefine how services are delivered in the U.S. He added  that  the  government  need to address barriers such as infrastructure to create an environment where entrepreneurship can flourish.