The Nation Newspaper

Category: Small Business and Entreprenuership

  • Women group seeks entrepreneurships for youths

    The President, Network of Entrepreneurial Women (NNEW), Mrs. Lola Okanlawon, has urged non-governmental organisations and parents to impart basic entrepreneurial skills in youths to reduce unemployment.

    She said most viable businesses collapsed because their owners did not have the children that could be relied upon to run their businesses successfully after they might have passed on.She said entrepreneurship skills should be encouraged at the secondary school level to equip young people to be job creators.

    She said: “If the women should die without getting someone that will succeed them, it will be a problem; and we are saying it is better for us to catch them while they are young.

    “We want to have them looking for things where others are not looking at; where opportunities can come up.

    “And we feel that we can do it with these young ones so that once we start to tell them, or to teach them to look outside the box, they should not say okay when I finish the university, I am going to start to look for a job, because you know right now, getting jobs is very difficult.

    “We have so many graduates out there who don’t have a job.“

    She said one of the visions of NNEW was to inculcate entrepreneurial skills in youths across secondary schools to teach them self-employment.

    While the National Bureau of Statistics (NBS) put urban unemployment in 2013 at 29.5 per cent, a financial advisory company, Financial Derivatives Company (FDC), in a recent report, predicted an increase of two per cent in the rate of unemployment in the year.

  • SMEDAN:SMEs should reposition to attract funding

    The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has urged entrepreneurs to re-position their businesses for local and international equity financing.

    Its Southwest Co-ordinator, Mr Gbenga Ogundeji, spoke in Lagos.

    He said equity financing, contrary to other opinions, could mitigate the challenges of development funds.

    Ogundeji said: “Equity financing is the method of raising capital by selling a company’s stock to investors and in return for the investment, the shareholders receive ownership interests in the company. It should serve as an alternative to bank loan or debt financing, but the only challenge we have here is that some of the basic systems have yet to be put in place. Another major issue we should address is that of partnership; we always ring it into the ears of SME owners that they should form partnerships to build stronger systems.

    “A situation where there are so many micro businesses that are barely making peanut profits without standard accounts, structure and so on, it will be difficult to access loan or equity.There are so many equity firms that have been approaching us to partner with our vibrant businesses, we really advise that equity be tapped into and let’s see how it goes.The complaints of lack of access to funds could be reduced if we begin a venture on equity financing,” he added.

     

  • BoI urges SMEs to partner FIIRO

    The Bank of Industry (BoI) has urged Small and Medium Enterprises (SME) to source raw materials and adopt manufacturing methods from the Federal Institute of Industrial Research, Oshodi (FIIRO),  Lagos.

    Managing Director of the bank, Mr Rasheed Olaoluwa, made the call when he visited FIIRO.

    He said the bank would support SMEs which collaborate with the research institute, noting that the aim was to industrialise Nigeria and create more jobs.

    He stressed the need for products of SMEs to be competitive in any part of the world, adding that the bank would develop low-cost production technologies that would benefit SMEs.

    According to him, one of the current targets of BoI is to focus on how to move Nigeria to become a full agro-based industrialised economy.

    “BoI is looking at how to create an eco-system aimed at industrialising our economy. We want to create a simple and low-cost technology that the SMEs will tap to make profitable production.The whole idea of BoI is to add value and attraction to our local technologies, which young graduates from schools could pick interest in. Through such medium, the rate of unemployment will be reduced,” Olaoluwa said.

    The Director-General of FIIRO, Mrs. Gloria Elemo, said the bank’s visit to the institute would engender harmonious relationship that would propel the nation’s industrial revolution plan.

    Elemo assured BoI of the institute’s readiness to provide SMEs with information, materials and support that would boost their production.

  • ‘Ideas vital to business growth’

    ‘Ideas vital to business growth’

    An upcoming entrepreneur has discovered the treasure in alkaline solution, which cleanses and detoxifies the human system. DANIEL ESSIET writes.

    Ideas leading to successful businesses sometimes come from the most seemingly mundane problems. Such ideas have often times lead to providing solutions to addressing the problems and subsequently, becoming an instant business success.

    The business success of Echeng Agbong, Chief Executive, Cheng Young Nigeria Enterprises, Lagos, is an example of an idea that set out to provide a solution only to turn out to become a successful business initiative useful in curbing the spread of waterborne illnesses.

    For Agbong, the inspiration to begin his business came in 1991, after exploring bio alkaline water therapy. While he was experimenting on alternative medical therapies, Agbong came across the alkaline solution, which has since turned out to be effective in purifying and energising water.

    Globally, the therapy has been known to be capable of reducing  weight, providing allergy and arthritis relief, improving bowel regularity, increasing energy, advancing  hydration of cells and skin, improving digestion, reducing cholesterol, and promoting overall better health. In addition, it also allows optimum cleansing and detoxification of the human body.

    Gradually gaining acceptance in the market, Agbong is delighted that he belongs to the group of growing entrepreneurs driven by passion for making the world a healthier place. But crucial to his success were the many resources he tapped along the way, especially in capacity building, which included consultations with other entrepreneurs, leading him to joining the Association of Micro Entrepreneurs of Nigeria (AMEN).

    To his advantage, there are many areas in the market that some natural brand has not claimed, while the business itself has good potential to grow with other health products.

    Abong is a happy man for providing a water solution that will help Nigerians experience a reinvigorated healthy living. Though a winning product, there were a lot of challenges penetrating the market. One of this is the acceptability of the product in the market. Besides, the difficulty of  registering with the National Agency for Foods, Drugs and Administration and Control (NAFDAC),   funding has remained a major concern for this budding entrepreneur.

    Yet, he remains undeterred. For him, an entrepreneur is like a fighter – he must seek out the people that will help you succeed. He is still moving ahead, always trying to realign a best way to monetise what he has done.

    He is confident that natural foods and products are still the big thing in the market place, and with growing sales, the development of the product is continuing.

  • ‘Why more women should be social entrepreneurs’

    ‘Why more women should be social entrepreneurs’

    Dr. Unoma Okoroafor, a computer engineer by profession, is also founder and Chief Executive Officer, Working to Advance Science and Technology Education for African Woman (WAAW), an organisation which empowers African women by building their skills  in the area of science and technology with a view to making them self-reliant. In this interview with Ibrahim Apekhade Yusuf, she shares her experience working with women across the West African sub-region. 

    What is the main driving spirit for the programmes initiated by your organisation?

    I’m very passionate about promoting female education because we all know that if you empower a girl, that you actually empower a community; if you educate a girl, you educate a nation. Girls are the ones, when they are educated, they make sure that their own children and the generations to come are educated. They make sure that it trickles down into the community and they serve their community. So, am really passionate about this; also because I myself am a woman. When I was studying engineering, it was difficult for me because I was really the only woman in a lot of circles. So I want to make sure that more women come on board in engineering so that it’s not lonely for women, and there is more participation that people know that women can do sciences just as well, if not better than the boys.

    Since the inception of your organisation, how many people have you empowered thus far?

    WAAW Foundation started in 2007 when I was still a student, so it has grown very slowly. Last year alone, we impacted about 6000 girls all across Africa. WAAW foundation has cells now in nine different African countries including South Africa, Malawi, Kenya, Nigeria, Ghana, Togo and Cameroun; and we are looking to even expand it to more countries to impact more girls. Because part of what WAAW Foundation does is that we really encourage girls, if we impact you, then you have to turn around and impact other girls. It’s not just for themselves, when we help somebody the way they pay us back is that they turn around and help other people coming back. It’s important that we Africans understand that we are the ones to help ourselves because nobody else is coming to help us. It’s Africans that need to look down and see who is coming up and see how we can help each other and education is the key. Education is what empowers people, and technology is the fastest way to make our economy grow.

    Without technology, we are really going to continually be an emerging economy. If we want to participate in the global economy of the world, we have to decide to jump in and start participating in technology, not just using it, creating it, innovating it and using it; that’s important.

    How do you source for funds?

    We are constantly looking for funding. As you can imagine, we are a non-profit organisation, so we are constantly looking at especially corporate donations from organisations which are involved in technology, either by using it or creating it. So, a lot of our funding actually comes from the US, but now we have started to get some funding even in Africa, in Nigeria. And we are looking more into our economy because our message is that we are the ones to help ourselves; we have enough of what it takes to really fund ourselves. So, we are really looking at companies in our community in Nigeria that really are interested in promoting technology to be the ones to start sponsoring us because it’s in line with our message that we need to help ourselves.

     Let’s look at the selection process. How do you source for these girls; how are they selected?

    The girls that we really reach out to are public school girls, government school girls. Girls, who otherwise would never have seen this kind of opportunity because they can’t afford it. We take our resources and we give all of them scholarships. We actually try to partner with the Ministries of Education or agencies of science and technology, like the Lagos State Ministry of Education. They give us access into the government schools; we actually go there and we tell them our programme. We have a way of selecting them, we let them write essays. Sometimes we do selection process where they do a screening exam, and we pick out the girls that we think they have the most potential to go back and impact their community. Because we can’t train everybody, we want to train the people that when we train them, they themselves would be the ones to go back and train the others. So that’s how we select them. Our girls are between the ages of 13 and 17, between JSS 3 and SS 2 because we feel that’s the age at which they are paying attention. They can change their mind in which career, if they understand that science is fun, those are the ages when we capture them, so that’s kind of how we select our girls.

    How do you ensure continuity of their studies?

    Part of what we do is we actually create a community. By the end of the week, we have helped all of them to create email accounts and we connect them. We have a Google plus community where we stay in touch with all of them, and we want to make it available to them. We are always there listening to their problems and helping them solve their problems. For example, you saw two of our ex-students who came; the reason they came is because we are in touch with them, we stay in touch with them, we stay in touch with their parents, we want to know when they get into the university. If they have problems paying their school fees we are there to help them. We are not just doing it and leaving them, we want to constantly be there encouraging them, telling them they can do it.

    Does the programme comprise both public and private school girls?

    Yes, we have only four private school students, but mostly we do it for the public school students, and the public students come 100% free. We provide scholarships and everything for them.

    How many states do you have WAAW Foundation in Nigeria; do you have participants from other states?

    Yes, we have students from Anambra and Port Harcourt in this camp. They travelled from Port Harcourt and Anambra to come here. Hopefully, we are working to make it more diverse; we are looking to have more and more participants.

    Having achieved so much from empowering these girls, what are some of the challenges your organisation encountered apart from funding?

    So many. Part of the challenges we encountered is that people haven’t understood the importance of what we are doing; we need to educate and sensitise people more. Sometimes when we talk about our programme, they haven’t really understood the importance of educating girls, they say why only girls, why is this different from any other organisation? This is the second year we are doing it, so we are still in the process of proving that our programme is not like any other programme anywhere around the country. We are doing something unique and we are really empowering those girls. So, part of the challenges is educating people and letting them know that a programme like this exists. Part of the challenges we faced is support from the parents and from schools in particular. You were asking about recruiting; we have had a major challenge recruiting girls. Many times when we go to the ministry, they say they can’t give us access to their girls or to their teachers. So, sometimes we stand at the gate; we just hang out flyers and we just tell them. A lot of people don’t know about it because the government has not really come out to support us.

    So, a lot of these we are doing them as best as we can. If we had a lot of support from the ministry, from the government, not even just financial support but, ‘here is our school, here is our principal go and talk about your programme,’ am sure that we will get so many more participants. We are looking for support in terms of location. We are constantly running around. Where do we host this camp? And sometimes it doesn’t work out. If we have more space, even a government school or a university who would give us their space, their classrooms, we can do much more and accommodate so much more girls. So these are some of the challenges that we face too.

     

  • Bank of Industry, Kaduna seal pact to boost SMEs

    Bank of Industry, Kaduna seal pact to boost SMEs

    The Bank of Industry (BOI) and the Kaduna State Government have signed an agreement to raise N1billion Entrepreneurial Development Fund (EDF) to boost the operation of small-scale businesses in the state.

    This is even as the development bank put the total loan portfolio to small and medium enterprises (SMEs) in Kaduna State till date at N23.6billion.

    Based on the term of the agreement, the Kaduna State Government raised the sum of N500million, while BOI matched it up with another N500million, totalling N1billion.

    The fund, which would be given out as soft loans, is aimed at empowering small businesses in the state to, among other things, enable them process the abundant agricultural products that abound in the state, thereby arresting the colossal post-harvest losses occasioned by lack of crop preservation capacity.

    Speaking during the signing of the MoU, the managing director, Bank of Industry, Mr. Rasheed Olaoluwa, stated that the pool of funds which would be given out as loans to SMEs operators would help to boost commercial activities in the state.

    Apart from helping to empower the people of Kaduna State, the MD also noted that the injection of the fund would have multiplier effect on the people of the state while complementing the poverty reduction programme of the present administration.

    Apart from the N1billion loan deal, Olaoluwa said the bank had given out N23.6billion soft loan in support of small businesses in the state.

    He expressed the commitment of the bank to continue to help small businesses not only in the state, but also across the 36 states in the country, including the Federal Capital Territory (FCT), adding that that was the surest way Nigeria could consolidate its status as the economy hub of Africa.

  • The ABC of doing business in Nigeria

    The ABC of doing business in Nigeria

    As Nigeria continues to grow economically, so do the trade opportunities for South African businesses. According to Hennie Heymans, managing director for DHL Express South Africa, despite Nigeria recently taking the number one spot as the largest economy in Africa, remains an untapped source of growth, and with internet and telecommunications technologies providing global reach, there has never been a better time to explore cross-border trade opportunities.

    DHL’s own small and medium enterprise (SME) research on internationalisation, conducted with IHS Global Insight, revealed that SMEs who trade internationally are twice as successful as those who trade only within their own market.

    “Nigeria is bursting with opportunities given its diversifying sectors, and has become the market to consider within Africa given its exceptional growth.”

    Heymans warns though that it is vital for business owners to research the environment before entering the market. “Entry into the Nigerian market may seem cumbersome, but the market, catering to a population of over 170million, is relatively open to businesses outside of the traditional oil and gas sector given that the larger population has created a demand for fast moving consumer goods, health care products, as well as a need for retail, food, telecommunications and other consumer related necessities.”

    Businesses also need to consider possible challenges, says Heymans. “Potential supply chain disruptions are a concern due to traffic gridlocks in most major cities, as well as congestion and possible delays at customs. The power grid is also under constant pressure which results in most companies relying on generators for their power supply.”

    Other aspects to bear in mind are the country’s unique and diverse regions, cultures and people. Companies often make the mistake of moving into Africa with a ‘one size fits all’ approach. According to market intelligence agency WARC, West Africans have an outlook closely aligned to the US, therefore understanding the differing cultures and their preference is important when considering expansion. “More importantly, business entering the Nigerian market, or any market for that matter should not only understand the different cultures but respect them,” says Heymans.

    He adds that businesses need to bear in mind that Nigeria, along with many other African countries, is an emerging economy and with this will come unique challenges and require patience, persistence and flexibility when conducting business.

    “The emergence of the Nigerian market is relatively new. There is always the question of risk versus reward when investing in any country in Africa, and Nigeria is no different. These risks can be mitigated and managed with proper planning and the assistance of trusted and established partners. Whilst perceived risks may be high, the rewards are equally high since Nigerians are discerning consumers and will readily pay for quality products and services. When expanding into unfamiliar regions, both in Africa and globally, businesses should partner with a trusted supplier who is experienced in the field and one that is able to provide advice and support in the region,”  Heymans added.

  • OGUNCCIMA partners New York Chamber of Commerce

    OGUNCCIMA partners New York Chamber of Commerce

    TO boost entrepreneurship, the New York Chamber of Commerce has agreed to hold an exchange programme for entrepreneurs under the auspices of Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA).

    The initiative draws from the  wave of industrialisation blowing across Ogun State.

    A chieftain of OGUNCCIMA, Mrs. Cynthnia Saka, explained that the state government’s support for the growth of small and medium enterprises was a major factor in the deal, as the world is  becoming more conversant with the business opportunities in the

    “Gateway” state, which has attracted over 45 industries, with a minimum investment of $100 million each in the last two years. This development, it is believed, would boost income revenue for the state and investors, thereby making the state become a nest for investment.

    Saka told The Nation that the   Governor Ibikunle Amosun administration has launched the state on the path of industrial base, adding that the state is rich in natural resources to make her competitive nationally, but needed the government’s  efforts to develop into an industrial giant.

    She said to achieve the developmental strides, the government was providing incentives, building up business skills and encouraging firms to look beyond the borders. In addition, she said the government is boosting its services to meet the needs of small and medium-sized export firms.

    One strategy which she maintained would help the government achieve its goal is the partnership with the chamber of commerce as evidenced in the results are being seen in terms of increased business activities.

    According to her, investors believe in state, and that is why the state has the largest concentration of industries.

    Besides, Mrs Saka said the state’s investment not only in infrastructure, but also designing and implementing projects, would secure lives and properties and protect future legacies.

    Mrs Saka, the Chief Executive Officer, T. Cynthia Nigeria Limited, a Lagos-based company that deals on plastic waste, said she has a vision to transform “waste into wealth,” adding that plastic waste has a huge market as it is may be used for packaging materials for beverages, food products, pharmaceuticals, and other industrial products.

  • A passion for photography

    In an age when many people look to new technology, it is difficult to get people to patronise photographers with less sophisticated cameras. But for Lagos entrepreneur, Kehinde Olagbenjo, starting photography business is not expensive. One only needs photography skills, clients and a digital camera.

    Precisely, Olagbenjo started nurturing the dream for the business in 2009. He started the business with zero capital. He went through up times and down times, and some days, he just wanted to throw in the towel, but the urge to be a successful photographer kept propelling him to succeed.

    While he has passion for beautiful photographs, but he has since realised that there’s more to being a successful photographer than taking good pictures. For him, running a business is hard work. Sometimes, he had to sacrifice the money he would have being getting from certain jobs to create future business relationships. Over the years, his business has  grown out of the initial base photography to encompass wedding and corporate work.. Now at the helm of a bigger operation that employs other photographers, he hasn’t forgotten the pleasure that led him to start a business around his personal passion.

    Beyond the artistic and vintage photos actions that abounds, Olagbenjo said, perseverance, desire to grow, and flexibility are critical success factors. As a photographer and an entrepreneur, he  kept striving to improve his work.  For him, the most successful photographers are the ones who see the tides changing and study how they can turn this change into a competitive advantage for their businesses.

    Becoming successful for him requires time.  Though one can work part-time, it require full-time job to grow the business faster.

  • ‘Belief in yourself crucial to survival in business’

    ‘Belief in yourself crucial to survival in business’

    A young entrepreneur who entered the  cosmetics market with the will to succeed is reaping the fruits of his patience. DANIEL ESSIET reports.

    Rising to the top in business does not come easy. And for the Chief Executive Officer of ICN Industries, Ifeanyi Daniel, his story is a testimony on how to develop and nurture a business.

    A “can-do it attitude,” and taking advantage of opportunities    describe Ifeanyi’s road to entrepreneurship. He started his business  in 2002. Then, he tried his hands on anything that came his way.  Initially, he went into trading, and by 2011, the idea of going into production of small scale body cream emerged.

    First, he received training on how to do the business. At the end of which, he took off with N3,000.

    In the beginning, he partnered a manufacturer to help him produce his body cream until he was able to acquire facilities.

    Daniel is in a market that is changing daily. In it, there is a preponderance of start up entrepreneurs; what is more, new brands are getting coming in.

    He also faced the dilemma of producing skin care and acne treatment products or those that promise to reverse signs of aging. There are also products with a dermatologic origin in the market. Besides, the preference for imported cosmetics  remains a challenge for indigenous products.

    Notwithstanding these, Daniel is convinced of breaking into the market, believing it has a space for him.

    For now, his is a one-man show in which he is the only worker and  salesman.

    Daniel would introduce his products to prospective customers, try to convince them that his unpopular body cream is as good as the established brands.

    He is lucky. The results are gradually showing – his products are  gaining ground. Now, he hopes to be a major player.

    The secret of his market penetration, he explained, is right pricing and ability to supply customers with quality products at relatively lower prices.

    Also instrumental to this success is his ability to maintain steady and increasing contact with top buyers.

    Though he sees his product competing favourably with established brands in the nearest future, there are challenges that may hinder this dream.

    One of these is the difficulty in accessing finance – a reality that forced him to plough back most of the profits in the business. Also, is grappling with high energy costs.

    Beside these are regulatory issues. But, he has been able to take care of the one by the National Agency for Food, Drugs Administration and Control   (NAFDAC).