The Nation Newspaper

Category: Small Business and Entreprenuership

  • Seven sins of newbie entrepreneurs

    Most entrepreneurs are familiar with the ridiculously high percentage of small businesses that will fail in the first couple years. The business owners who survived the odds will tell you that they didn’t achieve success on sheer passion alone. It took hard work, and in most situations, it didn’t happen over night.

    After spending the last decade running my own business consulting for companies and corporations, I have witnessed it all. Here’s seven of the most common mistakes I’ve seen newbie entrepreneurs make with alarming consistency.

    • Not setting aside enough cash reserves to support yourself. I believe that one of the reasons why so many small businesses fail within the first few years is NOT because the business model isn’t viable or the entrepreneur isn’t “good enough” to make the business work, but it’s the fact the financial ramp up time is a firm reality. Most entrepreneurs simply run out of money to support the business and/or themselves before the business is profitable enough to sustain itself.

    • Proactively set up a special fund intended to support yourself during the business startup phase. Be conscious of what you put into this fund as you may want to strive for an amount that can fully support you for a year or two to relieve pressure as you ramp up.

    • Using assumptions that are overly optimistic during planning. I see so many newbie entrepreneurs fall into this trap. They have a great idea and convinced their friends and family that it’s a no brainer. They jump into the fray only to realise there were a few not-so-little details that they failed to consider or a few areas where their assumptions were overly optimistic and before they know it, that “no-brainer” business is hanging by a thread. Be honest with yourself. Are you underestimating the time required to get the first client? Are you overestimating the demand for the product? Are you assuming zero risk by not allowing for what could go wrong?

    • Find three to five completely objective people (not friends or family) and specifically ask them to play devil’s advocate to you to help identify vulnerabilities and then take steps to mitigate those.

    • Not properly evaluating your business model. Not everyone incorporates a business model into their planning. It’s so easy to get really lathered up around the concept of your business, but it’s quite another thing to put pen to paper to help you objectively evaluate your overall business model and its profit potential. The simple truth is that having a great idea is just a start – it doesn’t necessarily translate into a profitable model.

    • Consider SCORE or a small-business development center to evaluate the business model and offer expert advice. Their perspective could identify a more viable structure that makes better business sense than what you’ve already established.

    •Trying to do everything yourself to save money. If you try to do EVERYTHING yourself, you’ll not only run yourself into the ground, your business will suffer, because you don’t bring sufficient expertise in every area. Your time is money. Think about where you must personally invest your energies. Should you be developing and refining your content, products and services, cultivating relationships with key clients and stakeholders, developing credibility within your industry? No one can do this for you. That said, others can develop your website, handle your public relations, develop templates for your newsletters, make trips to printers and copiers and perform random administrative functions. Utilize them.

    •The key is identifying what to outsource and what to keep. A good rule of thumb is if it’s not part of the core competency of your specific business, you have little expertise in the area, it’s time consuming and there are many suppliers who can provide the service at a reasonable cost, consider outsourcing.

    • Not being willing to work like a dog during the early days. I’m amazed how often I run into people who’ve recently launched their businesses, but they seem shocked that they’re not making six figures while working a 25-hour work week. They seem to have this glamorous view of entrepreneurship where they get to start at the top and skip all the hard work. The simple truth is if you want to make it, most startup businesses have to hustle early on. This might mean working another job while you’re starting your business, volunteering or doing some work for free to gain experience and exposure. It also may mean working nights and weekends.

    • Before jumping into the startup world, really evaluate your current lifestyle and realise you will most likely being given up a huge chunk, if not all, your free time.

    •. Pricing your product or services too low or high. In my business I often respond to request for proposals. Years ago, I’d been submitting proposal responses annually to a large governmental agency. After about four years of consistent rejections, I got a tip from a colleague that my pricing was too low to be considered seriously. That year I doubled my pricing on the same classes and was selected for the first time. On the other end of the spectrum, you don’t want to charge $20,000 a day and expect to get the job.

    • Do your research to see what others are charging. It’s much smarter to offer value pricing initially, prove your value and then raise prices over time. In many cases asking clients for their budget will not only give you an idea of what to charge, but it could minimize the risk of severely underpricing or over pricing your product or services. You may also consider providing different pricing options to increase the likelihood that you’re offering something within your client’s price range.

    • Not having a growth strategy. We all know of a restaurant that was great when it first opened but after expanding the food or service went downhill. They then developed a bad reputation and eventually closed. Don’t be that business. While most small businesses think the goal is to win as much business as they can, this isn’t necessarily true. Sometimes, you can attract too much business and then have a completely different challenge that could threaten the longer term viability of the business completely.

    • Think about how you want to grow and develop a high-level growth strategy fairly early on (even if it changes as time progress.

     

  • Opportunities in vulcanising

    The poor state of the roads has created an avenue for proactive entrepreneurs, who deploy modern technology to push the vulcanising trade, writes DANIEL ESSIET.

    Adetokunbo Ishola, a young banker, had barely driven his car for seven months when he suddenly realised that the steering wheel was unstable.

    He was shocked when his mechanic told him that it was due to the uneven surface on his front tyres which he bought new.

    The mechanic explained to him that such a situation arise when there is a misalignment in tyres, a development that is on the rise in the country, owing to the poor state of the roads.

    This has created the need for regular wheel alignment and balancing by vehicle owners. The problem has also opened up an avenue for some entreprenuers who are catching in on it to make good money, albeit, by deploying sophisticated and modern technology.

    Alhaji Lukman Garu, Chief Executive Officer, Garutech, admits that the world over, road conditions affect the lifespan of vehicles, especially the tyres noting that it is the only part that has contact with the ground.

    “Uneven, corrugated, pothole roads, over time, damage suspension, shock absorbers, tyres and wheel alignment. They also have far-reaching effects on the broader economy, on business profitability and on the ultimate cost for goods and services,”Garu added.

    Indeed, while there is a significant increase in the number of problems caused by deteriorating road conditions, the inconvenience factor for motorists is great as pothole-related accidents not only cause serious injuries and death, but damages to tyres and rims, thus, altering the position of tyre alignment. In essence, it has become a routine for motorists to check their wheel alignment. This is why there is an opening for business in this area.

    Garu regrets that wheel alignment and vulcanising are far unlike in other parts of the world.

    According to him, motor parks mangers looking for growth may need to be creative, by offering a higher standard of customer service that makes their business stand out.

    Therefore, he explained, to key into this “money spinning” segment of the automobile maintenance business, small entrepreneurs need to up the ante in vulcanising by offering computerised vulcanising, such as wheel alignment and balancing, tyre rotation and even tyre pumping services.

    An alignment revolution, he noted, is on its way and those businessmen prepared to invest and offer a higher standard of service will be those that will reap the rewards.

    And because motorists want a smoother ride and more enjoyable driving, which will, ultimately, lead to cheaper maintenance cost on their vehicles, the return on investment for computerised vulcanising and wheel balancing venture is huge, because, there are very a few standard vuclcanising and wheel alignment outlets nationwide.

     

  • DACCIMA seeks support for SMEs

    The President, Delta State Association of Chamber of Commerce and Industry, Mines and Agriculture (DACCIMA), Chief Uju Udeme has called on the government to support the development of Small and Medium scale Enterprises (SMEs). Udeme who made the appeal in an interview with the News Agency of Nigeria in Asaba, also canvassed the need for the Federal and State governments to identify SMEs that would contribute to the quest of providing employment and economic growth.

    He said one way the government could support SMEs was through the provision of adequate infrastructure.

    According to him, there is no doubt that SMEs can provide employment for many people , especially those in the rural areas. While stressing the need for government to initiate policies that could move the economy the country forward, the DACCIMA boss reiterated that the clamour for more support for SMEs stems from the sector’s huge potential to check rural- urban migration.

    Udeme noted that the growing unemployment rate in the country had made it imperative for the government and the financial institutions to collaborate and make SMEs a vehicle for economic development, adding that there is the need for the government to formulate policies that would encourage entrepreneurial spirit against the current focus on multinational companies.

    “SMEs in other African countries are contributing more than 50 per cent to their Gross Domestic Products (GDP) but unfortunately that is not the scenario in Nigeria; we have to grow in terms of SMEs contributions to the nation’s GDP,’’ he added.

     

  • From waste to wealth

    Considered a waste, metal scraps are a source of employment and revenue, even as more entrepreneurs are discovering the market potential  in the scrap metal collection and recycling . DANIEL ESSIET reports.

    She started as a part-time industrial waste collector as a student in the College of Education, Ijebu-Ode, Ogun State, in 1986.

    Today, Mrs. Titilola Cynthia Saka, is the chief executive officer, T. Cynthia Nigeria Limited, a company she registered in 1987 dealing on plastic waste, in Lagos.

    Mrs Saka said she drew inspiration from her mother, also a business woman, when she imbued her to be an entrepreneur rather than an employee. And with a vision to transform ‘waste into wealth’, her company has been able to create more than 20 jobs.

    Mrs Saka said one waste material had potential is polyester fibre because of its several uses in many industries and also for its use as packaging material for beverages, food products, pharmaceuticals, consumer and industrial products.

    Scraps, such as aluminum, steel, copper, brass, and glass, are also some items she deals in, as these have a reliable market. Her clientele cuts across large specialist metal firms, while she also brokers deals on scrap materials. From these transactions, especially the sale of scrap materials, extracted metals and glass, huge revenue returns to the company’s coffers.

    As the business expanded, Saka has come to realise the volume of industrial waste firms discard and the need to process them into other products. Buried among the junk are valuable metals and cotton wastes with high market value, which she hires young men and women as waste collectors to dug up and bring to her factory.

    For some time, there has been a surge in metal scrap business, especially following the “waste to wealth” orientation catching up like wild fire among the people. This is more prevalent in the iron and steel sector, where investors as well as merchants encourage idle young men to comb waste dumps sites, mechanic workshops, streets and highways for the remains of vehicles parts, industrial metal wastes and anything in the form of iron and steel. It is a common sight to see tonnes of scrap metal assembled for onward transportation to privately owned steel mills across the country which are eventually processed and converted to iron rods and metal sheets.

    Metal scrap can be classified into two categories, namely HMS (Heavy Melting Scrap) and Used Rails. The business is said to worth over N50 billion a year. Condemned metal articles and motor parts are in high demand and come from as far as Lafia, Keffi in Nasarawa State and Abaji, Gwagwalada and other small towns in the Federal Capital Territory (FCT).

    Mrs Saka said the business does not require much capital investment. With as little as N40, 000, a chunk of which came from the bursary the Ogun State government gave her as a student, she was able to start her own business, and a combination of cheap labour, low entry costs and limited regulatory controls, makes the business a money spinner. But the turn around came for her when she got a contract from a big firm to supply plastic and metal waste, needed for the firm’s production.

    Abdullahi Abubakar is another person that has found a fortune dealing in metal scrap. Trained as a carpenter, he eventually abandoned the carpentry trade and relocated to Lagos in search of greener pasturOn arrival, his friend, whom he simply identified as Salisu, introduced him to metal scrap collection as a means of earning an income. Today, Abubakar looks back with satisfaction at the turn of his earning capacity; he rakes in between N50, 000, from a scrap metal he buys for N10, 000. But it does not come easy for this Kano indigene who has to work many hours a day, six days a week, scouring alleyways and knocking on factory doors for scraps. The intense physical labour involved sometimes can produce dark bruises and aching muscles. He is now used to the scrap yard littered with barrels overflowing with fragments of aluminum, copper and stainless steel. This is why whenever he has the funds, he would buy up scraps behind office buildings to ease his stress of scavenging in the open fields.

    While Abubakar once relied on scrap for survival, today the business is his greatest achievement and accomplishment. He now encourages others to get involved, especialy since he now understands clearly importance and huge hidden wealth of recycling and reusing scrap metal. And because there are low seasons in the trade, when scraps become extremely difficult to come by, Abubakar Adamu, another scrap collector, now has a place where he stores scrap materials such as steel from building and tower demolition, household appliances, outdated agricultural equipment, sheet metal, cable and wire, even tin cans, which he sells at a higher price in times of scarcity.

    In spite of these benefits, these “businessmen” have a challenge- the police, who visit the dump site to collect money from them. Another challenge is that a lot of prospective scrap dealers find it hard to find money to start their own businesses, elongating their period of apprenticeship as it were. Yet, the business is tasking as the weight of the scrap is a challenge while transportation cost to the mills are so high. Also, there is no standard gauge for measurement to get actual value for the product, meaning that most times they are under valued. “Is very challenging taking the scraps to the local steel mills because they are usually heavy hence, truck drivers charge a lot,” Adamu explained.

    Findings by The Nation revealed that the business is a multibillion naira business, where dealers involved rake in a fortune. It is estimated that an average middleman can make up to N1million a week from supplying metal scraps to steel mills. The inability of the federal government to complete the Ajaokuta and Delta steel mills and the comatose state of the several rolling mills in the country gives an added advantage to the thriving metal scrap business.

     

     

     

     

     

  • Anzisha Prize for entrepreneurs

    pplications for the Anzisha Prize, Africa’s premier award for its youngest entrepreneurs, are now open for 2014 and will be accepted until April 1.

    The award,according to a statement, is looking for African entrepreneurs between 15 and 22, who have started and are actively running innovative social ventures or for-profit businesses with potential.In addition to over US$75,000 in cash prizes up for grabs, 12 finalists will win an all-expenses paid trip to South Africa to be a part of a week-long entrepreneurship workshop and conference at the prestigious African Leadership Academy in Johannesburg.

    TheAnzisha Prize g panel is looking for ventures that demonstrate ingenuity, scale and positive impact. Entries are now open for the Anzisha Prize – Africa’s premier award for the continent’s best young entrepreneurs.

    Hosted by the African Leadership Academy (ALA) in partnership with The MasterCard Foundation, the Anzisha Prize celebrates initiative and innovation. It identifies exceptional young entrepreneurs who are blazing a trail of startup success and providing shining examples for others follow.

    In just three years, the Anzisha Prize has grown into one of the most sought after awards for young entrepreneurs globally. On top of the significant cash prizes, the 12 Anzisha finalists will join a growing “Anzisha Fellow Network” of the continent’s top youth entrepreneurs.

    “This year, we’re determined to reach far and wide through our youth development partners, schools and the media to find the very best of Africa’s youngest entrepreneurial talent,” says Chi Achebe, Anzisha Prize Programme Manager, “We can’t wait to see what this year’s application process will uncover, and we encourage everyone to help us by nominating amazing young people in their own communities who have started a project or business with potential.”

    Current Anzisha Fellows include Andrew Mupuya (2012, Uganda), who was recently featured on CNN for his growing paper-bag manufacturing empire; KolawoleOlajide (2013, South Africa/Nigeria), developer of online education platform Funda; rabbit farm owner LaetitiaMukungu (2012, Kenya); and information activist & Morsimeter.com developer AmrSohby (2011, Egypt). Thirty-three Fellows have been selected since the awards were first held in 2011.

    “The Anzisha Fellows are a group of exceptional young entrepreneurs who are creating jobs, improving lives, and forming a truly pan-African network of business innovators,” says Reeta Roy, President and CEO of The MasterCard Foundation. “This Prize provides them with an opportunity to learn from each other, and develop skills to grow their businesses and make a greater impact in their communities.”The judging panel are looking for ventures that demonstrate ingenuity, scale and positive impact. Aspiring fellows can apply directly online at anzishaprize.org or at the offices of any one of our 2014 country partners. Application forms are available in English, French or Arabic, and will be accepted through 1 April 2014.The Anzisha Prize team will also be visiting key regional hubs in the coming weeks to encourage applications as part of the annual Anzisha Prize Tour. The 2014 Prize Tour cities are Lagos (Nigeria), Cairo (Egypt), and Nairobi (Kenya). These venues will also serve as the locations for regional gatherings for all past Anzisha Fellows in each region.

     

  • Tapping into fish farming

    With the government’s policy of a 25 per cent reduction in the importation of fish geared towards boosting local fish farming and production, there is a growing opportunity for even small scale fish farmers to make a fortune from the trade, writes DANIEL ESSIET.

    Life has not been the same for Adenuga Adeniyi Adedeji, a 24-year-old postgraduate student of the University of Ibadan, Ibadan, since he embraced fish farming. With the savings he made in his National Youth Service Corp (NYSC) year, he bought three plots of land,where he runs a fish farm at Isele-Ijebu, near Ijebu-Ode, Ogun State.

    On this land, he built 14 ponds of various sizes, with total capacity of about 15 tonnes table size catfish per cycle, which generates N6 million; a modern hatchery that produces 100,000 fingerlings, which fetches him N1.5 million, and a smoking kiln to package smoked catfish. A kilogramme of catfish sells for N400, while fingerlings sell for N15 each.

    Although he studied agriculture, Adenuga’s journey into fish farming began during his industrial attachment at the Felimar Aquaculture Centre, Ijebu-Ode. There, he understudied fish farmers.

    Adenuga recalled that the initial start-up and support from his parents where instrumental to his success.

    With the expansion in the trade, capital was made available to him through a loan he obtained from his church’s cooperative society he had earlier joined. He also benefited from the Federal Ministry of Agriculture and Rural Development, whose Permanent Secretary, Mrs. Ibikunle Odusote, took special interest in his farm. This was during the farmer registration and enlightenment in Ijebu Ode in which the Ministry trained fish farmers on the right techniques to deploy in running a highly efficient farm which would assist them in having profitable yields. As a support, the Ministry donated three smoking kilns to him.

    Adenuga dreams big. “My plan for the project is to convert my site to full scale fingerlings production that will supply my farm and that of other farmers around with good quality fingerlings. I also plan to get about five hectares of land which will contain about 100 earthen ponds, cassava and plantain plantation. I also plan to also diversify into rearing of livestock. I have Kalahari goats from South Africa which I purchased from FUNAAB and I intend to start a breeding project in upgrading indigenous breeds,” Adenuga hopes.

    His motivation for agriculture was from his father, who was a staff member of Sunvit Agro Industrial Company, a subsidiary of Leventis Group, in Agenebode, Edo State. He recalled that whenever he travelled to the farm on vacation, he was, particularly, thrilled by the sight of a crop duster airplane used for spraying and planting rice paddies operated by his father. At such times, he was also encouraged to visit neighbouring farms and to have experience in poultry, piggery and aquaculture.

    Yet, more convincing for this young fish farmer is the story of a South African entreprenuer, Vincent Mapeta, which he claims, has made him to realise that policy and support from the government could improve lives of farmers, increase food production and create jobs for the teeming youths. This, he said, would make agriculture a profitable venture that would encourage the youth.

    Adenuga is convinced that if the transformation agenda of the government can include young people, then the country would be on the path to self-sufficiency in food production.

    Adenuga, who employs two staff and casuals during cropping and processing on the farm, added that the business was giving him high returns on investment, adding that with good management of fish farms, about 50 per cent profitability could be assured.

    He encouraged youths to embrace agriculture, which he reckons will soon be like the entertainment industry where there are so many youths making waves both within and outside the country.”What they need is just change agents that they can relate to; agriculture is a sure investment but it needs to be done rightly,” he enthused.

    He urged his peers to change their perception on agribusiness and take advantage of loans and trainings to start and expand businesses. Alongside others, he recommends fish farming because it is a business with high potential for success. “Instead of waiting on non existent jobs, and complaining everyday of lack of something productive to do, I encourage youthsto be more of entrepreneur and less of job seekers,” he said.

    Certainly, this can only happen through personal initiatives like that taken by Adenuga, one that has seen him looking forward to employing more people in the near future, and which has liberated him from the shackles of poverty.

  • DACCIMA seeks support for SMEs

    The President, Delta State Association of Chamber of Commerce and Industry, Mines and Agriculture (DACCIMA), Chief Uju Udeme has called on the government to support the development of Small and Medium scale Enterprises (SMEs). Udeme who made the appeal in an interview with the News Agency of Nigeria in Asaba, also canvassed the need for the Federal and State governments to identify SMEs that would contribute to the quest of providing employment and economic growth.

    He said one way the government could support SMEs was through the provision of adequate infrastructure.

    According to him, there is no doubt that SMEs can provide employment for many people , especially those in the rural areas. While stressing the need for government to initiate policies that could move the economy the country forward, the DACCIMA boss reiterated that the clamour for more support for SMEs stems from the sector’s huge potential to check rural- urban migration.

    Udeme noted that the growing unemployment rate in the country had made it imperative for the government and the financial institutions to collaborate and make SMEs a vehicle for economic development, adding that there is the need for the government to formulate policies that would encourage entrepreneurial spirit against the current focus on multinational companies.

    “SMEs in other African countries are contributing more than 50 per cent to their Gross Domestic Products (GDP) but unfortunately that is not the scenario in Nigeria; we have to grow in terms of SMEs contributions to the nation’s GDP,’’ he added.

     

  • From waste to wealth

    Considered a waste, metal scraps are a source of employment and revenue, even as more entrepreneurs are discovering the market potential  in the scrap metal collection and recycling . DANIEL ESSIET reports.

    The started as a part-time industrial waste collector as a student in the College of Education, Ijebu-Ode, Ogun State, in 1986.

    Today, Mrs. Titilola Cynthia Saka, is the chief executive officer, T. Cynthia Nigeria Limited, a company she registered in 1987 dealing on plastic waste, in Lagos.

    Mrs Saka said she drew inspiration from her mother, also a business woman, when she imbued her to be an entrepreneur rather than an employee. And with a vision to transform ‘waste into wealth’, her company has been able to create more than 20 jobs.

    Mrs Saka said one waste material had potential is polyester fibre because of its several uses in many industries and also for its use as packaging material for beverages, food products, pharmaceuticals, consumer and industrial products.

    Scraps, such as aluminum, steel, copper, brass, and glass, are also some items she deals in, as these have a reliable market. Her clientele cuts across large specialist metal firms, while she also brokers deals on scrap materials. From these transactions, especially the sale of scrap materials, extracted metals and glass, huge revenue returns to the company’s coffers.

    As the business expanded, Saka has come to realise the volume of industrial waste firms discard and the need to process them into other products. Buried among the junk are valuable metals and cotton wastes with high market value, which she hires young men and women as waste collectors to dug up and bring to her factory.

    For some time, there has been a surge in metal scrap business, especially following the “waste to wealth” orientation catching up like wild fire among the people. This is more prevalent in the iron and steel sector, where investors as well as merchants encourage idle young men to comb waste dumps sites, mechanic workshops, streets and highways for the remains of vehicles parts, industrial metal wastes and anything in the form of iron and steel. It is a common sight to see tonnes of scrap metal assembled for onward transportation to privately owned steel mills across the country which are eventually processed and converted to iron rods and metal sheets.

    Metal scrap can be classified into two categories, namely HMS (Heavy Melting Scrap) and Used Rails. The business is said to worth over N50 billion a year. Condemned metal articles and motor parts are in high demand and come from as far as Lafia, Keffi in Nasarawa State and Abaji, Gwagwalada and other small towns in the Federal Capital Territory (FCT).

    Mrs Saka said the business does not require much capital investment. With as little as N40, 000, a chunk of which came from the bursary the Ogun State government gave her as a student, she was able to start her own business, and a combination of cheap labour, low entry costs and limited regulatory controls, makes the business a money spinner. But the turn around came for her when she got a contract from a big firm to supply plastic and metal waste, needed for the firm’s production.

    Abdullahi Abubakar is another person that has found a fortune dealing in metal scrap. Trained as a carpenter, he eventually abandoned the carpentry trade and relocated to Lagos in search of greener pasture.

    On arrival, his friend, whom he simply identified as Salisu, introduced him to metal scrap collection as a means of earning an income. Today, Abubakar looks back with satisfaction at the turn of his earning capacity; he rakes in between N50, 000, from a scrap metal he buys for N10, 000. But it does not come easy for this Kano indigene who has to work many hours a day, six days a week, scouring alleyways and knocking on factory doors for scraps. The intense physical labour involved sometimes can produce dark bruises and aching muscles. He is now used to the scrap yard littered with barrels overflowing with fragments of aluminum, copper and stainless steel. This is why whenever he has the funds, he would buy up scraps behind office buildings to ease his stress of scavenging in the open fields.

    While Abubakar once relied on scrap for survival, today the business is his greatest achievement and accomplishment. He now encourages others to get involved, especialy since he now understands clearly importance and huge hidden wealth of recycling and reusing scrap metal. And because there are low seasons in the trade, when scraps become extremely difficult to come by, Abubakar Adamu, another scrap collector, now has a place where he stores scrap materials such as steel from building and tower demolition, household appliances, outdated agricultural equipment, sheet metal, cable and wire, even tin cans, which he sells at a higher price in times of scarcity.

    In spite of these benefits, these “businessmen” have a challenge- the police, who visit the dump site to collect money from them. Another challenge is that a lot of prospective scrap dealers find it hard to find money to start their own businesses, elongating their period of apprenticeship as it were. Yet, the business is tasking as the weight of the scrap is a challenge while transportation cost to the mills are so high. Also, there is no standard gauge for measurement to get actual value for the product, meaning that most times they are under valued. “Is very challenging taking the scraps to the local steel mills because they are usually heavy hence, truck drivers charge a lot,” Adamu explained.

    Findings by The Nation revealed that the business is a multibillion naira business, where dealers involved rake in a fortune. It is estimated that an average middleman can make up to N1million a week from supplying metal scraps to steel mills. The inability of the federal government to complete the Ajaokuta and Delta steel mills and the comatose state of the several rolling mills in the country gives an added advantage to the thriving metal scrap business.

     

     

     

     

     

  • Anzisha Prize for entrepreneurs

    Applications for the Anzisha Prize, Africa’s premier award for its youngest entrepreneurs, are now open for the year and will be accepted until April 1.

    The award, according to a statement, is looking for African entrepreneurs between 15 and 22, who have started and are actively running innovative social ventures or for-profit businesses with potential.In addition to over US$75,000 in cash prizes up for grabs, 12 finalists will win an all-expenses paid trip to South Africa to be a part of a week-long entrepreneurship workshop and conference at the prestigious African Leadership Academy in Johannesburg.

    TheAnzisha Prize g panel is looking for ventures that demonstrate ingenuity, scale and positive impact. Entries are now open for the Anzisha Prize – Africa’s premier award for the continent’s best young entrepreneurs.

    Hosted by the African Leadership Academy (ALA) in partnership with The MasterCard Foundation, the Anzisha Prize celebrates initiative and innovation. It identifies exceptional young entrepreneurs who are blazing a trail of startup success and providing shining examples for others follow.

    In just three years, the Anzisha Prize has grown into one of the most sought after awards for young entrepreneurs globally. On top of the significant cash prizes, the 12 Anzisha finalists will join a growing “Anzisha Fellow Network” of the continent’s top youth entrepreneurs.

    “This year, we’re determined to reach far and wide through our youth development partners, schools and the media to find the very best of Africa’s youngest entrepreneurial talent,” says Chi Achebe, Anzisha Prize Programme Manager, “We can’t wait to see what this year’s application process will uncover, and we encourage everyone to help us by nominating amazing young people in their own communities who have started a project or business with potential.”

    Current Anzisha Fellows include Andrew Mupuya (2012, Uganda), who was recently featured on CNN for his growing paper-bag manufacturing empire; KolawoleOlajide (2013, South Africa/Nigeria), developer of online education platform Funda; rabbit farm owner LaetitiaMukungu (2012, Kenya); and information activist & Morsimeter.com developer AmrSohby (2011, Egypt). Thirty-three Fellows have been selected since the awards were first held in

    “The Anzisha Fellows are a group of exceptional young entrepreneurs who are creating jobs, improving lives, and forming a truly pan-African network of business innovators,” says Reeta Roy, President and CEO of The MasterCard Foundation. “This Prize provides them with an opportunity to learn from each other, and develop skills to grow their businesses and make a greater impact in their communities.”The judging panel are looking for ventures that demonstrate ingenuity, scale and positive impact. Aspiring fellows can apply directly online at anzishaprize.org or at the offices of any one of our 2014 country partners. Application forms are available in English, French or Arabic, and will be accepted through 1 April 2014.The Anzisha Prize team will also be visiting key regional hubs in the coming weeks to encourage applications as part of the annual Anzisha Prize Tour. The 2014 Prize Tour cities are Lagos (Nigeria), Cairo (Egypt), and Nairobi (Kenya). These venues will also serve as the locations for regional gatherings for all past Anzisha Fellows in each region.

     

  • ‘African SMEs have boundless opportunities’

    The growth in sub-Saharan Africa offers African small and medium scale enterprises (SMEs) opportunities in 2014, as the International Monetary Fund (IMF) expects economic growth in the region to be slightly higher than of that in 2013, at six per cent.

    This is coupled with more than one billion consumers on the continent who spend $600 billion yearly, with the fastest growing middle class in the world and the significant opportunities in connecting with the world.

    Managing Director, DHL Express SSA, Charles Brewer, said that SMEs are the growth engine for Africa and the critical driver for sustainable economic growth.

    “According to Deloitte, Africa’s middle class has tripled over the last 30 years, and the current trajectory suggests that the African middle class will grow to 1.1 billion in 2060.

    As African economies are some of the fastest growing in the world, the outlook for the continent is very positive going forward.

    “Manufacturing, on a large scale, is still somewhat embryonic in Africa and as such, there is a definite opportunity for SMEs to fill the gaps which are not being serviced by these large global companies. As important, a growing SME base will create hundreds and thousands of new jobs, which is an absolute must for this ever growing continent.”

    Brewer said other than the usual challenges that SMEs are likely to face in Africa, such as infrastructure challenges, customs regulations and controls, access to finance may be an obstacle going forward.

    “The Institute of International Finance reported that due to many countries in Sub-Saharan Africa struggling with controlling price pressures, central banks have tended to keep monetary policy fairly tight. Despite this challenge, we expect SMEs to create growth opportunities through increased consumer spending power and expansion into untapped markets.

    “The growing internet user penetration in Africa also provides a sizeable opportunity for SMEs, and as Africa continues to adopt e-commerce as a way of life, businesses are able to leverage this online market, while reducing traditional customer acquisition costs.” World Wide Worx’s 2012 Internet Matters report reveals that the local e-commerce market is growing at a rate of about 30 per cent a year and shows no signs of slowing down.

    The findings of the 2013 National Small Business Survey, conducted by the National Small Business Chamber (NSBC) revealed that the key need expressed by SMEs includes expanding customer base, increasing sales and going global.

    “Accessing new markets by trading across borders is the key to growth and competitiveness and the key driver for small and medium enterprises in South Africa,” says Mike Anderson, NSBC founder and Chief Executive Officer (CEO).

    Brewer said the more an SME can tap into global opportunities and the more it can look into global expansion, the better the chances for growth become.

    “When it comes to global opportunities the key to success for many SMEs is knowledge. Knowing which markets to target, how to market their product, how to identify customers, how to get paid and critically, how to ship globally. We have 25,000 SMEs who work with us across Africa and every day we work on understanding their needs better and help them to go global. DHL is well-positioned to partnering with African SMEs and helping them to connect with the world – so I ask you, what are you waiting for?” Brewer added.