The Nation Newspaper

Tag: SMEs’

  • Govt ‘ll support SMEs, says Osinbajo

    Govt ‘ll support SMEs, says Osinbajo

    Vice President Prof Yemi Osinbajo has reinstated the commitment of the President Muhammadu Buhari’s led administration to support the Small and Medium Scale Enterprises (SMEs) in Abia and other states of the federation to grow the country’s economy.

    He stated this while flagging off the Nationwide Micro, Small and Medium Enterprise Clinics for Viable Enterprises (MSME) in Aba, the commercial hub of Abia State.

    The vice president who described the SMEs as the highest employers of labour and engine house of every great nation’s economy, said President Buhari has great interest in the growth of the SMEs and stressed that it is the intention of the administration to make the industry compete favourably and even surpass their counterparts at the global stage.

    He said the essence of visiting Aba, Kano, Nnewi, Onitsha and any other parts of the country is to interact with the people, identify their problems and as well finding a lasting way to tackle some of the challenges that are hindering them from performing optimally.

  • SPAR partners BoI, MAN on SMEs development

    SPAR partners BoI, MAN on SMEs development

    SPAR Nigeria, the Bank of Industry (BoI), Manufacturers Resource Centre (MRC) of Manufacturers Association of Nigeria (MAN) and the Retail Council of Nigeria (RCN), have organised a workshop for Small and Medium Enterprises (SMEs) in Lagos.

    The workshop offered over 70 SMEs comprising consumer goods, clothing and merchandise, cosmetics, and others  extensive insight into the dynamics of modern day retail business. The five-part series was facilitated by leading members of industrial and retail associations in the country.

    BoI Regional Head, SME Division, Mr. Adetokunbo Akinsola, who facilitated the session entitled: “Small businesses and the Bank of Industry,” unfolded several financing opportunities and options for small businesses some of which were yet to be explored by businesses due to lack of information on BoI’s fund offerings.

    MRC Managing Director, Ms Doris Onwugamba, addressed the topic: “Growth and sustainability of the manufacturing business’’, said small businesses needed to take advantage of the pool of resources the association had to offer.

    According to her, “trends are changing rapidly”. “Many things we used to travel out to China and other parts of the world to produce can now be done effectively and efficiently here in Nigeria, from quality and affordable printing to labelling and other complex production processes,” she said.

    Onwugamba said factories are beginning to work and if Nigeria must grow, “we must begin to patronise Nigeria.”

    Participants were delighted by the testimonials of two business owners, who have been supplying their locally produced goods to SPAR Nigeria for years. They were Executive Director, Amel International Services Limited, Akan Peter Nsek and Executive Director, Ashley and Michaels, Emmanuel Obiorah Anyaralu, whose businesses have grown from ‘trading’ to ‘manufacturing’ and their products have had the opportunity to compete favourably with foreign products in stores nationwide.

    On the various benefits of embracing standardisation, SPAR Nigeria Group Managing Director,  Mr. Haresh Keswani, said SMEs workshops would continue to give small businesses the opportunity to rebrand and target a larger market.

    The workshop, he said, was expected to encourage participants to undergo the test to qualify to exhibit their products in a bazaar to be held at SPAR in Ilupeju, Lagos, where shoppers can see and buy their products.

    Makers of products that are highly favoured and bought by shoppers will qualify to have their products displayed and distributed across SPAR stores nationwide.

    Michael Edemayibo of SPAR said the company would continue to support SMEs through free retail workshops, products bazaar and exhibitions to encourage patronage of locally produced goods in all its stores.

    Former Director, National Agency for Food, Drug Administration and Control (NAFDAC), Mrs. Ogochukwu N. Mainasara, presented  a paper on “Requirements for compliance with requisite standards of the NAFDAC CODEX.”

  • Recession offers opportunities for SMEs’growth, says expert

    President of Successedge Exporters Network (SEEN), Mr. Godwin Abiodun Oyefeso, has said economic recession does not mean an end to life. He said it  could be a springboard for the growth of Small and Medium Enterprises (SMEs) in the country.

    Oyefeso, while delivering a paper entitled: “Economic recession, the power of change in life and opportunities for SMEs in the non-oil export of the economy”, during a conference in Lagos, pointed out that recession could provide a lot of opportunities for businesses.

    He admitted that recession could bring feelings of lack, poverty, pain and loss, but it could provide a lot of opportunities for the growth of SMEs.

    He explained that most successful companies such as FED EX, Microsoft, CNN, HP started during recessionary periods because their founders identified some opportunities that existed within the period and filled them.

    He said: “While we hear so much about how the net worth of billionaires and millionaires are shrinking, there are a lot of millionaires increasing their net worth or being made. This rich people have created a recession profit lifestyle and do more than survive during a recession.

    “The key to understanding a recession is that the country’s economy is different from your personal economy. In fact, the recession provides the greatest opportunities for taking your life into your own hands. Just like having a raining season like economic boom and recession.

    “The following are strategies one can use to survive in a recession: diversity your income, use other people’s money and do the something, but different.”

    According to him, Michael J. Cullen, who revolutionised American life by creating the modern supermarket, left his work in 1930 to start a self-serve supermarket with space for auto mobile parking and within two years, he made about $6 million in revenue.

    ‘’In Kentucky, United States (US), a good grandfather called Colonel Sanders, started serving chicken at his gas station during the great depression and by 1937, he had expended to 142 seat restaurant due to popular demand.

    ‘’In October 2008 during the height of financial crises, Warren Bullet bought $5 billion shares in Goldman and $3 billion in General Electric. Following this investment, Buttet made billions of dollars at a 10 per cent premium over his initial investment.’’

    Oyefeso added: “If you have funds, this is the time to purchase real estate assets. Rather than copying others, look for what everybody is doing and fill a need and do it differently.

    “Start a business with low start-up cost. Coincidently, most survivalist entrepreneurs typically open business in the food industry. Invest or purchase under- valued assets.’’

  • Experts canvass funding support for SMEs

    Across-section of experts have urged the federal government to lend funding support to small and medium scale enterprises (SMEs) in the country, stressing that this becomes inevitable in order to drive economic growth.

    This was the summary of the submissions made by participants at the Institute of Credit Administration (ICA’s) Credit Industry Award and induction of new members in Lagos.

    Firing the first salvo, Dr. Adetunji Oyebanji, President/Chairman of Council, ICA, said SMEs remain the engine of growth of any economy and as such, needs to be encouraged to thrive, especially in a troubled economy like Nigeria.

    Oyebanji, who doubles as the Chairman/Managing Director of Mobil Oil Plc, said the current economic downturn or the post-effect of economic recession has made it impossible for SMEs to provide collaterals to serve as security for loans. The necessary support from government will help SMEs to thrive, he said.

    Speaking earlier, the Registrar/CEO of ICA, Prof. Chris Onalo, said the Institute will continue to be at the forefront of engendering the right credit awareness amongst Nigerians, especially professionals, stressing that an efficient credit culture is a guarantee for a prosperous economy.

    Also speaking at the event, Dr. Sekibo Ifiesimama, Managing Director, Heritage Bank Plc, who delivered the keynote lecture on Corporate Credit in Nigeria, observed that the parlous state of the economy notwithstanding, banks have continued to extend credit lines to businesses across the board in the last couple of years.

    Ifiesimama who was represented by Mr. Jude Monye one of the bank’s Executive Director noted that although banks have continuously given credit support to businesses however regretted that customers’ inability to pay was largely due to the troubling macro business environment in the country.

    “The Nigerian economy has experienced major contractions within the last 15months due to various internal and external factors. The internal factors range from the scarcity of foreign exchange, Niger Delta bombings of crude oil installations and low fiscal activities by various tiers of government. The external factors are the drop in the price of crude oil which has affected the country’s foreign exchange earnings and reduced foreign investment,” he said.

    While making reference to the methods being deployed by the banks to go after customers with toxic loans, Ifiesimama said other banks have a lot to learn from Heritage Bank because the modus operandi as far as loan recovery is concern has been one based on mutual understanding between all the parties concerned.

    The highpoint of the occasion was recognition and awards to outstanding individuals and companies that have contributed to the efficient use of credit in their sectors.

    Among the roll-call of awardees include: Mrs. Ebehije Momoh, Head Retail Banking, Standard Chartered Bank, Price Akamadu, Chief Internal Audit Executive, Heritage Bank, Mr. Kola Coker Ajayi, Finance Director, Cormart Nigeria Limited.

    Another ward recipient was Chief Adetokunbo Oshin, Chief Executive, Zipest Ventures Limited, owners of Zipest Petroleum stations in Ijeode and Ogun state environs, who bagged the Customer Credit Integrity of the Year.

  • FCMB named ‘Best African SMEs Development Bank of the Year’

    First City Monument Bank (FCMB) Limited has been named the Best African Small and Medium Enterprises Development Bank of the Year by the African Association of Small and Medium Enterprises (AASME).

    The award came at second edition of African International Small and Medium Enterprises Economic Summit and Award (AFRI-SMEs 2016)  held in Aba, Abia State.

    The AASME is a coalition of micro, small, medium businesses, associations, operators, owners and individual manufacturers within Nigeria, extended into some African countries but headquartered in Aba.

    AASME President General,  Darlington Onuoha Kalu, said FCMB deserved the award given its support to SMEs over the years.

    It commended the lender’s positive response in various partnerships leading to the establishment, growth and development of small and medium scale businesses.

    The bank, it added, was helping to solve the problem of unemployment, leading to skills acquisition and in turn, the nation’s economic development. “FCMB is the first bank to respond to and cooperate with us, among all other Banks that we called.”

  • Unemployment: UNIDO canvasses more support for SMEs

    Unemployment: UNIDO canvasses more support for SMEs

    As Nigerians grapple with poverty and growing unemployment, the United Nations Industrial Development Organisation (UNIDO), has urged Federal and state governments to increase their support for entrepreneurship and industrial development by putting in place more business- friendly policies and incentives.

    The Officer in Charge, UNIDO Regional Office, Nigeria, Dr. Chuma Ezedinma, made the call during the UNIDO HP LIFE Stakeholders Workshop in Abuja.

    Participants included representatives of federal and state Ministries, Departments and Agencies of the government, private sector, non-profit organisations and the academia.

    Ezedinma noted that entrepreneurship and industrialisation were two important ingredients for tackling poverty and unemployment, adding that UNIDO would continue to support and partner the government and private sector to promote Inclusive and Sustainable Industrial Development (ISID) in the country.

    He said: “Entrepreneurship and industrialisation are two important ingredients for stimulating economic growth, job creation and poverty reduction in both developed economies and economies in transition including Nigeria. In fact, successful small businesses are the primary engines for job creation, income growth, and poverty reduction. Small businesses broaden the base of participation in society, create jobs, decentralise economic power, and give people a stake in the future.”

    Ezedinma said the government’s support for entrepreneurship and industrial development was crucial for economic development.

    “The government needs to encourage entrepreneurship and small businesses through its tax policy (corporate tax rate reductions, tax credits for investment and tax holidays), regulatory policy (simpler regulatory processes and reducing the cost of compliance with government regulations), access to capital (here the proposed development commercial banks can be of assistance), and the legal protection of property rights,” he said.

    The Entrepreneurship Expert and Team Leader, UNIDO HP LIFE Project, UNIDO Regional Office, Nigeria, Mr. Francis Ukoh, said the  project was in line with the government’s strategy as outlined in the National Enterprise Development Programme (NEDEP) to combat high youth and women unemployment and enhance the growth and competitiveness of Nigeria’s private sector.

  • HR key to unlocking SMEs success

    General Manager Human Resources at Seplat Petroleum Development Company Plc,Alero Onosode has  urged  Small and medium enterprises (SMEs)  to adopt  effective  human capital strategies to manage their skilled workforce if they intend to sustain their competitiveness. Mrs Onosode spoke at  FATE Foundation maiden Alumni Conference in Lagos.

    She stressed that human capital management was essential for any organisation looking to gain a competitive advantage and advised   SMEs  to devise a reward  system  that will make their  operating  environment  an ideal ground for talents who desire a faster pace of change and role empowerment.

    Principal Consultant, Habiba Balogun Consulting, Mrs Habiba Balogun added that  SMEs needed to develop a conducive workplace culture and environment to attract new talents and encourage existing employees to grow with their companies.

    She noted that it was time managers and workers worked together to maintain employment levels as businesses struggled through tough times.

    Executive Director, FATE Foundation, Mrs. Adenike Adeyemi, said, the  event was  organised for  Alumni to learn from entrepreneurial leaders and influencers,  share knowledge about key topical areas to grow and thrive as entrepreneurs while also giving them an opportunity to network.

  • Ambode makes case for SMEs

    Lagos State Governor, Mr. Akinwunmi Ambode, has said that if Nigeria must achieve economic growth, it must begin to channel her diversification efforts towards the promotion of Small and Medium Scale Enterprises (SMEs).

    Ambode, who spoke at the close of the 2016 Lagos International Trade Fair, described SMEs as a goldmine waiting to be fully explored.

    According to him, “To achieve meaningful and sustainable growth. Our diversification effort must be centred largely around the MSMEs. I see this sector as a goldmine that is yet to be fully harnessed.”

    The governor, who was represented by his deputy, Dr. Mrs. Oluranti Adebule, added that much effort had also been made to secure the state and further create conducive environment.

    “With respect to landed properties, in order to stem the menace of land grabbers, I recently signed a law which has criminalised the activities of land grabbers with prison terms ranging from two to ten years upon conviction,” Ambode said.

    Also speaking, President of the Lagos Chamber of Commerce and Industry, Mrs Nike Akande, emphasised the need for Lagos State to improve on the environment of doing business.

    “We look forward to a Lagos State that would be the pride of Africa. Let me use this opportunity to congratulate Governor Ambode on proactive and visionary leadership offered by him to the people of Lagos State,” Akande said.

    On his part, Lagos State Commissioner for Commerce, Industry and Cooperatives, Mr. Rotimi Ogunleye, said the annual international trade fair and others, have continued to provide a platform for small businesses to showcase their potentials.

  • Shoemakers, other SMEs may leave Aba

    Shoemakers, other SMEs may leave Aba

    Multiple taxation and impassable roads may drive the famous Aba shoemakers and other Small and Medium Enterprise operators out of Abia State’s commercial city, reports SUNNY NWANKWO

    At the mention of Aba, you think of industrious craftsmen with magic fingers who can manufacture anything: shoes, bags, fridges, fabrics, even spare parts of almost anything. It can even be argued that these endowed industrialists and artisans have recreated Abia State’s commercial hub in their own image. Yet, the master craftsmen are so disenchanted they could move out of the city anytime soon.

    Why? They complain of a very difficult and unprofitable business environment. They say they are overtaxed by various organisations and extorted by agents of the state government. They are also deeply troubled by the city’s impassable roads and excessive electricity tariffs. These things kill their business, they say.

    The industrialists and other business owners at Osisioma Industrial Layout near Aba minced no words when they faced the state government. They will relocate their businesses if the state and Osisioma Local Government Council fail to address these issues, they told Governor Okezie Ikpeazu at the third edition of Abia State Small and Medium Enterprise (SME) Forum.

    The event was organised by the state government in partnership with Wider Perspective Ltd in Aba.

    Some of the SMEs operators including Hon. Ejikeme Uzoma, Vice Chairman Association of Table Water Producers (ATWAP), Aba Chapter, Mr. Mark and Mr. Humphrey Nwachukwu who spoke at the event listed multiple taxation by state and local government agents, extortion by agents of government and youths of Osisioma community, inaccessible roads, inadequate and high electricity tariff as some of the factors militating against the growth of their businesses in Aba and the state in general.

    According to the industrialists, despite reducing their staff strength by over 65 per cent, the cost of production is still high when compared with their counterparts in other neighbouring southeast and Southsouth states.

    They said they may be forced to relocate to other states with better business environment if the state and local governments fail to address their concerns.

    They also called on the state and federal government to find answers to the problems holding back the independent power station (Geometric Power station) at Osisioma from taking off years after its completion. They stressed that if the power station becomes functional it will solve the problem of power supply that they have been suffering for years.

    “Our roads are bad. Some of factories cannot be accessed because of the bad nature of federal, state and local government roads in Aba. Our goods are failing almost on a daily basis. We pay for all kinds of government levies including noise pollution when government has done nothing in ensuring that we have power supply in our factories. The truth is that, we spend more maintaining and fueling our machines if we have steady power supply,” President of ATWAP stated.

    An economist, Mazi Sam Ohuabunwa in his speech calls for collaboration between the public and private sectors of the state economy even as he called for proper funding of the SMEs in line with the global standard and best practices.

    Ohuabunwa who said that the importance of such interactive seminar cannot be overemphasised and reminded the SMEs the important role they play in the state and country’s economy especially now that the country is relying on them to deal with poverty and creation of jobs in the face of the present economic recession facing the country.

    In his speech, Governor Ikpeazu said his administration had secured N1b fund to strengthen SMEs in the state.

    Governor  Ikpeazu, represented by his deputy, Chief Ude Oko-Chukwu assured that the state is determined to create enabling environment for SMEs to boost the economy of the state.

    He said Aba remains the capital of SMEs in Nigeria, stressing that with the growing recession, there is an urgent need to strengthen the capacity of SMEs to boost entrepreneurial excellence in the state.

    Ikpeazu disclosed that the state is determined to eliminate all challenges militating against the growth of SMEs in the state and assured investors of conducive business environment.

    “We are determined to eliminate multiple taxation in the state. Our approach is that all demand notices will be issued at once. What you will get in Abia is two demand notices, once you pay, nobody will disturb you again. We have inaugurated a monitoring team who moves around to the state to check those collecting illegal levies.”

    The governor urged entrepreneurs in the city to itemise the multiple levies and forward them to his office for necessary action.

    Apparently, there is effort to keep the shoemakers and other entrepreneurs in Aba.

     

  • How SMEs can make profit

    How SMEs can make profit

    Policy makers need to do more in creating an enabling environment for enterprising individuals who apply business practices to solve societal problems as well as make profits.This was the consensus of participants at the Africa CEO Roundtable on corporate sustainability and responsibility organised by Thistle Praxis Consulting Limited in Lagos, DANIEL ESSIET reports.

    Many small and medium-sized enterprises (SMEs) are not doing well in turnover, workforce growth, job creation and innovation.

    These were the concerns of business leaders and small business owners who gathered in Lagos for a one-dayAfrica CEO Roundtable and conference on corporate sustainability and responsibility organised by Thistle Praxis Consulting Limited in Lagos.

    The Managing Director/Chief Executive Officer CEO), Accion Microfinance Bank, Mrs. Bunmi Lawson, said a lot of SMEs were not growing because access to financing,manpower operators should go for and materials had become a huge challenge.

    While acknowledging that access to credit is critical, she said bank loans should not be first consideration; rather  operators should go for equity capital and other investor funds where small business owners  are not expected to pay back in the short term.

    She maintained that it was vital that smaller businesses understand and have confidence in the growing choice of finance available to help them succeed.

    To address funding, Mrs Lawson said SME leaders needed to have good management skills, adding that it has become important that they get trusted and reliable to explore finance options.

    She said the rising level of non-performing loans in the banking industry was a worrisome issue for banks and financial institutions, arguing that it does not mean the microfinance bank will slow down on SMEs loans.

    She said the bank was still looking for SMEs with good management and business fundamentals to support.

    Many SMEs, she explained, simply do not have the capacity to stay competitive, stressing that it explained why the economy had a lot of matured start-ups that are not growing.

    Mrs Lawson added that getting the right advice is crucial, especially as the landscape and sources of finances have changed so significantly.

    She explained that making a company profitable and successful was important, adding that most entrepreneurs needed a sense of purpose that went beyond naira and kobo.

    Associate Director, Leapfrog Investments, Mrs Adenike Kuti, advised SMEs and entrepreneurs to do thorough due diligence, sensible deal structuring and realistic exit plans before committing  to business angels and other investors.

    The push towards venture capital loans, according to her,  comes  with the challenge for small  business owners to  access  such offers  in a more enlightened way.

    She advised small businesses to be more cautious when taking up financing offers.

    Chief Executive, Prinsult, Mrs Raliat Oyetunde, noted that SMEs are vital to the economy and needed investors and banks, support to be able to  secure their market positions.

    SMEs, according to her, are still thriving and can expand with enough resources to grow in a high-cost environment.

    Chief Executive, TechPreneur Africa, Bolaji Finnih, noted that business growth across the country doesn’t come easily. He added that  for continued expansion, the conditions needed to be right and correct decisions had to be made. Without these, he said a business won’t see the desired level of growth.

    Finnih said many entrepreneurs are still wary of external funding, and there is feeling of distrust towards venture capital funding.

    He believes that the mindset can possibly take a generation to change.

    Finnih said small businesses have had difficulty scaling up due to lack of infrastructure.

    He said businesses have enormous potential to provide important services– but they needed to scale up in order to meet these needs.

    In his contribution, the Director, Sustainable Business Initiative, University of Edinburgh Business School, Prof Kenneth Amaeshi said the economy was in need of small businesses providing real answers to  social and environmental problemsfacing the country.

    According to him, Nigeria needed businesses  that create economic growth and jobs whilst also operating fairly and helping the people and communities in need.

    Co-founder, Co-Creation Hub, Femi Longe said the economy needed profitable social enterprises and start-ups to solve social problems more efficiently.

    According to him, social entrepreneurs should see opportunities in societal challenges, spot the problem, use  technology  and business methods and create wealth to solve them.

    He said  Co-Creation Hub has made it part of its agenda to embrace start-ups, and other groups should follow.

    According to him,  Co-Creation Hub focuses on businesses that bring social impact at the grassroots levels.

    He said the place was started because of the need to fill the gap, work and help businesses that create impact in society.

    He said  Co-Creation Hub helps social entrepreneurs build their businesses and make it viable, without losing focus on social impact.

    Longe  said social businesses – those with a socially beneficial objective– can play an important role in developing countries in addressing needs such as healthcare and  education. He lamented that such businesses have faced a difficult time scaling up to significant size and reach.

    Longe said meeting these needs through affordable and sustainable solutions offers businesses a vast opportunity for future growth.

    Fate Foundation Executive Director, Adenike Adeyemi, said the foundation trains people in programmes lasting three to four months on entrepreneurship.

    She said the foundation helps businesses that seek to grow to plan systematically for growth, and to be prepared for the specific challenges associated with growth.

    According to her, the group provides mentorships, business training, development of skills in managing, marketing and things, such as book keeping.

    Thistle Praxis Consulting Limited Lead Consultant/CEO, Mrs Ini Onuk-Abimbola, said the conference was intended to provide businesses with inspiration, ideas and practical skills, which will enable them to grow and be more sustainable.

    She said businesses have to make corporate social responsibility (CSR) a major part of what makes them successful. This is because customers want to reward companies that live their values.

    According to her, embracing inclusive business has a big economic and social impact, creating jobs and boosting the economy.

    Promasidor Nigeria Chairman, Chief Keith Richards, Chief Keith Richards, said government policy is the  starting point for growing SMEs.

    He said businesses are vital to the success of the economy as they drive growth, seeking out new markets and creating jobs as well as spearheading innovation. Therefore, they ought to be encouraged to grow.

    He said Chairman, Promasidor Nigeria, Chief Keith Richards has had incredible growth and profitability.

    He said customers know that Promasidor Nigeria stood for something and that it informed their interactions with the company every time they walk into a location.

    He said CSR is going to become an ever-more crucial part of keeping companies.