The Nation Newspaper

Tag: SMEs’

  • ‘Access to finance major threat to SMEs’

    ‘Access to finance major threat to SMEs’

    Funding remains a major threat to the growth of Small and Medium Scale Enterprises (SMEs), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Director-General, Mr. Emmanuel Cobham has said.

    Hailing government for setting up a number of institutions  to support SMEs, he noted that what is required is to strengthen those institutions.

    “We need to implement the various government policies and ensure that intervention funds actually get to the SMEs, knowing that as at date the N220 billion Federal Government Intervention Fund for SMEs as administered by the apex bank through the commercial banks and State Governments, has not been fully utilized,” he said.

    Cobham called for an enabling environment where small business financing and proper operations are taken seriously, where the manufacturing thrives and production capacities of companies are radically improved.

    “Currently, we have more than enough policies and initiatives by the government for the development of the manufacturing and SMEs sector. All we need now is the harnessing and positive redirection to make the process work. We need the political will to ensure that all the initiatives work,” he stated.

    On measures put in place by government to develop the non-oil sector and spur substantial development of the solid mineral sector, he maintained that over dependence on one revenue source is detrimental to the economy hence the need to develop other sources of revenue.

    As strategy to make a success of the non-oil sector, he urged the Federal Ministry of Agriculture to evolve a systemic policy aimed at deliberately reducing the number of peasant farmers through aggressive empowerment.

    “Government should increase the budget for agriculture to at least 10 per cent of the national budget; evolve a policy framework that would encourage commercial farming in order to have an easy transition from peasant farming to commercial farming. Government should also encourage farmers by buying their farm produce to reduce the attendant waste associated with that level of production,” Cobham recommended.

    According to him, this proposed arrangement would ensure that buyers are compelled to buy directly from the government or its agency. He also encouraged the adoption of the One-State-One mineral policy earlier adopted by the Ministry of Solid Minerals. He said this will increase the generation capacity to cushion the nation’s foreign exchange needs and address salient export trade mechanisms.

    Cobham said government can also help the sector by giving special directives to banks to finance this sector, supply equipments, and guarantee the income of the farmers by buying directly from them.

    On the issue of high interest rate raised by manufacturers, he said: “There is no denying the fact that currently many businesses are groaning under the high cost of doing business in the country and this coupled with the issue of high interest rate gives a very wrong signal to the local business man.

    “I believe that tough times call for extra precautionary measures. Given that most businesses are financed by bank loan, equity and the active involvement of most financial institutions at an agreeable interest rate, which presently hovers around 18-30 per cent, what we need to do therefore is to join hands with the regulatory agencies to strengthen the Naira as against other international currency.”

    The NACCIMA Director – General  further called for increase of the nation’s export for better foreign exchange earnings and reduction on import of commodities that have local substitutes.

  • Telecom World: ITU urges innovators, SMEs to showcase products

    International Telecommunications Union (ITU) has urged Nigerian innovators and small and medium enterprises (SMEs) to participate in this year’s edition of its annual technology fiesta known as the ITU Telecom World 2015.

    This year, it will hold in Budapest, Hungary, between October 12 and 15 and it is expected to attract the participation of all ITU-member countries including Nigeria.

    Speaking on the event, Director, Policy, Competition and Economic Analysis at the Nigerian Communications Commission (NCC) and also chairperson, ITU Telecom World 2015 Planning Committee, Ms. Josephine Amuwa said ITU has dedicated this year’s edition to innovators across the global community. She said it is an opportunity for Nigerian innovators to showcase their skills, products and services to the world, assuring that there will be innovators hub at the Nigeria pavilion during the event.

    Amuwa said ITU deliberately took the decision to encourage SMEs and innovators because of the pivotal role they play in fuelling the growth and development of the economy, especially in the area of job creation.

    “It will be an opportunity for innovators in Nigeria to showcase their creative and business acumen at the global space as over 120 countries and several global investors will be on ground to witness and see for the first time, such creativity by a large number of enterpreneurs under one roof,” NCC explained.

    Director, Public Affairs at NCC, Mr.. Tony Ojobo in a statement described this year as that of innovators and SMEs, adding that it their golden chance at ITU Telecom World 2015.

    Specifically, innovators and SMEs including Value Added Service (VAS) providers who have indeed turned around the fortunes of mobile network providers (MNOs) will have the opportunity to showcase their wares at the event.

    “Since multinationals and global investors will be on ground at Budapest, Hungary, many of these innovators and VAS providers may have the chance to attract investors to their works. So they should come and be inspired further in Budapest. Remember that ITU Telecom World is a rallying point for global ICT practitioners, a melting pot if you like for global ICT players”, Ojobo who is Chairman of the Media & Publicity sub-Committee for Nigeria’s participation, was quoted to have said in the statement.

     

  • MTN, CMS to promote SMEs  

    MTN, CMS to promote SMEs  

    MTN Nigeria has unveiled a new partnership with Connect Marketing Services (CMS) to improve access to technology and understanding of how it can enhance business productivity among small and medium scale enterprises (SMEs).

    While the partnership is aimed at taking their businesses to greater heights, MTN said the deal with CMS would enhance business growth as it hosts the maiden edition of Tech+ 2015.

    According to the Telco, the Tech+ 2015 is an innovative technology conference and exhibition that will feature high-tech demonstrations of the latest digital products and services along with hands-on practical workshops facilitated by renowned IT experts.

    The two-day event with the theme Leadership in Digital Technology is scheduled to hold at the prestigious Eko Hotel and Suites, Lagos, on July 24 and 25, this year.

    Speaking at the press conference, the General Manager, Consumer Marketing, MTN Nigeria, Mr. Richard Iweanoge, said the event would not only showcase the latest technology but would also be an avenue for participating individuals, businesses and top brands across Nigeria to understand the potential of the emerging digital technologies. Particularly, businesses would have the opportunity of interacting with business solutions that would drive their businesses whil providing value for their customers, he added.

    According to Iweanoge, “Technology is shaping the world of business. Enterprise teams now collaborate face-to-face without the need to travel. With all their business information in the Cloud, SMEs can transact business from anywhere in the world with ease. As a leading telecommunication company, with great drive for enhancing and empowering business enterprises in Nigeria and across Africa, we are proud to be associated with these developments,” he added.

    Further justifying the importance of the conference to brands and businesses across Nigeria, Iweanoge said “Tech+ is providing a platform and an ecosystem that promotes cutting edge technologies through education, practice, and innovation in the African Market. The global impact of technology across all areas of human endeavour has made it more imperative that people stay in touch with the world around them to be able to identify with technological advancements that could reshape their world” Iweanoge said.

    Guests expected at the first-of-its-kind-event include: SMEs, IT experts, Manufacturers, Entrepreneurs, and consumers.

    Meanwhile, the Chief Executive Officer, CMS, Mr. Tunji Adeyinka, said speakers at the event include: Mr. Jim Mckelvey, Cofounder and Director, Square; Nicolas Martin, CEO, Jumia Africa; Wael Fakharany, Regional Business Lead Google X, West Africa; and Mr. Abiola Olaniyan, Chief Executive Officer, Gamsole.

  • BoI affirms support for SMEs

    •Plans induction of TEF entrepreneurs into hall of fame

    Bank of Industry (BoI) has reiterated its resolve to improve access to finance for Small and Medium Enterprises (SMEs) through a cluster initiative targeting over 40 sectors.

    The bank also unveiled plans to induct successful entrepreneurs under the Tony Elumelu Foundation  (TEF)   programme into its Hall of Fame to encourage entrepreneurship.

    The Managing Director, BoI, Rasheed Olaoluwa, while speaking during the Tony Elumelu Entrepreneurship Programme (TEEP) boot camp, in Ota, Ogun State, explained that the move by the Development Finance Institution (DFI) will encourage more young and aspiring entrepreneurs to grow their businesses thereby aiding improved job and wealth creation in the nation.

    Olaoluwa stressed that the bank is in close collaboration with key stakeholders to ensure that successful entrepreneurs under the initiative are supported and recognised globally for their hard work and resilience. With over 40 sectors already identified, he noted that the DFI is looking at developing an SME cluster initiative where specific funds will be directed for the growth of such sectors, adding that plans are underway to improve access to finance in the SME environment.

    He, therefore, implored entrepreneurs to constantly update themselves of current trends in the global  market space, urging them to understudy the dynamics of the economy and the world at large. “Ideas that are generated today will not remain forever. Please be watchful and monitor the environment in terms of the ever-changing needs and wants of consumers to whom you will be offering your services. As the world continues to change, you must follow the trend to become successful entrepreneurs,” he added.

    Olaoluwa urged the entrepreneurs to avail themselves of the services of the Business Development Service Providers (BDSPs) identified by the bank in order to aid ease of access to bankable loans for their businesses.

    The Founder, TEF, Tony Elumelu, explained that the boot camp was designed to provide entrepreneurs with the knowledge and skills needed to begin and take their businesses  from idea to reality. He said the initiative is a holistic 10-year, $100 million commitment that will identify, grow and create 10.000 African entrepreneurs.

    “A programme built by Africans, for Africans. As the first class of 1,000, your experience with us these last several months and in the months and years to follow will help shape the future of this ground-breaking programme,” he said. According to him, the 1000 entrepreneurs under the TEF programme were selected from more than 20,000 applicants from 52 African countries, stating that his team, Accenture and  a world-class selection committee of experts carefully chose the entrepreneurs.

    “The 19,000 applicants who were not selected are now part of our growing Tony Elumelu Entrepreneurship network,” he added.  Elumelu said Africa needs multitude of private sectors for entrepreneurship to thrive, adding that the continent must build credible foundation to create more private sector leaders to address macro-economic issues in the continent.

    He advised entrepreneurs to embrace hardwork, self discipline and also think long-term to create a socio-economic value for the country and for the continent at large. “You have to dream the dreams, set milestones, develop a saving culture and  most especially form visionable partnerships. If we imbibe these factors, then we are on the way to have future leaders in Africa,” he said.

     

  • SMEs charged on risk assessment

    LEAP Africa, Lafarge Africa Plc and Sterling Bank have advised Small and Medium Scale Enterprises (SMEs) on the importance of risk identification, assessment and analysis with a focus on minimising loss of revenue.

    They spoke at the 10th CEOs Forum. It had as theme: ‘Staying ahead: Maximising profits and mitigating risks’.

    In a statement, the group said: “The forum addressed SMEs on the essence of risk identification, assessment and analysis with a focus on minimising loss of revenue.”

    LEAP Director Juliet Chiazor, and the Group MD/CEO, Lafarge Africa Plc, Mr. Guillaume Roux were at the event.

    Mrs. Chiazor, who is also Google Country Manager, noted that the posture of a company regarding risk management should not be reduced to a checklist, but be imbibed in the DNA of a company and is the responsibility of all employees.

    Roux urged the participants to imbibe Lafarge’s practice of viewing risks as opportunities rather than threats.

    Other speakers  include Mr. Dharnesh Gordhon,managing director/chief excutive officer, Nestlé Nigeria Plc; Mrs. Adepeju Adebajo, Managing Director, WAPCO Operations, Lafarge Africa Plc; Mr. Oluwole Oshin, Managing Director, Custodian and Allied Insurance Limited; Mr. Abubakar Suleiman, Executive Director, Finance and Strategy and Mrs. Clare Omatseye, Founder, Managing Director, JNC International Nigeria Ltd.

    The event was moderated by the Managing Director, Risk Watch Insurance Brokers, Mrs. Morin Desalu.

    The forum discussed how to manage financial and currency risks in the Nigerian and global business landscape as well as supply chain, operations and sales risks.

    The importance of insurance, other risk mitigation strategies and how to build risk management culture were also discussed.

    While Mr. Oshin highlighted the importance of insurance policies and the benefits to SMEs, Mrs. Adebajo spoke on using a risk matrix to analyse risks at all levels of the supply chain, drawing on experiences of Lafarge.

    Mrs. Omatseye, shared her experiences in dealing with risks as an entrepreneur, emphasising the importance of a strong risk culture.

    LEAP presented at the event, its 11th book, The Art of Managing Risk.

    “The book introduces entrepreneurs and business managers to risk management as it applies within our local context and introduces them to explore opportunities with boldness by taking practical steps to identify, analyse and mitigate risks,” the statement added.

  • Sterling director urges SMEs on risk

    Sterling director urges SMEs on risk

    The Executive Director, Finance & Strategy, Sterling Bank Plc, Mr. Abubakar Suleiman, has called on operators of Small and Medium Enterprises (SMEs) to ensure proper risk identification, assessment and analysis to minimise revenue by operators.

    Suleiman who spoke at the 10th Annual CEOs Forum organised by LEAP Africa in Lagos, with the theme: Staying Ahead: Maximising Profit And Mitigating Risk also praised the organisers for focusing on the SMEs.

    He urged SME operators to ensure that their risk profile is adequately assessed even as they are required to improve on their reporting standards and the day-to-day management of their organisations.

    The bank director also encouraged economic awareness to fully mitigate risks associated with foreign exchange fluctuations.

    He informed the participants drawn mainly from the SME segment about the bank’s support for SMEs by constantly educating them through workshops and seminars on capacity building training.

    Suleiman further stated that  the bank organised a capacity training programme in 2014 aimed at enhancing the managerial and entrepreneurial qualities of SME operators with a view to building sustainable businesses in view of the critical roles they play in the development of an economy.

    “We are totally focused on the growth of SMEs in the country and we will continue to assist in taking their businesses to another level. The process for transforming SMEs to become bigger players and a key part of national development does not start and end with finance. A huge part of it starts with education,” he said.

  • BoI boosts SMEs with digital apps

    The Bank of Industry (BoI) has released five digital applications that will enhance development among the over 2,500 Small and Medium Enterprises (SMEs) that are linked to the bank’s website.

    The digital solutions, which will address SMEs challenges in the digital age, is expected to also promote entrepreneurial business in the areas of funding and business exposure among SMEs.

    The products include SME Mobile App, SME Accounting Application (SAApp) Software, Online Loan Application Portal, Loan Application Tracking System, and SME Customer Portal.

    Its Managing Director/ Chief Executive Officer, Mr. Rasheed Olaoluwa, said the products were tailored to address new demand for digital solutions, occasioned by the increase in the number of internet users in the country, which include SME operators.

    He said: “At BoI, we have repositioned our systems, processes and services to take advantage of this new digital and mobile world, in order to offer our customers the benefits of speed, mobility and convenience that came with it.”

    According to him,  in March this year, the lender upgraded its banking application from Equinox to a more robust version called Rubikon, in order to serve its customers better.

    Its Group Head, Information and Strategy, Mr. Thomas Akphororo, said the objective of the apps is to provide members of the public, especially entrepreneurs, easy access to information on their mobile phones, about the key activities and products of the bank, as well as how to avail themselves of the bank’s services.

    The mobile app gives overview of the bank and what it stands for, the category of customers the bank could assist, as well as list of the bank’s accredited business development service providers, with download features.

    An official of Kinesis Consulting Limited,  BoI’s partner, Mr. Philips Ikhile, who spoke on SME Accounting App, said the app would enable users keep proper accounting records of their business transactions, and generate requisite financial statements, without employing the services of an Accountant or Chartered Accountant.

  • Chamber to Buhari: improve the fortunes of SMEs

    Chamber to Buhari: improve the fortunes of SMEs

    The Abuja Chamber of Commerce and Industry ABUCCIMA has urged the incoming government to come up with policies that will enable Small Medium Enterprises access the N220b SME fund domicile in the Central Bank of Nigeria.

    In a statement by the Vice President Media, Abuja Chamber of Commerce Jude Igwe, the SMEs represent roughly 85 per cent of the economy and they have been globally acknowledged as the engine of growth of any economy, Nigeria inclusive and the chamber movements all over the world are mostly populated by this group.

    “We do appreciate the past government’s provision of N220b SME fund domiciled with the Central bank which has remained largely undisbursed to beneficiaries due to conditions that are impossible.

    “We urge the new government to urgently intervene and review these conditions and come up with terms that would make it easy for the SMEs to access this fund and produce the necessary growth in the economy which is the target for setting up the fund.

    “The wellbeing of SMEs is so critical in any economy that desires growth, generation of employment and production of consumer goods that it should not be ignored for a moment. Government should therefore endeavour to provide the enabling environment for SMEs to thrive and this should include right fiscal policies, provision of funds and elimination of multiple taxation and provision of the necessary infrastructure.

    “The acute shortage of power in Nigeria is the number one area that affects and puts unbearable pressure on all other aspects of the economy including the demands on the petroleum sector.

    “The issue of provision of adequate power for the nation must be urgently addressed so as to bring back to life a lot of industrial and manufacturing concerns that have gone comatose as a result of unsustainable costs of running their operations on generators.

    The consequences of this are staring us in the face -low productivity, retrenchment of workers, none employment of job seekers, lack of consumer goods locally and pressure to import finished goods to sustain local demands and general down turn in the economy.

  • Institute to Buhari: ensure growth of SMEs

    Institute to Buhari: ensure growth of SMEs

    THE Institute of Credit Administration (ICA) has challenged the president-elect to boost the growth and development of the small and medium scale enterprises in the country.

    In a statement issued by the Registrar/ Chief Executive Officer of the Institute, Professor Chris Onalo, he said, the only way for the operators in the sector can contribute their quota to the accelerated growth of the economy is if they are given the necessary incentives.

    In the statement, which reads in part, Onalo said: “Every day across Nigeria, dozens of small and medium sized enterprises (SMEs) go bankrupt as their invoices are not paid. As a result jobs are lost and business opportunities remain unexploited, stalling the country’s return to economic growth.”

    To stem this tide, there is need for the president-elect, to set agenda for combating late payment in commercial transactions throughout the country, he said.

    “The government on her own part must compel her ministries, departments and agencies and other authorities to pay for goods and services supplied by SMEs within three weeks or, in very exceptional circumstances, within 30 days.

    “Definitely, part of the problems that undermine the growth of SMEs is that they find it particularly difficult to stand up for their right to prompt payment; late payments mean SMEs lose time and money. This damaging late payment culture has to end so as to give SMEs the vital support they need in these difficult times and helping them fulfill their key role in job and wealth creation.”

    Timely access to cash is critical for SME business success and therefore there must be a condition for every government contract that SME contractors must be paid within 30 days and this should be passed down the supply chain, he maintained.

    “Today, the council of the Institute of Credit Administration (ICA), the body charged with the responsibility for setting standards and monitoring the activities of those who give, take, manage and facilitate credits, call on the incoming administration of General Muhammadu Buhari to pledge and establish policy commitment to increase support for Nigeria’s small and medium sized enterprises (SME’s) by equally calling on big businesses in the country to adopt similar prompt payment policy (PPP) in favour of SMEs. As it is known all over the world, prompt payment is crucial to smaller companies survival.”

    Besides, he said: “There must be a policy of paying bills involving supplies and other business transactions that has been carried out by SMEs for big companies, starting with the government within one to two weeks from the date that they submit their invoice. When work has been done, especially by an SME, it is just inexcusable not to pay up quickly for that service or supply.  On our own part as Nigeria’s national body for credit management, we will be keeping a close eye on how government and the big companies pay their SME contractors.

    “SMEs are the lifeblood of the economy, their innovation, speed and flexibility is vital for sustainability. Government economic policy must be designed to accommodate how important cash flow is for the SMEs. Your government should take significant steps to ensure that SMEs continue to deliver the innovation and flexibility in our match toward Nigeria’s economic independence and prosperity.”

  • Five social media pitfalls SMEs should avoid

    Five social media pitfalls SMEs should avoid

    Steven Cohen, Managing Director of Sage One Accounting AAMEA, shares some insight on social media pitfalls that small business owners should try and avoid to successfully manage their social media accounts and social conversations with customers.

     

    Social media is a powerful tool for the small business owner. It can help you to build customer relationships, improve your search engine optimisation, and create a buzz about your business.

    Yet unwary small businesses can harm their businesses more than they help them if they don’t have a strategy about how they will manage their social media accounts and their social conversations with customers.

    Here are a few mistakes that SMEs should avoid as they roll out their social media plans.

    1.     Underestimating the work load

    At first blush, this social media thing looks easy. All you need to do is post some short-form content everyday as well as check your social networks for mentions of your business and responses to your posts, right?

    But you’ll soon discover that posting interesting content and keeping pace with activity from your fans and followers will absorb plenty of your time. Build time to manage your social network accounts into your schedule or make sure that you have someone you can trust in your team to take care of it for you.

    And as tempting as it may seem, don’t try to be everywhere. You don’t necessarily need to be on LinkedIn, Google+, Facebook, Pinterest, AND Twitter. Start by choosing two networks and do a good job on them before branching out onto other sites.

    2.     Lacking a content plan

    Signing up for an account with Twitter or Facebook is the easy part. Once you have a presence on social media, you need to post regular content to make the most of it. There’s nothing worse than a social media account that is never updated, except perhaps one outdated with a bland automated feed.

    Think about what sort of content you’ll post and when, aligning it with your plans for promos, PR and marketing. Prepare content in advance – perhaps create a schedule of posts at the beginning of the week and draw them up in advance.

    Producing content can be expensive if you ask a professional, and time-consuming if you do it yourself. Look at what content you can use from your website or newsletters in social media, and don’t be shy to “curate” relevant content from other sources.

    3.     Managing your business and professional social presence as one

    The lines between the personal and professional often blur in the world of social media. Depending on your personal brand and the image you want to project for your business, it may well be beneficial to run one Twitter or LinkedIn account for yourself and for your company. But think carefully about the image you wish to project for your business as well as how your customers will respond.

    Will your customers be charmed, irritated or bored to know that you’re a father of two with a fondness for golf? And what are the dangers for your business of posting something personal and controversial on a company profile? Tread carefully – take your real-world relationships with your customers as a guideline for how to project your personal and company brands in social media.

    4.     Hard-selling

    One of the biggest mistakes that SMEs make in social media is to see it as a sales tool. Yes, it can help you to grow awareness of your product, bring traffic to your website, and get sales leads, but don’t think of it as a place for hard-selling.

    Customers will not follow you on social media for sales pitches. They will follow you to find relevant information that they can use in their day to day lives. That means you can benefit from being an advisor to them rather than blasting them with advertising.

    For example, don’t throw ad copy about why your solar heating is the best at your followers. Rather, link them to resources about living with load-shedding or choosing the right solar solution to minimise power costs.

    If you find independent content that reflects your thinking, don’t be shy to share it if you think your customers will find it interesting. This positions you with the customer as an expert and a trusted advisor rather than as a pesky salesperson.

    5.     Not preparing for a crisis

    If you’re on social media, customers will talk to you and about you. At some point, you will encounter someone who is unhappy with your service or your product.

    Sometimes, the customer will be right but reasonable, and you’ll be able to sort the problem out.

    Other times, you may encounter someone who is belligerent, after a freebie, or simply having a bad day. Think about what sort of complaints and criticisms customers could voice about your business online, and how you will respond to them.

    Often, if you’re responsive enough, you can turn a complaining customer into one of your biggest advocates. But if you ignore a small criticism, it can easily turn into a full-blown crisis for your business.