The Nation Newspaper

Tag: SMEs’

  • ‘CAC online registration good for SMEs’

    The Acting Registrar-General of the Corporate Affairs Commission (CAC), Lady Azuka Azinge, yesterday said the Commission decided to engage in online registration and do away with middle men so as to conform with international best practices.

    Lady Azinge who spoke during a quarterly Customers’ Forum held in Kano, added that the use of online registration has improved the services of the Commission in registration of prospective company owners and as well strengthen revenue drive and encourage the policy of Ease of Doing Business in Nigeria.

    According to her, the Commission has opened its online registration services to 31 state offices across the federation, adding that, “the Commission plans to extend full online registration services to its remaining seven state offices in Birnin-Kebbi, Dutse, Maiduguri, Damaturu, Jalingo, Calabar and Gusau before the end of March, 2018.”

    She further stated that, “the Commission intends to extend its online services to post registration services as soon as possible. Once that feat is attained, all of the Commission’s services will be available online.

     

     

  • CubeHub to provide office market for SMEs, others

    To solve the high cost of office space solutions for Small and Medium Scale Enterprises (SMEs) and start-up businesses and established firms, Cubehub Nigeria is set to provide virtual and serviced office market in the country.

    Its Chief Executive Officer,  Ajibola Adeboye in a statement in Lagos said the organisation is joining other  virtual and serviced office market by making its debut in Lagos.

    According to him, CubeHub is determined to change the rigid nature of many office spaces which does not work for many flexibility-driven business models, and is bringing to the market, flexible and customer-centric office space and virtual services.

    He said the virtual and serviced office spaces would cater for every business, ranging from startups to well-established firms, adding that the firm was built on respect, integrity, teamwork and excellence.

    He said Cubehub’s presence in the serviced office sphere is set to eliminate the overhead cost of building or leasing an office for long duration, furnishing, office supplies etc.

    Adeboye said: “We are really delighted to have started this journey to solve the high cost of office space solutions so that the economy drivers; the SMEs and start-ups can also play and thrive with the Large corporates within the economy for a start as we grow with our clients into other economies of the world.The company will take that burden off users for a fraction of the cost, while they focus on the core of their business.

    “With Cubehub, you get to own a business address, use an office whenever the need arises for hours, days, weeks, months or years. You also get to use meeting rooms, have personalised phone numbers, dedicated call agent, professional staff to uphold the image of your business while you can also work from home. It is up to you to define how you want to work.”

     

  • Bridging SMEs funding gaps with youth empowerment

    Capital is arguably the most important factor needed to drive sustainable growth of Small and Medium Enterprises (SMEs). COLLINS NWEZE writes that the N30 million grants from Nigerian Breweries shared to some 300 youths through the Goldberg’s Isedowo initiative is expected to stimulate youth-driven SMEs.

    The economies of great nations thrive on the strength and capabilities of their Small and Medium Enterprises (SMEs) and the government has the responsibility to make the environment conducive for operators.

    Besides the government, private sector operators play a role in the development and growth of SMEs by making credit facilities accessible to operators.

    Golbally, development patterns show the primacy and pre-eminence of the SMEs in resource mobilisation, deployment of resources for growth and development, and the emergence of an industrial economy.

    In Asia, Europe and North America for instance, SMEs play significant roles in the growth, development and industrialisation of their economies.

    The same cannot be said of Nigeria as SMEs have performed below expectation because of a plethora of factors including lack of access to funds, managerial skills and poor accounting practice, among others.

    The local economic managers and the citizens have realised that modern economies survive not on the account of the number of jobs created by the formal sector but on the strength of the ‘street economy’ (informal sector).  The stunning figures of the Asian Tigers, like most top-performing economies, are driven by cottage industries and other small-scale enterprises, making them a model to other nations that are struggling to get out of socio-economic deprivations.

    Economists have called for initiatives that can help job hunters explore their entrepreneurial potential, create wealth and generate the needed jobs to combat youth restiveness.

    However, a lot must be done on the grey areas in key factors required to engender a small-scale-driven economy.

    The government, that is expected to provide the needed infrastructure and technical capacity frameworks, funding, has more than enough to shoulder, hence the need for blue chip companies and multinationals to come to the rescue.

    The commercial banks, with their lack of disposition to lift start-ups, particularly in the informal businesses, have not helped matters.

    With venture capital not available, fund seekers are left with no options but to adopt self-help and when this fails as it often does, it is back to square one.

    Some private sector operators have realised the folly of allowing the ills of idleness to linger. They believe the idle hands could serve as the devils workshop. They are now creating platforms through which they extend financial assistance to individuals with brilliant ideas.

    One of such platforms that has impacted a sizeable number of individuals in its target group is Isedowo, an empowerment initiative of Goldberg, a brand of the Nigerian Breweries Plc.

    It was unveiled in Ile-Ife, and ancient Osun State community last August to empower Southwest youths who have creative business plans.

    At the end of the first phase of the programme on February 9, the brand had given a grant of N300, 000 each to 100 artisans spread across the Southwest states excluding Lagos.

    The N30 million was disbursed to youths to sharpen their skills in cloth-making, photography, carpentry, hair dressing, catering, dry cleaning and sundry vocations.

    Ile-Ife monarch Oba Adeyeye Enitan Ogunwusi, acknowledged that the Isedowo concept was in line with the aspirations of the greater number of youths and called on other corporate entities to follow the Goldberg lead. Commending Nigerian Breweries and Goldberg for damning all odds to empower artisans, the Ooni of Ife described the initiative as courageous and innovative.

    He said: “On behalf of my people, I thank Goldberg and Nigerian Breweries for partnering with the Yoruba people. By leading the way to support the businesses and entrepreneurial potential of artisans in the Southwest, the company has challenged other corporate bodies to give back to the society where they operate.”

    The royal father urged beneficiaries to seize the opportunity to grow their businesses and contribute their quota to lift the economy of the region.

    According to him, the initiative was a demonstration of the brand’s interest in the wellbeing of the region as well as the economic growth of the country.

    At the opening, Nigerian Breweries’ Marketing Director Franco Maria Maggi, said Goldberg was honoured to identify with the Ooni through Isedowo, noting that the empowerment has offered an opportunity for the brand and the royal father – who is the custodian of the Yoruba culture – to partner on improving the economic status of youths in the region.

    Maggi stated: “We believe that as the custodian of the Yoruba culture, the Ooni’s blessings will rub off positively on Isedowo. It will set it on a path of achieving the objectives of positively transforming the lives of its beneficiaries with spillover effects on the larger economy through increased job opportunities and wealth creation.”

    According to Portfolio Manager of Mainstream Lager & Stout Brands, Emmanuel Agu, Goldberg, through Isedowo, has demonstrated its commitment to improving the businesses of artisans in the Southwest.

    Recognising that start-up and expansion capital has been the bane of artisanship in the region, he restated Goldberg’s commitment to supporting those who are interested in using their skills to grow the economy.

    Agu said: “So far, Isedowo has also reduced the rate of unemployment and youth restiveness in the region as the grants have created new jobs in the Southwest. Goldberg would, through the scheme, extend its affinity with the people of Southwest beyond culture and tradition to entrepreneurship. It has positioned itself as an empowerment platform that shares the aspirations of the people.”

    At one of the activations, Senior Brand Manager, Mainstream Brands, Nigerian Breweries, Funso Ayeni, described Isedowo as Goldberg’s vehicle to connect and support the region’s entrepreneurship.

    He stressed that the brand, through the scheme, has positioned itself as an empowerment platform that genuinely shares the aspirations of its consumers.

    Ayeni said: “Goldberg has long established itself as a dependable partner with the Yoruba cultural community. With Isedowo, the brand has extended its affinity with the people to entrepreneurship.

    “Through the platforms, artisans with outstanding business ideas are being empowered. This will not only boost the economy of the region, it will also curb youth restiveness, as more young men and women are positively engaged.”

    For a society that is battling restiveness, Isedowo comes in handy. And barely six months after the first set of beneficiaries received their cheques, there are dozens of testimonies to the transformative power of the scheme. In many cases, businesses that existed only in a dream world have assumed physical form, creating wealth for owners while generating incomes for their employees.

    An Osun State-based auto-mechanic, Yakub Adbulazeez, who benefited from the scheme, said he bought essential tools and expanded his spare parts business with the grant.

    He added that the assistance has made him more useful to the society as according to him, the era of idleness had disappeared because of the expansion.

    He stated: “Before I was given the grant, there were days I would go out to hang out with friends from morning till evening. Sometimes, I would not go to the shop for three days. Meanwhile, I knew of some things I could do to make money but there was no capital. I wanted to go into sales of spare parts but nobody was willing to lend me money.

    “So, I saw the Goldberg grant as a ‘saviour’. My story changed when I got the grant. First, I bought the essential tools I need for my jobs. Today, I don’t share tools with anybody anymore. Besides, I have added spare parts sale to my business and employed two people.”

    Another beneficiary, Ayodele Adebalogun, said Isedowo saved him from the daunting struggle in raising capital. The aluminium fabricator added that after buying a new cutting machine, he has been able to support his wife’s catering business.

    Adebalogun said: “The grant was a life-saving for me and my wife. Both of us are doing fairly because of the grant. I now make more money as a result of the new cutting machine I acquired with the fund.

    “My wife’s business has also expanded owing to the support she received from the money. Today, we make more profit which we plough back into our businesses. Life has not been the same since we came in contact with Isedowo.”

    Kayode Omoyeba, a carpenter, said: “l commend Goldberg and Nigerian Breweries for the empowerment scheme which will go a long way in enhancing my business. I have been thinking of how to buy work tools for a while. So, Goldberg has relieved me of that burden. I am now happier man, and this initiative is worth emulating.”

    Ojo Adeosun, a fashion designer from Ekiti State, said he bought a sewing machine to expand his business with the grant. According to him, he also started selling fabrics having employed three apprentices.

  • Access Bank’s Womenpreneur backs SMEs

    Access Bank’s Womenpreneur Business Workshop has provided skills support to 2,200 women in Small and Medium-sized Enterprises (SMEs).

    The Womenpreneur Business Workshop is a flagship training of the W Academy under the Access Bank’s W Initiative. This is coming on the heels of Season 2 of the transformational workshop which held recently in Abuja and Port Harcourt for 350 female entrepreneurs.

    Since its introduction, more than 2,200 business women across six states of the country have benefitted from the workshop with testimonials around increase in their business networks and improved business models in spite of the economic constraints. The women have also enjoyed hand holding opportunities and access to markets provided by the bank.

    Speaking on the purpose of the Womenpreneur Business Workshop, the Group Head, Product Sales of Access Bank Plc, Mrs. Ope Wemi-Jones said Access Bank has continued to drive women’s economic empowerment in Nigeria.

    “Since 2006, the Bank has continued in its commitment to help women overcome the cultural and financial barriers toward harnessing their potentials both as women and business owners one woman at a time,” she added.

    According to Wemi-Jones, the Womenpreneur Business Workshop is intended to educate and enlighten Nigerian women on the fundamentals in business which would eventually help them attain their full potentials.

    The Womenpreneur business workshop was designed to address the lack of access to entrepreneurial skills, finance, networking and management skills which are the key barriers to women’s economic inclusion. The objective is to provide a discounted and practical capacity building program that would expose female business owners to the nation’s economic reality as well as help them simplify processes and sharpen the requisite skills needed to grow their businesses.

     

     

     

     

     

     

     

  • Wanted: Minister for SMEs

    EDITOR-IN-CHIEF of The Guardian Mr Debo Adesina has called for the appointment of a minister of Small and Medium Scale Enterprises (SMEs) to drive exports.

    He made the call at the 10th Founders Day lecture of the Bible Society of Nigeria (BSN) in Lagos where he was the guest speaker.

    Adesina, who spoke on Achieving economic growth and development through export-oriented SMEs, said such a minister should be charged with driving all government’s SMEs policies to achieve results. He said at the moment there is no minister in the Muhammadu Buhari administration who pushes SMEs’causes and that this was affecting SMEs’ growth.

    Adesina, a governorship aspirant in Oyo State, said the world over SMEs are the engine of growth and are given priority, urging the government to take them as such. He noted that entrepreneurship is the way to go in an economy buffeted by unemployment.

    He asked the government to build the middle class with relevant skills. He called for ‘high growth businesses’ to boost export goods and services. He praised the past military administration for the formation of the Nigeria Export Promotion Council (NEPC), adding that business owners should embrace its programmes, and those of research institutes and governmental bilateral agreements with some countries. He lamented that the institutes had been shut down for months by their workers agitating for better welfare.

    Besides, Adesina urged business owners to add value to primary goods before exporting them. He cited cocoa from which about various products could be got after processing.

    He regretted that since 2015, the non-oil export sector had been declining with oil still dominating. He advised to make prudence, integrity their watchwords. To the government, he said: innovate and support SMEs.

    Earlier, former federal permanent secretary, Chief Philip Asiodu, who chaired the event, sought continuity in governance. He said a situation where a government abandons the programmes of its predecessor should stop.

    The Izoma of Asaba also sought respect for the rules of good governance, long-term plans and a programme of education, discipline, hard work, among others.

    Nigeria, he said, has the resources to be great, if the right policies were put in place and executed. It was wrong, he said, for successive governments to have jettisoned the 1975-80 Development Plan, noting that it was a good document for growth. “If you depart from plans, money will come and go and you will not know what to do with it,’’ he added.

  • SMEs facing funding challenge, says Lumos Nigeria

    Lumos Nigeria, an energy solutions provider, has listed poor funding and electricity supply as some of the biggest challenges hindering operations of Small and Medium Enterprises (SMEs).

    Speaking at SME fair organised by Connect Nigeria in Lagos, Lumos Nigeria, Executive Vice President, Marketing, Femi Ashipa described Lumos Y’ello box, as an affordable clean energy solar powered system designed to provide the basic energy needs of small business.

    Ashipa said research show s that funding and electricity are the two main problems that affect SMEs adding that Lumos Nigeria is at the fair to provide solution to the problem of  irregular electricity to Nigerian SMEs.

    He said SMEs can access the device as they have made it for them to pay for it over a five year period if they do not want to pay at once.

    He said: “It is an affordable device. If you understand the price for inverter, generator and other power producing service, comparable to what we have here, you will see that we have made it affordable to Nigerians.  In terms of entry cost, the signup fee is N26, 000. When you pay N26, 000, you are expected to pay N4, 500 as monthly subscription”.

    “What we have done is to make the monthly subscription so low that we help you spread the payment option across five years as, if you have to pay once, it’s going to be like N300,000. So we spread the payment option to make it easy, though one can also pay at once if the person so wishes”.

    He said the product comes with a five-year warranty, saying “ the user have 100 per cent warranty for the five-years, so if you have any problem, say its heating, you know its technology and we can add one or two tweaks to it.

    He said their participation at the fair wouldenable the firm give discount to SME operators that subscribed to the service there by giving them two months payment discounts.

    Comparing the solar powered device to other energy providers, he said research shows  that it provides 60 per cent savings compared to what consumers are paying for other energy provider services.

    “It helps users to save more. It’s efficient because you have reliable power. The beauty is that it does not give you low current, high current and that’s what we called clean energy. Everything work at the same rate, nothing can get burnt, those things does not happen,”he said.

    About the company, he said Lumos Nigeria is basically in the business of providing energy service to Nigerians.

  • Internal controls of SMEs

    Introduction

    Four important aspects of management are planning, organizing, directing and controlling. The fourth function (controlling) is what we shall be discussing.

    Most SMEs ignore this very important aspect in managing their businesses. It is the responsibility of every business owner to put adequate controls in place for the business.

    Internal controls are all systematic measures put in place within an organization to co-ordinate the business activities, guarding against and detecting of errors and fraud, safeguarding of assets resources, management information and complying with statutory and regulatory laws guiding the operations and activities of an organization.

    Controls put in place within an organization, are to check the activities and ensure the objectives of the organization are met.

    All systematic measures include: internal checks, internal audit and all controls established by management.

    Ensuring that there are proper controls and responsibilities for achieving organizational objectives is that of management (Board of Directors).

     

    The objectives of internal control system are:

    1. Comply with applicable laws and regulations guiding the operation and activities of the organization
    2. Effectiveness and efficiency of operations
    3. Reliability of records, ensuring accuracy and completeness of records.

    Internal control indicators

    • Personnel control
    • Authorizing & Approval
    • Physical control
    • Accounting & Arithmetical control
    • Management controls
    • Organizational controls
    • Segregation of Duties
    • Supervision.

     

    Personnel Control

    Staff should be of integrity, competent and reliable. Clearly established job roles and responsibility should be documented in job descriptions and manuals. There should be some procedures to ensure that personnel have capabilities commensurate with their responsibilities.

    The proper functioning of any system depends on the competency and loyalty of those operating it. Qualification, selection, training as well as personnel characteristics are important features to be considered in setting up any control system.

     

    Authorization and approval

    All transactions should be authorized and approved by appropriate responsible person(s) with specified authority limits. The details of these limits must be set out and made known to all employees in the company. Any violation of these limits must be sanctioned immediately.

     

    TomiOmojuwa
    tomiomojuwa@gmail.com
    08134354847 (WhatsApp only)

  • Ex-commissioner lauds Buhari’s New Year address

    Ex-commissioner lauds Buhari’s New Year address

    The former Delta Commissioner for Lands and Survey, Mr Raymos Guanah, has said that the President Mohammadu Buhari’s New Year address gave hope to Nigerians.

    According to him, the president’s address has information on every sector of the country’s economy.

    Guanah, who is the Chief Executive Officer of Raymos Guanah Farms, gave this commendation in an interview on Tuesday in Asaba.

    “I want to particularly laud the plan to completely ban the importation of rice; this act will surely encourage and boost cultivation and consumption of rice in Nigeria,” he said.

    He called for the imposition of very strict sanctions on rice smugglers and that there should be a jail term without option of fine for a minimum of two years.

    Guanah also suggested that smuggled rice should be given to internally displaced persons and prisoners while the vehicles used in conveying the rice should be donated to security agencies.

    Read also: Sagay: Buhari’s critics over dead men’s appointment are Lilliputians

    He also said that any government official found guilty of involving in rice smuggling be dismissed from service.

    On the fuel crisis, he said that the Nigerian National Petroleum Corporation ( NNPC ) should not be the sole importer of petroleum products into the country.

    Also, on road infrastructure, he said the Federal Government should complete the Ajaokuta/Alaja railway project, complete the East-West road and rehabilitate the Amukpe/Agbor/Uromie road.

    Guanah said that power generation and distribution should be improved to encourage Small and Medium Enterprises ( SMEs ) in the country.

    On security, he said that the Federal Government had done well in trying to contain the Boko-Haram insurgents, but added that “there is still much to be done’’.

    He urged the government to address the agitations by the Niger Delta militants as well as take steps to intensify entrepreneurship training for the youth to reduce the level of graduate unemployment.

    NAN

  • CBN chief: banks fail to disburse N26.4b equity cash to SMEs

    CBN chief: banks fail to disburse N26.4b equity cash to SMEs

    Banks have failed to lend N26.4 billion Agriculture-SMEs fund to customers, eight months after the cash was made available through equity contributions by the lenders, Central Bank of Nigeria (CBN) Governor Godwin Emefiele said yesterday.

    Speaking at the ninth Bankers’ Committee retreat in Lagos, he said the banks were mandated last year by the CBN to contribute five per cent of their total assets as equity funds for lending to agriculture and Small and Medium Enterprises (SMEs).

    Last year’s contributions which stood at N26.4 billion were released in April. They were meant  immediate disbursement to those who applied for loans.

    This year’s contribution is expected to hit N30 billion, bringing the total fund to N56.4 billion by the end of this year.

    Emefiele said: “The first of the issues that we looked at, you all recall this time last year, we said we were going to create an Agric SMEs fund. And in the month of April this year, we were able to put together about N26.4 billion.

    “But, as we speak even at this time, not a penny of that fund has been disbursed. It ‘s a shame that we will have N26.4 billion sitting in the CBN whereas there were people who needed access to the fund”.

    Emefiele said the committee is now determined to ensure that the fund get disbursed as loans to the customers to boost job creation and grow the economy.

    He said: “Since 95 per cent of businesses in Nigeria are SMEs, it is crucial if the economy must grow, the SMEs and small manufacturers must not be ignored.”

    According to him, financial access will lead to improve job creation and growth in the economy.

    The CBN chief said the fund will now be disbursed to over 100,000 SMEs by February next year to enable the beneficiaries to grow their businesses or stimulate agricultural production.

    The fund, he added, can also be used to buy machines and agricultural equipment and delivered to beneficiaries who will begin to payback.

    Emefiele said the committee had decided to reevaluate the conditions under which the facilities were to be made available.

    “It was meant to be just equity, but we found out that because of certain apathy on the part of people who have businesses and would have wanted to be part of it, most people shied away from the equity fund. So, we decided to amend it.  We decided that the fund needed to be reviewed completely. It must me in a way that we must improve access for people who need the facility that it must be done in a very speedy manner, so that those who need it can get it in good time so that they can run their business,” he said.

    The committee, which agreed that the fund must be affordable, also amended the fund’s tenor It raised the tenor of the fund to a minimum of seven years, providing for certain moratorium that would make it possible for beneficiaries to have the fund at low pricing and at a tenor that would give them ample time to repay.

    “The Bankers’ Committee looked at the governance principles around the pricing and it was agreed that the fund must be development-oriented.

    Besides, the facility must not be a profit maximisation scheme with a professional and transparent management process around it to give everybody comfort. That way, banks will be happy to be contributing to the fund which is their contribution to job creation and economic growth of the country,” he said.

    The committee agreed that under the governance principles, the fund must be seen to be sustainable, have a life and be in perpetuity.

    The committee decided that it will no longer be equity fund but a sort of preference share arrangement or debt structure for easy access for applicants.

  • UNIVASA’ll promote SMEs, says Bemas Tech chair

    The Chairman, Bemas Technology Nigeria Limited, Mr Kola Balogun, yesterday said the latest innovative product from the stable of the firm, UNIVASA Mobile E-Top Up, will promote small, medium enterprises (SMEs). He added that it will enhance seamless possibilities through its various channels in managing air time top-up.

    Represented an Executive Director in the firm, Lekan Anlugbua at the unveiling of the product at the Civic Centre, Lagos, the chairman said the platform provides robust opportunities for consumers to be connected to all the mobile telecommunications networks in the country and abroad, adding that it also allows friends, lovers, workers and many others to flexibly share call credits.

    “We offer unmatched benefits to consumers, dealers, corporate organisations and their workers,” Engr Balogun said.

    Speaking on the uniqueness of the product, Chief Consultant to the firm, Ben Adeniyi, said UNIVASA is a product of research and development (R&D) in partnership with the Nigerian Communications Commission (NCC) which provided the (*578#) code and regulatory environment, telcos such as Globacom, MTN, Airtel, 9mobile, Zenith Bank and  ANXA Mansard  to provide insurance cover for transactions.

    Speaking on the rationale for the solution, he said: “The importance of airtime on a prepaid phone cannot be over-emphasised; it is critical for the growth of any prepaid service provider to offer many, quick and easy ways for its customers to recharge their prepaid account. Since prepaid businesses for mobile and other service providers are rapidly growing world-wide, the volume of transactions too becoming very large, hence the need for more channels for distributions.

    “Inability to top up phones of your loved ones abroad instantly, conveniently and securely from a single platform, unavailability of a unified voucher that be used across any network is a great challenge and telecom dealers/business owners’ inability to generate vouchers from a single platform.”

    He said it does not only offer flexibility to over 400 operators in 130 countries across the world, it allows dealers/business owners to generate a unified voucher that can be used in any network.

    According to him, the UNIVASA Pin can be used by all the telcos in the country, stressing that the platform is secured with end to end encryption while a one-time password (OTP) has to be sent.

    He identified the five consumption channels for UNIVASA to include WEB2RECHARGE, USSD2RECHARGE, API2RECHARGE, FLASH2RECHARGE and APP2RECHARGE.

    On WEB2RECHARGE, he said users could visit the firms’ website to register a one-time secured account and top up airtime anywhere, anytime to any prepaid phone around the world instantly. For the USSD2RECHARGE, the app would need to be downloaded directly to an Android or iOS device from Google play store and Apple store respectively, he said.