The Nation Newspaper

Tag: Women entrepreneurs

  • CBN earmarks N132bn for women entrepreneurs

    CBN earmarks N132bn for women entrepreneurs

    The Central Bank of Nigeria has said that N132 billion out of the N220 billion Micro, Small and Medium Enterprises Development Fund had been earmarked for women.

    The CBN Branch Controller in Bauchi State, Malam Musa Muhammad, said this in Bauchi during a sensitisation workshop for state governments, financial institutions and the organised private sector on MSMED Fund.

    Muhammad explained that the amount, which represented 60 per cent of the total fund, was earmarked for women considering the peculiar challenges women were facing in accessing financial services

    “The Revised Micro finance Policy, Regulatory and Supervisory Framework in section 4.2(IV), provides that women access to financial services should increase by 15 per cent annually in order to eliminate gender disparity.

    “In order to achieve this, 60 per cent of the fund has been earmarked for providing financial services to women,” he said.

    The controller said that the MSMEDF, which was launched in August 2013, had broad objective of channeling long-term, low-interest funds to the MSME sector of the economy through participating financial institutions.

    He said that the specific objective was to reach over two million MSMEs over a 10-year period in which 60 per cent was targeted at women entrepreneurs.

    “The CBN believes that developing the MSMEs is the key to economic advancement and wealth creation.

    “To ensure sustainable economic development programmes, policies and guidelines must be designed such that all factors and peculiar needs and requirements of stakeholders are noted and addressed,” he said.

    He said that the sensitisation workshop had become necessary having recognised the importance of state governments as stakeholders in the administration of the fund due to their closeness to the grassroots.

    Muhammad further explained that the fund covers social development with 10 per cent and commercial development with 90 per cent.

    He said that all state governments including the FCT will access a maximum of N2 billion each for the maximum of three years per circle at 9 per cent interest rate.

    According to him, the targeted groups include farmers, artisans, self help groups, cottage industries, financial cooperatives and traders.

    In a remark, Gov. Isa Yuguda of Bauchi State commended the CBN for the laudable gesture, particularly with the allocation of 60 per cent of the fund to women entrepreneurs.

    He said that the state government had already funded and equipped 10 micro finance banks in the state through which the fund could be accessed.

    Yuguda advised that the conditions for accessing the fund should be made flexible such that the aim would be achieved.

    He was represented at the occasion by Alhaji Isa Wafu, the State Commissioner for Cooperatives and Poverty Alleviation Meat sellers get N50m interest-free loan in Oyo state.

    Governor Abiola Ajimobi of Oyo State has approved the sum of N50 million as interest-free loans to butchers in the state.

    He disclosed this while speaking at the inauguration of the state secretariat of the Butchers’ Union located at Moniya in Ibadan. The governor, who said the loan would boost business activities of the butchers, urged them to make good use of the money and ensure it was repaid on time for others to benefit.

    It would be recalled that a grant of N20 million had last week been given to traders at the Scout Camp Business Complex at Challenge, Ibadan by the governor as part of the empowerment programme of his administration for small and medium scale entrepreneurs.

    The state government had set aside the sum of N1 billion as interest-free grant to traders in the state.

    Ajimobi stressed his administration’s belief in small and medium entrepreneurs as the bedrock of any economy, adding that supporting the butchers would also contribute more to the economic growth of the state.

    He enjoined members of the union to maintain clean environment while carrying on their business activities, in line with the urban renewal programme of the state government.

    In his remarks, the Chairman of the state chapter of the union, Alhaji Adekunle Alagunfon, lauded Governor Ajimobi’s administration for providing a conducive environment for members of the union to operate.

    He described the provision of loan to members of the union as highly commendable, pledging that his members would ensure judicious use of the money.

    The National President of the union, Dr. John Isemede, in his address, presented by his Media Assistant, Mr. Festus Alekeh, commended the unprecedented achievements of Governor Ajimobi, stressing that he had recorded great successes in the area of infrastructural development.

    He pledged the unflinching support of members of the union towards the re-election bid of the governor for a second term in office.

    “Let me quickly place on record the laudable achievements of the governor. Your record and successes in areas of infrastructural development will forever remain indelible in the history of Oyo State.

    “The governor has touched on virtually every sector of the economy. I can feel the pulse of the people of Oyo State and the joy in their hearts. This is why the national leadership of the union has unanimously passed a vote of confidence on Governor. We wish to publicly endorse the governor for a second term in office.

    “I hereby call on all butchers and other like-minded people in the state to support Senator Ajimobi in realizing his second term bid,” he said.

     

  • ‘Women entrepreneurs can overcome business challenges’

    Gender issues and challenges facing businesses run by women were highlighted at a seminar in Lagos last Friday. Organised by the Lagos Chamber of Commerce and Industry (LCCI), the seminar centred on financial literacy and cash flow management for women entrepreneurs. OKWY IROEGBU-CHIKEZIE was there.

    Women are regarded as good financial managers but this quality has not convinced bank managers to offer them credit facilities to run their businesses. Statistics show that there are more women-operated businesses than those managed by their male counterparts. Besides, women entrepreneurs are believed to be more resourceful, despite the odds.

    Women are often known to have natural abilities that are useful in managing businesses. They tend to be great networkers, in addition to having inherent skills for negotiating, and multi-talented.

    These were the observations of the Executive Director, Rely Supply Limited, Mrs. Fayo Williams and the Project Manager, Credit Awareness, a financial services company, Ms Nneka Eneli. The duo were the facilitators at the seminar on capacity building/ financial literacy of the Committee of Women Leaders of the Lagos Chamber of Commerce and Industry (LCCI) last Friday.

    Venue was the Chamber House on Idowu Taylor, Victoria Island, Lagos.

    Speaking on “How to access Finance to Grow your Business,” Mrs. Williams said access to finance meant more than borrowing fund. She said access to affordable finance was a big challenge all over the world, singling out small businesses owned by women as having serious problems convincing bank managers to give them money without collaterals.

    Mrs. Williams urged women to look inward for the funding of their business, saying they should not always believe that what they entirely need to grow their business is external funding. She urged them to work on expanding their outlook and customer bases; diversify and block all avenues of leakages.

    She advised them to ensure that they establish internal controls, as well as leverage on technology, stating that due to the peculiar financing challenges faced by women entrepreneurs, they should leverage on opportunities that abound in leasing, friends, families and venture capital to raise funds. She added that they should ask their customers for advance payment. She said women should be realistic in their business concept and network, in addition to seeking professional advice. They should keep good records while making their businesses scalable, Mrs. Williams said.

    On ‘Cash-flow management for women entrepreneurs and common financial management issues, Ms Eneli said though women were intuitive cash managers, they are faced with several challenges. She said for women to be good entrepreneurs, there is a need for them to be cash-literate as ‘cash is king.’ She stressed that they should separate business receipts from personal cash.

    Her words: “Track your cash in-and-out, put yourself on a salary, plan extensively before getting involved in any transaction. Keep records, learn how to save and borrow responsively, communicate, mind your cash flow, delay your repayment as long as you can, and aggressively pursue your debtors.”

    Others are to manage your cost, be disciplined in buying unbudgeted things, such as clothes and accessories for parties. “Sell-off things about to expire in your shop, and convert them to cash and be careful not to divert your business fund into personal use, no matter the pressure.”

    She said if women entrepreneurs can do this business intelligence, they would not only save enough to invest in their business, but would be able to convince the banks to lend them money if their books are clean and transparent enough.

    Chairperson of the LCCI Committee of Women leaders Mrs. Agnes Shobajo said the chamber was poised to encourage more women entrepreneurs to do it right and access available finance from government and donor agencies for small scale entrepreneurs .

    She said the chamber runs various workshops to train women entrepreneurs to come up with effective business plans, have regulatory requirement for the choice of business and to always work within their budget.

    Earlier in his opening remarks, LCCI President Goodie Ibru said African women represent a crop of huge untapped potential as emerging business leaders, managers, corporate decision makers and excellent entrepreneurs. He said the role of women in any economy is very critical, which calls for a continuous building of their capacity in all spheres of life.

    He said:“The impact of such enhancements is naturally far reaching by virtue of the various interfaces of women within the household and the economy as a whole. As a country we have made impressive progress in affirmative action. Presently, the number of women appointees in the Nigerian cabinet is about 31 per cent of the 42 member-cabinet with several others holding influential positions in the present dispensation including the Chief Justice of the Federation, Mrs. Alaoma Mukhtar the Coordinating Minister of the economy, Dr. Ngozi Okonjo-Iweala with five Nigerian commercial banks having female CEO.”

    Ibru said areas that education would be made to assist women are in education, finance, health and trade. He underscored the importance of women in the development of the nation and their roles in corporate and household management as crucial to economic development. He stressed that if they are supported to run their businesses the nation would be better for it.