Ayodeji Ayenuwa
At a recent BusinessDay Top 100 Fastest Growing SMEs event, Small and Medium Enterprises (SMEs) took the forefront, showcasing resilience in the face of economic challenges.
These enterprises, constituting a significant 90% of Nigeria’s businesses, were at the center of discussions revolving around strategies for success in an unpredictable business environment.
Omolara Adewumi’s keynote speech set the tone, highlighting the crucial role SMEs play by contributing 90% of the country’s jobs.
Addressing challenges such as inflation and geopolitical tensions, Adewumi emphasized the need for adaptability in navigating uncertainties.
“Nigeria has experienced a series of economic setbacks, including issues like the failure period for subsidies, low rate increments, and more, affecting small and medium businesses,” noted Adewumi Oni, Acting Director of Finance and Corporate Services at Lagos State Employment Trust Fund (LSETF), representing Adewumi.
The focus then shifted to LSETF’s initiatives supporting SMEs, including affordable loans and programs for skills development and tech startups.
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Oni stated, “Using tools like PayPal, Google Sheets, and payroll software can streamline financial management. Even simple technology like Google Sheets can be highly effective,” underlining the role of technology in simplifying financial processes.
Additionally, the panel discussion, moderated by Satira Osemudiamen, delved into the economic challenges faced by SMEs in Nigeria.
Adewumi Oni further emphasized the significance of preparation before seeking funding, stating, “Firstly, for any SME seeking funding, you must understand the business. Have a business plan that clearly outlines your purpose, capital requirements, expected income streams, and projections.”
Futhermore, Esther Obiekwe, Group Head of SME Banking at Fidelity Bank, added insights into financial institutions’ considerations, especially in the nano and micro space where businesses may lack a credit history.
“Financial institutions consider the history of the business, especially in the nano and micro space where businesses may lack a credit history. Due diligence is crucial to understanding the business’s capacity,” she stated.
The role of government policies in supporting SMEs was acknowledged, with Gloria Omereonye, Area Business Executive at Lagos Island 3, stressing the importance of the ease of doing business at both state and federal levels.
As the event concluded, the advice echoed the need for SMEs to invest in knowledge and technology for long-term success. The linkage of education and funding emerged as a crucial facilitator for sustainable business growth in Nigeria’s ever-evolving economic landscape.
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Techrectory with Agency Report.
