SMEs
SMEs And 2021 Targets, Hopes
The year 2020, we all know, was a tough one, especially for operators of Small and Medium Enterprises (SMEs) whose efforts were good though, but not enough to break the barriers set by natural and man-made occurrences like the COVID-19 pandemic and EndSARS protests, among others.
Necessity, they say, is the mother of invention. Buoyed by this saying, many innovative companies shifted their businesses to e-commerce in a bid to break through. Some others shut down completely, waiting for the time when people would be free to open their shops and offices to customers.
Although the year has gone with its challenges, The Tide senior correspondent, Lilian Peters, when to town to feel the pulse of some entrepreneurs on what 2021 holds for the SMEs. Below is their responses.
Managing Director of A.M.C Global, Mr. Tony Onwubiko, who deals on wholesale oil lubricants and parts in Igwuruta said, “My business in 2020 was beyond description. There was total restriction, no import, no export or inter state trade. It was terrible. And of course, this led to my inability to meet my 2020 economic target and even my family financial needs.
Onwubiko expressed optimism that 2021 would be better, saying that he decided to push ahead since his responsibilities as a man increase on daily basis, not minding the circumstances surrounding him as an entrepreneur
He said there was the need for the three tiers of government to assist entrepreneurs in the country.
“During the Coronavirus pandemic (first phase), most SME operators used their capital to keep body and soul together which was not even enough anyway.
“Most entrepreneurs cannot afford the capital requirements of their businesses. I heard and read on pages of newspapers about government and politicians’ palliatives, but majority of Nigerians didn’t receive or get anything. Please, our government should make credit facilities accessible to entrepreneurs.
“Personally, I have found it very difficult to restart my business and bring it back to the level it was before COVID-19. We truly need government assistance now”, he said.
Onwubiko stated that multiple steams of income had always been an answer to business sustainability which, according to him, also falls back to starting capital.
”As for me, I have decided to diversify my business in 2021 by being involved in e-commerce and multi-level marketing which COVID-19 can’t affect. Although the capital to start is still giving me headache but where there is a will, there is always a way”, Onwubiko said.
In the same vein, the Chief Executive Officer, Alpha & Omega Oil & Gas Resources Int’L Ltd, Tamara Richard, said 2020 was indeed a very challenging year for her business.
“The year came with the dreaded COVID-19 pandemic, coupled with the harsh economic situation in Nigeria.
This, she said, brought untold hardships to many business owners.
According to her, “The business terrain in Nigeria was adversely affected by quite a number of factors besides the pandemic. These range from lack of business fund to hyper inflation, poor electricity supply, bad government policies that hamper the smooth flow of goods and services within and across borders.
“I have set some skeletal goals in one or two areas I intend venturing into this year, though not encompassing, because I planned to be very intense in one or two chosen paths. I will visit the goals again to make them clearer and achievable”.
Richard said she was driven by passion and strong instinct to succeed, saying “the setbacks and challenges cannot deter me because I target becoming a phenomenal woman in the business world, obstacles and difficulties, notwithstanding.
“Government should encourage SMEs with good enabling business environment devoid of security challenges. The leaders should also create checks and balance security operations, provide infrastructural facilities, organise business empowerment seminars, give soft loans and grants to financially empower entrepreneurs.
It (government) should review SME operational policies from time to time to measure the workability of such policies to see if they produce the expected result”.
Richard, who described herself as an advocate of diversification said, “I am not only encouraging multiple streams of income, but I am diving into it. Creating multiple streams to me, is the crux of economic stability and sustainability. With the recent happenings in Nigeria and the world at large, it is evidently clear that one stream would not survive any SME”.
To the Chief Executive Officer of Olu P Creative Home, Mrs Oluchi Peter, “My business in 2020 was not that successful because of the pandemic and lack of finance, coupled with other issues in the country”.
Mrs Peter said SMEs seriously suffered setbacks last year, leading to the closure of some businesses that could not manage the situation.
“The New Year comes with new zeal and hope which propelled me to list out my targets as well as drawing the plans on how to achieve success in 2021. The best thing to do is to critically look at the area I did not do well and what went wrong. This analysis is what has helped me in drawing my New Year resolutions.
“Most of the SMEs face financial setbacks and lack of publicity. I think that government should create a platform that would be able to make loan available for enterprises and also create publicity for us.
Peter, who deals on wholesale and retail lace materials, also noted that gone are the days when SMEs depended on single source of income.
“Mutilple streams of income is where survival is, especially in the harsh economic situation in Nigeria. An individual needs to have different sources of income just in case one fails; he or she will still be financially stable and can live comfortably.
“One of my major plans for the year is to launch fully into e-commerce and explore the benefits provided by the use of the internet to grow my business in 2021”, he said.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has reviewed the selection process for beneficiaries of a N5billion credit facility allotted, meant for small businesses in the country.
With the new procedure, the agency has mandated the submission of Corporate Affairs Commission (CAC) certificate and Tax Identification Number as a compulsory requirement to obtain the loan.
The Head of Corporate Affairs, Moshood Lawal, SMEDAN, made the disclosure during an interview with our correspondent recently in Abuja.
According to the report,last year SMEDAN signed an agreement with Sterling Bank to disburse loan options ranging from N250,000 to N2,500,000 at a single-digit interest rate of nine per cent, to facilitate the growth of small businesses through enhanced financial access.
The credit, with the target to assist over 10,000 Small and Medium Enterprises (SMEs), has a duration period of 12 months, to enable small businesses to leverage the facility fully.
Speaking at the signing ceremony, the SMEDAN’s DG, Charles Odii, described it as “an important milestone in our efforts to stimulate economic growth and drive prosperity by enhancing SME access to finance.
“We believe that the financial support, which comes at a very competitive rate, will help SMEs expand operations, hire additional employees, and contribute to an overall upswing in beneficial trade and economic activities”, he said.
But giving an update on the issue four months after, the spokesperson said a software application had been developed to smoothen the process and limit human interference on the credibility of the process.
He added that submission of CAC certificate and tax identification number was needed to identify fake applicants and ensure the fund is given to the right persons.
He said, “Concerning the N5bn loan for small businesses, We have developed an app and it is ready now. We are now taking submissions via the software application. Everyone is expected to download it, put in their business plan and every other detail. Then, they would be evaluated on the app.
“We had to move to an app to avoid human interference because almost everyone had a brother or a sister who tried to influence the process. So, it is better to register via the application, upload the Corporate Affairs Commission certificate, Tax Identification Number and other necessary documents.
“Once that process is fulfilled, the request will be evaluated and those qualified will get a reply immediately but if we had continued with former procedure, the process may be influenced.
“We also noticed that most applicants do not have their CAC certificate and that is a very important document to be submitted.
“Some persons have claimed not to have these certificate but we have insisted that it would be a very important criteria to receive the loan or they would be ineligible. We have promised to be transparent about this initiative and that promise will be kept”.
On the status of applicants who had registered earlier, Moshood explained that those applicants must start the process again using the newly developed app in order to be considered for disbursement.
“Everyone that initially applied for the grant would have to do it again. During the former procedure, they were not asked serious questions, they were only told to register but now we are asking specific questions on how the money will be utilised, the business turnover per month. It is via those questions we will be able to sort out real businessmen and fake ones”, he stated.
According to the report, over 200,000 small-scale businesses had earlier signified their interest to obtain the credit facility with successful applicants receiving emails from the bank.
The alarming rate of small scale business mortality in the country has been a reoccurring issue with the SMEDAN DG revealing that around three million businesses were lost due to varying factors such as insecurity, fraud, global competitiveness and lack of ease of doing business in the past few years.
Financial experts had expressed the view that with improved access to finance, more small business will become drivers of economic progress and important contributors to employment as well as economic and export growth.
As the economic condition continues to bite, a group of young entrepreneurs has extended support to some vulnerable Nigerians via a feeding scheme.
The group said in a statement that the initiative is aimed at providing nourishment to those in need, while drawing inspiration from the teachings of Jesus Christ.
A total of 820 individuals benefited from the programme, enjoying a diverse menu which included Chinese spaghetti, jollof rice, white rice, fried rice, and various soups.
The group from the Redeemed Christian Church of God Youth Church in Ikeja, Lagos, said the act reflects the commitment of the young entrepreneurs to make a positive impact on their community and address societal needs.
The initiative aligns with the Christian Social Responsibility mandate advocated by The Redeemed Christian Church of God, which emphasize the importance of demonstrating love and compassion to uplift communities and individuals.
Part of the statement reads, “The gesture is also in line with the Christian Social Responsibility mandate from The Redeemed Christian Church of God as a mission to meet societal needs through the demonstration of love that positively impacts communities and individuals to make a meaningful mark on the lives of individuals and families, spreading hope and nourishment in the community which is done at least once a month.
“This was led by the Provincial Youth Pastor of Province 1, Pastor Bisi Akande alongside Pastor Femi & Life Oyewunmi, Pastor Shola & Derayo Oladejo and Pastor Leke Adeboye & Titilope Adeboye”.
The Nigeria Customs Service (NCS) has deepened its relationship with its Benin counterpart in enhancing trade.
This follows a meeting held last Thursday between a deligation led by the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, and his Republic of Benin counterpart at the Director-General of the Customs Administration of Benin Republic to strengthen collaboration between them.
The primary focus of the meeting, as outlined by the Customs boss, was to deliberate on strategies aimed at amplifying trade activities between the two nations and ensuring the seamless implementation of recommendations previously discussed during their rendezvous in Cotonou.
Highlighting the significance of the collaboration, the CGC said, “We are cognizant of the established framework for cooperation between our respective customs administrations.
“This framework was established at a higher level by the authorities of the heads of State, President Patrice Talon of Benin, and His Excellency President Bola Ahmed Tinubu of Nigeria, both expressing a desire to work together.
“It is upon this foundation that the Customs of both countries are united in their efforts”.
The Director-General of Benin Customs Administration, Mrs Adidjatou Hassan Zanouvi, in her remarks reiterated their steadfast commitment to executing the mutually agreed-upon measures.
Mrs Zaniuvi emphasised the importance of thorough monitoring to ensure effective implementation.
She noted that collaborative endeavours between the Nigeria Customs Service and the Benin Republic Customs Administration serve as a testament to their shared commitment to facilitating seamless trade operations and ensuring the efficient management of cross-border activities for the mutual benefit of both nations.
The CGC seized the opportunity to inspect ongoing projects within the Nigeria Customs Service, Seme Area Command.
He was accompanied by the Customs Area Controller, Seme Border, Comptroller Timi Bomodi.
By: Nkpemenyie Mcdominic, Lagos