Small and Medium scale Enterprises: A Catalyst for Economic growth.....PART 2

 

....PART 2

However, considering the term “small”, there’s a whole lot of enormous challenges that come with it. In Nigeria, the factors working against the development and growth of local businesses are quite numerous, some of which include:

1. The issue of funding is a major problem with SMEs in Nigeria. However, the problem is not how to source it but the accessibility to either short or long term loans.

2. Lack of infrastructural facilities is a serious impediment to the performance of SMEs. The problem of inadequate infrastructural facilities includes electricity, good road network, availability of potable water, and solid waste management. These infrastructures are left to the business owners to provide themselves.

3. Poor Management and Low Entrepreneurial Skill Base is a serious clog in the survival of small businesses as there is a lack of essential and required expertise in business which leads to wrong and costly decisions and mismanagement.

4. Entrepreneurs often blame their failures on inadequate sales. However, the problem lies with poor marketing skills that could help promote their sales.

5.     Most entrepreneurs go into business without proper planning by taking a realistic view of what their strengths and weaknesses are, let alone giving careful consideration and analyzing the economic trends or business conditions in that particular sector of activity, which sometimes leads to mishandling when the business starts to expand.

6.     The root of most employee problems in Nigeria is poor personnel management. They put aside personnel matters till crises set in. Such crises usually pose serious threats to the firm’s survival if they are not promptly looked into.

7.     The harsh deteriorating macroeconomic environment in Nigeria has adversely affected the performance of small business enterprises and has posed as a major challenge to their survival and growth. Most small business enterprises are struggling with the problem of uncertainty caused by the unstabilized macroeconomic environment and policy shifts.

 

With all of this ongoing, some of the solutions preferred to ease these challenges include:

1. The need for government, and non-governmental organizations to create Seminars and workshops initiatives and other forums, to establish a platform for the interaction of SMEs owners/managers with others which can help to improve on their management capabilities.

2. Government should also provide the necessary infrastructures in order to ease the burdens and thereby encourage and promote rural industrialization.

3. The SME owners/managers should strive to develop effective marketing strategies in order to boost business operations which will become profitable.

4. It is important for SMEs to develop good personnel management policies to avoid crises that could affect their business.

5. Local business owners should take to proper planning, realizing his strengths and weaknesses before diverting into any business to avoid mishandling.

6. Governments should help create a macroeconomic environment that is stable as it will enable these local businesses to make reasonable forecasts on costs, turnover, and return on investment.

7. The government should help in making funds easily accessible to SME owners/managers, be it short or long term loans that could help to encourage them to execute their business plan.

8.  SMEs operators should also develop their competences in managing and sustaining their businesses by constantly engaging in training, research and development.

Small and Medium scale Enterprises (SMEs) : A Catalyst for Economic growth (PART 1)

SMEs are catalysts for economic growth in many countries, because they have more flexible production opportunities compared with large enterprises. They adapt to the changes in demand in a short time and meet conditions for competition quickly. 

In Nigeria where unemployment is a serious issue, the local businesses have a special position in the industrial sector because it has created employment and has been able to utilize labour. The local businesses, otherwise known as SMEs which means, Small and Medium Enterprise are everywhere, found on every street and corner as they surround us.

There is however no universal definition of SMEs that is widely accepted as it differs and varies from countries, but this is usually based on employment, assets or combination of the two. Institutions and organizations define SMEs in different ways depending on the purpose and the objective. Take for example, according to Organization for Economic Co-operation and Development OECD (2005) SMEs are considered to be independent firms that employ less than a given number of employees. However, SMEs were classified in terms of size, and financial assets.

According to research, The Small and Medium Industries and Equity Investment Scheme (SMIEIs), defined SME as an enterprise with a 200 million naira maximum asset base, with the exclusion of land and working capital and with a workforce of not less than 10 employees and not more than 300 employees.

The Third National Development plan of Nigeria (1975 – 1980) defined a small scale business as a manufacturing firm that employs less than ten people, or whose machinery and cost of equipment does not exceed N600,000
The Federal Government Small Scale Industry Development Plan of 1980 defined a small scale business in Nigeria as any manufacturing process or service industry, with a capital not exceeding N150, 000 in manufacturing and equipment alone.

These definitions give a clearer explanation as to how the meaning of SMEs differs and varies. However, just to give you a clearer understanding of what local businesses or SMEs mean, they are independently owned organizations that require less capital and less workforce and less or no machinery. They are ideally suited to operate on a small scale to serve a local community and to provide profits to the business owners.

Most enterprises in Nigeria, most of which are in the commercial sector are categorized as small businesses. The role of the small and medium enterprises towards the development of Nigeria is of great importance as it has contributed greatly to the country in terms of growth and development and also in providing employment opportunities.

According to the Central Bank of Nigeria report (2003), SMEs are a very important economic catalyst in developing and industrialized countries.

According to the United Nations Industrial Development Organization (UNIDO), developing countries can conquer poverty and inequality by democratizing, deregulating, and liberalizing the integration of the global economy. Recent studies have shown that SMEs contribute to over 55% of GDP and over 65% of total employment in high-income countries also that SMEs and informal enterprises account for over 60% of GDP and over 70%of total employment in middle-income countries (OECD, 2004).

...............................................To Be Continued

Trade Nigeria's 2021 Programs and Projects: enjoy the clips...

 

 our project

Trade Nigeria, A Public Private Joint Partnership with Government on International Trade. An Organized Private Sector, that Focuses on Foreign Direct Investment (FDI), through G2G/B2B/B2C, Project Development, Build Own Operate and Transfer (BOOT), Build Own Operate (BOO), Supporting Business Development, Investment, Trade Promotion, Economic Exchange and Multilateral Co-operations with major aim on economic growth through diversification and industrialization of the nation, growing national and rural economy and turning the population of a country into a production Nation.

 

our programs and projects

                                       Trade Nigeria's National Agri-week and Expo 2021

Nigeria Train For Train Project, a national automobile, auto-mechanic Engineering and

 Technology skill-set program

Nigeria - Japan  Trade Mission and Business Delegation of Industries, Investments and Commerce 2021 

Highlights of the Aforementioned program include:

•         Business and multilateral trade
•         Bilateral G2G/B2B/B2C meetings
•         Foreign direct investment
•         Export promotion
•         Bilateral trade partnership
•         Business and investment forum
•         Build, own, operate and transfer
•         Trade exhibition and expo
•         Multilateral trade talk and international business agreement
•         economic exchange and trade cooperation
•         Business agreement

This is an opportunity you cannot afford to miss.

AFRICA GARMENT, LEATHER INDUSTRIES AND TEXTILE EXPO

Africa Garment, Leather Industries and Textile Expo will showcase, exhibit and promote Nigerian made Garment and Textiles proudly produced in Nigeria.

The Expo is powered by Globe Chamber of Commerce and Industry  in partnership with TRADE NIGERIA ORGANIZATION – A Private Sector with focus on Foreign Direct Investment (FDI), through G2G/B2B/B2C, Project Development, Build Own Operate and Transfer (BOOT), Build Own Operate (BOO), Supporting Business Development, Investment, Trade Promotion, Economic Exchange and Multilateral Cooperation’s with major aim on growing Nigeria Rural Economy and Turning the population into a production Nation.

The Expo will bring market and investment opportunities associated with the development in the African Garment, Leather Industries and Textile Industry.

It will facilitate investment opportunities within Africa and provide support to Local Traders, Investors and Manufacturers.

Africa Garment, Leather Industries and Textile Expo is primarily concerned with the design, production and distribution of garment and textiles. It will engages the foremost political, business, industrialist and other leaders of the society to come together for the production of fibres and fabric, for the production of apparel, clothing and garments among others, and how government can help and assist the garment and textile industries in Africa.

The Expo will promote common ideas, and serve common interests. Also for the networking of business in the Garment and Textile Industry, business development, investment, trade promotions and economic exchange.

                        

Stay Tuned, as more information on the Africa Garment, Leather Industries and Textile Expo comes your way

The Uniqueness of Trade Nigeria's Business Forum Meetings

The Trade Nigeria's Traders Business Forum 2021 is uniquely designed and tailored to suit all aspect of business life which include, but not limited to entrepreneurship, skills training, mentorship and lots more.

There is power in being connected to other people who are active in your line of business, but it can also be easy to talk yourself into committing to an annual business meeting year after year.  Many people think that having or owing a business is enough, but to capitalize on the return on your investment you need to be engaged and participate actively in business meetings, conferences and business workshop seminars.

Many Entrepreneurs, Small business owners and Traders are busy, so the thought of taking a few hours or days away from their business to participate in a conference, trade show, convention or seminar can seem like a waste of time.  However, these live meetings might be just what you need to uncover new ways to growing your business.

Many think that being around competitors can be a waste of time, or worse; a chance for others to steal their ideas.  But not everyone in your business is actually a competitor, as many can be allies and friends.  The mindset you choose about participating in events will reflect on your results.

Here are five reasons to attend a business forum or trade conference:

 

1.  It helps you to network with other business partners. 

Business meetings or conferences provide a great opportunity to network.  Often competitors from different business background can become valuable resources for referrals and best-practices.  Avoiding partners for fear of others discovering your competitive advantage can actually limit your own success.  Collaboration is the way to approach networking.  While there are those whose intentions can be suspected, most people can help each other uncover ideas and spark inspiration when they get to know each other on a personal level.

 

2.  It Creates Educational Opportunities.  

No matter how experienced you are at your business, everyone can learn.  Working in a small business venture can often be isolating, and without exposure to a variety of points of view, we can miss new ideas and trends that can impact future results.  The educational aspect of a business meeting can expose you to new ways of conducting your business and help you discover how to be more productive.

 

3.  It helps you Encounter new vendors and suppliers. 

Too often people shy away from business meetings, trade exhibit show hall and all of that.  They fear that they will have to talk to salespeople, but some industry suppliers are some of the best people for you to get to know if you want to learn more about the current business climate.  Discovering innovative products and services for your business is necessary to stay competitive in today’s fast-paced world.  Plus, these vendors who sell to your organization fully grasp what is happening inside your competition.  Invest time with the sponsors at the event and turn them into your friends and allies.

 

4.  It creates a comparative advantage.  

When you are active in your line of business, you can develop a reputation as an expert to your competitors and your clients.  Those who are engaged over the long term are often asked to speak at the business events and to write articles for publications.  Like it or not, others like to associate with the experts in any industry.  Clients feel good about doing business with those that are celebrated by their peers. If your strategy is to be the best-kept secret in your business community, you will be missing a valuable opportunity.

 

5.  It helps you relax and have Time Out.  

Being in business should be rewarding and fun.  All work and no play can get old fast.  Business meetings and conferences can add a layer of enjoyment to managing your career growth by mixing a social aspect into your learning and industry branding efforts.  Many events have fun activities such as parties, socializing and tours of the local area where the event is hosted.  Taking an extra day at the beginning or end of the trip to explore or visit friends in the region is also a great way to maximize the investment in travel.  Never underestimate the power of a little fun mixed with some interesting people!

 

Many falsely believe that since they can now access business information via the Internet that the days of the live meeting are gone.  The truth is, meetings are more important than ever.  The value in meetings comes from the human-to-human connections that occur.  Often people cite the serendipitous “hallway conversations” that they have with other attendees as the most valuable parts of attending a business meeting or business event.  While these are not on the agenda, or mentioned in the breakout sessions learning objectives, when two or more people begin to discuss topics on a deeper and personal level, the success of the event to those involved becomes irreplaceable.  It is the people that bring the return on investment (ROI) to your time at the event.

 

Nigeria - Japan Trade Mission 2021: Picture View of Program Highlights, Eligibility, Date and Developing Partners.

Objective of the program

Program Highlights

Breakdown of Participation Fee

Eligibility

Date and Location

Developing Partners

 

Train For Trade Project 2021: ICT, Data Science, Automobile and Automotive Training Program.

Applications and Registrations are in top gear, as training commence in phases:

Batch A: in June (summer)

Batch B: in September

The Train for Trade Program offers advance classes and certificate courses in Data management, Data analysis, Data Technology, Automobile and Automotive Skills, Trucks and Tractor equipment repairs and services, among others.

The Train For Trade Project 2021 is a project that has been structured to help in human capital development Nigeria and Africa at large. As Nigeria tries to regain its position as the fastest growing economy in Africa, it is pertinent to work on various sectors that can boost the economy. One of such sectors is human capital building, which the Train for Trade Project will want to address. This project will foster economic development and avail trainees the opportunity of getting advanced knowledge in the ICT, Data Science, automobile and automotive field (Mechanical and Technical). It will also bring about sharing of knowledge and strengthening talent management and human resources development in the stated fields. 

One of the various aims of this project is to facilitate sustainable economic development through training and capacity development. When this is done, Nigeria will be able to close the gap that exists as a result of our country lagging behind in the capacity competes favorably in the global economy.

Skills development is one of the constraints affecting our capacity to utilize opportunities for economic growth, development and poverty reduction. This project will provide the much needed knowledge, information and trade related skills development.

 

The Trade Nigeria – Learn Nigeria Project 2021 is powered by Trade Nigeria in conjunction with Globe Chamber of Commerce and in collaborations with automobile industries from Japan, Taiwan, Korea, India, China, Germany, among others.