Financial discipline and smart debt management critical for SME survival — Success Ajilore

Chartered Accountant and business analyst Success Ajilore has emphasized the importance of financial discipline, responsible borrowing, and structured business systems as critical factors for the survival and long-term sustainability of small and medium-scale enterprises (SMEs) in Nigeria.

Ajilore spoke during the SME Hangout programme organized by BusinessDay Newspapers under the theme: “Financial Literacy for SMEs.” The event featured industry conversations around financial management, sustainability, and business growth in Nigeria’s challenging economic environment.
Speaking during the panel session, Ajilore stressed that one of the most important mindset shifts SME owners must embrace is the need to build businesses that can survive independently of the founders themselves.

“Business owners should have a mindset to build a brand that outlives them,” she stated.

Using the founder of House of Tara as an example, Ajilore explained that sustainable businesses are built through systems, structures, mentorship, and leadership development rather than depending solely on the founder’s daily presence.

“To achieve this, business owners must intentionally build systems and structures that make the brand sustainable and bankable,” she added.
Ajilore also highlighted the role of corporate governance, documentation, and professional accountability in building investor confidence.

“Every SME should be open to audit scrutiny by a seasoned audit firm,” she said. “Proper documentation builds a sustainable system that regulators and investors can have confidence in.”

According to her, many SMEs struggle because of weak business processes, poor documentation, and the absence of structured financial controls. She advised entrepreneurs to maintain networks of experienced accountants, lawyers, investment bankers, and other professionals who can provide guidance when critical business decisions arise.

She further encouraged SMEs to embrace technology, artificial intelligence, and automation as tools for operational efficiency and sustainability.
“Business owners should embrace technology, AI, and automation because it is a form of structuring the business to continue to run itself without the owner necessarily being present,” she explained.

Speaking extensively on debt management, Ajilore warned entrepreneurs against irresponsible borrowing and mixing personal expenses with business finances.

“Business owners should handle debt responsibly by understanding what problem the debt is being collected to solve and use it accordingly once obtained,” she stated.

She explained that debt should function as leverage for productive expansion rather than for luxury spending or appearances.

“Debt should create value and income, not appearances,” she emphasized. “Sustainable growth is better than artificial expansion.”

Ajilore illustrated the dangers of poor financial discipline using the example of a fashion designer who diverted customer funds meant for production into personal and family expenses, eventually damaging customer trust and business reputation when delivery deadlines could not be met.
“Mixing finances creates confusion, weakens cash flow, and destroys customer trust,” she warned.

According to her, SMEs must maintain separate corporate accounts and clearly document funds injected into businesses by founders either as loans or equity contributions.

“If the business owner can be financially disciplined enough to repay debt he personally injected into the business, he would be able to manage external funding either big or small,” she noted.

Ajilore also addressed the impact of inflation, foreign exchange volatility, and rising operational costs on Nigerian businesses. Referencing the recent economic challenges affecting the real estate sector, she explained how many developers struggled after borrowing heavily for luxury projects without adequate contingency planning.

“Growth without financial discipline is risky,” she stated. “Cash flow matters more than sales.”

She advised entrepreneurs to adopt flexible pricing strategies that account for inflation, fluctuating exchange rates, and financing costs while also diversifying income streams to reduce operational risks.

“Business owners should have Plan A, Plan B, Plan C, and Plan D to cushion the volatility and unpredictability of business, especially in our Nigerian economy,” she said.

Ajilore further stressed that business owners must think beyond day-to-day operations and focus on long-term resilience, profitability, and sustainability.

“Technology improves survival, good records attract funding, smart debt supports growth, and discipline sustains profitability,” she concluded.

The SME Hangout programme by BusinessDay Newspapers continues to serve as a platform for conversations around entrepreneurship, financial literacy, and sustainable business growth for SMEs across Nigeria.