CSR: Diamond Bank colours Nigeria’s enterprise landscape with BET

Nigeria’s SME sector is huge. According to official statistics, there are about 17.28 million small and medium scale enterprises in Nigeria accounting for about 96 percent of Nigeria’s businesses. At various forums, stakeholders recognise the importance of SME in stimulating economic development, yet little attention is paid to the sector.

There are many SMEs around us who in spite of their challenges employ a few people and they could employ more if the challenges they face are addressed. Presently, it is said that the SMEs have employment figure in excess of 33 million.

Many of them operate on generators from morning till evening, a challenging task that eat up their profits. Though some of them lack entrepreneurial skills, access to finance is another major hindrance to their business growth.

Some of them borrow little capital from neighbours and relations to either start up or expand their businesses. Sometimes, the informal lenders could call for their money at any time, a situation that frustrates the business.

In its efforts, therefore to address some of these challenges, especially the skills gap and finance, Diamond Bank plc, a leading commercial bank in 2010 entered into partnership with Enterprise Development Centre (EDC) of the Pan-Atlantic University that focuses on “business development and provision of support services to SMEs in Nigeria for the training of entrepreneurs” under the bank’s programme called Building Entrepreneurs Today (BET).

The BET programme which is in its fourth year, “involves the training of over 50 entrepreneurs for a period of one year in which five of them will be awarded N3 million grant each to take their business to the next level, among other initiatives. All participants also stand a chance to acquire loan from the bank at a discounted rate,” according to the bank.

Last week, the bank launched the fourth edition of the programme. Under this edition it has chosen three specific areas that will spur development in the country. They are renewable energy, ICT and agriculture. This is important especially as Diamond Bank looks forward to creating impact in the society, as it sees the emergence on the overall strategy and deepens its impact in the society.

This will also help young Nigerians who are interested in growing their businesses to positively stimulate their business intentions and actions through intensive training and tutoring that will be given to them during the BET4 programme.

Peter Bamkole, director, Entrepreneur Development Centre (EDC), at the Pan-African University said the idea behind BET4 is looking for entrepreneurs that will come out with fantastic ideas that will help solve economic problems.

According to Bamkole, “The three areas selected are very important in Nigeria and those are the areas the youths are mostly interested in.”

He also noted that among the seven sectors which World Bank specified as growth sectors, ICT happens to be the first. In addition to this, renewable energy is a major opportunity area, especially in Nigeria where power is not stable. The young people are encouraged to think up ideas and solutions to the problems.

Speaking at the launch, Ayolle Trimnell, head, Corporate Communication Diamond Bank, disclosed that the number of entries are 50 but only five people will finally get a grant of N3m each. Trimnell noted that entries are online and interested applicants can apply and there is panel of expertise which comprises seasoned entrepreneurs, consultants and lecturers that will be involved in the selection process.

To qualify for BET4, interested persons must have an idea and a business that will be running between three to six months. After a six-month training of the 50 people initially selected, 15 out of 50 selected will go for the next phase. They will undergo another six months training and will be given a mentor to guide them during this period before the final selection, and the final winners will be selected based on how sustainable business plans are.

SMEs experts believe that educational level, knowledge of business and continued learning affect the growth potential of any business. This goes to show the reason those that have passed through the 12 months training at the Enterprise Development Centre, Pan-African University often stand out in whatever nature of business they do. Some of the BET graduates give testimonies of how the Building Entrepreneurs Today has helped to impact on their various businesses.

Alice Umoh who has been a baker for few years but could not run her business effectively narrates her experience after BET programme: “ I saw the advert on the newspaper paper and I applied and eventually won after several screening.”

She said apart from the monetary aspect, the knowledge gained from the programme has been very helpful to her business. The N3m given to her was used to buy the machinery she needed for a smooth running of her business.

Umoh disclosed that the challenges she has faced so far are electricity, poor infrastructure and lack of more capital but she has been able to navigate through them by applying some of the principles she got from the training.

Uba Owhotu who is into outdoor catering services has a different experience from that of Umoh as he disclosed that he came across BET programme online.

According to him, “In my line of business, I realised that there were always shortfalls in profit and revenue and this was because of poor operation. During the programme, we were taught about operation management, financial recording, cash flow and expenditure amongst others. It was as a result of what I learnt from the programme that I was able to restructure all these.”

Owhotu revealed there has been a smooth relationship between him and his customers since he discovered there is a need to identify with the customers, know them by names and meet their needs, to ensure sustainability in business.

He said that from what he had learnt in operation management, he is now able to deliver his goods faster, tidier and even in a more cost effective manner. Twelve months after the programme, Owhotu can boldly say he has been able to increase profit and decrease loss in his business.

He emphasised that the technical know-how is the most important challenge facing entrepreneurs today. “Funding could be a problem, but there is a need to have knowledge first. When you have the technical know-how, you may need very little to kick off and maintain sustainability,” he reiterated.

Victor Job, a video producer and one of those who went through the BET training said it was a timely intervention for him, adding that after the BET programme, he became more professional at what he does.

“I never even knew the risks involved in my business until after the BET programme. I was taught what I could do to manage the risks involved in my business and it has helped in sustaining my business,” Job noted.

He also said he has been able to identify the areas where he has challenges more, adding that he needed to expand, and for there to be expansion, there were three areas he needed to build on, which are manpower, environment and need for more experience.

Daniel Obi and Ifeoma Okeke