‘Healthy SME sector will increase resilience of economy to shocks’

Sustaining existing businesses will give Nigeria a solid foundation for economic growth and job creation, says Chigozirim Uche of Wider Perspectives, a management consulting firm.

Uche, who was a resource person at a day workshop on “Market access for SMEs,” organised by BusinessDay, in conjunction with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Tuesday, in Aba, Abia State, said a healthy SME sector was important to increase the resilience of the economy to economic shocks.

Limited market access is one of the fundamental barriers to the development of SMEs in Nigeria, she said, and urged entrepreneurs to learn and adapt products and services that meet the needs of the market.

Uche in her paper titled, “Creating effective market access for SMEs,” said market already existed in a number of successful industries, urging such successful firms to find ways to help SMEs gain access into various markets and form part of the broader supply chain.

She said enabling SMEs to actively participate in the supply chain of major industries would contribute to building sustainable small businesses, which could then become larger enterprises.

SME development, according to her, need to go beyond providing funding and early-stage mentorship.

“Even though we should continue to advocate the establishment of more enterprises, we should be doing even more to ensure that the ones which are currently operating remain in business.

“This will give the country a solid foundation for economic growth and job creation. The era of funding for SMEs being the only way to improve them has passed.

“Although funding is still very essential, funding without training on how to manage the business gives a zero result. Though these organisations are regarded as Small and Medium Enterprises, they account for the employment opportunities, economic output and economic welfare of every country,” she said.

Market Access for SMEs, is a partnership initiative between BusinessDay Media Limited and SMEDAN, a government agency responsible for the development of micro, small and medium enterprises.

The annual forum is geared towards exposing SMEs across the country to trainings, products and services that will support the growth of their businesses at reasonably affordable costs. It is also a marketplace, where buyers meet sellers.

 

GODFREY OFURUM