More SMEs deploy technology to manage cost, grow revenue
As SMEs in the country seeks innovative ways to grow their businesses, experts have called on them to take advantage of the opportunities technology provides for businesses.
Adapting to technology will make small business key into; market changes, increase their productivity and value creation while remaining competitive, according to experts.
“With the growth in internet services on mobile platforms, we have more SMEs leveraging on technology to manage cost and grow their revenue,” said Francis Onwumere, business and product developer, Prowork Project Management Limited.
SMEs can accelerate their business with technology. Experts noted that both capital and operational expenditure is a big concern to any business especially small business as this would determine their profitability.
In Nigeria, the cost of doing business for SMEs and business in general has continued to increase as prices of most commodities has spiked and causing high rate of inflation.
But with technology, SMEs can reduce its cost of production by reaching consumer cheaply eschewing conventional media advertising on billboards or newspapers.
“SMEs need to pay a lot of attention to their digitalisation strategies. From what we see, the cost of technology will continue to reduce. These days, we get applications that were very expensive a few years ago almost free of charge,” Obinna Igwebuike, partner, Sawubona Advisory Services, Lagos said in a statement made available to Businessday.
“This will democratise market entry and scaling for many sectors, so businesses that do not move fast with technology will be left behind,” Igwebuike said.
Digital platforms including Facebook, Twitter and WhatsApp have allowed smaller businesses to advertise and interact with their customers for free, moving away from the traditional and more expensive mediums such as print and television.
Evelyn Wright, chief executive officer, Eve Koncept, said “technology has helped my business to grow tremendously and it has given me the opportunity to connect with people that have helped my business. I have gotten free online trainings via technology saving me cost for trainings.”
“My sales have also improved and people call me from all over to place an order for my products,” she said.
Mobile technology has been a game-changer for SMEs. Mobile phones allow users to overcome some of the country’s infrastructure gaps by making it easier to transfer money, pay bills, check and calculate prices, and communicate with colleagues from any location.
According to Crystal Omotosimi, founder and chief executive officer, HC Vestimenta Enterprise, “I get majority of my customers from Facebook and WhatsApp. Each time I display my products on those platforms, people always call to do business with me.”
“Technology has increased my profit margin tremendously,” he said.
Josephine Okojie