SMEs hold key to Nigeria’s economic recovery – Forum
Small and Medium Scale Enterprises (SMEs) have been identified as the solution for a quick way out of the present economic challenges, and should therefore be given the needed support by the government to sustain the sector.
In a paper titled Brand Promotion for SMEs, Steve Babaeko, CEO of X3M Ideas and keynote speaker at the Brand to Wealth seminar organised recently by USP Limited in Lagos, said “in a recession the SMEs holds the key to either drive the nation out or further in the recession based on the sector contribution to the economy.”
Quoting the National Bureau of Statistics (NBS) data, Babaeko said Nigerian SMEs employ more Nigerians than government and blue chip companies.
According to Babaeko, a sector that provides over 50 percent of employment in Nigeria deserves a special recognition and status by government, and wonders why it is only in Nigeria that SMEs are underestimated.
Speaking further on the importance of branding to SMEs, he said it was for differentiation of businesses within the sector and marketplace. And, it can only be achieved through consistency because a brand is what the customers perceive it to be and not what the brand owner or agency says it is.
However, he identified structure, processes and lack of corporate governance as the most challenges faced by SMEs in Nigeria, and therefore urged SMEs to be creative and also maintain some level of consistency as they try to create an enduring brand for themselves.
Anurika Azubike, guest speaker, said, “getting customers and keeping them are the two most important things in business. Therefore, SMEs must understand the need for niche by identifying a particular need in the market that they want to meet.”
According to Azubike, making money is about how products and services are packaged. She therefore urged SMEs to see branding as a way of getting visible and creating a fan base for their brands.
Speaking earlier, Muyiwa Kayode, CEO, USP Brand Management, said, “branding is about creating values. When SMEs create values, patronage and brand loyalty will be easy to achieve because branding solves all problems.”
Branding, according to Muyiwa, is “what we do to make a statement about who we are, noting that action speaks louder than words.”