SMEs need exposure to reduce mortality rate

SMEs needs to be exposed to reduce the rate at which they go out of business, says the Lagos Chamber of Commerce and Industry (LCCI).

 “SMEs need good practical exposure before launching into business. This will help reduce their mortality rate,” said Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), at the Youthpreneur Business Summit held recently in Lagos.

“The mortality rate of SMEs is very high because most of them go into business without proper knowledge. They need mentorships and trainings to sustain the business. It is much easier to start a business than to sustain it,” he added.

Yusuf stated that the current challenges businesses face in the economy affect some sectors more than others and urge SMEs to focus on sectors with fewer challenges.

“If you are in a sector that is energy-intensive, then the mortality rate will be very high because energy cost is very high. Electricity, gas and diesel costs are very high,” he advised.

He urged entrepreneurs and small business owners to concentrate on selling their products in the local market because the risks in the export market are high while opportunities abound in the counry.

According to him, governments at all levels should empower SMEs to satisfy local demand, which in turn will reduce the country’s importation bill.

SMEs represent about 90 percent of the Nigerian businesses, but 65 percent of them fail within three years of starting, according to research.

Abimbola Oligbinde, convener, Youthpreneur Business Summit, stated that the current economic situation attests to the fact that the country is not sustainable as a monoproduct economy.

“We need to build industries that would offer competitive products that will liberate us from our un-repentant thirst for imported products,” Oligbinde said.

 “Many young Nigerians are beginning to embrace

entrepreneurship and our mission is to accelerate the impact of these young entrepreneurs by uniting them with essential partners in a collaborative pursuit of learning, leverage and

 funding,” she added.