‘Technology provides significant opportunities to manage cost, grow revenues for SMEs’

As micro, small and medium enterprises (MSMEs) in the country seek innovative ways to make more profits and impact, analysts have called on them to take advantage of the opportunities technology provides to grow.

According to the analysts, adapting to technology will make SMEs key into market changes, increase their productivity and value creation while also ensuring they remain competitive.

Experts say both capital and operational expenditures are big concerns to any business, given their capacity to determine profitability, employment and investments.

The cost of doing business for SMEs has continued to increase, with rising bureaucracy caused by new currency restrictions. In addition, increase in the prices of many commodity goods has spiked inflation in recent times.

But with technology, SMEs can reduce its cost of production by reaching consumers cheaply and easily, while avoiding conventional media and outdoor advertising spend on billboards or newspapers.

Digital platforms including Facebook, Twitter and WhatsApp have allowed smaller businesses to advertise to and interact with their customers for free, moving away from the traditional and more expensive mediums such as print and television.

“SMEs need to pay a lot of attention to their digitisation 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.

While Nigeria’s transport deficits are intimidating, they are partly offset by the increasing ubiquity of technology.

Analysts believe that MSMEs are now better positioned to leverage technology, given that the majority of consumers are technology savvy.

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,” Wright 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.

Josephine Okojie