Telco propels SMEs to greater heights

Now that competitive advantage between countries is becoming more intense, the SME sector can help buoy-up Nigeria’s economy, with efforts from Etisalat Nigeria showing how non-governmental efforts can count.

According to figures made available by the National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigeria boasts of over 17 million SMEs. By the records, Nigeria has 17,200,000 registered SMEs. Probably twice this number operates in this segment of the economy informally.

The Bank of Industry is reported to have given out loans amounting to a little over N25 billion to the sector since January 2014. This amounts to less than N2000 per SME. That would barely cover telephony costs of any business in Nigeria for a 30 day period. Even at that, this class of businessmen in Nigeria is popular for handicap in knowledge that often stands in the way of accessing funds from lenders who would normally require proper documentation before taking on the risks of funding businesses. This is where a telecommunication company’s intervention shows its revolutionary tendencies.

The Etisalat Nigeria’s EasyBusiness Millionaire Hunt, a strategy aimed at inspiring SMEs to showcase their business blueprints and win prizes to implement the plan recently saw 10 SMEs smile home with the sum of two million naira each, six months mentorship at the Enterprise Development Centre of the Pan Atlantic University, Lagos in addition to office equipment – computers and printers.

With the initiative, Etisalat Nigeria reputed to be the fastest growing and most innovative telecommunications company in Nigeria, demonstrated unrivalled passion for the nucleus of economies, the SME sector, by calling for entries of business ideas from entrepreneurs. The call according information gathered by BusinessDay was responded to by 761 businesses. The entries were pruned down by professional assessment first to 250 and then to 50. The 50, it was also gathered, were gifted a five-day residential training at the Enterprise Development Centre of the Pan Atlantic University, Lagos following which 10 ultimate winners emerged.

The beauty of this is that the initiative has subjected almost 800 SMES to the discipline of documenting business plans, which those who know contend is enough to refocus such businesses and help those derailing to track back to success for common good. The experience gained from this intellectual exercise is bound to bear much fruit in the SME sector in Nigeria, experts say.

Acting CEO, Etisalat Nigeria, Matthew Willsher, explained Etisalat’s passion for SMEs and why the company remained committed to the long-term building of SME’s in Nigeria.

“Etisalat remains committed to investments in small and growing businesses in Nigeria because the country has a lot of young people joining the workforce every year and we at Etisalat believe that by helping to empower SMEs, the generation of more job opportunities can easily be achieved. It is important to us at Etisalat that we do a good job but more than that, we aspire to seeing our customers doing a good job whilst using our services as well based on the value and quality of services we offer. We aim to help these companies grow just like we have grown over the last five years,” he said.

With specific sight on the EasyBusiness Millionaire Hunt, director, Business Segment, Etisalat Nigeria, Mr. Lucas Dada, highlighted that his company is passionate about supporting a revolution in the SME sector which has seen them engage in many activities including Market Access to strengthen small and medium enterprises with knowledge, necessary networking tools and working capital to help this class of businessmen achieve their goals.

“The major idea behind the Etisalat EasyBusiness Millionaire Hunt is to inspire small business owners and help them grow. Etisalat is well aware that though every business starts small, there is always the capacity of becoming big. We take example from the strides of Etisalat and encourage other businesses, because now in its fifth year of operations in Nigeria, Etisalat has grown exponentially – making over 18 million subscribers in the period. This is one of the ways we show that we are determined to see that small and growing businesses with viable business ideas get a chance to blossom,” he said.

Seeming to be lending his voice to this, the Director General of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Bature Umar Masari highlighted the state of infrastructure, funding and education as areas that the sector would benefit from urgent intervention.

On the place of SMEs in the economy, Masari said, “small and medium scale enterprises are the engine of industrialisation. The sector employs the largest number in every economy and contributes over 25 percent of employees in Nigeria, so that can mitigate employment.”

Etisalat’s efforts become more salient when the director-general admitted that there is a challenge with access to funding. “There is a challenge with low access to funding. 45 percent of SMEs are unable to access any form of funding to support their business ideas,” the director-general admitted.

While majority of SMEs and even big businesses are calling on government to intervene, Etisalat has led the way in showing how well meaning organisations can support the segment that holds the key to the success of other segments. It is of interest that the Etisalat EasyBusiness Millionaire Hunt is an annual event. The 2013 edition has been rounded off with the following winners Bosede Olanihun, Oluwayomi Ojo, Abdulazeez Ibrahim, Idongesit Umoh, Muhammad Salisu Abdullahi, Nwachinemere Emeka, Eberenna Nwanjoku, Opeyemi Ajayi, Joseph Eze, and Adesuwa Ojumola. These entrepreneurs adjudged to have exceptional business ideas have smiled home with N2 million each to help them actualise the plans. They have also been gifted a six month mentorship per business, with the EDC to guide them as they seek to blossom in business.

What is very heart-warming is that the initiative is expected is to ignite and sustain a high level of intellectual engagement and development in a segment normally low on such activities.

DAN OBI