By Kenneth Atavti and Emmanuel Obisue
The role of Micro Small and Medium Enterprises, MSMEs, in developing economies cannot be underplayed. In Nigeria, MSMEs alone employ over 80 percent of the country’s total 90.5 million labour force, contributes 48 percent to Nigeria’s Gross Domestic Product, GDP, and constitute over 80 percent of registered exporters.
Over the years, MSMEs have continued to contribute their fair share to the development of Nigeria. Behind the huge potentials of MSMEs to create employment opportunities for the country’s younger population, there lies the problem of limited financing.
In a conscious bid to address this challenge, Fidelity Bank introduced the ‘SME Funding Connect’ to harp on improved funding, and connect funders/trainers to entrepreneurs for necessary financial assistance. The bank recognises the critical roles MSMEs play as vital agents of economic development and transformation, as it also has a full-fledged SME banking division.
As part of efforts to further bridge the funding gap in the sector, Fidelity Bank has also collaborated with fund providers within and outside the country.
Recently, it held a unique forum. In one of such, Yetunde Ayo-Oyalowo, Founder/CEO of Market Doctor, an innovative healthcare provider, set up clinics around clustered markets in the country. It is amazing as one does not often see doctors dressed in their laboratory coats providing health services in the market place. Market Doctor, an innovative healthcare provider, is however challenging the status quo by setting up clinics around clustered markets in the country.
The Market Doctor company recently emerged overall winner of the inaugural edition of the grants competition organized during the Fidelity SME Funding event, carting away the corresponding N2 million cash prize. The CEO who appeared as a special guest on the Fidelity SME Forum aired on live radio, said she barely knew anyone in Fidelity Bank before applying into the competition.
“I applied for it three days before the closing date hoping to win. I later got a call that I had been shortlisted and from there I went for the first scheduled boot camp,” she said.
Out of over 2,500 applicants, an initial 12 finalists emerged from a rigorous and intensive selection process which was conducted by the renowned accounting and consultancy firm, PricewaterhouseCoopers, PwC.
Healthy Nellies, a food production firm and Greenhill Recycling who emerged first and second runner up, respectively took home the sum of N1 million each. Adeyinka Tekenah of ‘Happy Coffee’ and Olalekan Afolayan of ‘PackMyLoad.com’ who both smiled home with consolation prizes of N500,000 each, complete the list of finalists. The remaining seven shortlisted SMEs received N200,000 each as well.
While commending the winners, Fidelity Bank CEO, Nnamdi Okonkwo, however emphasized the importance of MSMEs to the growth and development of Nigeria’s economy.
The grants competition according to the Fidelity boss, was the highlight of the SME Funding conference themed “Entrepreneurship Meets Capital” which was organized by the bank to deepen the conversation on funding by bringing together small business owners, model entrepreneurs, fund providers, private equity firms and venture capitalists under one roof.
He added that it was important for the bank as “one of the best SME-friendly banks to come up with the initiative in furtherance of our support for the sector because of its contribution to economic development and poverty eradication”.
Osaigbovo Omorogbe, Divisional Head, SMEs Fidelity Bank said: “one of the remarkable things about this our initiative is that we were able to bring small business owners and funds providers, model investors, private equity firms, Venture Capitals and Angel Investors worth over $1 billion together in one roof”.
Deputy Governor of Lagos State, Dr. Obafemi Hamzat in his keynote address at the occasion, commended Fideity Bank for the initiative, adding that small businesses contribute to employment creation, poverty alleviation and revenue generation.
“What Fidelity Bank is doing is to create access to capital, which is the biggest threat to MSMEs. He advised financial institutions to borrow a leaf from Fidelity Bank. The Lagos State Government is ready to create the enabling environment for the MSMEs to thrive,” he said.
He further noted that research has shown that, around the world, SMEs produce the largest number of jobs, in some way, helping the larger firms to survive, adding that 89 percent of all companies in the world are SMEs and 70 percent of the jobs in the world are provided by SMEs.
He revealed that the Lagos State Government plans to create enabling environment through schemes and micro finance Ba2nks, which will in turn enhance the entrepreneurship sector in the country, which Lagos State alone boasts of over 3million.
Director Development Finance, Central Bank of Nigeria, CBN and Mezuo Nwuneli, Managing Partner, Sahel Capital, who were among the panelists in the engaging sessions, shared three things which the panel looked out for before investing in a SME.
According to the group, they are: management, adaptability, and ability to work with potential investors.
“Management is key as it is important to prove that you understand your business. If you understand your business, you can earn investors’ trust easier,” he said.
He reiterated that an entrepreneur has to be adaptable to change. “There has to be engagement between the entrepreneur and the investors. This engagement may lead to the change of some areas to make things better,” he added.
Speaking in the same vein, CEO, Venture Garden Group, Bunmi Akinyemiju further advised entrepreneurs to start with local investors. She said it would help them to be ready for foreign investors. He warned them against the urge to hide information as this could affect the budding trust.
Two new products for small businesses were also unveiled at the occasion. They are: Fidelity Business Plus Account and Fidelity Trader Support Facility. Networking opportunities will also be provided by the small business owners to pitch their business to potential investors.
Other panelists at the sessions include: Obi Ezeude, Founder/CEO of Beloxxi Industries; Mo Abudu, CEO, Ebonylife TV; Akindele Phillips, Co-Founder, Farm Crowdy; Dr. Richard Ajayi, CEO, The Bridge Clinic; Seun Abolaji, CEO, Wilsons Juice, and Adetayo Bamiduro, Co-founder, MAX Okada.
Others were: Dayo Akinpelu, VP Renaissance Capital, Toyin Adeniji, ED Bank of Industries, and Bonaventure Okhaimo, COO Development Bank of Nigeria, DBN.
