Policy makers need to do more in creating an enabling environment for enterprising individuals who apply business practices to solve societal problems as well as make profits.This was the consensus of participants at the Africa CEO Roundtable on corporate sustainability and responsibility organised by Thistle Praxis Consulting Limited in Lagos, DANIEL ESSIET reports.
Many small and medium-sized enterprises (SMEs) are not doing well in turnover, workforce growth, job creation and innovation.
These were the concerns of business leaders and small business owners who gathered in Lagos for a one-dayAfrica CEO Roundtable and conference on corporate sustainability and responsibility organised by Thistle Praxis Consulting Limited in Lagos.
The Managing Director/Chief Executive Officer CEO), Accion Microfinance Bank, Mrs. Bunmi Lawson, said a lot of SMEs were not growing because access to financing,manpower operators should go for and materials had become a huge challenge.
While acknowledging that access to credit is critical, she said bank loans should not be first consideration; rather operators should go for equity capital and other investor funds where small business owners are not expected to pay back in the short term.
She maintained that it was vital that smaller businesses understand and have confidence in the growing choice of finance available to help them succeed.
To address funding, Mrs Lawson said SME leaders needed to have good management skills, adding that it has become important that they get trusted and reliable to explore finance options.
She said the rising level of non-performing loans in the banking industry was a worrisome issue for banks and financial institutions, arguing that it does not mean the microfinance bank will slow down on SMEs loans.
She said the bank was still looking for SMEs with good management and business fundamentals to support.
Many SMEs, she explained, simply do not have the capacity to stay competitive, stressing that it explained why the economy had a lot of matured start-ups that are not growing.
Mrs Lawson added that getting the right advice is crucial, especially as the landscape and sources of finances have changed so significantly.
She explained that making a company profitable and successful was important, adding that most entrepreneurs needed a sense of purpose that went beyond naira and kobo.
Associate Director, Leapfrog Investments, Mrs Adenike Kuti, advised SMEs and entrepreneurs to do thorough due diligence, sensible deal structuring and realistic exit plans before committing to business angels and other investors.
The push towards venture capital loans, according to her, comes with the challenge for small business owners to access such offers in a more enlightened way.
She advised small businesses to be more cautious when taking up financing offers.
Chief Executive, Prinsult, Mrs Raliat Oyetunde, noted that SMEs are vital to the economy and needed investors and banks, support to be able to secure their market positions.
SMEs, according to her, are still thriving and can expand with enough resources to grow in a high-cost environment.
Chief Executive, TechPreneur Africa, Bolaji Finnih, noted that business growth across the country doesnât come easily. He added that for continued expansion, the conditions needed to be right and correct decisions had to be made. Without these, he said a business wonât see the desired level of growth.
Finnih said many entrepreneurs are still wary of external funding, and there is feeling of distrust towards venture capital funding.
He believes that the mindset can possibly take a generation to change.
Finnih said small businesses have had difficulty scaling up due to lack of infrastructure.
He said businesses have enormous potential to provide important servicesâ but they needed to scale up in order to meet these needs.
In his contribution, the Director, Sustainable Business Initiative, University of Edinburgh Business School, Prof Kenneth Amaeshi said the economy was in need of small businesses providing real answers to social and environmental problemsfacing the country.
According to him, Nigeria needed businesses that create economic growth and jobs whilst also operating fairly and helping the people and communities in need.
Co-founder, Co-Creation Hub, Femi Longe said the economy needed profitable social enterprises and start-ups to solve social problems more efficiently.
According to him, social entrepreneurs should see opportunities in societal challenges, spot the problem, use technology and business methods and create wealth to solve them.
He said Co-Creation Hub has made it part of its agenda to embrace start-ups, and other groups should follow.
According to him, Co-Creation Hub focuses on businesses that bring social impact at the grassroots levels.
He said the place was started because of the need to fill the gap, work and help businesses that create impact in society.
He said Co-Creation Hub helps social entrepreneurs build their businesses and make it viable, without losing focus on social impact.
Longe said social businesses â those with a socially beneficial objectiveâ can play an important role in developing countries in addressing needs such as healthcare and education. He lamented that such businesses have faced a difficult time scaling up to significant size and reach.
Longe said meeting these needs through affordable and sustainable solutions offers businesses a vast opportunity for future growth.
Fate Foundation Executive Director, Adenike Adeyemi, said the foundation trains people in programmes lasting three to four months on entrepreneurship.
She said the foundation helps businesses that seek to grow to plan systematically for growth, and to be prepared for the specific challenges associated with growth.
According to her, the group provides mentorships, business training, development of skills in managing, marketing and things, such as book keeping.
Thistle Praxis Consulting Limited Lead Consultant/CEO, Mrs Ini Onuk-Abimbola, said the conference was intended to provide businesses with inspiration, ideas and practical skills, which will enable them to grow and be more sustainable.
She said businesses have to make corporate social responsibility (CSR) a major part of what makes them successful. This is because customers want to reward companies that live their values.
According to her, embracing inclusive business has a big economic and social impact, creating jobs and boosting the economy.
Promasidor Nigeria Chairman, Chief Keith Richards, Chief Keith Richards, said government policy is the starting point for growing SMEs.
He said businesses are vital to the success of the economy as they drive growth, seeking out new markets and creating jobs as well as spearheading innovation. Therefore, they ought to be encouraged to grow.
He said Chairman, Promasidor Nigeria, Chief Keith Richards has had incredible growth and profitability.
He said customers know that Promasidor Nigeria stood for something and that it informed their interactions with the company every time they walk into a location.
He said CSR is going to become an ever-more crucial part of keeping companies.
