Micro, Small and Medium Enterprises (MSMEs) that stand the chance of accessing credit facility from banks are those built on enduring business models. Since funding is the bane of most private businesses, MSMEs that overcome funding challenge have more chances to survive.
If MSMEs operators are able to create fresh ideas, apply solution based strategies, specialised services and other strategies that can withstand the dynamics of the business environment rather than focusing on funds generation, they will secure credit facilities more promptly.
It was with this underlining message that Heritage Bank Group Managing Director, Ifie Sekibo, re-affirmed the bank’s business principle of empowering MSMES at a the round table in Lagos.
“We pay a lot of attention to SMEs” but “for us to extend loan to you to finance your business, you must have good business model,” he said.
Sekibo, represented by Mary Akpobome, recounted that the bank was established as part of the effort to fill the gap left by financial service providers in solution based strategies and specialised service packages to small businesses.
He said financing is not actually the problem with MSMEs but the other business inputs, which is why Heritage Bank has launched its SME Clinic to help small businesses address challenges.
Since the SMEs Clinic was established, many small businesses have sprung up and remained in operation due to, not only the funding, but business advisory it offers for free.
Some MSME experts agreed that for the nation to have economic breakthrough the vision of sustainability in business should be taken as paramount by the operators.
Experts from financial institutions, business organisations, and academia who spoke at the event emphasised the importance of SMEs as major drivers of the economy likely to fill the dollar gap in the foreign exchange market.
Lead Consult ThistlePraxix, Ini Onuk, argued that any entrepreneur who wants to succeed must identify opportunity, be creative, daring, and willing to take risk.
She said the present high mortality rate of small businesses constitutes danger to the entire economy.
She added that with the current lull in the business activities as a result of the 2015 election, business owners should consider challenging situations and be prepared to meet pre-planned strategies.
A senior lecturer at Lagos Business School, Doyin Salami, said the dream of running the economy on a private-driven platform is threatened by insecurity, uncertainty in an election year, and communal clashes across the country.
He cautioned against reliance on oil as major source of foreign exchange and urged the government to embrace industrialisation by creating policies that would help the over 17 million SMEs nationwide.
Salami expressed fears that Nigeria is under fiscal break-even threat with international oil price below $60, because for the country “to balance the economy and be able to pay salaries, both at the federal and states levels, the price of crude should hover between $65 and $75 per barrel.”