Featuring experts in the business world, the panel session was moderated by Adaoha Njemanze, with Akintunde Marinho, CEO, Utopia Media Group; Debola Ajayi, COO, Circo; Ireayomide Oladunjoye, MD & CEO, Endeavor Nigeria; Joshua Chibueze, Co-Founder/CMO, Piggytech; Olasubomi Hassan, Executive Director of Operations; Oluwatoyin Inumidun Bakare, Executive Director, SAS Textiles Limited; and Dr. Oyinlola ‘Yetty’ Ogunnubi, CEO, The YD Company, as the panellists at the BusinessDay Top 100 Fastest Growing SMEs.

Dr. Oyinlola ‘Yetty’ Ogunnubi, CEO, The YD Company, with over 19 years of experience, emphasized the significance of strategy and partnerships in achieving sustainable growth. “For us, it’s more about strategy and partnerships. We work with lots of SMEs and look for partnerships that could make their dreams come to reality,” she explained.

Akintunde Marinho, CEO, Utopia Media Group, stressed the importance of human capital as the most critical resource. He highlighted the dedication required from individuals within the company, stating, “Human beings make the company not to fail. There are people that do not sleep to ensure a company doesn’t fail.”

Emphasizing the importance of understanding the Nigerian business context, Debola Ajayi, COO, Circo, said “Nigeria is one of the most unique places to do business. In dealing with human capital, understanding the context of your environment is very important for the success of a business”.

Oluwatoyin Inumidun Bakare, Executive Director, SAS Textile Limited, added insights into the significance of skilled manpower and financial management. “The most critical resource is skilled manpower. Your people must be passionate, and you must have excellent customer service. Also, financial management is crucial. Every receipt that you don’t record is not a transaction.”

The BusinessDay Top 100 Fastest Growing SMEs panel discussed the necessity of creativity, innovation, and thinking outside the box to succeed in Nigeria. “You will have to learn to be creative, innovative, and think out of the box. You have to have such an excellent spirit. Because you have to do that thing that will make you have such a unique value proposition,” shared Dr. Oyinlola ‘Yetty’ Ogunnubi.

“We learn to adapt. We’ve learned not to compromise and learn to maintain that excellent spirit and make sure we are adding value that they will not forget,” added Debola Ajayi, COO, Circo.

The panellists further highlighted the role of technology in optimizing business processes, explaining that technology helps optimize businesses, ensuring that customers feel the impact. ‘Technology just helps you optimize processes and improve delivery speed.’

“When you think about technology, it’s about looking at each functional area of your business and finding out how can I use technology to further control and better deploy the resources I’m using in this area of my business,” added Akintunde.

Addressing the challenge of ever-evolving regulations, the panellists, emphasized the importance of staying informed. “The first answer is to stay informed. Adequate knowledge of the regulatory framework in your business sector is important. Also, you cannot afford to be cheap about dealing with regulatory frameworks; it requires specialized knowledge”.

On retaining top talent in a competitive labor market, Debola Ajayi shared a unique approach. “I see them as valuable team members. So essentially, they don’t work full-time. But now we’ve retained them as part-time, once a week delivering this, and we’re good to go.”

“How you treat them is how they will go the extra mile. That expressive change is very, very important for us as an organization,” emphasized Dr. Oyinlola ‘Yetty’ Ogunnubi.

“Culture is very important. You have to have a culture as an organization. Quarterly engagements, treating staff as family, and doing something to make them feel like family, not just work, are crucial,” highlighted Oluwatoyin Inumidun Bakare, Executive Director, SAS Textile Limited.

The Panellists at the BusinessDay Top 100 Fastest Growing SMEs acknowledged that challenges differ across sectors, reiterating the need for adequate knowledge of the regulatory framework, while pointing out physical challenges related to Forex and tax in their industry.

“In this modern age of technology, realize that you can do your business over borders. Diversify into other portfolios, focus on personal development, and upgrade yourself constantly,” advised Ajayi.

“Personal development is essential. Upgrade yourself, focus on your core competence, provide excellent customer service, and make a positive impact on your community,” added Oluwatoyin Inumidun Bakare.

The recent BusinessDay Top 100 Fastest Growing SMEs event, themed “Accelerating Growth for SMEs in an Era of Uncertainty,” shed light on the strategies employed by thriving businesses. 

Tayo Fagbule, Editor at BusinessDay, representing Frank Aigbogun, the Publisher, welcomed the participants with an emphasis on the significance of SMEs in Nigeria. He noted that they contribute to about 90% of the country’s businesses, but face a challenging environment characterised by global uncertainties, rapid changes, and peculiar local realities. Fagbule encouraged participants to view the event as an “Olympics for entrepreneurship,” celebrating the resilience and achievements of SMEs.

The opening remarks were followed by the keynote speech delivered by Omolara Adewumi, who was represented by Adewumi Oni, the Acting Director of Finance and Corporate Services at Lagos State Employment Trust Fund (LSETF). Oni highlighted the role of SMEs in the Nigerian economy, providing 90% of jobs. He applauded the efforts of the BusinessDay Top 100 in recognising and celebrating these businesses.

Oni touched on the challenges faced by SMEs, particularly the impact of global events on the Nigerian business space. He highlighted inflation, the removal of subsidies, and geopolitical tensions as factors contributing to the uncertainty. Oni then outlined the role of LSETF in supporting SMEs through access to finance, capacity development, and market access programs.

LSETF’s access to finance program, providing affordable loans at 9% per annum, was emphasized as a critical support mechanism for micro, nano, and medium-sized businesses. Oni explained the importance of credit history building through LSETF’s financing, enabling SMEs to later access larger funds from traditional financial institutions.

He also detailed LSETF’s employability program, focusing on skills development for youths between 18 and 40. The tech startup program, offering mentorship and workspace support, aimed to foster innovation in the tech-driven business landscape. Oni highlighted the need for public-private collaboration to accelerate the growth of SMEs, acknowledging the importance of government policies and initiatives.

While discussing the challenges faced by businesses due to global events like the Russia-Ukraine war and geopolitical tensions, Oni stressed the necessity of collaborative efforts between the public and private sectors. He shared insights into the Ease of Doing Business initiatives at both state and federal levels, aimed at creating an enabling environment for businesses to thrive.

Oni concluded his address by expressing gratitude to BusinessDay for organizing the event and congratulating the recognised SMEs. He highlighted the importance of reflecting on the lessons learned from successful SMEs and encouraged participants to use those insights to contribute to Nigeria’s continued prosperity.

The BusinessDay Top 100 Fastest Growing SMEs first panel session, moderated by Satira Osemudiamen, brought together a distinguished group of panellists, each offering insights into the topic: Access to Finance/Sourcing and Raising Finance for SMEs.

They included Adewumi Oni, Ag. Director, Finance & Corporate Services, LSETF; Afolabi Emmanuel, Community Lead B2B, Peppa; Esther Obiekwe, Group Head, SME Banking, Fidelity Bank; Gloria Omereonye, Area Business Executive, Lagos Island 3; Linda Onyesoh, CEO, Milani Cosmetics Nigeria; Nneka Okekearu, Director, EDC, Pan-Atlantic University; Yvonne Ofodile, Managing Director, Zetile Oil & Gas Limited and Yonodu Okeugo, Commercial Leader, VFD Microfinance Bank.

The discussion commenced with an acknowledgement of the economic hardships faced by SMEs in Nigeria. The panellists shared their perspectives on the challenges arising from economic uncertainties. Capturing the essence, the panellists noted: “Nigeria has had a series of economic heartbreaks from issues like the failure period for subsidy, law rate increments, and more, affecting small and medium businesses.”

Adewumi Oni emphasized the importance of preparation before seeking funding. He stressed the significance of a well-detailed business plan, stating, “First, for any SME seeking funding, you must understand the business. Have a business plan that clearly outlines your purpose, capital requirements, expected income streams, and projections.”

Delving into the metrics considered by financial institutions when granting loans, Afolabi Emmanuel, Community Lead B2B, Peppa, highlighted the importance of understanding the structure of the business. “You want to ensure that businesses have a structure, separating personal expenses from business expenses. This includes having proper statements of account and a clear history,” he explained.

Esther Obiekwe, Group Head, SME Banking, Fidelity Bank, added that financial institutions consider the history of the business, especially in the nano and micro space where businesses may lack a credit history. She emphasized the need for due diligence to understand the business’s capacity.

The confusion surrounding different funding sources such as banks, angel investors, and crowdfunding was addressed by Yvonne Ofodile, Managing Director, Zetile Oil & Gas Limited. She stressed the importance of understanding the business’s stage and the type of financier being targeted: “You should be asking yourself, ‘What stage am I as an SME? What kind of financier am I trying to attract?'”

The panelists also explored the role of technology in helping SMEs access finance. Linda Onyesoh, CEO, Milani Cosmetics Nigeria, shared insights on how technology can simplify financial processes: “Using tools like PayPal, Google Sheets, and payroll software can streamline financial management. Even simple technology like Google Sheets can be highly effective.”

Yonodu Okeugo, Commercial Leader, VFD Microfinance Bank, emphasized the importance of technology education, stating that being tech-savvy is crucial for business success in the modern era. He cited examples of businesses using technology for invoicing, bookkeeping, and data analysis to enhance efficiency.

The role of accountants in aiding SMEs, especially those with a limited understanding of technology, was highlighted by Nneka Okekearu, Director, EDC, Pan-Atlantic University. She suggested a phased approach, encouraging SMEs to start by recording financial details and gradually incorporating technology with professional guidance.

The conversation took an interesting turn when a participant raised a question about advising SMEs on leveraging technology for financial bookkeeping. The response pointed to the importance of education in business success.

Linda Onyesoh shared a personal story about her father, emphasizing the indispensability of education. She stressed the need to educate individuals in the market, helping them see the possibilities within their businesses. The importance of business education for women and SMEs was emphasised, with a focus on empowering them to understand and navigate the financial sector effectively.

Esther Obiekwe reiterated this sentiment, highlighting the value of a structured approach to business education. She discussed their initiative, a three-month MBA program for grant recipients, ensuring that SMEs have a clear understanding of financial management before accessing funds.

The discussion touched upon the role of government policies in supporting SMEs. The panellists acknowledged the efforts made by organisations like LSETF and emphasized the need for policies that ease the business environment. Gloria Omereonye, Area Business Executive, Lagos Island 3, stressed the importance of the ease of doing business at both the state and federal levels.

The panellists gave practical advice for SMEs scaling funding challenges in Nigeria’s uncertain economic climate. The linkage of education and funding is a facilitator for sustainable business growth, pointing to the need for SMEs to invest in knowledge and technology for long-term success.

Welcoming individuals, business owners and an array of speakers at the annual BusinessDay event themed: “How SMEs can Thrive in an Age of Volatility” Frank Aigbogun, Publisher, BusinessDay Media Limited, commended MSMEs for their great works in creating wealth and employment in Nigeria.

“It is because of all of you that it is said that the SMEs are the greatest employers of labor in Nigeria. Without you, that will not be the case. 

You are a great catalyst for economic development in Nigeria. You’re risking your personal and professional family capital just to make your own contribution towards economic development in our country.”

Keynote Address: MSME growth opportunities: Thriving in VUCA times

Giving the keynote speech, Prof. Joseph Nnanna, the Chief Economist at Development Bank of Nigeria, placed emphasis on the Challenges and Opportunities that exist for MSMEs during this VUCA period.

VUCA, he explained, means Volatility, uncertainty, complexity and ambiguity. It describes distinctly what has occurred in the last few years in the global economy, especially how it affects Nigeria locally and particularly. 

“If you think about what had happened during the Covid-19 pandemic and the Russian-Ukraine war which is still ongoing, all these activities have caused inflation in the supply chain, trade partners had to change trade relationships and businesses had a rethink,” he said.

The business environment keeps changing at a rapid speed, new trends and technology continue to emerge. There were so many tech-based enterprises that came up during Covid-19. As a matter of fact, the ICT sector in Nigeria is one of the only sectors that had double digit growth. 

Whether it is core information systems, technology-enabled businesses or you’re converting your traditional-based brick-and-mortar business to an online enterprise, all these businesses, especially if you were in the ICT space, exploded – they grew.

“A wise saying goes ‘a rising tide lifts all boats’ but that’s not the case in Nigeria,’ Nnanna said. “People just start a business because they see others doing it and making money without due diligence, research, business plans and other necessities. Without these, nothing else matters.”

You have to be on with the right information, be able to take on the risk and you should have people to convince to give you the credit.

“At DBN, we implemented a remote working policy which allowed us to work remotely during the Covid-19 period. Everybody worked remotely from their respective homes because we trust that we look at the output of the activities you have done on a weekly basis to track productivity.”

These days, it’s not just about the boss seeing you working so hard; as long as the output can be seen, felt and recorded, that’s all that matters.

Inflation was the bane of our existence, it still is. “We know inflation continues to rise exponentially without end because our questioning power has reduced.”

On the challenges faced by MSMEs despite being the engine of a nation, Nnanna listed them to include:

• Lack of access to finance 
• Poor or inadequate infrastructure 
• Unfair competition 
• Multiple taxes and ledgers which are prevalent in Lagos

Stating further, he noted some of the demand and supply factors that can explain MSME finance gap to be:

• Information asymmetry – one person having more information than another and there exploiting the other
• High cost to reach and serve MSMEs relative to the revenue potential 
• Lack of collateral 

On the supply side, they are:

• High interest rate 
• Lack of proximity to financial services – lots of people are not in close relationship with their banks and banks should look for ways to support customers beyond giving then credits 

Advising business owners, Nnanna said: “If you’ve started a business and have no customers, you should do a recheck to understand if you did a market study to see if there was a need for the service you’re trying to provide.

It’s important to look for partners who are in our space, but may not be in the same sector. A problem shared is a problem solved. Talk to people, you don’t know where the next idea that would help you grow your business will come from.”

Growth opportunities available to MSMEs

Agriculture, manufacturing, education and health all grew much faster and stronger in 2014 compared to 2021. The only sector that continues to grow is trade because Nigeria is a trade country, everybody is buying and selling. 

But the challenge is that the type and volume of trade that brings jobs are big trade items, not small ones.

Finally, Nnanna concluded his enlightenment at the BusinessDay Top 100 Fastest Growing SMEs programme by reteirating that “digitizing your business is critical or you will be left behind.”