Addressing the SMEs top 5 challenges

Addressing the SMEs top 5 challenges

Half page 21

Addressing the SMEs top 5 challenges

Small and medium enterprises (SMES) face myriads of challenges while trying to do their businesses in Nigeria. Some of them spoke about some of the challenges.

Victoria Onehi and Helen Abah

Lack of social amenities/infrastructure

“If you are doing business in Nigeria, you must think of how to get your water supply, shop and electricity. There is no infrastructure on ground. Even when there is, it’s not dependable. If you want your business to thrive, you must get your own generator, water supply and other logistics,” Favour John David, Entrepreneur

Inadequate electricity supply

“For me the major challenge I face in operating my business is lack of electricity supply. Most times there is no light. So, I have to use the generator. Now, to get fuel for the generator is also a problem. So, as an hair dresser, light is very important for our job and yet there is inadequate power supply,” Loveth Agbo , Owner, Hair Dressing Salon

Lack of water supply

“For me, I own a fish farm. So water supply is my challenge. Fish farming requires a lot of water. You have to change their water when it is due. But because there is no water supply where I live, I have to keep buying water from water tankers/vendors. So, this increases the cost of production,” Muhammed Shuaibu, fish Farmer

Bad road network

“I am a farmer in one of the remote villages. To get my farm produce to the city is my challenge. We do not have accessible road to the city centre. During the raining season the road get worse. So, how do bring my products to the city. Even when I charter a vehicle, they complain of potholes so I end up selling at a giveaway price near my village. So, we farmers cannot get enough profit after suffering to farm, we cannot make profit,” Danjuma Umar, Farmer

Access to funds

“ Any kind of businesses need funds to thrive. As a small-scale business owner, if you go to the bank, they will ask what your capital base is and collateral, if you can’t come up with collateral, they will not give you loan. So, many SMEs don’t have access to finances. So, capital is a problem,” Fatima Ramlan, Make-up artist.

Multiple taxation

“Multiple taxation is also an issue. The Federal Inland Revenue Service (FIRS), Federal Capita Territory Authority and Abuja Municipal Area council (AMAC) come to collect tax from us. There are multiple agencies that come here to collect tax. A couple of days ago, some people came here saying that they want 20,000. I told them that the money we are generating here is not much. Last month we generated 95,140 in this business centre and our expenses was 41,700 apart from payment of salaries. So , multiple taxation is another challenge we face as business owners.” Valentine Ogwashi, Manager Cyber café.

DICON is now home of civilian products – DG

From Maryam Ahmadu-Suka, Kaduna

The initiative of utilizing the excess capacity by the Defence Industries Corporation of Nigeria (DICON) to produce civilian products is aimed at ensuring that the production lines were not lying fallow as there is need to keep the machines working constantly, the Director General, DICON, Major General Bamidele Ogunkale has said ?during a courtesy visit to the Commandant of the Nigerian Security and Civil Defence Corps, (NSCDC)? in Abuja recently.

According to him the excess capacity in some of the factories where military products were produced is also being channelled towards fabricating new tools or pipe from Nigerian National Petroleum Corporation (NNPC) especially Kaduna Refinery?.

He said that the corporation would continue to lay more emphasis on reverse engineering? added that DICON has been noted for excellent performance in reverse engineering.

“The corporation is currently building some classroom chairs for some Local Governments in Kaduna state and in terms of quality, DICON has no rival within the states because we have machines that give special treatment to the wood before being used and the corporation also produces wind vane, hand pump, ceremonial sword, maze among others.

Responding to the DG, NSCDC said the Corps which started as a voluntary organization in 1967 to cater for civil war victims and also to educate the populace on some basic precautionary measures, metamorphosed into her current status of full paramilitary in 2003.