Nigerian Business Structure and Finance Coach Nancy Nnadi on Monday, said most Small and Medium-Scale Enterprises (SMEs) in Nigeria are unable to evolve and grow financially due to lack of structure.
The business expert appeared live on News Central Television’s debut episode of Jasiri on Monday, December 8, 2024.
According to her, nearly 90% of businesses lack structures. She added that many business owners hold on to power, and fail to set up the kind of work structure that would enable the smooth running of their businesses with or without them.
Her words:
“A lot of businesses in Nigeria are not structured. Some of them may look structured, but when you go internally, you realise that they are not.
“Structure has to do with being able to organise your business to run smoothly with or without the involvement of the chief executive officer (CEO).
“Close to 90% of SMEs lack structure. If they are not available, their businesses cannot operate. That is why you see small business owners working hard and burning out from January to December. They don’t even go on holidays. They are the business.
“My 17 years of experience in business has taught me that lack of structure inhibits financial growth in business.
“The lack of structure in a business has to do largely with the CEO, and you can’t blame your employees for that. You are the owner of the business. You should first know what you want, before proceeding to allocate responsibility to staff.
“These days, most CEOs are afraid of trade secret theft. I have been a victim too. You can actually protect your trade secret, which is your economic advantage. CEOs who try to protect everything, end up frustrating their staff because they are not giving out adequate information that can be used to work effectively.
“A lot of business owners want to hold on to power. They want to remain the high and mighty. But when it comes to business structure, you have to relinquish your power.
“You either choose growth, or you choose power. Do you want to be in control, or you want to grow? If you insist on being in control, you will be limited. But if you want to grow and evolve above that level of smallness, then you have to let people come and share in your vision and help you grow,” she stated.
Small and Medium-Scale Enterprises are businesses with a workforce of fewer than 300 individuals, according to Central Bank of Nigeria (CBN). Recent research reveals that approximately 96% of businesses owned by Nigerians are in this category.
SMEs are critical to the development of Nigeria’s economy, as they contribute 48% of national Gross Domestic Product (GDP).
Small businesses are also confirmed to be the largest employers of labour in Nigeria with 84% of employment.
However, one of the biggest challenges faced by SMEs in Nigeria, despite their undeniable contribution to the country’s economy, is limited access to finance.
