The evolution of know-how has made plenty of companies assume divergently about the most effective method to run their business with a view to improve profitability and development. Small companies aren’t omitted on this development, as some have embraced the brand new technological traits and methodology of doing business. This adoption has helped within the enlargement of their business, created employment and therefore contributed to the nationwide GDP.
According to the National Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the nationwide GDP within the final 5 years. With a complete variety of about 17.4 million, they account for about 50% of commercial jobs and almost 90% of the manufacturing sector, by way of variety of enterprises.
Furthermore, in 2010 a survey report on SMEs in Nigeria carried out by the NBS in partnership with SMEDAN reveals that “The SME sector in Nigeria is strategically positioned to soak up as much as 80 % of jobs, enhance per capita revenue, improve worth addition to uncooked supplies provide, enhance export earnings, improve capability utilisation in key industries and unlock financial enlargement and GDP development”
If SMEs are to thrive and to make extra affect to extend employment, contribute to nationwide GDP and encourage export development, they should do the next:
1. Business homeowners have to reorient and reinstill
For SME proprietor to achieve business, there’s a have to study, unlearn and relearn. This is as a result of new traits hold rising and the business retains embracing new shifts. This shift can be political, financial and authorized which can have a big impact on their companies. This goes with the saying that change is fixed. According to (*3*), “Change is just not nice, however change is fixed. Only after we change and grow, we are going to see a world we by no means know”.
Therefore, it’s essential to be alert on a regular basis, and this can be potential with good data of issues that can affect your business positively or negatively. Learn to remain present within the happenings of the nation and have an incredible understanding of how your business is progressing in different international locations. You want to hunt solutions to the next questions: What are these companies doing proper in these international locations that’s making them flourish? What are the challenges they’re going through in their nation? How had been they capable of scale by way of amidst these challenges? Aside from that, you additionally have to know the insurance policies launched by the federal government of your nation on small and medium enterprises and what are the professionals and cons of those insurance policies on your business?
The thought is just not solely about beginning a business and increase, thousands and thousands of naira is already coming in, but it surely must be, methods and measures to place in place to maintain your business, improve the RIO and equally skyrocket to a big enterprise in 5-10 years’ time. For all these to be achievable, you as a business proprietor have to be properly knowledgeable in your business.
Gain data that can allow the business to grow. This can be accomplished by studying nice books about your business, staying present on what is occurring in your nation, and attending conferences and webinars that talk in regards to the business you might be into. Acquire extra data by taking extra programs that align with what you might be doing. When it involves business, founders can’t cease studying regardless of how educated they assume they’re within the subject. Attend business occasions the place you can meet business specialists. Network and work out areas of collaboration that can support within the development of the business.
2. Employ tight and reskill your workers
For any business to grow, there’s a want for human assets and as a small business attempting to achieve floor within the face of buyers and potential clients there’s a have to make use of competent arms that can allow your business to excel. A mistake some SMEs make is using much less proficient staff and this has retarded the expansion of their business. Some of them consider they don’t have sufficient assets to pay consultants. This very act has impeded the expansion of some companies, making a few of them exit of business, whereas some remained stagnant for years.
Even whenever you go for the much less competent workers, there’s a have to upskill them as a few of them are all the time able to study. As a small business that’s prospecting for excellent issues forward, it’s essential you put money into your staff. By investing in your staff, you can enhance productiveness, increase efficiency, encourage innovation, and enhance morale and job satisfaction.
In a state of affairs the place there may be not sufficient funds to pay for these trainings, devise different technique of barter engagement. That is, offering a service that can profit some consulting corporations and in flip, they prepare your workers or give them slots to participate in some coaching they provide. Make sure these trainings are useful to the expansion of your business and equally to the expansion of your workers.
3. Incorporate digital know-how
For SMEs to thrive, there’s a have to embrace the newest digital traits and instruments as this can assist SMEs lay the groundwork for progress. These instruments will help them to generate deep consumer perception that goes past their present base. So, SMEs have to construct an excellent data of that.
For your business to prosper you must incorporate digital instruments and equally make use of some digital channels. With the development of digital and the way it helps in ease of doing business, there may be want for small companies to key in, on this growth as it should help within the development of their companies. Plenty of companies have drifted from conventional ways of operating their business to a extra progressive and digital method. This methodology has led to huge enchancment, yielded quicker outcomes, helped in lead technology, keep good buyer relationships, buyer administration, perception of the web site efficiency, time administration, buyer suggestions, digital advertising, noticeable affect on Goggle and equally helped within the increment of RIO. Some of those digital channels/instruments are SEO, content material advertising, CRM, hootsuite, Mailchimp, Social Media, Canva and so forth.
Related
https://nairametrics.com/2022/04/24/3-sure-ways-smes-can-grow-their-business/
