SMEs And Loan Opportunities

Small and Medium Enterprises (SMEs) are critical to the development of any economy as they possess great potentials for employment generation and diversification of development of indigenous entrepreneurship.
In Nigeria, there has been gross under performance of the SMEs sub-sector which has impacted negatively on economic growth and development. This low output among other factors can be largely attributed to poor business financing.
To solve this problem, federal and state governments mapped out loans and grants to help the sector which, if achieved, would go a long way in boosting the economy.
The Tide went to town to examine the accessibility of loans by SMEs.
The Managing Director of Franco Bookshop, Mrs Franca Kalu, said she has heard and even filled different forms at different times without any tangible results.
Franco Bookshop boss noted that, “after COVID-19 last year, the news of the mapped out loans was a relief to many of us. I filled the different forms from different groups, thinking that I will use it to revive my business and overcome the terrible effect of the pandemic.
“Can you believe that up till now nothing has been done. We even paid some money to collect and return some of the forms. It is by the grace of God that my business is surviving”.
Mrs Kalu noted that she needed the loan to grow/expand her business, saying that there is need for the loan to be given to those it is meant for, in order to achieve the purpose of the loan, which is to grow SMEs.
“I heard that some people have received the money and many others whom the loan are meant for, are yet to see it.
“The best thing for government to do is to use people’s Bank Verification Number(BVN) which contains detailed information about everyone, to push the loans into business hands to avoid diversion of this fund.
“My business needs money and I know that if I am given loan l will do better than l am doing. It will be wrong for those in charge of the loans to do man know man”, she added.
To the Managing Director KAIEUN Concept, Mr Kenneth I. Akoma, the said business loans to the lock up shops owners around Mile 1 only exist in camera.
Akoma noted that he had applied both for federal and state government loans from different angles and wondered why the loans were difficult to come by here, while those in other geopolitical zones access the same loans with ease.
The MD said, “if not for God’s grace and intervention, it would have been difficult for me to continue after the lockdown; because l spent 98 percent of my business money on feeding and payment of shop rents.
“Government knows where the SMEs are. They should send delegates to the people to sensitise them and ensure that the loans are given to the people it is meant for and not the other way round.
“Many business men and women don’t even know that such loans exist and so the need for sensitisation. Many business men and women operate from hand to mouth”, he said.
He reiterated the need for the loans to be given to SMEs, saying that “business capitals are the problem of many businesses. If government shows concern and ensures that the problem is solved, the money would not go back to the hands of politicians and others.
“There is also the need for mentorship in the sector to ensure proper management and utilisation of the loans, when it would comes.
The Chief Executive Officer (CEO) of NENOG Farms Nigeria Limited, Mr Nnadi Emmanuel Nwogu, said there was the need for SMEs to work with institutions to grow their businesses.
The CEO, who said the farm has the largest export demand for cassava produce, noted the need for government to support SMEs with business loans to enable enhanced performance in the sector.
This he said, would have multiple effect on Nigerian economy and also contribute meaningfully to the nation’s GDP.
“If Rivers State will take advantage of what the company has, it would drive away hunger from the state”, adding that SMEs are the life wire of every economy.
He also advised SMEs to leverage on the current available loans in the federal and state systems to help their businesses and also stressed the need to form co-operatives for easy access to business loans.
The CEO noted the need for business owners to partner with mega establishments for mentorship, which he said resulted to speedy development.