MSME Day: As Technology Unlocks Economic Value for Small Enterprises, by Zeenat Sambo

As the world celebrates Micro, Small, and Medium Enterprises (MSMEs) Day every June 27, a day which is designated by the United Nations General Assembly to serve as a reminder that small enterprises provide sustainable development goals, encourage innovation, provide a livelihood to millions, and are essential for the economic wellbeing of any society.

The theme of this year’s World MSME Day is ‘Resilience and Rebuilding: MSMEs for Sustainable Development’. Global experts have not only recognised the day as a way forward for MSME as a major contributor to world economy but also to indulge SMEs in digital inclusion, lending and visibility.
However, the recent initiative by the federal government in recognising and contributing to MSMEs development in the country is remarkable. In commemoration of the World MSME Day, the Nigerian government announced a plan to establish at least one Shared MSMEs Facility in every state of the federation. With over five shared facilities currently in operation, the project is said to help improve engagements between government and MSMEs, contribute more to Gross Domestic Product (GDP) and inspire prospective business owners to strive for excellence.

The project which was outlined provides MSMEs with affordable shared access to essential amenities such as power, high quality operating equipment, broadband connectivity as government works to reduce the cost of operation of these small businesses across the country and applicable for all MSMEs to participate.

Additionally, the Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Olawale Fasanya, also related how the government further plans to focus more on startups in the agricultural sector and women-led enterprises in Nigeria in order to enhance its economic diversification policy.

He said: “As the world marks the 2022 MSME Day, we remain unyielding in strengthening MSMEs and startups, particularly in agriculture, agro-based industries, as well as youth and women-led enterprises”.

With all these unyielding support and encouragement, it is important to note that in this digital age, MSMEs incorporation into Nigeria digital ecosystem is unavoidable for sustainable development.

MSMEs are business entities that have about seventy-five employees or fewer. In addition to employing a large percentage of labour in Nigeria, the sector has also been able to drive inventions leading to an increase in job creation, as well as highlighting the important role of technology in economic growth.
According to the Nigeria Bureau of Statistics, (NBS) small and medium enterprises in Nigeria contributed about 48 percent of the national GDP in the last five years. With a total number of about 17.4 million MSMEs, they account for about 50 percent of industrial jobs and nearly 90 percent in the manufacturing sector.

Despite numerous challenges such as inadequate working capital, stiff competition from larger companies, difficulties in sourcing raw materials, low capacity utilisation among others faced by MSMEs, its significance to Nigerian economy cannot be overemphasised.

With technological advancement and the proliferation of the internet in Nigeria, it is evident that the popularity of MSMEs online has increased, but it still needs more engagement. As consumers migrate to the Internet for everything from gifts to groceries, companies/busineses with physical storefronts, they now also create online stores to extend their visibility and reach target markets beyond their local communities.

Through internet-assisted marketing, small businesses can access available funds, communicate with their clients via email, blogs, social networking, and forums. Using the instant connection, micro-business owners can immediately apply customer feedback to their businesses as soon as possible.

For instance, food cart/mobile food business, rental services, liquid soap production, mobile phone repairs, blogging to even plantain chip making and sales have in a way built their online stores with the ability to instantly connect, share information and get feedback.

Creative sector enterprises such as crafters, clothing and accessories designers, and painters have found it a lot easier to set up online stores rather than invest in expensive storefronts. However, when small businesses adopt new technologies into their processes, they are required to train their employees to take advantage of business opportunities.

Apart from MSMEs, startups such as Wardchat and Myclinic.ng have digitalised the Nigerian electoral process and medical/clinical consultation, even as more industries are leveraging digital technology to reach out to a larger audience and activate change.

Technology has a huge effect on the ability of businesses and governments to harness natural resources and use them in the most effective ways possible to benefit both the business and the economy. This is why Nigerian technology agencies need to sustain awareness campaigns for MSMEs to adopt the use of technology aimed at facilitating the digital economy.

To that effect, the untiring efforts of the federal government agencies like the National Information Technology Development Agency (NITDA), alongside that of its subsidiaries, have over the years promoted technology for MSMEs and startups by establishing over 1500 IT Centres across the country where thousands of people can gain basic computer skills to set up their businesses.

As part of the commitment to ensure the successful implementation of its mandates, NITDA unveiled it’s Strategic Roadmap and Action Plan (SRAP 2021 – 2024) to prioritise digital innovation and entrepreneurship support for MSMEs to enable them to evolve into Innovation-Driven Enterprises (IDEs).

Recently, NITDA scored another landmark achievement with the establishment of a state-of-the-art fabrication laboratory (FabLab) through one of its subsidiaries, the National Centre for Artificial Intelligence and Robotics (NCAIR). High-tech equipment available in the facility includes CNC router, laser cutter, milling machine, 3D printers, embroidery machine, and lab oven. The FabLab offers the opportunity for young Nigerian innovators to create solutions and help MSMEs and other sectors to thrive in the digital economy.

Meanwhile, international tech giants like Google, through partnerships with public and private sector organisations created programmes to provide MSMEs access to support in the areas of funding, training, and networking to expose them to the necessary knowledge and expertise to actively participate in the global market place.

NITDA, SMEDAN and other stakeholders within the tech innovation industry team must raise awareness on digital tools, training, and capacity-building programmes to motivate MSMEs to embrace innovative but cost-effective digital technologies. The digital connectivity should be strengthened to help MSMEs to acquire technical and networking skills virtual/online without having to travel out of their immediate locations.

Undoubtedly, when adequate resources are channeled into our small businesses, more entrepreneurs and innovators will grow in the communities and contribute their quota to boosting development and foster wealth creation for the wellbeing of our community dwellers.

Zeenat O. Sambo, Wuye District Abuja