Small and medium-sized enterprises (SMEs) are defined differently around the world. In Nigeria, they are businesses that have a turnover of less than ₦100m per annum and/or less than 300 employees. This category of businesses make up a large chunk of the businesses in Nigeria and play a crucial role in the economy.
Larger enterprises are usually not as flexible as SMEs so a lot of the innovation in an economy actually comes from SMEs because they are the businesses that have to create new products & services that meet the needs of an ever-evolving market. This equally means the creation of jobs and the development of talent which of course is great for any economy.
The existence of these businesses also ensures that there is healthy competition for prices, products and efficiency in processes. Without SMEs, the larger enterprises would dominate the markets.
However, SMEs also play a role in supporting large enterprises because they specialize in different areas of business operations that large enterprises need, without SMEs the large enterprises will be forced to take on every activity which will spread it way too thin.
At the Rise Investment Club, we have conversations about the role that starting a business can play in increasing our income and achieving financial freedom. During August’s Investment Club meeting, we had the Seven Dollar Millionaire as our guest who shared some insights with us on the habits that lead to financial freedom (ICYMI : https://youtu.be/hAiEUnTxjBY)
The major reason why people start their own businesses is that they want to be their own bosses and they would like to chase their passion. This may sound like a journey you want to embark on and if it is, the good news is that technology can help you start and run your business a lot more effectively and efficiently.
There are numerous ways you can leverage technology to run a solid SME in Nigeria and for our September Investment Club Meeting, we have Uzoma Dozie as our guest to speak with us on how to do just that. Uzoma is the CEO of Sparkle, a tech entrepreneur, investor and veteran in the Nigerian banking space who believes that technology can spur the Nigerian economy and this makes him a perfect guest for this meeting.