•Say 70% yet to leverage tech advantage
By Merit Ibe
Despite digitalisation being the fulcrum on which successful businesses revolve in the 21st century, experts are worried that 70 per cent of Small and Medium Enterprises (SMEs) in Nigeria are yet to leverage tech advantage to push themselves to the next level.
To correct that, experts have asked those playing on the SMEs’ turf to urgently embrace various digital tools as fresh catalysts for growth.
But paucity of funds and other socio-economic hurdles have eclipsed them from going digital.
Nonetheless, analysts have maintained that adopting cheaper digital tools like e-commerce platforms, social media and financial management applications can streamline SMEs operations, reduce costs, and facilitate better communication with customers.
According to an industry report, over 30% see social media tools as a vital contribution to the business performance of SMEs. But challenges such as financial constraints, limited expertise due to poor education, infrastructure deficits among others have hindered and stifled the adoption of technology which can foster digital transformation.
Daniel Dickson-Okezie, an SMEs expert, viewed that the percentage of SMEs in Nigeria that have embraced digital technology cannot be more than 30 per cent.
“That is still low.The first question is how do we describe SMEs as having embraced digital facilities?
The standard assessment is a situation where one has the basic gadgets like computers, phones, internet access, education among others.”
He said digital technology, such as cloud computing, teleworking-enabling software and supply chain management solutions, can help SMEs absorb adverse impacts, innovate and adapt in their offers and business models in response to market changes.
“There are applications like basic accounting packages they must know to be able to compute.
Though the number of small businesses adapting to the use of tech is increasing by the day through the use of mobile phones.”
Dickson-Okezie noted that some government agencies and members of the organized private sector are making efforts to create awareness.
The Lagos Chamber of Commerce and Industry (LCCI) usually holds seminars and workshops, to encourage small businesses to embrace digital technology.
One thing is certain, the rate at which more and more SMEs are embracing digital technology as the day goes by is encouraging though still low.”
He listed some challenges that have slowed down adoption of technology by SMEs to include poor infrastructure like power supply, education, internet access.
“Power supply is epileptic, the level of education among SMEs is low. You know, about 65 percent to 70% of the SMEs in Nigeria are run by people who are not enlightened. And digital technology requires some level of education and skill too.
“Investment in digital technologies doesn’t come cheap, it requires capital which might not be easy for SMEs”, he noted.
Chairman, Lagos chapter of National Association of Small Scale Industrialists (NASSI), Gertrude Akhimien, pointed out that the association has continued to encourage its members by organising training sessions to update them on the use of digital tech to run their businesses.
She urged other business owners who have not keyed into digital trade join to beat the harsh business environment with less cost.
“Technology improves sales and reduces cost of doing business to a large extent and improved technology increases production.. She urged the government to increase investment in advanced technology and mechanised agriculture, emphasising that modern tools are essential for boosting capacity and scaling up production.
Joy Orji, a tech consultant at Business Specifics, noted that technology presents small businesses with valuable opportunities to optimise operations, cut costs, and enhance productivity. She added that automation tools, in particular, can significantly reduce the burden of repetitive tasks.
“It affects how an organisation operates, sells its products, interacts with and gathers intelligence on customers, suppliers and competitors.
“Most SMEs are not aware of digital skills needed to run their day to day business. That is where the place of training comes in.
The government should organise free training for small businesses from time to time to help them upgrade with relevant skills needed in today’s business.”
She advised SME manufacturers to use tools such as video conferencing, project management software and cloud storage to collaborate with their team members, suppliers and customers in real-time.
“Technology can help SME manufacturers better understand their customers’ needs and preferences.
“The internet and digital tools have enabled businesses to reach customers worldwide, expanding their market reach.”
She emphasized that the government has to improve internet connectivity and make it affordable for small businesses.
“We definitely need a steady power supply to operate, so the government should make it available and affordable with Internet connectivity so that small businesses can connect and remain in business in these harsh times.”
Shola Abebe, an account executive of Green line Technology Africa, said there was a need to help more MSMEs survive by ensuring they have access to finance for capital and operational demands and have the technological support they need to overcome market challenges and make it easier for them to do business.
“If we get that right, I do believe that 7.5% growth is achievable for Nigeria’s economy.
“In this era of technological advancement, there is the need for SMEs to key in and make for growth and business success.
“Businesses need relevant, affordable and accessible digital financial solutions for them to reach their full potential and drive the country’s development. The time has come for Nigeria to recognize the transformative power of these solutions and the enormous impact they can have on the growth of MSMEs and the overall economy.”
A web designer, Chime Otey, listed some ways small businesses can maximize the potential of technology like;
functional website, project management tools, Social media, mobile marketing, among others.
He said web marketing, also known as digital marketing, online marketing and so forth, e-marketing is the process of selling products/services using the internet. E-mail marketing falls into the category of e-marketing.
He said having seen how mobile banking apps, e-commerce apps and fintech platforms have strengthened web-based payments, it is only expected that SMEs take advantage of this.
“When utilised properly, more advanced technology tools such as automation, artificial intelligence, data analytics, not to mention cloud computing can transform seemingly small businesses into grand empires.”
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