Business Development Services for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

Business Development Services for MSMEs in Nigeria.

1) Relevance of Micro, Small and Medium Enterprises (MSMEs) in Nigeria.

BusinessOntop – Business Development Services

Business Development Services for MSMEs in Nigeria.

The relevance of Micro, Small and Medium Enterprises (MSMEs) to the Nigerian economy is no longer in doubt. They possess great potentials for employment generation, improvement of local technology, output diversification, and development of indigenous entrepreneurship and to drive integration with large-scale industries. In Nigeria, the Micro, Small and Medium Enterprises (MSMEs) sub-sector is credited with about eighty five percent (85%) of total industrial employment. Also, agriculture which holds prime potential for achieving national economic diversification and improved local content utilization aspirations comprise mostly operators who fall within the MSMEs ambit. The above is amongst several other attractions of the Micro, Small and Medium Enterprises (MSMEs) sub-sector.

2) Funding Gap for Micro, Small and Medium Enterprises (MSMEs) in Nigeria.

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

The lack of finance for Micro, Small and Medium Enterprises (MSMEs) has been an issue discussed by the government, industry leaders and financial institutions at large. Most Micro, Small and Medium Enterprises (MSMEs) businesses have challenges getting the required finances to improve and grow their businesses.

August 15, 2013 The CBN launched the MSME Development Fund with a share capital of N220 billion. The Fund was established in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSMEs) sub-sector to the economy and the existing huge financing gap. The broad objective of the Fund is to channel low-interest funds to the MSME sub-sector of the Nigerian economy through Participating Financial Institutions (PFIs).

Also, Banks and Fintechs (Financial Technology Companies) have also been filling the gap in the market by providing short-term financial loans to Micro, Small and Medium Enterprises (MSMEs) in Nigeria. Banks often require a large amount of paperwork, including a business plan, as part of the application process compared to Fintechs who leverage data and technology to provide smooth and quick access to funds.

In the past and recent times, the Nigerian Government has established numerous schemes and programs specifically targeted at MSMEs e.g. SMEDAN, YouWin, TraderMoni, N-Power, etc. All these efforts combined together form a great step at bridging the gap for Micro, Small and Medium Enterprises (MSMEs) in Nigeria.

3) Financial Services for Micro, Small, and Medium Enterprises in Nigeria.

Business Development Services for MSMEs in Nigeria.

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Micro, Small, and Medium Enterprises (MSMEs) in Nigeria and other parts of the world require two types of services: Financial Services and Non-financial Services (commonly referred to as “business development services” or by the acronym “BDS”). Financial services help existing or would-be entrepreneurs in Nigeria acquire the means for establishing or expanding a business (e.g. finance for machinery, production premises, and working capital). In the majority of cases, these services refer to Bank loans in Nigeria or Credit made available through wide-ranging credit schemes. In recent years, new types of financial services have been offered to Micro, Small, and Medium Enterprises. These include the leasing of equipment, joint ventures, and special types of subcontracting arrangements.

4) What are Business Development Services?

The provision of information, knowledge and skills, as well as advice on the various aspects of a business, is referred to as Business Development Services (BDS) in Nigeria, as well as in other parts of the world. This definition of Business Development Services BDS in Nigeria, implies a conscious action performed by the service provider (usually a consulting firm) for the benefit of the receiver of the service. Thus, the action of an individual using savings for establishing a business may not be considered as a “financial service”. Similarly, information obtained inadvertently by an entrepreneur (e.g. on a supplier of materials) may not be considered an “information service”. This is an important distinction that is not made by some practitioners who tend to use the term Business Development Services whether a service provider is involved or not.

Business Development Services (BDS) in Nigeria, as well as in other parts of the world are provided to help owners of enterprises get new ideas on how to improve their business through, for example, increasing productivity, reducing production costs, or accessing a more profitable market. These services include the transfer of information in various forms through, for example, Consulting Services or special events (e.g. exhibitions and trade fairs). The impact of this category of Business Development Services BDS depends on how the owners of enterprises make use of the new ideas.

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

In many cases, Business Development Services in Nigeria may also be required for the establishment and operation of an enterprise. Services required in this instance may include legal services (e.g. registration of the enterprise), training of owners and workers, special laboratory services for testing goods produced by the enterprise, and assistance in arranging contracts with larger firms.

5) Formal Vs Informal Business Development Services in Nigeria?

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

Formal Business Development Services in Nigeria are those provided through special arrangements, conditions or contracts between a Business Development Agency/Consultant and the owner of the Nigerian business or client. They include services provided by public and private sector organizations, private sector consultants and consulting firms, as well as services specifically included in a contract between the owner of the enterprise and a supplier or contractor. These services may be provided free-of-charge or for a fee. Informal Business Development Services in Nigeria are those that are not provided by service providers. They include information and advice provided by the relatives, friends or employees of the owner of the enterprise, as well as those services provided in the context of normal commercial transactions with suppliers, clients or contractors. Informal Business Development Services in Nigeria also include information obtained from media programmes (e.g. radio and television). These services are usually obtained free-of-charge. In many situations, these are generally the only sources of Business Development Services used by Micro, Small, and Medium Enterprises (MSMEs), which is not good enough.

6) Providers of Business Development Services in Nigeria.

Business Development Services for MSMEs in Nigeria.

Business Development Services in Nigeria can be provided by commercial, for-profit agencies, or by institutions that are not-for-private-profit organizations. Those services provided on a commercial basis include the services made available by private consultants and consulting firms in Nigeria, as well as those provided under contract in the context of commercial transactions with suppliers, contractors or firms offering specialized services (e.g. repair and maintenance of equipment). The fees applied in these cases cover the full cost of the services. These services are demand-driven and client satisfaction plays an important role in the growth of these service providers.

7) Institutional provision of Business Development Services in Nigeria for MSMEs

Business Development Services (BDS) in Nigeria provided on an institutional basis includes those made available by private sector organizations (e.g. chambers of commerce), government organizations and institutions or associations of Micro, Small, and Medium Enterprises and NGOs, under various arrangements and conditions. These services are usually provided free-of-charge or at subsidized fees, for non-private-profit motives, as part of the organization’s mandate to promote the Micro, Small, and Medium Enterprises (MSMEs) sector. These Business Development Services in Nigeria may or may not be demand driven.

8) The focus on Financial Services as against Business Development Services.

Business Development Services for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

Business Development Services for MSMEs in Nigeria.

In most developing countries and emerging economies, those involved in Micro, Small, and Medium Enterprises (MSMES) development usually pay more attention to financial services than to the non-financial Business Development Services BDS. This emphasis, however, is often misplaced. Many studies show that the large majority of micro-enterprises, and to some extent small enterprises, use their own savings for establishing a business or their accumulated profits for expanding an existing one. They do not attempt to obtain finance from external sources. Furthermore, Micro, Small, and Medium Enterprises (MSMEs) are often discouraged by banks (consciously or unconsciously) from applying for finance, and available credit schemes usually only reach a small proportion of the total population of Micro, Small, and Medium Enterprises MSMEs. A large proportion of people wishing to establish a business are doing so, therefore, without the benefit of financial services.

9) Impact of Business Development Services for MSMEs in Nigeria.

Few existing or potential entrepreneurs can establish or expand a business without access to some form of business development services, as defined earlier. These may be formal or informal services, provided through commercial or institutional sources. The proportion of Micro, Small, and Medium Enterprises (MSMEs) that never use development services of one sort or other is very small. Most Micro, Small, and Medium Enterprises (MSMEs) need some information and training, whether this is provided through formal or informal channels. They may also need to deal with contractors or intermediaries if they are involved in subcontracting, or the services of a technician may be required for major repairs to their equipment. Access to quality Business Development Services by Micro, Small, and Medium Enterprises (MSMEs) can boost the growth and competitiveness of the enterprises. It can also increase the impact of existing financial services and improve the capacity to repay loans.

The impact of Business Development Services in Nigeria depends on the proficiency of the service provider and on the use made by Micro, Small, and Medium Enterprises (MSMEs) of other services. Business Development Services in Nigeria should be demand-driven, and the owner of the enterprise should recognize the need for Business Development Services assistance. However, the service provider or business consultant in Nigeria may also have a role in helping the entrepreneur to identify the specific problems of the enterprise, and in offering appropriate assistance. This should ensure that the Business Development Services are impactful and relevant.

Business Development Services for MSMEs in Nigeria.

Business Development Services for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

Business Development Service providers in Nigeria should be sufficiently qualified to provide good quality services. Business Consulting services in Nigeria  should be based on a good understanding of the problems faced by the enterprise. The entrepreneur should have confidence and trust in the Business Development Services provider, and this should increase the chances of the entrepreneur adopting and applying the relevant advice of the service provider.

10) The Use of Business Consulting Services by MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

Business Development Services for MSMEs in Nigeria.

When it comes to Business Consulting Services, Micro, Small, and Medium Enterprises in both industrialized and developing countries do not appear eager to use the services of consultants. A recent study in one part of Switzerland shows that a very small proportion of Micro, Small, and Medium Enterprises have used the services of a private consultant or consulting firm in order to find a solution to a particular problem or to get advice on how to improve their business operations. However, there are a few important differences between industrialized and developing countries in this respect. The majority of owners of Micro, Small, and Medium Enterprises (MSMEs) in industrialized countries use the services of an accountant to help them prepare their yearly statement for the relevant authorities. Accountants also help in assessing the financial situation of the enterprise. Another difference is in the increasing use that Micro, Small, and Medium Enterprises (MSMEs) owners make of software to carry out various assessments of their enterprises, and to help decide on the best course of action. This software may be partly considered as a substitute for consultants.

11) Business Development Services in different types of Countries.

Similarities and differences between Business Development Services in industrialized countries and developing countries and countries in economic transition can be found. The main similarity is that the large majority of Micro, Small, and Medium Enterprises access Business Development Services from the private sector – either formally or informally. Studies carried out in a number of developing countries show that one of the most important sources of business services for Micro, Small, and Medium Enterprises are their suppliers and clients, as well as larger firms with which they have established subcontracting arrangements. Approximately five per cent (5%) of Micro, Small, and Medium Enterprises access business services provided by government agencies and Non-Governmental Organizations. Another similarity is the infrequent use of consultants, the main difference being that accountants are generally used by Micro, Small, and Medium Enterprises in industrialized countries. However, the main difference between industrialized countries and developing countries is that Micro, Small, and Medium Enterprises in industrialized countries make a greater use of formal business development services. Furthermore, the average educational level of owners of Micro, Small, and Medium Enterprises in industrialized countries is generally higher than that of developing countries and emerging economies. These higher educational levels facilitate a more effective use of available services, especially those with a literacy requirement – such as many forms of training.

There are more sources of information in industrialized countries than in developing countries. Thus, entrepreneurs in industrialized countries are quickly informed about new technological changes, market trends, etc. This can help the entrepreneurs to make quick adjustments in the enterprise and maintain their competitive edge.

In contrast to Micro, Small, and Medium Enterprises (MSMEs) in developing countries (like most African Countries), those in industrialized countries are generally considered as equal players with the larger ones. They are associated to the larger enterprises through a dense web of linkages, which significantly increases the inter-dependence between all sizes of enterprises. These strong linkages facilitate further access by Micro, Small, and Medium Enterprises (MSMEs) to a wide range of services. Furthermore, Micro, Small, and Medium Enterprises are well represented in private sector organizations and can play an important role in decision-making within these organizations. On the other hand, these linkages are still weak in developing countries, and few Micro, Small, and Medium Enterprises (MSMEs) are members of private sector organizations.

In industrialized economics, many large equipment manufacturers and suppliers of raw materials and intermediate inputs are aware of the importance of the Small, and Medium-Scale Enterprises (SMEs) market, and are active in responding to demand for capital goods, services and inputs from this market. In developing countries, large enterprises are less responsive to this market for reasons not clearly established. Thus, Micro, Small, and Medium Enterprises are frequently obliged to depend on suppliers of expensive imported equipment or sub-standard second-hand equipment. Furthermore, maintenance and repair services are not easily available for this type of equipment.

Investment in education by both governments and the private sector should promote a new breed of better-educated entrepreneurs capable of competing with their counterparts in industrialized countries, and capable of using new information and other technologies in their business. Promoting more use of new information technologies and the facilities provided by the Internet for e-commerce or for accessing all types of information of interest to Micro, Small, and Medium Enterprises is also essential.

In expanding the role of the private sector in BUSINESS DEVELOPMENT SERVICES provision in Nigeria, private sector organizations should promote a broader membership base to increase the representation of Micro, Small, and Medium Enterprises. They should take measures to strengthen, expand and diversify linkages between all sizes and types of enterprises. Larger firms should be encouraged to review their current strategy for growth to determine whether such strategy pays sufficient attention to possibilities for expanding and strengthening linkages with Micro, Small, and Medium Enterprises, and improving the business performance of their “smaller” (MSMEs) business partners.

12) Common Services of Business Development Services Providers in Lagos Nigeria.

i) Business Plan Writing in Lagos Nigeria.

Professional Business Plan Writers in Nigeria | Business Plan Writers in Lagos

Business Planning is the process of determining a commercial enterprise’s objectives, strategies and projected actions in order to promote its survival and development within a given time frame.

Business Plan is a document that describes a business, its products or services, how it will earn money, leadership and staffing, financing, operations model, and other details that are essential to both operation and success. Entrepreneurs create them as part of the start-up process while existing businesses often write them when changing direction or strategy. Most business plans cover the company’s first three to five years. Click on the link to know more about Business Plan Writers in Lagos Nigeria.

ii) Feasibility Study/Research in Lagos Nigeria.

Business Research in Lagos Nigeria.

A feasibility study is a research that is carried out in an attempt to generate information that would guide the intended CEO or Management Team that is considering starting a new venture/project. A feasibility study provides step-by-step information of everything that needs to be known towards starting-up anything new (or expansion).  Feasibility studies also helps to determine if the proposed idea, venture or concept is viable / feasible or not. Click on the link to know more about Feasibility Study Writers in Lagos Nigeria.

iii) Business Growth Consulting Services in Lagos Nigeria.

Business Development/Consulting services

The job of Business consulting firms is to advice business owners on the best possible ways to grow their individual businesses, and also strategize with them on the most effective ways of overcoming their business challenges. Business Consultants in Lagos Nigeria and also Business Consultants in other parts of the world are also responsible for organizational structuring and business process analysis and structuring. Business consultants can be seen as Business Doctors; they study businesses with different approaches, they analyze businesses, they help businesses to grow and stay healthy by giving professional advice and techniques to business owners. Business Consultants really need to be passionate about their job for them to be effective. Business consultants play the role of coaches, as such; business consultants are also called business coaches. Click on the link to know more about Business Growth Consulting Services in Lagos Nigeria.

iv) Proposal Writing Services in Lagos Nigeria.

Proposal Writing Services in Lagos Nigeria

Business Development Services for MSMEs in Nigeria.

Proposal is a formal request for something, sent from one party to another.

Proposal can also be said to be the act of offering or suggesting something for acceptance, adoption, or performance.

In a number of cases, a Proposal is an idea, concept, or new approach seeking acceptance, and usually presented in a written format.

Writing a Proposal can be seen as an act of putting forward or stating something in writing for consideration by another person or group of persons. Click on the link to know more about Proposal Writing Services in Lagos Nigeria.

v) Company Profile Writing Services in Lagos Nigeria.

Best Company Profile Writers in Nigeria. Company Profile Writers in Lagos.

Business Profile or Company Profile can be defined as a detailed and graphical document that aims to introduce a Company/Business to the general Public. So, a Company Profile answers all the key questions that are usually asked by people coming across your Company/Business for the first time. First of all; from what your company is all about, to the different means you can be contacted, to the prices of your products (if you have fixed prices), to mention a few.

In addition, a company Profile is a nice looking document that ultimately introduces your business/company to those meeting you for the first time. It’s your story, it’s your edge, and it’s everything that tries to do the conviction both in writing and design. Click on the link to know more about Company Profile Writing Services in Lagos Nigeria.

vi) Logo Design in Lagos Nigeria.

At the very basic level, logos are symbols made up of text and images that help us identify brands we like. But they can be so much more! A good logo is the cornerstone of your brand. It helps customers understand what you do, who you are and what you value. That’s a lot of responsibility on a tiny image!

A professionally designed logo should be consistent, recognizable, and evoke a positive or meaningful feeling. A good logo should infuse the spirit of your brand throughout all visual elements and marketing channels. Click on the link to know more about Logo Designers in Lagos Nigeria.

vii) Search Engine Optimization Services (SEO) in Lagos Nigeria.

Search Engine Optimization (SEO) is the process of improving the quality and quantity of website traffic of a website or a web page for search engines. SEO targets unpaid traffic (known as “natural” or “organic” results) rather than direct traffic or paid traffic. Unpaid traffic may originate from different kinds of searches, including image search, video search, academic search, news search, and industry-specific vertical search engines. Click on the link to know more about Search Engine Optimization (SEO) in Lagos Nigeria.

viii) Website Design Services in Lagos Nigeria.

website is a collection of publicly accessible, interlinked Web pages that share a single domain name. Websites can be owned by an individual, group, business or organization to serve a variety of purposes.

Although Websites come in a nearly endless variety, including educational websites, news websites, religious websites, forums, social media websites, e-commerce websites, and so on. The pages within almost all websites are usually a mix of text and other media. Click on the link to know more about Website Design in Lagos Nigeria.

iv) Speech Writing Services in Nigeria.

Best Business Plan and Proposal Writing in Nigeria.

Many Individuals and corporate bodies need speech writers or copy writers to help them pass/convey messages that are capable of delivering the needed results. This is where some business development firms come to play. Click on the link to know more about Speech Writing in Nigeria.

13) Contact Development Services Providers in Lagos Nigeria.

We are very reachable and willing to hear from you. Click on the button below to get to the contact page.

References:

documents1.worldbank.org/curated/en/375441468130805111/pdf/368310VN0Busin1nt0BIB171VN11PUBLIC1.pdf

investopedia.com/articles/personal-finance/090815/basics-business-development.asp

nzdl.org/cgi-bin/library?e=d-00000-00—off-0cdl–00-0—-0-10-0—0—0direct-10—4——-0-1l–11-en-50—20-about—00-0-1-00-0–4—-0-0-11-10-0utfZz-8-10&cl=CL2.9&d=HASH0151544afe467343943a32c7.6&gt=1

samueluwawah

Business Growth Expert, located in Lagos, Nigeria. Services Include: - Business Plan Writing. - Proposal Writing. - Website Design. - Feasibility Study. - Business Growth Consulting. - Company Profile.

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