ECONOMIC INSIGHT Firm raises access to funding for 75 SMEs in Abuja

A business development firm, Technoserve Nigeria Limited, says it has raised access to loans from banks for 75 Small and Medium Scale Enterprises (SMEs) in Abuja by 57 per cent within two years.

The firm in a statement, yesterday, said the 75 SME operators were registered under its Mom and Pop Shops (MPS) project across Abuja.

The two-year project funded by the Citi Foundation since October 2015 was aimed at increasing financial return and growth of the 75 MPS in Abuja, by providing business solutions to the challenges they face.

At the launch of the MPS project, Technoserve said 87 per cent of the participants were women. The firm, which marked the project end at the weekend, said 60 businesses were trained on best business practice while 23 stores received N50,000 loans for product purchase.

More so, 75 shop owners had access to business information and 25 businesses received oneyear record-keeping and business support from Technoserve.

Recounting the impact, Technoserve said the businesses witnessed an increase from 13 per cent to 57 per cent access to funding from various banks within the two-year period.

It also resulted in 30 per cent sales increase and about 40 per cent reported increase in profit for the business participants. It also recorded 87 per cent rise in record keeping practice.

Despite the success recorded, the firm said it identified cumbersome loan application process from banks to be the bane of business expansion in Nigeria.

It also decried low participation of youth in business. “The average age of project participant was 37, indicating poor youth participation in the sector,” the statement said.