Empowering SMEs to Optimise Efficiency

Raheem Akingbolu writes on the need for stakeholders and promoters of small and mediumsized enterprises, to prioritise training and empowerment to enhance client’s satisfaction, citing the Seven-Up Bottling Company’s SMEs Bootcamp as a good example

In the rapidly advancing world, small and medium-sized enterprises (SMEs) grapple with the constant challenge of maintaining competitiveness while meeting the ever-increasing demands of their clientele. Experience has since shown that many factors come into play in setting standards and creating a niche in the market but perhaps the most important is training and empowerment.

To this end, some organisations have since sprung up to fill the gap. One such intervention was the recent two-day Scale-Up Bootcamp for budding business owners, promoted by Seven-Up Bottling Company, in partnership with Zenith Bank and United Nations Industrial Development Organization (UNIDO). The bootcamp, themed “Dream big, Scale Bigger”, was aimed at providing SMEs with practical strategies for scaling.

Among other benefits, participants at the bootcamp were provided with a streamlined approach to enhance resource management, cater to client requests, and handle critical instances. With its user-friendly interface and unwavering commitment to empowering businesses, it is believed that the company has emerged as a transformative force for SMEs in Nigeria, thereby revolutionising the way they operate.

EXPERTS’ INPUT

The beauty of the two-day session was that it exposed the Chief Executive Officers of 80 SMEs to growth experience of experts such as the Managing Director of Seven-Up Bottling Company, Ziad Maalouf, and GM of Marketing Seven-Up Bottling Company, Segun Ogunleye. Besides, the bootcamp also had impactful sessions facilitated by GDM, Zenith Bank’s Head of Retail Banking, Lanre Oladimeji; the National Director, UNIDO, Oluyomi Banjo; former Chief Executive Officer, the Federal Competition and Consumer Protection Agency (FCCPC), Babatunde Irukera, and the Founder, Thrive HR, Adeshola Aliogo.

In addition to the aforementioned, the ScaleUp Bootcamp 1.0 provided attendees with the requisite corporate, people management, and financial management strategies crucial for scaling. In particular, the bootcamp provided insight to at least 10 knotty issues hampering the growth of the SMEs in the country.

Under what was tagged ‘identify your ‘sweet spot’, Maalouf opined that a business aiming to scale must have the right combination of experience, passion and value to meet a global need. According to him, this combination provides the sweet spot. Maalouf advised entrepreneurs that if their current business fails to match all three aspects, there’s a need for reconsideration.

TEAM EVALUATION

Another major tip touched by the facilitators at the camp centered around the importance of team evaluation and incentives to small businesses. It was stated that while fresh and quality recruitment might be needed to drive the growth of business, there is also the need for critical evaluation of the team. According to Maalouf, there’s a need to evaluate the team based on performance and value. Those below average should be allowed to go and the average and high performance should be motivated. “Create a performance and incentive framework. The majority of employees are not motivated by salary. Convert your employees to shareholders with incentives for performances and watch that team you think is average produce results that scale your business,” he said.

It was also pointed out that look-alike recruitment breeds stagnation. To this end, business owners were urged that one of the ways to boost their businesses, they must have the right combination of people. To have the right mix, entrepreneurs were advised to avoid the lookalike requirement trap. To drive business growth, a SABI (Strive, Accountability, Bonding and Innovation) formula was recommended for SMEs. The team should consist of strivers who get things done, the accountable ones with strict adherence to processes; the social ones and innovators who are the ideation hub of the business.

To succeed in business, another takeaway from the event was the need for businesses to seek business transformation advice. To achieve growth, SMEs must be open to criticism and evaluation. Owners should not think they could grow the business all by themselves. There’s a need to seek insight from experts and also learn from competitors when needed.

Like other businesses, Maalouf harped on the importance of networking to business growth. He emphasised that startups often overlook the importance of networking. He asserts, “Your business won’t scale up until you elevate your relationships.” Additionally, he underscores the significance of a robust network in times of crisis, stating, “If you are scaling up, you need to be prepared for crises, as they will inevitably confront you, especially as a big company.”

LESSONS LEARNT

Having learnt many entrepreneurial lessons during his growth trajectory in the corporate world, Maalouf urged the SMEs to increase their willingness to pay. According to him, this is tied to creating value that will make the customer want to pay more for your product or service. He said businesses willing to scale must provide functional, social, and emotional value. “What many entrepreneurs don’t know is that customers are willing to pay more if you offer the value. This is what gives an edge over a competitor. When you have the value that the world needs, customers will neglect other products for yours.”

The event also touched on another sensitive area about job delegation because of the common practice among entrepreneur’s to get involved in all aspects of their enterprise. Experts at the bootcamp advised that as leaders, entrepreneurs should build a team that can get things done without them, and spend more time on ideas, building relationships, connections, and other initiatives that can grow the business.

FINANCIAL INSTITUTIONS’ SUPPORT

Presenting tips on how businesses can boost their chances of accessing loans from financial institutions, the Zenith Bank Head of Retail Banking, Lanre Oladimeji, said business owners need to be conversant with the five Cs of credit and know that character is key to accessing loans. He said, “SMEs must have a business continuity and succession plan and know the type of funding available to businesses in their sector.” He further explained that to access loans, “an applicant needs to help the banker understand the business and explore the options they provide to support the business. Make every effort to service existing loan obligations. If loans go bad, stick with your bank and work out a remediation plan. In this digital era, there is no running away when a loan goes bad.”

In her people management session, Founder, Thrive HR Nigeria, Adeshola Aliogo, said employee engagement is a major growth driver for enterprises. She described engagement as the level of enthusiasm and dedication a worker feels towards their job. She said this occurs when employees find MAGIC Meaning, Autonomy, Growth, Impact, and Connection in the business. She advised that entrepreneurs should set their value standards, and then find workers with the same level of enthusiasm and who understand how everything they do ties to the growth of the business. “The cost of not hiring right is more,” she stressed.

FUNDING SMES

In the area of funding, the hint about SME funding opportunities at UNIDO was dropped for the participants by the National Director, UNIDO, Oluyomi Banjo, at the bootcamp. Banjo announced that UNIDO is committed to advancing Sustainable Development Goal Number 9, which advocates industry, innovation, and infrastructure in Nigeria through its various initiatives such as the Global Cleantech Innovation Programme. He said participants who own waste recycling businesses, and others who fit into the sustainability space, should take advantage of the GCIP, to access business support for scale-up.

Former Chief Executive Officer, the Federal Competition and Consumer Protection Agency, Babatunde Irukera, during his regulatory framework session, noted that several businesses have been killed by regulatory issues across the globe. According to him, though regulations are existential threats to businesses, they also facilitate growth of SMEs, as they help to reward innovation. “Without regulation, SMEs won’t have a level playing field to survive and scale. Regulation secures everyone. Your businesses won’t grow if there is no regulator to check competition. It is important to keep everyone accountable to certain standards,” he said.

Considering the timing of the Scale-Up Bootcamp, experts have commended the initiative. Currently, it has been established that small and medium-scale enterprises are projected to contribute 49.5% to Nigeria’s GDP in 2024, which is an indication that Nigerian SMEs are in for another impactful year. In 2023, the sector was believed to have performed incredibly well, as it contributed 45% to the Gross Domestic Product of the country. However, in developing economies like Nigeria, there remain several challenges facing this critical sector, some of which the bootcamp had successfully addressed.

While players in the SME sector battle the perennial challenges, experts have observed that most small-sized business owners in the country also lack strategic awareness and acumen to grow their enterprise, hence the reason for appreciating the recent initiative.

Observers believe that Scale-Up Bootcamp serves as a beacon of hope for small-medium enterprises seeking to optimise scalability, efficiency, and client satisfaction. Endowed with exceptional features and unwavering commitment to its values, the partners on the project have transcended beyond being mere tool; they have transformed into indispensable allies in the pursuit of success. By empowering businesses to dedicate themselves to their core mission while streamlining operational tasks, the Leading beverage giant, Seven-Up Bottling Company (SBC), is helping to create a pathway to streamlined prosperity and growth for the economy. As the world progresses, this innovative organisation remains at the vanguard of transformation, bridging businesses closer to their aspirations, one streamlined step at a time.

“What many entrepreneurs don’t know is that customers are willing to pay more if you offer the value. This is what gives an edge over a competitor. When you have the value that the world needs, customers will neglect other products for yours.”