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Executive Order 5 will boost job, wealth creation – Minister

 

The Minister of Science and Technology, Dr Ogbonnaya Onu, has said the signing of the Executive Order 5 bill into law will encourage Nigerians to create wealth and jobs in the country.

Onu disclosed this in Abuja on Tuesday when the inter-ministerial committee submitted its report on the bill.

He said the bill would be studied before being forwarded to the Federal Executive Council for scrutiny and then to the National Assembly.

“When the draft bill is signed into law, it will encourage Nigerians to create wealth and jobs for the nation,” he said.

He commended the committee for producing a document that would be sustainable, adding that the country ought to have done this long ago.

The Chairman of the committee and Director, Legal Services in the ministry, Mrs Yvonne Odu-Thomas, said the committee took time to assess the executive order before coming out with a comprehensive draft.

The Presidential Executive Order No.5 for Planning and Execution of Projects, Promotion of Nigerian Contents in Contracts, Science, Engineering and Technology was signed by the president on February 2, 2018 and has been duly gazetted.

It is expected to empower Nigerians to use their talents to contribute to national development and create the platform for them to leverage the country’s natural resources to be self-reliant.

READ ALSO: Creativity is key to successful ‘travelpreneurship’ – Fakoya-Smith

Access Bank to support MSMEs with $162.5m loan

Access Bank Plc on Monday said it had signed a subordinated syndicated loan agreement worth $162.5m (N58.18bn) to promote growth and job creation by supporting Micro, Small and Medium Enterprises.

The bank’s spokesman, Abdul Imoyo, said in a statement in Lagos that the facility was arranged by FMO, a Dutch development bank, and was provided together with BIO, a Belgian Investment Company for Developing Countries.

Others include Blue Orchard Microfinance Fund, CDC Group plc, DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), Finnfund (Finnish Fund for Industrial Cooperation Ltd), Oikocredit (Ecumenical Development Cooperative Society U.A).

European Financing Partners S.A, funded by the European Investment Bank, is acting on behalf of the European Community and Norfund (Norwegian Investment Fund for Developing Countries).

According to the bank, FMO acted as the mandated lead arranger and will be the facility agent.

It said the facility would qualify as tier-II capital, which would enable Access Bank to roll out its five-year strategy of becoming Africa’s gateway to the world.

Access Bank noted that part of the strategy was also to deepen the footprint in the retail segment as well as increasingly support local MSMEs.

It said this would thereby support job creation in the Nigerian economy.

Speaking on the transaction, the Group Managing Director and Chief Executive Officer at Access Bank, Herbert Wigwe, said the management was pleased to have worked with a world-class group of lenders on the transaction.

“The deal further reinforces the fact that our institution remains globally respected and reputable,” he said.

According to him, the syndicated facility is geared towards supporting the bank’s efforts to promote the growth and job creation potential of the private sector through improved access to financing.

Wigwe said, “Additionally, specific attention will also be paid to strengthening Micro, Small and Medium Enterprises as many have been held back due to a lack of access to finance.

“We believe this relationship will be the beginning of many more international partnerships with such entities.”

The Chief Investment Officer at FMO, Linda Broekhuizen, said FMO was proud to be the mandated lead arranger for this landmark transaction.

Broekhuizen said, “Through this transaction, FMO strengthens its long-standing relationship and commitment to our well-reputed client Access Bank.

“All lenders are pleased to be significant contributors to fostering the Nigerian economy and supporting job creation.”

 

READ ALSO: Omidyar Network unveils new venture firm, Flourish

Avocado as the ‘green gold’ of Africa

Avocado (persea americanais one of the few fruits that are high in fat and low in sugar, said Dr. Donald Hensrud, medical director of the Mayo Clinic Healthy Living Program in Rochester, Minnesota, and a specialist in nutrition and preventive medicine.

“Along with the nuts, olive oil and canola oil, the fat content in avocados are predominantly monounsaturated fat, which is responsible for many health benefits,” he added.

The name avocado is thought to come from the Aztec word ahuacati, which means testicleaccording to Merriam-Webster dictionary.  The name presumably is tied to the shape of the fruit.

Studies have shown that vitamin E can reduce the damage caused by excessive sun exposure and the effects of UVA and UVB radiation on skin cells.

As crude oil is known as the ‘black gold’ due to is money-spinning nature, it would not out of place to describe avocado as the green gold waiting to be explored. It needs to be celebrated by Africans that have the precious plant in abundance.

The pharmacologically active constituents of avocados are not only nutritionally valuableexperts assert, but they also possess anti-fungal, anti-inflammatory and antioxidant activity in some studies. They help lower the LDL (low-density lipoprotein), sometimes called ‘bad cholesterol,and help prevent cardiovascular disease and even cancer. Hence, everyday consumption is recommended.

Elizabeth Johnson, lead investigator of the study conducted at Tufts University, suggested that eating a whole fresh avocado everyday could lead to better brain and eye function in healthy, older adults, as monounsaturated fats, fibre, lutein and other bioactives make avocados particularly effective at enriching neural lutein levels.  

According to new research published in the journal, Nutrients, consuming one fresh avocado per day may lead to improved cognitive function in healthy adults due to increased lutein level in the brain and eye.

Lutein is a carotenoid or pigment, commonly found in fruits and vegetables, which accumulatesin the blood, eye and brain. It may act as an anti-inflammatory agent and antioxidant.

Avocado, commonly known as pear in some countries, including Nigeria, is in season again. Like other fruits, it is enjoyed alone or with other foods. However, it should also be noted as an effective beauty ingredient because of its good fat content, which is an ingredient of beauty treatment. It is an age-defying fruit.   

Avocados are rich in antioxidants, vitamins and fatty acids that can enhance the skin from the inside. The fruit can be used on the face for deep moisturisation and regeneration. Good levels of carotenoids in the diet have been reported in research studies to increase the skin’s density and thickness, as well as improved the tone and appearance.

Looking good is good business. Most people would not mind spending a fortune on artificial products trying to look good without obvious and effective results, when nature has offered a more affordable and effective way to beauty, said a dermatologist who preferred anonymity.

The avocado has long been known for its positive effect on the human body, and its healthful properties have made avocado face masks more popular in the last few years.

Why are avocados so popular?  Overall, getting an avocado mask has a number of benefits when it comes to fighting ageing, dry skin, dull skin, and a number of other skin problems.  When it comes to skin care, the benefits of avocado face mask are believed to come from its anti-oxidant and moisturising properties.

Avocado is emerging as the new ‘green gold’ of Africa, replacing cocoa, coffee and other cash crops, the hitherto leading export items.

Commonly referred to as the African pear, the avocado has the potential for fostering Nigeria’s industrial growth via foreign exchange. In other countries, there are other species like the Hass, Fuerte, Zutano, Bacon, Reed and Pinkerton.

Despite its popularity and increased consciousness of its health and beauty benefits, avocado has remained largely underdeveloped in Nigeria.Government has planned to boost agricultural production through improved funding to enhance productivity, market linkages and access to e-extension technology programme, accommodating known commodities such as cocoa, rice and maize, with little or no emphasis on underutilised industrial plant species such as avocado which contribute to the economic development of several countries. This is despite avocado availability and its wide distribution in the country.

According to a report published by World’s Top Exports, Kenya has unseated South Africa as Africa’s top exporter of avocado and has also made it into the top 10 exporters in the world raking in some $78 million in 2017.

Currently, avocado has not been produced for industrial purposes in Nigeria. The best use israther for household consumption or sale at local markets.

It is predominantly grown in the southern and central parts of the country, including Ondo, Imo, Abia, Anambra, Enugu, Ebonyi, Edo, Akwa Ibom, Delta, Cross River, Osun and Oyo stateswhichhave about 10 per cent of natural vegetation.

If properly harnessed, avocado’s industrial potential can contribute immensely to Nigeria’s economic growth through export.

Research shows that shipping of fresh avocados to the European markets doubled from 2012 to 2018. This trend is as a result of the increased health consciousness of the consumers. With the increased demand for the Hass variety, Nigeria stands a chance of becoming an exporter like Kenya and South Africa.

The consumption of avocados increases by threeper cent yearly.

After the United States, The Netherlands is the biggest importer of this fruit. Avocados consumed in Western countries are imported from Africa.

The growing demand for this cash crop, therefore,offers opportunities to those in the agriculturesector, but only when they are have good working conditions.

Europe imports avocado from Peru, Chile, Mexico, South Africa and Kenya. The competition for the European market is fierce, but industry experts expect a shortfall in supply in the near future, as countries in Asia (China and Japan) and the Middle East would begin to demand the product. This provides an opportunity for Nigeria to become an exporter of avocado.

Investigations revealed that Kenya produces 200,000 metric tonnes (MT) of the fruit yearly, yet exports 16,000MT.

Israel, on the other hand, produces 100,000MT of the fruit but exports 60 per cent and South Africa exports more than half of its annual production of around 125,000MT to Europe.

Meanwhile, Kenyan avocado export has increased by 10 per cent yearly for the last few years. Its export to the European market doubled between 2012 and 2017.

In Nigeria, there is a lot more to avocado that we think. But there is a lot more to avocado.

The government needs to design policies that would support national commercialisation programmestimulate the agri-business side of the avocado industry as Kenya did through its investment sector (AFFP, 2016) and evaluate the value chain.

With the above, we would have created job opportunities for the youths in the avocado farms, nurseries and pack houses

The value chain, including input suppliers such as fertilisers, implements and various other service industries would also benefit.  

It is important for stakeholders to understand the difference between agri-business and agriculture. With growing demand locally and globally, focused technical research on the best agronomy procedure, production standards and the continued adoption of the latest production technology, improved export policies and regulations, the industry would generate good revenue and keep growing from strength to strength.

Avocado farming is a very interesting butchallenging process. But real agropreneurs can ride on it to fortune.​​​

Omidyar Network unveils new venture firm, Flourish

Omidyar Network, an impact investment firm, has announced the launch of a new venture, Flourish.

According to a statement, the new firm is focused on backing entrepreneurs whose innovations are helping people across the globe to capture economic opportunity and achieve financial health.

It said the firm launched with a global team of 18 professionals and an existing $200m portfolio across US and emerging markets, as well as an additional $300m at its disposal over the next five years.

Flourish is an evergreen fund backed by Pam and Pierre Omidyar, the founder of eBay, according to the statement.

“We believe that capital, when deployed to create individual opportunity and change sectors, can shape a more inclusive economy — where everyone does better. That is at the core of Flourish’s mission,” said Tilman Ehrbeck, one of the three managing partners leading the new venture.

He added, “We have made remarkable progress in bringing people into the formal financial system, but that has not necessarily translated into better economic outcomes — that is the industry’s next challenge.”

According to the statement, Flourish’s global portfolio includes more than 40 fintech companies helping low- and middle-income households and small businesses to improve their financial standing, and the firm is pushing new frontiers with its investments.

“As an industry, we have a better understanding of people’s complex relationships with money than ever before, and technology is creating new models for enhancing earnings, protecting against risk, and building wealth,” said Arjuna Costa, managing partner at Flourish.

He said to reshape economic systems and create an opportunity for vulnerable people around the world, there was a need to invest in innovative technologies that give them more control over their financial lives.

“We back entrepreneurs with winning business models to responsibly harness the power of technology to improve their customers’ lives,” said another managing partner, Emmalyn Shaw.

“Our portfolio companies represent a new generation of purpose-driven innovators, who believe in market-based solutions to empower individuals, and are pushing the boundaries to deliver on that belief.”

The statement said Flourish, a sector-change oriented firm, would also continue to support thought leaders in financial services, as well as forward-thinking regulators and policymakers.

“This work will build on existing engagements with ecosystem builders, that range from CFSI and FinRegLab in the US, to Alliance for Financial Inclusion and R2A Accelerator across emerging markets,” it added.

Poor access to credit, SME’s biggest problem – CBN

The Central Bank of Nigeria, CBN has said poor access to credit is the biggest problem facing Small and Medium Enterprises in the country.

The Governor of CBN, Mr Godwin Emefiele, stated this during an inspection of NIRSAL Microfinance Bank’s facilities in Gwagwalada, Abuja on Wednesday.

“The biggest problem that small businesses always have is poor access to credit and I am happy that with the establishment of this microfinance bank which would be in at least one local government and we are talking about the 774 locations across the country, we would be able to have a financial institution that will help deepen financial inclusion,” he said.

The governor said the deepening of financial inclusion would make it easy for people to access credit.

“We will use this to improve access to credit. Interest rate for this will be at five per cent and the loan will be for a tenor of seven years with two years moratorium,” Emefiele added.

He said the loans would be given without the conventional collateral requirements.

Emefiele said, “We know that those who are weak in terms of those who are unable to access credit, the big issue for them is their inability to provide collateral.

“We have already set a target for ourselves that by 2020, the rate of financial inclusion must increase to 80 per cent from about 48 per cent a year and a half ago. So, this is just part of our initiative to deepen financial inclusion in Nigeria.”

Story by Innocent Eneta

Africa’s tourism industry has significant growth potential – Uzor

Edith Uzor, a graduate of Mass Communication from Madonna University, OkijaAnambra State, discusses with INNOCENT ENETA the prospects and challenges of the tourism industry as well as government’s role in transforming the sector

 

A graduate of Mass Communication, at what point did you decide to set up a tourism outfit?
I worked with a travel agency for years. Over the years, I built relationships by providing friends, individuals and businesses with innovative and cost-friendly packages.

I had a fairly good understanding of the travel business and I had my own ideas about how I wanted to tailor services to customers, which I couldn’t achieve in paid employment. So I decided to test the waters with my own business, to see where the road of entrepreneurship leads me.

 

Are you certified to practise tourism?
I attended an aviation school and underwent training with Sabre Corporation Training, a travel technology company in South Lake, Texas.

 

What accomplishment shaped your career and what were the biggest challenges you faced at the beginning?
When I joined the travel agency, within 12 months, we doubled the revenue of the company. It all boiled down to interacting with customers, understanding their needs and providing bespoke solutions that matched those expectations.

For every entrepreneur one of the biggest challenges is funding and finding people who truly believe in your vision. In my case, I had to raise capital from friends and family.

 

Where in Nigeria or Africa do you like recommending your clients to and why?
I usually advise clients to travel to Kenya. The East African country has been described as the cradle of humanity. With its scenic beauty and abundant wildlife, Kenya is one of Africa’s major safari destinations. Kenyan visa processing is easy and less stressful.

 

What future do you see for tourism in Africa?
Africa’s tourism industry has significant growth potential. The World Tourism Organisation (WTO) sees a bright future for Africa. Over the next dozen years, it projects that the number of tourist arrivals on the continent will jump from about 50 million to 130 million. African countries and regions coming up in tourism are taking steps to make travel easier to plan, safer and more streamlined. Low cost airlines are making inroads, and in the process are making it simpler to travel around Africa on a tighter budget. 

 

What policies do you think the government can implement to provide a more favourable environment for the industry?
Our government can provide a more favourable environment for tourism in Nigeria by investing in the tourism sector. 

Government should stop or discourage tours to foreign lands and identify holiday cities in Nigeria. It can develop Nigerian beaches, encourage the people on adventure tours and then promote tourist outfits through social media.

What informed the choice of your company’s name?

In the course of my aviation training, there is what we call the aviation alphabet and I just randomly picked S and A. That is where I got Sigma Alpha. 

 

Do you have a partnership with Sigma Alpha Omega Weekender Travel?
No.

 

How supportive have your family been?
My husband has always been supportive at all times, both financially and morally. I call him my superman.

 

Did you meet your husband in the course of doing your job?
No, but we met in a more romantic way. 

 

What is your advice to up-and-coming entrepreneurs in your industry?
Up-and-coming entrepreneurs should always do what will make them happy. There is enough room for everybody to succeed.

Despite whatever is going on around you, just make sure that you give whatever you want to start a chance and always put it in prayers.

 

How do you see your future in the industry?
With the rate I am going, I think the industry is smiling at me already.

Nigeria steps up efforts to improve business environment

The Presidential Enabling Business Environment Council has intensified efforts to improve Nigeria’s business environment with the commencement of the fourth 60-day National Action Plan on ease of doing business.

PEBEC said yesterday that it was committed to delivering reforms aimed at improving the enabling environment for doing business in the country through systemic interventions.

According to a statement, the NAP 4.0, which will run from March 1 to April 29, 2019 aims to further reduce the challenges encountered by Small and Medium Enterprises and businesses in identified areas of focus such as starting a business, getting credit, paying taxes, enforcing contracts or trading within and across borders by eliminating critical bottlenecks and constraints to doing business in Nigeria.

It said the first, second and third NAPs, which were coordinated by Enabling Business Environment Secretariat of the council, had resulted in significant progress over the past three years.

PEBEC said, “Working in collaboration with the ministries, departments and agencies, the fourth National Action Plan is anticipated to strengthen these ongoing reforms, and improve the ease of doing business frameworks adopted.

“Some of the targets achieved in NAP 3.0 include driving registration for utilisation of the National Collateral Registry to facilitate access to credit for SMEs; clearance of all pending NAFDAC registration applications to improve efficiency; and creation of a strengthened single joint cargo examination interface in all airports and seaports for import and export to reduce the time spent at the ports.

The Minister for Industry, Trade and Investment, Dr Okey Enelamah, said the NAP 4.0 had been launched to deepen the reforms delivered and drive institutionalisation.

“We have highlighted key action items in each of the focus areas to ensure the reforms delivered do not unravel, and to ensure we drive sustainability,” he added.

The PEBEC Secretary and Senior Special Assistant to the President on Industry, Trade and Investment, Dr Jumoke Oduwole, said the council would continue to work extensively with all MDAs, the National Assembly and various arms of government on various reforms critical to an enabling business environment.

She said, “For the NAP 4.0, these include targets such as enforcing compliance with service level agreements across all focus areas, driving the passage of the CAM Bill 2018 for improved effectiveness of company law in Nigeria, enhancing efficiency in the small claims court, and enhancing the application and approval system for visas on arrival, to mention a few.”

‘Shit’ Business: The Abandoned Goldmine

Most adults still have vivid memory of how one Isaac Durojaiye Agbetusin (alias Gadaffi) came up with the idea of Dignified Mobile Toilet (DMT) in the 1990s.

Otunba Gadaffi, as he was fondly called, stood up to solve a problem for his boss, the late Moshood Abiola, whom he had escorted to a party but ended up stumbling on an unusual goldmine, the ‘shit business.

Before the explosion of event centres, night parties happened on Lagos streets and inside school premises. The upshot of social gatherings then was the litters of nylons, broken bottles and hidden layers of human waste at every party venue.

But in a few years, DMT had wormed itself into the hearts of event planners as Gadaffi, a graduate of Graphic Arts and former security aide to the late MKO Abiolasmiled to the banks with money made from evacuating human waste.

He expanded the ‘shit’ business beyond Nigeria towards Ghana before he died in 2012. Of course, the DMT office still exists under the valley of Isheri along Lagos-Ibadan Expressway, Ogun State, the business has not grown beyond where Gadaffi left it.

Today, there is an increasing rate of open defecation. There are a few toilet facilities in public institutions, including hospitals and the Lagos State Government Secretariat, Alausa,where visitors now pay as low as N50 to use the convenience.

As big as the Tafawa Balewa Square in Lagos is, with stores built around it, there are just eight toilet facilities and each costs N50 to access.

When former Lagos State governor, Mr. Babatunde Fashola (SAN), assumed office in 2007, one of his key agenda was to beautify Lagos and to stop open defection by turning open spaces to recreation parks.

His government came with environmental law against open defecation, which stipulated instant judgement for any culprit apprehended in such dirty act.

Then, the offenders were subjected to public humiliation. The government compelled them to wash toilet and sweep the street as punishment for defecating in the open.

Expectedly, the enforcement of the environmental law was ineffective, as it is now,because successive governments have failed to make available public toilets.   

The failure of the government is more felt at various motor parks and market places. These areas are always filthy with choking, unpleasant and irritating stench of urine and faeces.

Though our correspondent observed toilet facilities in Oshodi and Ketu motor parks, the numbers are not enough for the multitude that troop into the place on a daily basis.

Various associations of traders and National Association of Road Transport Workers (NURTW) manage the toilets.

Mrs. Alimot Kareem, a resident, told our correspondent inside Ketu Market that its cost between N50 and N100 for a visitor to access toilet in the market.”

She said, “That is why, most times, some people climb up the bridge to defecate in the open. They don’t pay and they do so mostly in the night when nobody will see them. There are bathrooms here also.”

But Iyanu Peter, the personal assistant to the managing director of DMT Services, told Africana Entrepreneur that the vision of the founder was to curb open defecation.

She explained that those who took after DMT messed up the business, but because of strong foundation, it had continued to wax stronger. At the time DMT was launched as ‘shit’ business, a mobile facility cost N90,000; but today, it is about N300,000.

Parts of the services DMT renders, include visiting of clients’ homes to empty septic tanks. Though the service is still visible, some of its sewage suction trucks are moribund as the company struggles with the unfavourable forex market.

With the cost of a sewage suction truck ranging between $22,000 and $33,000, depending on the capacity, only a few people could invest into shit business. Perhaps that is why DMT has continued to dominate the sector.

According to Peter, DMT rents out a VIP sewage suction truck for septic tank evacuation at N275,000 while a mobile toilet is rented out at N60,000 plus N5,000 as transport fare.

This sounds lucrative for a serious investor.

According to the human resources manager of DMT (name withheld), the business could not die despite the current economic recess because the company has the expertise and quality equipment to do well.

The death of Otunba Gadaffi has dwindled the business. However, Lagos is making efforts to encourage investors to go into the business.

Assistant Director, Public Affairs, Lagos State Ministry of the Environment, Mr. Mukaila Sanusi, told our correspondent that Lagos hadbeen receiving proposals from intending investors in modern public toilet.

He said, “There is ongoing public/private partnership between Lagos government and Reckitt Benckiser, makers of Harpic toilet cleaner. The company has rehabilitated four public toilet facilities and we will need more investors in this direction.”

Out of 500 toilet facilities in Lagos, few have been taken over by Reckitt Benckiser for renovation. This, however, is infinitesimal compared to the population of hoodlums who hide under the bridges and uncompleted buildings across the metropolis to defecate, particularly in Lagos Island.

Investigation shows that no fewer than 800 people migrate to Lagos daily from different parts of the country and beyond. Many of them do not have access to toilet to accommodate their conveniences and thus join the numbers of those who defecate indiscriminately at public places. There is huge investment opportunity in the shit business.

Sanusi said that the ministry of the environment had received proposals from investors and is currently considering it with the ministry of physical planning on where to situate more public toilets in the state.

A few months ago, President MuhammaduBuhari lamented that the nation was rated the second worst country where open defecation is still being practised. To Sanusi, this is not a good record at all, adding, “In Lagos, we have directed all eateries and petrol stations to make their toilet available for residents or visitors pending the expansion of public toilet in the state.

He explained that the main challenge is that those who want to invest in shit business do not have adequate fund and expertise to start.

“We do not encourage mobile toilet. The government wants those who are ready to build good structures with necessary facility and manpower to run it. It is a lucrative business. It is like putting one seed in the ground and reap the fruits everyday. And to become one of the investors, it only takes a token to register with the government and submit a good proposal,” he said.

While encouraging investors to buy into the idea of ‘shit’ business, Sanusi pleaded with residents to always make use of available public toilets.

According to him, those who defecate openly have attitude problem because the few number of public toilets are enough to meet their needs.

“They are not ready to pay just N50, but prefer to do it openly. This is attitude problem,” he said.

At the Lagos State Waste Water Management Office, the agency that deals with the evacuation of septic tanks, one Mrs. Aderemi Falae said beside that the government regulates the evacuation of wastes, it ensures that those investing in shit business must procure quality equipment to do so.

But the main problem is that Lagosians prefer to patronise quacks, who station their obsolete waste suction trucks beside the Lagoon for messy operation.

Elixir for entrepreneurs’ growth phobia

Sometimes when a business grows so fast from introductory stage suddenly stops at the development stage, people wonder what has gone wrong. From a micro, it grows to a small business that can hold its own anywhere; but cannot develop to medium enterprise, let alone a full-fledged company.

This is usually the problem many business face in Nigeria and in Africa in general. The issue most times is not the business, but the management. Some businesses remain at the same level of growth for over decades, with no sign of improvement.

Small and medium-sized enterprises (SMEs) in Europe and America started small and greinto international brands. McDonaldsWalmart, Google,Facebook, and others are today global brands that started by focusing on satisfying the needs of their immediate environment. Microsoft started operation from a warehouse. Facebook was built from the classroom, but something happened to them despite their humble beginnings.

According to the Evening Standard, Google is worth $110.8 billionand its parent company, Alphabet, is valued at $851.2 billionWalmart’s net worth is over $386 billion. These companies started as small businesses.

Why are many Nigerian SMEs not growing beyond being local outfits? Aside Dangote Industries Limited, Innoson Vehicle Manufacturing Company, and a couple of other companies that started small,many others are scared to take the growth risk; they suffer from growth phobia.

The reason is fear of the unknown, which is a scary place to be, so much that small businesses prefer to stay in their comfort zones where they have guaranteed survival and avoid murky waters.

This way, they sacrifice the benefits of economies of scale and mass production, which reduces the cost of operation and increases profit. This cost continues to grow and is easily influenced by the business environment because the business itself refuses to grow.

Inflation and increase in tax affects the small businesses moreGovernment policies are felt more by the small businesses because the big players already have soft-landing mechanisms such asshared resources, partnerships and pool funding among others.

Going concerns work for success because success is deliberate and they can afford to spread costs such as promotion over many brands under the businessIn 2018, Google alone budgeted around $1 billion; in 2017, Walmart spent $2.1 billion in 2011.

These companies understand the need to keep growing because the moment there is no room for expansionanti-climax begin.

The growth of a business is in phases. Some brands do not grow beyond a certain stage until they grow their image beyond their physical size.

This perception enables small businesses to compete with bigger brands almost at the same level, to the extent that customers of the bigger brands sometimes migrate to the smaller brands.

Business perception is more effective than any physical environment because people will rarely seek to know your place of business before they patronise you.

This is where a well-designed public relations (PR)campaign can work magic for smaller businesses that might not boast of a deep pocket to compete with bigger brands.

Customers don’t care how much you spend in the promotion; what matters to them is getting the service and product when they need it. This is what stimulates purchase.

Many still remember the popular Mirinda Three Orange Men. The PR stunt was so successful that the demand generated for the brand overwhelmed the distribution channel for the product. This benefitted other brands that had promoted their products before then; so when consumers went into shops to demand Mirinda, the shop attendants who had run out of stock because of the success of the campaign offered them products from the competition.

Promoting the business or brand might not translate into immediate sales, but it becomes a marketing tool for sustained demand of the product.

PR offers the best and cost-effective promotional tools to voluntarily elicit purchase from customers.

Small business is built around trust and having deliberate reputation strategies through PR will benefit the small businesses as they seek to buy into the mind share of their customers.

So, with marketing tools like PR and promotion, entrepreneurs’ phobia for growth is greatly reduced, if not conquered outright.