How can small businesses overcome challenges in Nigeria?

In a recent interview on CNBC Africa, Tochukwu Ezeuku, an Investment Banker and Agriculture and SME Specialist, discussed the challenges faced by small businesses in Nigeria and how these obstacles can be overcome. Nigeria’s Financial System Strategy 2020 recognizes the significance of the Small and Medium Scale sector in the country's economy, emphasizing the need for support and solutions to enhance their growth and sustainability. Ezeuku highlighted that while access to finance is often identified as a primary issue for SMEs, there is a deeper underlying problem that needs to be addressed. He emphasized the presence of a significant knowledge gap among entrepreneurs in the SME space. Many individuals venture into businesses without a clear understanding of the industry or lacking a structured business plan. The interview delved into the importance of education, distinguishing it from traditional academic qualifications. Ezeuku emphasized the need for entrepreneurial education to be integrated into the national educational framework, starting from primary and secondary levels. By fostering a culture of entrepreneurship and providing individuals with the necessary skills and knowledge, a new generation of informed and empowered entrepreneurs can emerge. Key Points: 1. Knowledge Gap in SMEs: Ezeuku emphasized that beyond access to finance, the lack of business acumen and strategic planning among SMEs is a critical issue. A large percentage of SMEs in Nigeria operate without structured business plans, reflecting the need for comprehensive entrepreneurial education. 2. Importance of Entrepreneurial Education: The interview highlighted the distinction between academic education and entrepreneurial education. Ezeuku underscored the necessity to incorporate entrepreneurial training from an early age, allowing individuals to pursue their passions and dreams with a solid foundation of business knowledge. 3. Reforming the Educational System: Ezeuku called for a reform of the national educational system to separate academic achievements from practical skills development. By integrating entrepreneurial learning into the curriculum and supporting vocational training, Nigeria can empower aspiring entrepreneurs and foster economic growth. Ezeuku's insights shed light on the fundamental changes needed to support the thriving SME sector in Nigeria. By addressing the knowledge gap and promoting entrepreneurial education, the country can unlock the full potential of its small business ecosystem. As stakeholders and policymakers work towards creating a conducive environment for SMEs, investing in education and skills development emerges as a crucial strategy to drive sustainable growth and innovation.