Professor Olajumoke Familoni, an expert in management and entrepreneurship, emphasized the need for African nations, particularly Nigeria, to proactively embrace digital transformation and support Micro, Small, and Medium Enterprises (MSMEs) for sustained economic progress. She made these remarks during a two-day summit in Lagos, themed “Renewing MSMEs in Nigeria: Navigating disruption & embracing change in the new digital world,” organized by ICLED Business School in collaboration with SMEDAN.
Key Points:
- Professor Familoni stressed the urgency for African MSMEs, especially in Nigeria, to adapt to technological advancements and changing business landscapes driven by innovation and inclusivity, particularly in the wake of the COVID-19 pandemic.
- MSMEs in Nigeria, constituting over 40 million and employing more than 80 million individuals, faced significant disruptions due to the pandemic. While financial relief measures were implemented, they proved insufficient to fully address the challenges faced by these enterprises.
- Familoni argued that to thrive in the evolving business environment, MSMEs require more than just financial support. They must streamline their operations, leverage data-driven insights, and make informed decisions to stay competitive.
- Olawale Fasanya, the director-general of SMEDAN, highlighted the impact of the COVID-19 pandemic on Nigerian MSMEs, leading to the closure of about three million businesses in 2020. The survey indicated a decline in the number of MSMEs from 41.2 million in 2017 to 39.6 million in 2020, with a significant majority falling under the NANO and micro enterprises category.
- Fasanya emphasized the need to mainstream micro enterprises into small and medium-sized enterprises to enhance their contribution to the GDP and address youth unemployment.
Analysis: The call for African MSMEs to embrace digital transformation aligns with global trends in an increasingly digital-driven economy. The COVID-19 pandemic accelerated the urgency for businesses to adapt to new technological realities. The emphasis on inclusive financial products tailored for SMEs reflects the importance of access to capital for their growth and sustainability. The evolving landscape presents both challenges and opportunities for MSMEs, underscoring the significance of strategic adaptation and support from relevant stakeholders.
Background: Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in economic development, often serving as engines of innovation and employment generation. Their ability to adapt to changing market dynamics, especially in the face of technological disruptions, is crucial for their long-term viability and contribution to the economy. The role of organizations like SMEDAN is vital in providing the necessary support, policies, and frameworks to facilitate the growth of MSMEs in Nigeria.