Small and Medium Enterprises Development Agency of Nigeria

INTRODUCTION

• Protocol • Appreciation • Clarification • Breaking News • Cheering News

Meaning Of Investment

• In finance, the purchase of a financial product or other item of value with the expectation of favourable future return.

• In general term, investment means the use of money in the hope of making more money.

• In business, the purchase by a producer of a physical good, such as durable equipment or inventory in the hope of improving future business.

Investment Options

• Savings Plan • Contributory Pension Scheme • Investment in Property • Investment in the Capital Market • Investment in the Money Market • Investment in Life Assurance • Investment in Farming • Investment in FOREX • Cooperative society in MDAs

Cooperative Society in MDAs

• In the workplace, especially in the public enterprises, we have workers cooperative. A cooperative owned and democratically managed by the workers for the benefit of its members.

• The workers benefit from the cooperative in various ways:

• Savings, Granting of Credit, purchase of food and household items at reduced price, Buying property and dividend,etc.

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The Small & Medium Enterprises Development Agency of Nigeria (SMEDAN)

SMEDAN is one-stop-shop for starting, resuscitating and growing MSMEs in Nigeria

Voice of MSME.

The Vision of SMEDAN is to establish a structured and efficient MSME sector that will encourage and enhance sustainable economic development of Nigeria.

The Mission is to facilitate and promote the access of MSMEs to all those resources required for their growth and development.

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The SMEDAN Mandate

• Stimulating , Monitoring, and Coordinating the development of the MSMEs sector;

• Initiating and articulating policy ideas for small and medium enterprises growth and development;

• Promoting and Providing access to industrial infrastructure such as layouts, industrial parks, etc.;

• Linking MSMEs to internal and external sources of finance, appropriate technology, technical skills as well as to large enterprises;

• Promoting and facilitating development programmes, instruments and support services to accelerate the development and modernization of MSMEs operations;

• Serving as a vanguard for rural industrialization, poverty reduction, job creation and enhanced livelihoods;

• Intermediating between MSMEs and the Government;

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SMEDAN

Foreign & Local Investors

Resource Partners including public &

private sector, MBOs, Agencies, NGOs,

Banks, Donors, etc

Government

INTERFACE BETWEEN SMEDAN AND OTHER STAKEHOLDERS

MSMEs

THE ROLE OF SMEDAN IN EMPOWERING MICRO, SMALL, AND MEDIUM ENTERPRISES

ACCESS TO •FINANCE •MARKET •EQUIPMENT •RAW MATERIALS

•WORKSPACE

•ESTABLISHMENT •BSCs. •BISs •MSMEs DEV. CENTRES

BUSINESS INFORMATION

COLLABORATION •STATE GOVT. •BMOs •NGOs •MULTILATERALS •PRIVATE ORGANs •OTHER FED. GOVT. ESTABs.

POLICY ADVOCACY •TAX MATTERS •COMPETITION •EXPORT PROM. •REGISTRATION •LEGISLATION •REGULATIONS •INCENTIVES

•CAPACITY BUILDING: •GEDP •YEDP •WEDP •TOT

BUSINEESS DEVELOPMENT SERVICES

INDUSTRAL PARK •INDUSTRIAL STRATEGY AND POLICY •FINANCE AND TECHNICAL ASSISTANCE

BUSINESS ENTERPRISES

Starting a Business of Your Own

• The events of the last three decades have been characterized by some unprecedented uncertainty that has unusual threats as well as opportunities in the socio-economic and competitive business environment.

• Retrenchment, Retirement, Right sizing, Restructuring, Recapitalization, and Re-engineering are now common features in the management of both public and private enterprises.

Starting a Business of Your Own (Cont’d)

• With these events, Nigerian workers should imbibe the culture and spirit of entrepreneurship.

• The key to entrepreneurship is the ability to generate, pursue, and capture the value from venture ideas. If you retire from paid employment, a new door will eventually open, how to open that door depends on your ability and capability to do so.

Starting a Business of Your Own (Cont’d)

• Business opportunities are in abundant in Nigeria; all you need to do is to shine your eyes very well.

• The identification of business opportunity starts with the environment. The environment has to be critically and clinically explored and constantly studied to discover venture ideas.

Entrepreneurial Skill

• Technical

• Creative

• Human

• Innovative

• Design

• Conceptual

• Management

• Marketing

Business Start up Rules

• Set realistic goals- Write your business plan

• Condition your mind-No going back

• Find a mentor

• Maintain the momentum of enthusiasm

• Never be afraid of venturing

• Put a successful front

• Avoid procrastination

• Be innovative and competitive

The Search for Business Opportunity

• Generate Your Own

• Develop someone else’s

Validating Your Business Ideas

• The most common and reliable sources of Business ideas are educational skills and working/Environmental experiences in one’s life. The basic foundation for any successful venture is therefore the self conviction on the part of the entrepreneur that success can be achieved.

• Developing appropriate and harvest answers to the following under listed questions would enable you validate your business idea

• Is it practical? • Is it legal? • What service or product will I sell • Does it meet a need(s) of other people • Are they willing and able to pay for it. • Can it be produced at the right quality and in the required quantity • Can it be produced in am acceptable form as required by those wanting it. • Has it linkages possibilities • Can it meet the Constant changes in users, need and taste • Is there a prototype of the product existing • What is your Business advantage over existing firms • What niche or gap would my business fill • Can I create a demand from my business

Validating Your Business Ideas (Cont’d)

• The Idea validation stage of your project is the most critical stage. Any mistake or misjudgments at this stage may lead to colossal loss of fund in future. You need to collect a lot of data and information about the project at this stage

• As Consultant we can be of immense assistance to you. We would train you to improve your entrepreneurial/management skills and also help you in gathering all the data needed to validate your business idea

Validating My Resources

• After validating your business idea the next stage is to validate your resources what resources do you need to translate your idea into a business. These resources include:

• Business Premises • Raw materials • Machinery/ Equipment • Personnel • Funds • How much of theses resources have you got now and how

much of them do you need. e.g

Pre-Investment Proposal

• Now that you have some basic information on your product, the raw material, the market for the product, the machinery and equipment and personnel. Make a trial preparation of a pre-investment proposal using the following format

• Background history of yourself • Nature of the Project with description of the product or service to be provided • Market- size, competitors • Sales Strategy and method • Raw material supply and needs • Production process • Product cost • These are all estimates. For you to start a real business you need a detailed

Business Plan but this attempt with a pre-investment proposal would be very useful to you in the process of writing your detailed business plan

Preparing a Business Plan • The take-off in becoming an entrepreneur is

the discovery of viable venture ideas and subsequently converting the idea into venture. However many ventures fail because they were launched on a very weak foundation devoid of a business plan.

• A business plan is a written document prepared by the entrepreneur, describing the goals and objectives of the venture along with the steps necessary to achieve those objectives.

The main Content of a Business Plan

• Management

• Manpower requirement

• Product or Service

• Market and Marketing

• Operational details

• Production

• Financial Analysis

• Profitability Analysis

• Evaluation

Sources of Assistance

• Local support Institutions and Agencies. This is to familiarize you with the various agencies that provide assistance to small enterprises and to enable you identify the particular assistance each of the Agencies provides.

• A FEDERAL GOVERNMENT INSTITUTIONS • SMEDAN-Information in machinery, finance ,Enterprise training, bankable

business plans. • RMRDC- Information on Raw material • Corporate Affairs Commission- Company Registration • NAFDAC- Government Regulations on Food related products and services • SON- National Standards on Products • BANK OF INDUSTRY – Financing • NACRDB- Financing

Sources of Assistance (Cont’d)

• B STATE GOVERNMENT AGENGIES

– State Ministry of Commerce and Industry- Information on the states economic priority projects and feasible MSMEs in the State.’

– State Investment corporation Agencies- Information on financing and available extension service facilities in the state.

– NON-GOVERNMENTAL ORGANIZATION • NASSI

• MAN

• NASME

Sources of Business Finance

• Personal savings

• Selling Shares to friends

• Selling off equity holding

• Doing odd jobs

• Supplier’s credit

• Equipment leasing

• Family and Friends Support

• Government Financial Assistance

• Borrowing

Management

• General Management

• Marketing Management

• Financial Management

• Human Capital Management

• Production/Operational Management

Production Management

• Production management is the process of the effective planning and control of the operations of that section of an enterprise devoted to transforming materials into finished goods.

• Production planning-Factory location and layout

• Production Strategy

• Production Policy

Human Resource Management

• The human resource is the greatest asset in any enterprise. It is the management of people within the enterprise towards the attainment of the goals and objectives of that enterprise.

• It entails: Recruitment, Placement and induction, Manpower planning, Training and development, Reward system, performance appraisal, Industrial democracy , etc

Financial Management

• Financial management is that managerial activity(interplay) which ensures that financial resources are obtained and utilized in the most prudent way for the attainment of the objectives of the enterprise.

• Financing Decision

• Investment Decision

• Dividend Decision

Path to Business Success

• Knowledge

• Skill

• Motivation

• Ability

• Resources

• Delighted Customers

• Innovation

Conclusion

• Those who believe that government or employers will guarantee their future are living in “Nirvana”

• With the fall of the iron curtain the trend even in the western countries is shifting and job security is now an aberration rather than the norm.

• The NLC as part of their responsibility should start preparing their members for early exit from service.

Conclusion Cont’d

• Entrepreneurship Development Training and retraining workshop should be organised for the members. This will set them in the right tune towards early exit and preparation of starting their own business.

• Nigerian workers could begin to sow the seeds of future economic prosperity for the society as well as building finanacial security for themselves and their families

Conclusion Con’td

• The time is now for you to make active and positive use of your instincts, insight and perceptions to manipulate and manage them to propel you to towards self reliance.

• You don’t make an omelet without breaking an egg. We therefore crave your indulgence to explore the areas of investment discussed as well as taking entrepreneurship seriously to ensure self-reliance through starting your own business enterprise.

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Conclusion (Cont’d)

• SMEDAN is prepared to collaborate and partner with you in entrepreneurship development training programmes that will convert you from paid employees to entrepreneurs.