BOI Charges SMEs on Innovation to stay Afloat
Omolabake Fasogbon
Foremost development finance institution, Bank of Industry, BOI has charged small and medium-sized enterprises, SMES operators on creativity and innovations to remain relevant.
Managing Director/Chief Executive Officer of BOI, Olukayode Pitan gave this advice as a form relief and solutions to the perennial challenges facing SMEs operators in the country.
Pitan who was a speaker at the Rotary Club of Lagos meeting recently, urged operators not to be dissuaded by rising confrontations, but to up their game to be able to sustain their businesses and compete favourably in the market.
The BOI boss maintained that globally, SMEs account for the majority of business enterprises by contributing to production output and exports, which represents hallmarks of economic growth.
He said, “In most economies, SMEs contribute between 40-55% of GDP and 50-80% of employment, according to the World Bank. 22% of Africa’s working-age population are entrepreneurs – the highest entrepreneurship rate in the world according to African Development Bank, AFDB.”
He admitted that despite prospects in the sector, challenges such as burdensome administrative& regulatory framework, multiple taxation, socio -cultural problems and insecurity amongst others were affecting bottom-line and commitment from operators.
To survive, Pitan urged operators to reinvent and stay committed.
He said, “Operators can weather the storm by being strategic such as identifying and retaining key customers segments by addressing changing consumption/demand patterns, build customer’s profile, build customer’s loyalty through shared values, become difficult to replace, and amend value proposition to align with changing demand of key customer segments”.
He stressed that BOI was established to be Africa’s leading development finance institution to provide financial assistance for the establishment of large, medium & small projects.
“Moreso, to provide support for the expansion, diversification and modernisation of existing enterprises; and rehabilitation of existing ones,” he added.
