Small and Medium Enterprises Development Agency of Nigeria

Introduction Look for a Job or Create a Job: Why You Must Work For Yourself? Who is an Entrepreneur? Qualities of a Successful Entrepreneur Business Start Up Rules Starting Your Own Business Types & Sources of Capital for your Business The Role of SMEDAN Enterprise Definitions in Nigeria Priority Enterprises Supported by SMEDAN Typical Micro and Small Enterprises Concluding Remarks
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OUTLINE OF PRESENTATION

A man makes several decisions in life; Your presence here is a result of decision; The quality of your decision is a factor of the quality of information; We are limited by the volume of information at our disposal; Our gathering today is to bridge the very large information gap; Few entrepreneurs are born, most are made; Todays programme is to awaken the giant in you i.e. becoming an entrepreneur; SMEDAN is delighted to be part and parcel of this programme. It is indeed a privilege for us to be associated with the unemployed citizens of our country Nigeria where business opportunities abound.
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INTRODUCTION

LOOK FOR A JOB OR CREATE A JOB:WHY YOU MUST WORK FOR YOURSELF?
No employer will pay you your minimum worth; Your employer will never make you rich; Your employer uses you as leverage for his wealth; Your employer takes away the most profitable and prime time in life;

He determines how you live your life;

He perpetually buries your vision/dream inside the corporate vision and mission;
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LOOK FOR A JOB OR CREATE A JOB:WHY YOU MUST WORK FOR YOURSELF CONTD?
He is able to peg your progress; He gives you job all your life; Makes you believe you cannot live without salary; He pays you enough not to allow you quit; He gives the illusion of job security; You are obligated so as not to lose your job; Gets selfishly worried when you grow old; He sees you as an overhead, sometimes a burden.
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WHO IS AN ENTREPRENEUR?
An entrepreneur is person who makes money by starting or running a business enterprise successfully Entrepreneurship could mean: - Introduction of new product; - Introduction of a new method of production; - Discovery of a new market; - Combining existing resources in a new & more productive ways; - Delivering values to a community or a group of communities. There could however be social as well as economic entrepreneurs
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QUALITIES OF A SUCCESSFUL ENTREPRENEUR

FICTION: To be an entrepreneur, you must be born that way! FACT: Anyone can learn to operate like an entrepreneur!!! What Qualities/Characters must he possess? - Persistence - Calculated risk-taker - Visionary - Problem solving skills - innovative - Ability to consolidate resources - Independence - Strong desire to achieve - Competitive - Desire to work hard - Strong integrity High energy level - Self-confidence Goal-oriented behaviour - Strong management & organizational skills

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 Being an entrepreneur is a visionary escape from poverty and poor working conditions. The entrepreneur is a creator of wealth, a man of vision and pioneer. An entrepreneur must be someone who has the ability to explore the environment, identify opportunities for improvement, mobilize men, money, materials and implement actions to maximize such opportunities. Entrepreneur are people who refuse to surrender their lives to external forces. Entrepreneurs are people who take the initiative and are not afraid of challenges. Entrepreneur have a very strong faith and positive thinking in their pursuit of excellence and success.
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QUALITIES OF A SUCCESSFUL ENTREPRENEUR CONTD

BUSINESS START UP RULES

These rules will help you towards being a successful entrepreneur. These rules are as follows: 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 conquer fear Put a successful front Avoid procrastination Be innovative and competitive See yourself as a winner Get started no matter the size
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STARTING YOUR OWN BUSINESS

Every business enterprise starts as an idea, which is
then translated into a product or service that a customer needs and is prepared to pay for. Sources of Business/Enterprise ideas
- Acquired skills, Hobbies, Desire, Vision, Passion - Literatures: Books, Journals, Newspapers; - Radio, Television, Internet; - Government Agencies like SMEDAN, RMRDC, NAPEP; - Seminars, Workshops, Conferences; - Poor delivery of a service or product; - Overpriced product or services; - Failure of a product/service or company to satisfy customers - Advances in technology; - Existence of monopoly (if not protected by law); - Adaptation; - Rapidly expanding market; - Environmental changes, etc
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STARTING YOUR OWN BUSINESS

Avoidable Pitfalls about your Business ideas Do not reject an idea because of unfavourable situation. Do not reject an idea because of facts Do not allow friends to make you reject ideas; Do not reject ideas because of finance Chances of success is higher when you plan Businesses fail because of:

Lack of experience; Insufficient capital Poor location Poor inventory management Over-investment in fixed assets Personal use of business funds Unexpected growth Competition Low sales
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STARTING YOUR OWN BUSINESS

Translating Your Business ideas into Business Ventures Do a SWOT Analysis Know your Strength & Weaknesses; You need Information - Feasibility Study Report & Business Plan - Factors of Production 1. Entrepreneur (You) 2. Land (Workspace) Lease/Rent/Buy/Build
Identify the Opportunities & the Threats that surrounds the business.

3. Labour You can do it all yourself if skilled

To start with, use your flat, room, sitting room, backyard, frontage, boys quarter or use a canopy, metal/wood container as shop or factory

4. Capital Types & Sources of Capital - Business /Technical Information: raw materials; market
(local/Intl); machinery/equipment; govt. policies & regulations; registrations & permit; utilities (water supply, electricity), etc
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You might require the services of other technical/skilled or unskilled (labourer) staff: sales persons/marketers; cashiers; accountants, etc

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TYPES AND SOURCES OF CAPITAL FOR YOUR BUSINESS

Your business destiny is not determined by the size of capital you start with. In fact, TECHNICAL KNOWHOW, EXPERIENCE, RELATIONSHIPS, HUMAN RESOURCE, and IDEA are also considered as capital every business CANNOT do without apart from MONEY. Capital for your business may be for Start up, Expansion, Consolidation or Diversification. TYPES OF CAPITAL FOR YOUR BUSINESS 1. Owners Equity 2. Loans 3. Grants 4. Venture Capitalist 5. Business Angels
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TYPES AND SOURCES OF CAPITAL FOR YOUR BUSINESS CONTD

1. Owners Equity Means the private money you put into your business You get this from personal savings, friends support,

2. Loans Means that someone lends you money. You have to pay interest on a loan and you have to pay the loan. You can pay the loan back either in installments or at once, depending on what agreement you make with the lending institution. You may be able to borrow money for: Land & Building; Equipment; Working Capital. It could be from suppliers credit, equipment leasing,

family support, doing odd jobs, selling some of your liabilities or assets, trade by barter, Esusu or Ajo gifts received from people, selling shares to friends (OPM), going into partnership, or you may just decide to sell the idea.

Govt. Credit Schemes, etc.

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TYPES AND SOURCES OF CAPITAL FOR YOUR BUSINESS CONTD

You can secure loan from Commercial banks, Micro Finance banks MFBs), Co-operative societies, Government Institutions: Bank of Industry (BOI); Nigeria Agricultural Credit and Rural Development Bank (NACRDB); National Economic Reconstruction Fund (NERFUND). 3. Grants Governments and Non-Government Organizations NGOs) sometimes give grants for potential entrepreneurs to start small businesses. A grant is an allowance that a government or an organization gives to support small business creation. 4. Venture Capitalist There are capitalist in Nigeria which consider new businesses with high potentials for financing. The minimum amount they set for participation is usually high and beyond micro and small enterprises.
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THE ROLE OF SMEDAN

Established in 2003 to facilitate the access of MSMEs to finance and other resources that will ensure that they contribute significantly to the economic development of Nigeria Vision: To establish a structured and efficient Micro, Small and Medium Enterprises (MSMEs) sector that will enhance sustainable economic development of Nigeria.

Mission: To facilitate the access of Micro, Small and Medium entrepreneurs/investors to all resources required for their development.

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THE ROLE OF SMEDAN CONTD

5 of the Agencys major activity areas are:

1. Information provision and awareness creation/business sensitization

2.

Deployment of Business Development Service (BDS), and Establishment of:

Business Support Centres (BSCs) & Business Information Centres (BICs) in collaboration with State and local Government
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The Business Clinics at the centres assist entrepreneurs with problem diagnosis and prescription of appropriate solutions.
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THE ROLE OF SMEDAN CONTD

Training & Follow-ups- Priority training areas include business plan preparation, book-keeping, management, marketing/international trade, legal and regulatory environment, basic corporate governance and computer/IT appreciation

Counselling- To enhance the MSMEs development, counselling sessions are offered in order to identify and respond to operational challenges facing prospective and existing entrepreneurs
Mentoring Opportunities are afforded both startups and existing entrepreneurs to interface with and/or learn from the experience of successful entrepreneurs.
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THE ROLE OF SMEDAN CONTD

3. Promotion of enterprise networking/cluster formation to stimulate international competitiveness (working with existing and prospective) 4. Advocacy and improvement in operating environment, usually in partnership with others (private-public, public-public). 5. Promotion of linkages and access of MSMEs to vital resources, especially finance and workspace.
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ENTERPRISE DEFINITIONS IN NIGERIA

S/No Enterprise Employment Asset Base (Excluding Land and Building)

1 2 3 4

Micro Enterprises Small Enterprises Medium Enterprises Large Enterprises

Less than 10 Less than N5 million 10 -49 50 -199 200 and above N5m Less than N50 million N50m Less than N500m N500 million and above

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PRIORITY ENTERPRISES SUPPORTED

These are: Micro Cottage Food Processing Enterprises Cottage Arts And Crafts Textiles And Clothing Leather And Leather Products Basic Metal, Metal Fabrication And Engineering Enterprises Electronic And Information Technology Enterprises Building And Construction Enterprises Oil And Gas Related Good And Services. Women-Owned Enterprises Youth-Owned Enterprises Entertainment Enterprises Special Enterprises for Physically Challenged People, including People Living with HIV/AIDS
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TYPICAL MICRO AND SMALL ENTERPRISES

A list of 500 low cost business ideas you could start as business are presented here for your consideration.

Remember you DERIVE more result from a business venture that aligns with your Acquired

Skills, Hobbies, Desire, Vision, Passion.

At SMEDAN, we strive to assist you in the evaluation and screening of your business idea as to its viability and feasibility before implementation-Business Plan.
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CONCLUDING REMARKS
Working for yourself suffering and eventually eliminates your poverty. Everyone needs the necessities or comfort of life such as good cars, good accommodation, good food, and healthy living. Nobody can do all these for you but yourself. Having a business of your own will provide opportunity for profit, which can be used to meet these needs. The key to entrepreneurship is the ability to generate, pursue, and capture the value from venture ideas.
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CONCLUDING REMARKS
Business opportunities are abundant in Nigeria; all you need is to shine your eyes very well. No one can call himself an entrepreneur until he/she has generated a venture idea and the idea converted to a business venture. Idea may be defined as a business concept that is turned into a tangible product or service offered by a business enterprise that will result into financial profit. Idea, therefore is creating value and developing new market, hence creating new customers.
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THANK YOU FOR LISTENING

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