5 minute read
The Secret To Sustainable Development
from NIGERIA. Next Level
by PENRESA
Women Entrepreneurs
The Secret To Sustainable Development
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As the administration paves the way for gender inclusivity, Nigeria’s women entrepreneurs are taking local businesses to even greater heights by fearlessly taking on leadership roles.
In 2018, only 50% of women in Nigeria had an active role in the labour force. Although this participation hasn’t greatly evolved over the past 20 years, recent shifts to a services-based economy and the prestige associated with women’s entrepreneurship are opening up incredible opportunities for Nigerian women to play a more active role in business. Some of these advancements are tearing down walls and creating gender inclusivity across the entire country, especially in the realm of small and medium-sized enterprises (SMEs) where women are continuously taking on leadership roles.
As with any moment of progress, there are societal and economic challenges facing these enterprises that underscore the support Nigerian women need in order to grow their businesses. Women entrepreneurs will only be able to seize the country’s opportunities with the right support systems in place. Women’s potential to participate in businesses play a key role in driving economic growth, but social development is limited by lowered access to finance or capacity building opportunities, lack of access to credit and regulations that prohibit inclusion-enhancing products. But the good news is that the solutions to these obstacles are already being implemented throughout the country. Support systems that promote education and training, business advice, financial support and technology are paving the way for women in Nigeria to be invaluable assets to the economy.
One such support system for female entrepreneurs is tied to financial inclusion. In a survey, only 52% of female-led firms had a business bank account. Without these accounts, business owners are prohibited from accessing loans and many other necessary financial services to grow their business. New developments in fintech and the banking sectors are converting this obstacle of the past into an opportunity of the future.
Women Entrepreneurs, (continued)
The administration of Nigeria is making strides in the right direction and changing the landscape for women-owned businesses in the country. Women entrepreneurs represent a large potential market for African banks, and financing them will inevitably be good for business and long-term sustainable development. But many African banks are unaware of the specific challenges women face as business owners.
In response to these needs, the Central Bank of Nigeria (CBN) has moved to encourage women in business by setting aside 60% of the N220 billion CBN loan set out for SMEs so that they can be gainfully involved in the private sector of the economy. Not to mention, the African Development Bank (AfDB) has approved a US$50 million credit for Nigeria’s Fidelity Bank to support small and medium-sized and women-owned enterprises in Nigeria. The credit is for almost 100 selected SMEs in manufacturing, health and education. Other banking entities are moving to launch a proposition that offers 0% interest rates on loans for SMEs that are owned and operated by women. All signs are pointing to opportunities for women entrepreneurs in Nigeria who desire affordable and convenient funding to boost their respective businesses.
Through dedication from the Nigerian government to invest in fintech, expand banking services and revise existing financial policies, the number of people who have been financially excluded in Nigeria has been decreasing over recent years, where the rate of unbanked persons has declined by 500 million. While this is a great success, there is still opportunity in the sector to improve and include more women, where only 42% have access to formal financial services. It is also reported that an estimated 7 million businesses will be established by Nigerian women by the year 2021. This creates the potential to generate 8.9 million jobs and unlocking N19.7 billion in revenue for the country.
Women participate in the economy primarily through entrepreneurial businesses, most of which are Micro, Small and Medium Enterprises (MSMEs). MSMEs employ 84% of Nigeria’s labour force and contribute 48.47% to Nigeria’s GDP. There’s a significant growth opportunity here for women entrepreneurs. With the help of special training targeted at women entrepreneurs could result in more women-owned and led firms engaging in international trade.
As part of its SME development objective and support for women in business, the International Labour Organisation Country Office in the capital city of Abuja is reinforcing the capacity of local business and development service providers (BDSPs) through training workshops in Nigeria. These workshops aim to support business expansion and growth and enhance the capacity of local women-led SMEs to access markets and sustain their businesses.
For example, GroFin recently hosted nearly ninety women entrepreneurs at a capacity building workshop in Lagos. Women’s empowerment is one of GroFin’s core impact objectives and the event formed part of GroWoman, GroFin’s Gender Lens Investing Initiative. Women entrepreneurs from various sectors including agro-processing, education, healthcare, retail and manufacturing attended the event which broke down misconceptions around gender roles that assume that women can not–or should not–venture into the business world.
The learning sessions included practical guides to business planning and focused on equipping women entrepreneurs with business planning and strategy techniques to build their businesses for success. GroFin works to instil more knowledge on sustaining business, building a proper structure and implementing the right strategies for entrepreneurial growth.
The importance of training workshops and courses such as these enhance business development and highlight the need for local entrepreneurs in various regions nationwide to promote their products effectively in order to grow and expand their products and services beyond Nigeria.
These developments are in line with the commitment to empower women-owned SMEs, both existing and start-ups, through financial support, advisory and value-added products, to enhance customer experience and overall contribution to the growth of the country and its economy. These moves will further unravel and unleash the true potential of women in entrepreneurship so they can take their respective businesses to greater heights and compete favourably in the global environment.
