5G Techcnology

‘SMEs Could Generate $433bn Through 5G By 2025’

LAGOS  – Global telecom and communication service providers have been urged to do more to address the needs of Small and Medium sized Enterprises (SMEs) if they are to see a return on their enormous 5G capital investments. 

A new report, published by BearingPoint//Beyond, in collaboration with Omdia, highlights the potential of SMEs as a major source of future 5G revenue for CSPs. 

The report estimates that SMEs around the world could generate up to $433 billion in revenues by 2025. 

READ ALSO: Jumia Lending empowers entrepreneurs.

However, this market segment remains vast and untapped with the majority of CSPs focusing 70% of their resources on the 1% enterprise market. Despite this revelation, not enough CSPs are recognising SMEs as a major source of B2B revenue, especially in regard to 5G. 

Yet SMEs, many of which already see value in 5G, perceive CSPs as their trusted 5G go-to partner with 42% prioritising them to execute their 5G strategies. 

“CSPs are still trying to approach 5G the same way they approached 4G, with a clear focus on consumer and enterprise. However, 5G opens new opportunities for CSPs and one of them is the SME segment. 

“Digitalisation and Covid-19 have transformed the needs of SMEs and their awareness of the impact that new technologies such as 5G, IoT, and AI can have on their business to enhance productivity and efficiency, and boost sales. In fact, our previous research highlighted that on average 73% of global SMEs see 5G as important to their business. 

“However, it’s clear that it’s not 5G technology that they’re after, instead SMEs understand that 5G is one part of a broader technology solution that they need. In fact, 93% of SMEs told us that it’s more important for CSPs to collaborate with an ecosystem of partners to build solutions that better fit their needs than to simply provision 5G services,” said Angus Ward, CEO, BearingPoint//Beyond. 

The report argues that CSPs currently identify large multinational enterprises as the segment that will drive 5G revenues, however the large enterprises surveyed do not regard CSPs as their primary 5G providers. 

In fact, the report finds that 72% of enterprises would prefer to work with a service provider that is not a CSP. Findings show that 31% of large multinational enterprises will choose cloud service providers to execute their 5G strategies and 34% even favour taking a D.I.Y. approach. 

The report emphasises that CSPs should not squander the opportunity to support SMEs in realising their 5G ambitions, as SMEs look to digitalise their business amidst the deeply transformational impact of Covid-19. 

“We’re looking at a new type of SME, one that is seeking a partner that will orchestrate comprehensive partner ecosystems to co-create solutions to provide them with a better service. For CSPs, this is a unique opportunity, especially considering SMEs see them as a strong candidate to fulfil this role. 

SOURCE: INDEPENDENT

Jumia Lending

Jumia Lending empowers Nigerian entrepreneurs

According to the Country Manager Lendigo Nigeria, Seun Oyediran, the partnership with Jumia makes the lending process easier and allows the platform to make good credit decisions when dealing with business.

Small and Medium Enterprises (SMEs) are the key economic drivers in Nigeria. However, access to funds has been one of the issues affecting growth of this essential sector of the Nigerian Economy.

While government and relevant agencies have set up credit facilities to mitigate the finance challenges faced by small businesses, many still struggle to meet up with loan requirements, with collateral being a major stumbling block.

In the ecommerce sector, Jumia, the leading online marketplace in Africa, is taking initiative with Jumia Lending, to help entrepreneurs on its platform grow their businesses through strategic partnership with lenders who make loans easily available.

One of such partnerships is with Lendigo Nigeria, a lending platform that offers business loans without collateral.

According to the Country Manager Lendigo Nigeria, Seun Oyediran, the partnership with Jumia makes the lending process easier and allows the platform to make good credit decisions when dealing with business.

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“Our partnership with Jumia Lending helps build trust with sellers and allows us to have access to their transaction data which allows us to be able to make good credit decisions and finance their growth. We have been actively partnering with Jumia since 2017, and we are happy to continue financing the growth of their sellers,” he said.

A Jumia seller, who is one of the beneficiaries of Jumia Lending programme, Jumoke Akinsanaya, said the collateral-free loans has granted her business direct access to big companies, facilitated bulk purchase and improved her business workforce.  “I have been using the Jumia Lending platform to grow my business. At the beginning, we were doing it in bits and few times we were able to process our orders when we got them.

ALSO READ: How to start a wholesaling business in 2021

“But with Jumia lending, we’ve been able to buy in bulk and now have access to companies to purchase directly from them and that has helped expand our store. When we started, we had 300 assortments, but now we have 900. I have been able to increase my workforce as well. We started with six staff and we are about twelve now,” the owner of Deeski.com said.

Explaining what qualifies a seller for the loan, the Head Consumer Services, Jumia, Austin Okpagu, said sellers on the platform can apply for the loan from a list of Jumia financial service partners with their sale history, and get the loan within 48 hours. “Jumia lending is a lending marketplace that allows Jumia sellers to easily request for a loan from any of our financial service partners based simply on their past revenue on Jumia,” he said.

SOURCE: TechEconomy.ng

The new frontier of wholesaling

How to Start a Wholesaling Business in 2021

Wholesaling plays a fundamental role in the overall distribution and sales of a particular product. It is also a very competitive market, but you can be successful at wholesaling with the right resources and connections. 

Wholesaling gives you an advantage because unlike the retail business where the money is made one product at a time; the wholesale business allows you to earn more. Since your customers are retailers, they will need to buy your product in volumes to sell to their customers.

You might want to ask yourself; Do you want to stock your products or have them drop-shipped to your customers? What products do you want to sell, and where can you find suppliers?

In this article, we will run through tips on how to start a wholesaling business in 2021. Let’s dive in!

SEE ALSO: MSMEs To Receive Support Through SMEDAN

1. Choose a Market for Your Business

This is the most crucial part of starting a wholesaling business. You will need to decide which industry or market needs your product. You will need to ask yourself. What products should I sell? Who needs my products?

As an SME in Africa, it is important to choose products that are moving in your current economy. You will need to find dealers, store owners, retailers, and customers who need your product.

You would also need to know who your competition is, their prices and what kinds of products they sell. This will help you understand which market to target and what kind of products to sell. There are several profitable wholesaling ideas. You could wholesale in Jewelry, textile, or even organic food. The key here is research.

2. Choose a Location for Your Business

This is the next most important step. If you decide to stock your product, you will need to get a warehouse to run your business.

Choosing a central location for access and easy movement of goods is also something you would need to consider.

How to Start a Wholesaling Business in 2021
Choose a good location for your wholesaling business

Secondly, you will need to hire efficient staff to ensure that your product is not misplaced or damaged. You could opt for a family member you can trust.

3. Choose Your Manufacturers/suppliers

You will need to identify manufacturers who are willing to give you their product to sell. You might want to note that some companies might require you to meet certain sales targets. You can also decide to talk to distributors that can get you a dealership. Wholesaling is about networking and establishing relationships.

4. Establish an Online Presence

In 2021, going online has become an important business strategy. Your wholesaling business is no different. The online space has become saturated with buyers making several buying decisions every day.

Establishing yourself online will help build trust and establish you as an authentic brand. Not only does it build trust, but it also attracts retailers and suppliers. It is a great way to tell prospective clients that you are ready to do business.

5. Get an easy to use inventory software

With the number of goods going in and out of your warehouse, having inventory software will pay a lot and give your business a smoother run. Inventory software helps you keep track of your inventory and determine your business’s demand and supply relation.

6. Check for Return Policies

 When looking for manufacturers/suppliers, it is important to check for their return policies. You would need to check their return policies and how they handle goods being returned to them. If their return policy isn’t clear, it is best to stay clear of those manufacturers. Inventory not sold is a waste of money.

In return, you would need to create friendly return policies that allow retailers to return goods they can’t sell. To create a comprehensive return policy, you should check with your manufacturers and align your return policies accordingly.

We hope that these steps give you a good platform to start your wholesaling business. To grow and establish yourself in the wholesale business, you would need to identify product trends and have a good understanding of your market. Don’t be afraid to take that wild step in starting your wholesaling business. 

Do you have any questions or comments on SMEs in Africa? Kindly drop them in the comment section below!

SOURCE: SME360

SMEDAN INITIATIVE

MSMEs To Receive Support Through SMEDAN

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says it will support Nigeria Micro Small and Medium Enterprises, MSMEs in a practical way through its SMEDAN SELECT initiative.

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Dr Dikko Umaru Radda said this at the launch of the SMEDAN SELECT Document in Enugu State, Southeast Nigeria

READ ALSO: Fegho Umunubo, Arinze Chilo-Offiah, Dolapo Adejuyigbe To Speak at BusinessDay, NetPlusDotCom Webinar

The DG who was represented by Director, Planning, Research, Monitoring and Evaluation Mr Wale Fasanya, said the SMEDAN SELECT is designed towards creating brands from standard products amongst the best of Made in Nigeria products in the food, fashion, beauty and goods sectors.

Radda said, “these products, numbering about 150, have been specially sought and selected across Nigeria and the products would be displayed and marketed on the SMEDAN Website and other social media handles.”

“The hardcopy catalogues would also be distributed to Embassies, MDAs and in departmental stores across major cities in Nigeria to improve the patronage of these products.”

He noted that the MSMEs sub-sector is a very important sub-sector in the Nigerian economy.

“They collectively account for a majority of the enterprises in Nigeria and also account for the highest number of jobs created in the economy,”  Radda stated.

He said the recent National MSMEs Survey of 2017 conducted by the Agency in collaboration with the National Bureau of Statistics (NBS) revealed that there are 41,543,028 MSMEs, employing 59,647,954 (76.5% of the labour force) and contributing 49.78% and 7.64% to nominal GDP and exports respectively.

The SMEDAN boss said this staggering statistics cannot be ignored in any serious economy, adding properly harnessed, MSMEs can trigger an entrepreneurial revolution in Industrialization, Agriculture and Commerce in Nigeria towards creating the platform for job creation, wealth creation, poverty alleviation and food security.

Dr Radda also said the globalisation process for MSMEs can be realized through any of a range of cross border activities, including trade, international investment, and participation in strategic alliances, partnerships and networking arrangements.

According to him, “governments in both industrialized and developing countries provide a wide variety of programmes to assist micro, Small and Medium Enterprises.”

“Despite the success of MSME strategies in a few countries, majority of developing countries have found that the impact of their SME development programs on enterprise performance has been less than satisfactory, as such there is the need to develop and deploy more specific approaches, hence the SMEDAN SELECT initiative.” 

Dr Radda stated that the objectives of implementing SMEDAN SELECT are to increase access to local, regional and global markets for MSMEs; to support market expansion for MSMEs. to support the creation of brand names for Made-in-Nigeria products as well as to Increase awareness creation on standard Made in Nigeria products.

He however encouraged Nigerians to patronize all the products profiled as a way of supporting the MSMEs to achieve their collective goal of instituting the MSMEs sub-sector of our dream that would contribute significantly to job creation, wealth creation and poverty alleviation.

SOURCE: VON

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How The Nigerian Capital Market Can Support MSME Financing

With over 40m Micro, Small and Medium Enterprises (MSMEs) in Nigeria a major challenge remains access to finance at affordable rates. Mr. Franklin Odoemenam the Managing Director of Fragg Investment Management made this point while discussing the subject “Improving Financing for MSMEs Through the Nigerian Capital Market”.

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AFEX raises $50 million to finance Agri-SME’s in Nigeria

The $50 million Agri-SMEs fund is
expected to bridge the funding gap between lenders and borrowers in the agric sector.
AFEX Commodities Exchange Limited (AFEX), a private commodities exchange company, has announced the first Warehouse Receipt Backed Commercial Paper in Africa. The paper has tech- enabled operations and a 24-hour fast cash turnaround for borrowers.
This was disclosed by AFEX in statement issued and seen by Nairametrics on Thursday.
The $50 million Agri-SMEs fund is expected to bridge the funding gap between lenders and borrowers in the Nigerian agricultural sector with a commodity- backed instrument- for the first time.
The warehouse receipts, which can then be transferred from commodities to a financial asset and listed under the borrower’s portfolio on the AFEX trading platform, will create a sustainable funding structure and address underfunding in the Nigerian agricultural sector.

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Orientation for Learning Programming and Product Design (UI/UX) under the Enugu Tech program

Dear #ESMECommunity,

We know you want to become financially stable in 2021, so we decided to hold an orientation for those interested in learning Programming and Product Design (UI/UX) under the Enugu Tech program  (www.enugutech.com) on Zoom and be streamed Live on the Enugu SME Facebook page, today. 

To join us, follow the details of the session below:

Date: 23rd January, 2021 (today)

Time: 5:00pm Prompt

Zoom Link: https://utiva-io.zoom.us/j/4014711571?pwd=MWFIdHVrVDg1NlM5ZEtmRjMrck0xdz09

Passcode: Utiva

Or

Join session through
Facebook Link: https://web.facebook.com/ENUGUSTATESMEAGENCY 


#Enugutech2021 #GburuGburuissme #programming #productdesigners