Friday, December 10,2021/01:30PM/Stanbic IBTC / Header Image Credit: ET CFO

SMEs play a pivotal role in the growth ofnations. They are significant contributors to job creation and economicdevelopment. According to Price Waterhouse Coopers, Nigerian SMEs contribute48% of national GDP, account for 96% of businesses, and about 84% ofemployment.

Numbering about 41.5 million, they account forabout 50% of industrial jobs and nearly 90% of the manufacturing sector, interms of the number of enterprises. It is no news that SMEs are an importantaspect of innovation and diversification.

The SME sector is promising if there is astrategic approach to investing in its growth. Not only will it help reduce therate of unemployment, but it will also impact earnings positively and enhancecapacity, culminating in economic growth.

Despite its vital impact on economicdevelopment, SMEs in Nigeria have operated under very stringent conditions.Capacity remains a huge problem, so is financing, as well as infrastructure:utilities, logistics, and so on.

Lately, the coronavirus pandemic has taken aheavy toll on the sector, giving way to business disruptions; hence, the needfor SME operators to have access to funds and training that will continuouslyexpose them to modern and innovative marketing methods cannot beoveremphasised.

Understanding what is required is the first steptowards providing an adequate solution. Stanbic IBTC understands the criticallinkages provided by SMEs to industries and employment generation. Thus, thefinancial institution has developed solutions to help address some of thechallenges in this segment. Stanbic IBTC has, for instance, built a reputationin capacity building for SMEs through the Stanbic IBTC SME Capacity BuildingProgramme. The bank also continuously provides much-needed support in terms ofskills acquisition and funding via tailored products.

The conception of this solution is gearedtowards encouraging SME growth in an ever-evolving economy. According to aWorld Bank report, Nigeria ranked 131 out of 189 countries in the 2020 Ease ofDoing Business Index. This goes to re-iterate that access to finance is a keyconstraint to SME growth.

Helping SMEs meet short-time goals will go a longway in enabling their growth. For instance, Stanbic IBTC's SME loan is designedto boost working capital and bridge urgent cash flow needs.

This is all in the bid to support aspiring andemerging entrepreneurs in Nigeria to sustain their businesses while alsofacilitating the development of an enabling business environment and thrivingecosystem.

Furthermore, credit loan solutions enable SMEsto get loans with ease and convenience. It also offers benefits that includerepayment flexibility and limited documentation with no collateral. 

One thing to note about this solution is thatthe ease of accessibility to funds is impressive to help address urgentfinancial challenges faced by small and medium scale businesses in Nigeria. Thetemporary overdraft provides financial credits to both new and existingcustomers with a maximum loan repayment duration of 90 days.

The loan solution offers speedy, robust funds toprospective customers, including entrepreneurs seeking urgent funds ortemporary overdrafts to cater to immediate business needs.

The bank has expressed its commitment to continueto develop a unique value proposition to support SMEs with transactionalproducts: savings and investment solutions, lending products; insurancesolutions; payment solutions, and wealth protection solutions underpinned by aninvestment in technology. This will make banking more accessible and help thesector players meet their bottom lines while contributing to the nation'sgrowth and development.

Stanbic IBTC Bank's determination to harness thestrong entrepreneurial culture of Nigerians remains evident as the financialinstitution continues to innovate to help build a vibrant SME sector. 

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