Heritage Bank seeks implementation of Vision 2020 SMEs blueprint

The strengthening of the nation’s Small and Medium Enterprises (SMEs) sub-sector may have now become necessary than ever, with Heritage Bank Limited seeking the retrace of the blueprint contained in vision 2020 framework as a strategic move.

The Managing Director of the bank, Ifie Sekibo, said government should ensure seamless implementation of the blueprint developed by the vision 2020 National Technical Working Group on SMEs as an efficient strategy to fast track the process of curtailing the growing unemployment rate in the country.

According to him, all stakeholders in the nation’s economic sphere, especially the SME sector, must join hands in creating and sustaining an active SME revitalization drive through the establishment of a solid framework supported by clearly articulated government policy.

“The current high rate of unemployment in the country requires all stakeholders to work together in ensuring the quick revitalization of the SME sector as the primary source of creating jobs and fostering entrepreneurship among the youths.

“The Vision 2020 National Technical Working Group on SMEs has developed a blueprint for boosting SMEs and all the government needs is to do everything within its power to bring up the fine ideas in the blueprint for implementation”   “SMEs enhance competition and entrepreneurship, and their proper development has a positive impact on innovation and productivity growth which, in turn, enhances macro-economic stability.

Therefore, developing the SME sector is one urgent task that requires concerted effort from all stakeholders,” he said.

Sekibo noted that although SMEs are a vital national economic growth engine contributing to sensitive economic indicators like employment generation and Gross Domestic Product with about 70 per cent of the rural population being active in formal and informal sectors, a study of the sub-sector has shown that growth possibilities are hampered seriously, as significantly low number of start-ups which apply for medium-longer term financing actually succeed.

He attributed the main challenge facing SME promoters in the country to limited access to appropriate capacity building opportunities and education, which in turn, lead to other growth-limiting impediments such as inadequate financial record keeping, poor managerial skills, lack of access to international markets, inability to provide collateral and poor access to infrastructure.

He however, advised SMEs in the country to focus greatly on restructuring and innovation to access the unfolding opportunities for growth and development in the economic landscape.

“The Micro, Small and Medium Enterprises (MSME) Development Fund, which provides an exit window for small businesses, currently implemented by the Central Bank, is one of the new opportunities for SMEs in the country to access wholesale funding requirements.

“It offers a relatively more sustainable approach to the provision of credit and guaranteed advisory services to the specialized needs of the MSME sector,” he said.

The bank chief therefore, challenged the sub-sector operators to rise to the task by taking advantage of every learning opportunity to enhance skills, especially managerial and accounting, which would help structure the business properly to scale hurdles of financing.