REDUCING POVERTY
Surviving the COVID-19 Threat: Micro, Small, Medium Enterprises) (MSMEs)
Our business linkages project assists micro, small, and medium enterprises (MSMEs) in the region to become more competitive, productive, and diversified in their markets. They will reap higher income (through increased sales and profits) and create new jobs for people (through access to quality business support services, markets, and funding).
Summary of Outcomes in 2020
3,897 MSMEs Reached
1,413 MSMEs
NGN 3.3 Billion
3,442 New Jobs
BUSINESS MADE GOOD BY NISRAL LOAN!
“My name is Peter Wealth. I am from Akwa Ibom State, married with four (4) children. I am into movie production, which has been a long-time passion since I was 16. I heard about PIND for the first time from Filmatura Film Production (a PIND-trained BSP (business service provider)], who did several trainings for a group of us on movie making, music video, photography, and cinematography. After the training, Filmatura supported us to apply for the NISRAL MFB loan, which is CNB’s empowerment program. In 2019, we received a loan of NGN 4.5 million to start a film production business, rent office space, and buy equipment. We had two (2) clients in our first month, and after, then, we had over eight (8) clients. As the business got moving, we upgraded to two (2) offices and added two (2) extra staff to make a total of four (4). It became easier to take care of my family as income was good, adding about 20 percent to what we started with. It was easier to carry both the home front and the business, which was a relief to the family. Business was good and, of course, the payment of the loan was easier for us to do without stress”.
PIND’s micro, small, and medium enterprise (MSME)-development-and-linkages initiative is designed to help build relationships to foster optimal productivity and income. MSMEs include production, processing, marketing, construction/fabrication, manufacturing, catering, fashion, entertainment, etc. The activities of MSMEs are driven BSPs who work in partnership with financial institutions, large corporate buyers, chambers of commerce, and other wide range of actors to provide the requisite support for MSME development: These comprised business diagnostics and upgrading, business management training, marketing strategies, and linkages to funding and market opportunities.
Due to COVID-19 lockdowns and restrictions, MSMEs experienced scarcity and high cost of inputs and raw materials, scarcity of labor, poor market access to sell products, hardship in receiving orders from customers, poor patronage, and access to critical services. Business service providers faced restricted engagement with critical stakeholders and their MSME clients, cancellation of scheduled physical upgrading activities, and the inability of MSMEs to pay for services due to poor turnover.
In response, the BSPs leveraged the technological skills of their co-BSPs to engage and network with the MSMEs and provide physical training to clients in locations they could not travel to in observance of pandemic guidelines. They used phone calls, social media, text messages, WhatsApp, and Zoom to provide services to MSMEs and to engage with other market actors. The BSPs also helped MSMEs to leverage funds from government-initiated palliative programs for businesses. Additionally, the BSPs digitalized the NAEC training modules into an online format and set up professional studios. This allowed for ease of delivering capacity building to the MSMEs and adhered to COVID-19 protocols in physical training deliveries.
MSMEs overall benefitted from these virtual adaptive services by BSPs such as training, access to funding, and registration with NAFDAC in some cases. Technical and business service providers further collaborated effectively in adapting and coping with responses to both the threats and opportunities brought about by COVID-19. PIND-trained BSPs organized business linkages forums in the three (3) states of Edo, Imo, and Rivers that assisted 284 MSMEs in connecting with large buyers, financial institutions and inputs, and equipment suppliers. This support helped to alleviate the overall impact of the adverse business environment caused by the pandemic.