Small and medium-sized enterprises (SME) account for the majority of private-sector activity in both advanced economies and emerging market economies. See what problems they face and what strategies have been put in place to tackle these problems.
2. Small and medium-sized enterprises (SME) account for the
majority of private-sector activity in both advanced
economies and emerging market economies. They are the
main engine for creating jobs and developing value-added
enterprises in many economic sectors. Globally, the SME
sector’s estimated contributions to employment and private
sector output are 67 percent and 52 percent respectively.
In Ghana, according to World Bank estimates, micro, small,
and medium enterprises (MSMEs) contribute about 70
percent of Ghana’s GDP. In Nigeria, SMEs contribute 48
percent of national GDP, account for 96 percent of businesses
and 84 percent of employment. This sector contributes
significantly to alleviating poverty and increasing job
creation.
The best way for any developing country to overcome
poverty and inequality is to better integrate into the global
economy through economic liberalisation, deregulation and
democratisation. Crucial to this process is the development of
a vibrant private sector, in which SMEs play a central part.
SME report 2023 - Presented by Helene Analytics
INTRODUCTION
3. Access to financing
SMEs often have a harder time
getting funding from traditional
banks and investors, making it
difficult to grow their business.
Supply chain disruptions
Inventory management for
example can be time
consuming and stressful when
done manually. This leads to
inefficiency in meeting
consumer needs.
Managing cash flow
Small businesses often have a
hard time managing cash flow,
using business income for
personal needs.
Keeping up with
technology
SMEs may not have the
resources to keep up with the
latest technologies and trends,
making it difficult to stay
competitive and scale.
SME report 2023 - Presented by Helene Analytics
AFRICAN SME PROBLEMS IN THE 21 CENTURY
In conclusion, SMEs face a wide range of problems leading to
their unorganised nature.
4. SME report 2023 - Presented by Helene Analytics
SOLUTIONS TO SET PROBLEMS
Access to finance
It is key to note that access to finance isn't the problem but
credibility of these SMEs. Over the nine-year period (2021–
2028), Laferty indicates that the projected estimates of the
total size of BNPL(Buy Now, Pay Later) market in Africa is
$49.175 billion; with Nigeria taking a huge chunk that rises
from $950 million in 2021 to some $28.1 billion by 2028. So this
problem has been solve with digital lending.
Supply chain and Managing cash flow
The increasing use of smartphones has led to the rise of
companies like Helene that provides a digital means for SMEs
to streamline their operations and automate processes which
saves time, reduces cost and human errors.
Keeping up with technology
The availability of cheap internet services has made it
possible for SMEs to reach wider number of local and
international customers. Companies like Alibaba, Jumia and
Konga have taken advantage of this and now leaders in the
e-commerce sector of commerce.
5. SME report 2023 - Presented by Helene Analytics
In conclusion, we are going to see more and more
improvements by different African government to help SMEs
to strive. Like the government of Nigeria introduced the
cashless policy which has caused a new wave for digital
inclusion. We are going to see more SMEs emerging to take
advantage of these new changes in the coming years.
Thank You.
Email: contact@helene.africa
Website: www.helene.africa