Dr. Chris Ogbechie, director, LBS/First Bank Sustainability Center, has stressed the need for Small and Medium Enterprises (SMEs) in Nigeria to operate with high level of financial integrity and proper business conduct in order to enhance sustainability.
Ogbechie stated this at a workshop for Women owners of SMEs in Nigeria held at the First Bank Sustainability Centre, Lagos Business School in Lagos, maintained that for any business to grow and sustain growth, it must be built on integrity.
He explained that sustainability is a business approach that creates long term shareholders value by embracing opportunities and managing risks deriving from economic, environmental and social development, adding that the workshop was sponsored by the bank to promote empowerment, entrepreneurship and financial inclusion among women.
Ogbechie decried the situation where SME’s businesses collapse at the demise of the founders due to lack of succession plan, adding that there was the need for SMEs to grow beyond first and second generation of founders.
He listed challenges facing operators of the sector to include succession, poor financial management and book keeping, capital raising, inefficient resource use, absence of planning, among others.
The Director, who noted that government is trying to upscale activities in the sector, advised that the authorities should also create enabling environment through tax rebate and giving more grants to the operators.
Mrs. Olubunmi Adebiyi, deputy manager Central Bank of Nigeria (CBN) noted that SMEs sector is crucial for economic development of the country, commended First Bank’s efforts in empowering the operators.