SMALL & MEDIUM ENTERPRISE(SME)- A GLANCE IN AFRICA
FACTS AND CHALLENGES
At Rhino Capital Ltd, we know that SMEs offer employment to the largest segment of global labor force. This assertion, overtime has been confirmed to be true, both in developed and developing nations. Surprisingly, SMEs all over the world are grossly under financed, compared to big businesses. Generally, SMEs are mostly faced with severe and rigorous pathways leading to limited or no external funding. Fact is, they are left to either survive or die- before they have a fair chance to show case their full potential.
While writing this article, my heart aches with the fact that when it comes to SMEs, most investors, people of affluence and financial institutions around the world, especially in Africa, seems to deliberately pretend or live in a subterfuge- that forgets the fact that every big business today, didn’t just show up big, without a history, showing a path way from little beginning (SME stage) to becoming big.
Look at Apple Inc., which started its SME’s journey from a garage to become the first trillion dollars’ corporation or Facebook, starting from a simple teenager’s idea about social media to a multi-billion corporation with a global reach. All these because there were investors or institutions like “Silicon Valley” in the United States of America, ready, willing and able to risk their funds on these ideas at such early stages, with an anticipation and trust that these ideas could metamorphose into a huge opportunity. Also, knowing and bearing in mind, the possibility that they might lose their funds.
With my over 20 years in business, starting from Africa to the world stage, I have my personal submissions that if the above-mentioned companies, while in the idea stages, were from Nigeria or Africa, today, the story might have been be totally different. Your guess is as good as mine.
In Africa, many ideas considered to have potential and capacity of surpassing, competing or evolving into the likes of Apple and Facebook etc., did not even make it out of garage and are currently laying in the sepulcher of ideas or at best gravely hoping that one day someone, some groups or some institutions will convoke the required courage to take this risk of readiness, willingness and ability to search out these ideas that can be turned to opportunities in Africa. This is why Rhino Capital Ltd was founded, as of today we have a warehouse of prolific ideas, capable of being turned into huge opportunities and we have gone a great extent within our capacity to make available funds for SMEs than any organization within the same category. When it comes to dealing with the challenges of funding SMEs, we have learnt so hard a lesson, acquired superior knowledge and insights in this regard- that has equipped us for the next and most required stage in this sphere (which is seeking out partners, investors and financiers) to take this commitment to the next level.
The question remains, why are African financial institutions, Governments, private sectors, groups and individuals not showing resounding commitment to SME? Apart from job provision, this segment of labor force (SME) have several advantages.
Regardless of the significance of small and medium enterprises (SMEs) to the global economic activity and employment, accessing finance remains limited or mostly not available. Many nations are working across the board to implement state-of-the-art mechanisms/structure to bring solution to SME FINANCE, this is where Rhino Capital Ltd is adequately positioned, ready, willing and able to bring it’s experience to bear.
There are certain facts that underpins the hope for successful transition of SMEs in Africa.
To be Continued…. (signup for more updates)
