As the 2024 Young Directors Forum (YDF) Annual Conference approaches, we sat down with the Chairperson of the YDF, Mrs. Folasade Akinmusire, and the Chairperson of the Conference Planning Committee, Mrs. Ayoyinka Olajide-Awosedo, to discuss the theme of the event, “Empowering SMEs: Addressing the Funding Deficit.” Here are insights into the challenges facing Small and Medium Enterprises (SMEs) in Nigeria and how the conference aims to address these issues.
What inspired the theme “Empowering SMEs: Addressing the Funding Deficit” for this year’s conference?
Mrs. Akinmusire: The Young Directors Forum (YDF) has always focused on shaping young leaders and empowering them to make meaningful contributions to society, particularly in the business sector. Over the years, through our webinars and conferences, we’ve noticed that one of the biggest challenges facing SMEs is the lack of adequate funding. Despite having innovative ideas and promising businesses, many SMEs struggle to grow due to limited access to finance.
This year, we decided to tackle this issue head-on by organizing a conference that brings together entrepreneurs, business owners, and financial service providers. The goal is to collectively explore practical solutions to close the funding gap and empower SMEs to thrive.
How has the Young Directors Forum supported small and medium-sized enterprises in Nigeria over the years?
Mrs. Olajide-Awosedo: Our support for SMEs has been twofold—technical and non-technical. We provide guidance on standard corporate governance practices to help transform small businesses into larger, more sustainable enterprises.
Through our webinars and conferences, we’ve addressed key areas such as corporate sustainability, regulatory compliance, board composition, and the importance of oversight functions in businesses. These initiatives have provided SMEs with a platform to not only learn from industry leaders but also to network with other business owners. Many of our participants have attested to significant growth in their businesses as a result of our mentorship and networking opportunities.
What specific challenges do SMEs face in accessing funding, and how can these be overcome?
Mrs. Akinmusire: There are several challenges that SMEs face when it comes to accessing funding. Some of the major barriers include:
Limited access to traditional financing.
Lack of collateral.
Ineffective governance structures.
Inadequate financial documentation.
Regulatory constraints.
At the conference, we aim to provide entrepreneurs with the tools they need to overcome these challenges. We’ll be guiding them on how to establish effective governance structures, develop investor-ready business plans, and meet financing requirements. Additionally, financiers will gain insight into the challenges entrepreneurs face, helping them to better support SMEs in the future.
Can you share some success stories of SMEs that have benefited from YDF’s initiatives?
Mrs. Olajide-Awosedo: Yes, we have had several success stories over the years. Participants in our webinars and conferences have shared how our programs have positively impacted their businesses. One example will be featured in this year’s edition of the Young Director Digest, a publication of the YDF. Many of our participants have gone on to expand their businesses, improve their governance structures, and access funding that was previously unavailable to them.
What role do you believe the government and financial institutions should play in bridging the funding gap for SMEs?
Mrs. Akinmusire: The government and financial institutions both have critical roles to play. The government should focus on promoting financing initiatives, such as grants, subsidies, and long-term financial schemes aimed at SME sustainability. Public policies also need to improve awareness of available funding options from government programs, private investors, and financial institutions.
At the conference, we’ll explore these topics in more detail, with discussions on the Nigerian funding landscape and the capital readiness of SMEs. Representatives from institutions like the Bank of Industry (BOI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), and microfinance banks will be present to share insights.
From your point of view, what are the primary barriers preventing SMEs from accessing adequate funding in Nigeria?
Mrs. Olajide-Awosedo: A key issue is credit rationing, where SMEs are denied the full credit they request, even when they offer to pay higher interest rates. This often happens because financial institutions perceive SMEs as high-risk ventures due to their size, limited track record, and lack of collateral. Financiers tend to prioritize larger businesses that are seen as more stable and likely to generate better returns.
During the conference, we’ll discuss how to overcome these challenges and how SMEs can better position themselves to attract funding.
How is the Young Directors Forum partnering with financial institutions to create more accessible funding opportunities for SMEs?
Mrs. Akinmusire: One of the main objectives of this conference is to serve as a bridge between SMEs and financial institutions. We’ve invited representatives from the public and private sectors, including Development Bank of Nigeria, BOI, and traditional banks, as well as private and angel investors. This provides an excellent opportunity for entrepreneurs to network and collaborate with potential financiers, creating avenues for accessible funding opportunities.
Are there any upcoming programs or initiatives from the Young Directors Forum aimed at addressing the challenges faced by young directors and SMEs?
Mrs. Olajide-Awosedo: Absolutely. Our 2nd Annual Conference, which is themed “Empowering SMEs: Addressing the Funding Deficit,” is the flagship event for this year. Following the conference, we’ll be organizing more networking and knowledge-sharing sessions tailored specifically for SMEs. These sessions will focus on the practical aspects of business growth and how to navigate the funding landscape in Nigeria. We encourage everyone to follow us on social media to stay updated on these initiatives.
What advice would you give to young directors managing SMEs in the current economic climate?
Mrs. Akinmusire: My advice is simple: seize this opportunity by attending the conference. Come ready to learn, network, and take your business to the next level. Be focused, resilient, and open to evolving as the business landscape changes. Success in this environment requires audacity and a willingness to adapt.
How important is mentorship and networking within the Young Directors Forum for the growth of young business leaders and SMEs?
Mrs. Olajide-Awosedo: Mentorship and networking are at the heart of our mission. We believe that building a strong network of peers and mentors is critical to the growth and success of young business leaders. Our Young Directors Development programmes are designed to help directors enhance their skills and build competencies that are essential for business growth. We are committed to helping young directors achieve their full potential through structured mentoring and capacity-building initiatives.
The Young Directors Forum is set to hold on Tuesday, October 29th, 2024
Venue: Civic Center, Victoria Island, Lagos
Registration Link: https://bit.ly/m/2024YDFEarlyBird