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| The works of MSMEs are found in many places, very close to the people | |
In Part One (1) of this publication (in case you have not read it, please click this link: https://www.belfordscorelines.com/2023/09/improving-performance-via-increased.html), I raised the issue of enabling environment, and also alluded to the fact that good financing practice provides a measure of support for enhanced performance of the Micro, Small and Medium Enterprises (MSMEs).
I also noted that most of the MSME operators in Nigeria, learn from experience how to cope with routine problems of accounting and finance in their business operations. In the same vein, I made it abundantly clear that the business operators that respond rationally to changes and challenges of basic or fundamental accounting and financing related issues perform better. The reasons for this were presented equally.
In the previous publication also, I had raised the issue of enabling environment, and observed that good financing and accounting practices provide some measure of support for enhanced performance of the Micro, Small and Medium Enterprise operators. Similarly, I made reference to the fact that access to finance and better understanding of basic financing and accounting principles, terminologies, concepts and conventions by the MSME operators are of interest in business enabling environment (BEE) discussions.
Equally important to note from previous publications on the topic is the fact that most of the MSME operators learn from experience how to cope with routine problems of accounting and finance in their business operations. Clarification to the effect that business operators that respond rationally to the changes and challenges posed to business by basic accounting and financing related issues perform better. The reasons they perform better were presented equally.
In addition to the above, benefits of improved Micro, Small and Medium Enterprises to the economy were succinctly covered. The benefits were presented in a cluster format as follows:
- Benefits to the business owner/company
- Benefits to the employees/workers
- Benefits to the government/economy
- Benefits to the market/society
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| Catch them young... The emerging ones at work |
Moving forward, few, deep soul searching questions were thrown to the reader. The questions were raised to agitate the mind, arouse consciousness and put the reader in a frame of mind where as my scaffolding team members; the task ahead is more defined. Another issue of interest rests in understanding one very essential fact that the keen follower of this piece is embarking on a journey of MSMEs development. In view of this, unmasking of some of the hidden, accounting and financing related constraints, dragging the MSME operators down and hindering them from operating at optimal levels is a task begging for attention, and efforts necessary to demystify the unmasked challenges are the duty we must collectively strive to attend, with me on the driver’s seat.
As an addendum to what is said already, let me add that access to finance and better understanding of financing and accounting related issues by the MSME operators are of interest in business enabling environment (BEE) discussions. On the basis of this assertion, let me underscore the fact that improving MSME operations in Nigeria will require improved knowledge, understanding and sound application of basic financing and accounting terminologies, principles, concepts and conventions.
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| The Art works in this picture are done by the two young ones within two weeks of holiday training |
If the above is embraced and effectively and efficiently implemented, there is a very chance and in major ways for a redefined business climate in Nigeria, instigated from the actions of the MSME operators. This will contribute significantly at reducing the challenges associated with record-keeping and documentations, as well as create higher Return On Investment (ROI), all things being equal. In addition to creating a general improvement in the internal environment of businesses in the country, this in essence has the capacity of throwing up many functional, competent and truly productive MSME business operators. The benefits include, the emergence of those that can appreciate better the world of business; those that understand clearer what goes on around them; and those positively enabled to observe, digest and respond wisely, tactically and strategically, for the growth and sustainable development of the MSMEs sub-sector and the Nigerian economy generally.
This is vital to throwing up a regime of empowered and emboldened MSMEs, those that can systematically and strategically position to raise the right questions when situations change and new challenges emerge, and are able to navigate through their ordeal based on scientifically driven methods instead of relying on abracadabra as the tool to maneuver their predicament.
Please click the link below to read part Three (3) of this piece:
https://www.belfordscorelines.com/2023/09/part-three-3-improving-performance-via.html
Nnabugwu Chizoba
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