ACCESS Bank Plc has reiterated the importance of grooming Small and Medium Enterprises (SMEs), saying they are crucial to the development of the economy, having great potential for employment generation, improvement of local technology, output diversification and boosting of indigenous entrepreneurship.
The bank’s Executive Director, Business Banking, Titi Osuntoki, made the observation at the financial institution’s “Power Breakfast” forum for its customers, in Lagos, at the weekend.
According to her, “Access Bank recognizes the importance of SMEs to the growth of the Nigerian economy, even as it sustains efforts to support traders through the provision of innovative products that seeks to meet the traders at the point of their needs.”
Osuntoki pointed out that the bank’s competitive edge lies in its efficient electronic channels; trained and highly skilled workforce; competitive products and pricing; accessibility of loans and advances; SMEs support services; financial and business development advisory services; and improved customer service experience.
She assured that the recapitalization of the banking sector enabled the growth of the sector, with more banks offering credit facilities to eligible businesses for economic development.
But the Head of SMEs Support, Access Bank, Oyediji Atoyebi, said that the bank, in its quest to support small businesses, has evolved several strategies and products.
These include business current account; Short/Medium Term facilities- overdraft, time/term loans, Usance, invoice discounting facility; AccessPay, Primus corporate solution;distributors/dealers finance schemes; and local/international trade services, among others.
Atoyebi, who also acknowledged the crucial place of SMEs to the development of any economy, however lamented that due to the organizational structures of majority of them and other challenges, many banks find it difficult to accurately profile small businesses and analyze their financial standing.
According to her, besides poor funding, the issues of low managerial expertise, poor project feasibility study/business case, lack of proper book-keeping and absence of corporate governance, have bedeviled their operations, among others.
She assured that Access Bank is now more ready to help them explore opportunities inherent in the large available market, increased awareness of the SMEs’ role in the economy, government finance intervention, access to overdraft line, trade finance, assets finance and other related facilities, including availability of investment account products that help manage surplus cash flows, providing acceptable yields for customers.
For the bank’s Zonal Head, Business Banking, Abuja, David Aluko, there remains significant untapped growth potential, strong export, employment contributions for Gross Domestic Product’s growth in the sector.
According to him, it is also major factor in promoting private sector development and partnerships, most viable vehicle for self-sustaining industrial development for any economy, and crime reduction strategy.
To him, the situation is accentuated with poor incentives and support facilities by government leading to low investment commitments, uneven competition arising from import tariffs, which at times favour imported finished products, and weak entrepreneurial skills as well as deficiencies in accounting and business planning.
Aluko pointed out that the bank understands that the need for knowledge support, including targeted research and development and design; and competence building- formal and non-formal training, among others, to strengthen SMEs.
To underscore the importance the bank attached to SMEs, there is a full-time Executive Director to give the desired attention, with “Centre of Excellence” created across the country in identified key sectors manned by experts.
