Fidelity Bank has urged Small and Medium-sized Enterprises (SMEs) in Lagos to adopt reliable digital solutions to remain profitable and achieve sustainable growth. The bank stated this during its SME Business Forum Lagos edition, which brought together entrepreneurs, large business owners, specialists, and government representatives. The forum's theme was "Build to Compete: Positioning Lagos Businesses for Sustainable Growth." The event aimed to discuss digital transformation, trade, financing, and strategies for strengthening SMEs in the state.
The Executive Director, Lagos and South-West, Fidelity Bank, Ken Opara, highlighted Lagos' economic opportunities, citing data that showed the economy reached $27.3 billion in the first quarter of 2024. This represents a significant increase from $19.65 billion in the corresponding period. Opara noted that the state's economy, estimated to be $29 billion under purchasing power parity, offers a large consumer market, financial institutions, technology ecosystem, talent, and commercial networks.
Despite the economic opportunities, Opara cautioned that businesses in Lagos face a demanding business environment with rising and excessive operating costs, infrastructure constraints, and intense competition. He emphasized the importance of improving operations and adopting appropriate business structures, including financial management systems and clear separation between personal and business expenses. This, he believes, will help SMEs overcome challenges such as weak cash flow and difficulties meeting payment obligations.
The Group Head, SME, Fidelity Bank, Okechukwu Ugoji, stressed the importance of understanding consumer spending patterns, economic trends, and operating costs when making business expansion decisions in Lagos. He advised business owners to assess the purchasing power of the communities in which they operate and identify areas where changing economic activities and investments could create new business opportunities. This, Ugoji believes, will help entrepreneurs determine where to locate their businesses and which products to offer.
Ugoji also emphasized the need for businesses to position themselves for future growth by understanding local communities' demand and spending capacity. He noted that this would enable entrepreneurs to make informed decisions about their businesses and identify areas for growth. Additionally, Ugoji highlighted the importance of adopting internationally acceptable packaging, maintaining proper trade documentation, and complying with regulatory requirements for businesses seeking to enter international markets.
On export opportunities, Opara noted that businesses seeking to enter international markets need to improve production capacity and establish dependable logistics arrangements. He emphasized that this would enable SMEs to compete effectively in the global market and take advantage of new business opportunities. The forum provided a platform for entrepreneurs and business owners to discuss challenges and opportunities in the current business environment.
The SME Business Forum Lagos edition was a successful event that brought together key stakeholders in the SME sector. The forum provided valuable insights and strategies for SMEs to overcome challenges and achieve sustainable growth. Key speakers, including Opara and Ugoji, shared their expertise and experiences, providing attendees with practical advice and guidance on how to position their businesses for success in a competitive market.
Key points
- Fidelity Bank urges SMEs to adopt digital solutions to remain profitable and achieve sustainable growth.
- Lagos' economy offers significant opportunities for businesses, with a large consumer market and financial institutions.
- Businesses in Lagos face challenges such as rising operating costs, infrastructure constraints, and intense competition.
