Digitisation is a big deal for Nigerian SMEs. Sometimes, it is not for the fact that they do not want to key in to new technologies, it is sometimes because they are held tight by hostile policies. Yet, market volume or business growth opportunities, should keep SMEs motivated – unless they do not have long term goals.
Organisations still drag their feet to resolve skills related issues: top management lack digital leadership skills, IT professionals are almost non-existent, and employees lack adequate skills. All these – skills shortages and gaps – hinder startups from defining their growth strategy and enable employees adapt new technologies.
Indeed, the pandemic caused a quick shift and SMEs are still struggling to survive the tide. In fact, the average SME is trying to absorb shocks to demand and labour while adapting to what is now regarded as new normal. And, when there was talk of SME funding and aids, many SMEs could not step forward, knowing that they are outside the realm of the formal economy, making it almost impossible to access funds to step up their game.
Read Also: The question persists: Are Nigerians ready for the future of work?
It is for this reason that SMEs must rise to the occassion. The slow pace of digitisation is the key reason Nigerian SMEs have underperformed relative to their potential. Digitally-enabled SMEs can grow profits up to two times faster than offline SMEs, according to a study by KPMG and Google. They can also employ more people, expand their operations with ease and get a share of the international market.
Digitised SMEs are better prepared to deal with changing customer behaviour influenced by events such as a pandemic and a recession, knowing they will have the capacity to continue operations and expand their area of service.
Digitisation should be priority, considering it is the backbone of a self-reliant enterprise, as it gives businesses access to skills and tools to access funding, customers and competitive advantage in markets.
If Nigeria’s SMEs are restructured to integrate technology into their business models, they can close the digital gap to avoid liquidation before they even begin. They can be self-reliant, and no longer have to depend on banks and investors for financial security.
Organisations with big data and the Internet of Things can produce higher quality services or products at lower costs, and push lagging SMEs out of the market.
Quick Summary
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Organisations still drag their feet to resolve skills related issues: top management lack digital leadership skills, IT professionals are almost non-existent, and employees lack adequate skills. And, when there was talk of SME funding and aids, many SMEs could not step forward, knowing that they are outside the realm of the formal economy, making it almost impossible to access funds to step up their game. Digitally-enabled SMEs can grow profits up to two times faster than offline SMEs, according to a study by KPMG and Google. Organisations with big data and the Internet of Things can produce higher quality services or.
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