Small and Medium-scale Enterprises (SMEs), are presently key and crucial for economic growth and development in Nigeria. SMEs in Nigeria comprise around 90 percent of the considerable number of businesses in Nigeria, creating over 80 percent of employment in Nigeria. Some proven methods of growing Small and Medium-scale Enterprise (SMEs) in Nigeria are:
5 Proven Methods of Growing SMEs in Nigeria
1. Always Ask for Referrals
One of the proven methods of growing Small and Medium-scale Enterprise (SMEs) is by asking for a referral. Approaching your customers or clients for referrals goes far to help grow a business venture Nigeria.
Having great customer service skill and marketing is not a guarantee that clients will naturally refer other customers to you. Hence, it is of great importance to always ask your customers for referrals.
Another proven method of growing SMEs in Nigeria is franchising. A franchise is a business arrangement between franchisee and franchisor which aim at increasing market shares and geographical location of the business. Therefore, a franchise is a kind of permit that gives a party (franchisee) right to use proprietary information, procedures, and trademarks of the franchisor to sell an item or render service under the business' name.
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The franchisor is the first or existing business that offers the privilege to utilize its name and thought. The franchisee is the person who becomes tied up with the first organization by acquiring the privilege to sell the franchisor's products or render service under an existing model of business and trademark. Examples of successful franchises in Nigeria include Mr. Biggs, Domino Pizza, Chicken Republic, etc.
3. Expand your market reach.
Expanding your market reach is a decent method of growing SMEs in Nigeria. It helps to draw in new clients or customer to your business. A good example of a company currently using this method in Nigeria is Market Square Supermarket, subsidiary of Sundry Market Limited
However, if you can't stand to get another outlet, you can expand your market reach by promoting your goods or services on the online. Thus, you have to identify another market you need to penetrate, get your intended interest group and locate the correct online community to accomplish your market reach.
4. Products and Services Diversification
Products and services Diversification is another proven method of growing SMEs in Nigeria. Thus, you have to find other comparable items related and a key to your products and services.
For instance, someone who sells cell phone accessories can expand by adding computer accessories as a new product. It would help develop your business and furthermore make you break more grounds in your business.
5. Engage in Trade fairs.
Engaging in trade fairs is another method of growing SMEs in Nigeria. It helps to showcase products and services to prospective clients.