Elevating SMEs for Financial Viability

I am Engr. Eghosa Idubor the President/Chairman of Entrepreneurs Network for Youth and Women Empowerment (ENYWE) a nongovernmental organization registered with CAC/IT/NO 81246 with the aim of doing humanitarian works by funding and empowering the poor, widows, children and the needy.

ENYWE has been in the service of humanity since 2015 and have directly empowered over 2000 trainees with different vocational skills such as Catering, Fashion Design, Computer Operation, Computer Networking, Computer Software and Hardware Engineering, Web Designs and Web related Services, Solar Power Generation, Event Planning, Hair Styling and Makeup, Barbing, Beading and wire works, Poultry and Fishery, Agriculture and Entertainment.

Our Vision: Building a long-lasting entrepreneurial foundation for youth and women in Nigeria with the aim of reducing youth restiveness, poverty and unemployment.

Our Mission: Channeling the high energy of the youth for Socio-economic development and improving the status of vulnerable and disadvantaged women, children, youth and men.

1. Looming financial inadequacies experienced by SMEs due to Covid -19 pandemic: It is unarguable that SMEs is the back bone and driver of any economy, but this was already struggling in Nigeria and was seriously threatened by Covid-19 thereby reducing GDP of Nigeria. There has been no fovourable loan that truly represents the interest of SMEs in Nigeria as it has been overburdened with very high interest rate that sucks away profits and most times the capital, hence the need for this project.
2. A structure where SMEs can access one-year interest free loan to start of boost already existing businesses will have meaningful and measurable impact on the economy of Oredo Local Government Area of Edo State Nigeria. 
3. It will automatically eliminate the arbitrary hike in price of products and commodities, increase employment, crime and criminality and further reduce cost of living to its barest minimum 

I am working to solve high interest rate imposed on SMEs in the case “Common Traders” in Oredo Local Government Area Benin City Edo State Nigeria.

There is no financial institution that gives loans to start-up businesses and entrepreneurs hence they resort to local lenders that burdens them with very high interest rate as high as 30% of the capital per month.

Over 3,000 people are affect in the fire inferno that has gulped their fortune leaving them to their faith. 

My project seeks to give at least 1,000 local traders from 3 major markets in Oredo Local Government Area of Edo State Nigeria access to at least $300 interest free loan that attract 12 months repayment plan.

How it works

1,000 local traders receive $300 each = $300,000

Weekly Repayment Plan = $6.25/week

Monthly Repayment Plan = $25/month

One-year Repayment Plan = $300

30% of the loan goes to traders who deals on consumables

70% of the loan goes to traders who deals on Agricultural Commodities or Processed Commodities. Huge attention is given to agriculture due to its ability to create employment because there is a ready market for their farm produce.

There are 3 major markets in Oredo Local Government Area of Edo State Nigeria.

1. Oba Market
2. New Benin Market
3. Ekiosa Market

These are market that operate daily all year round and all 3 markets has experienced severe fire inferno at different time in less than 10 months which totally brought the markets to ground zero and left the traders helpless coupled with the effect of Covid-19 pandemic. Having access to this one-year interest free loan will impact them meaningfully and restore hope for their future.

A thorough assessment on the impact of this disaster has been carried out and we have resolved that a contributory scheme be set up with Entrepreneurs Network for Youth and Women Empowerment to immediately respond to incidence of this nature in the future and also grant them access to interest free loan from the scheme to boost their businesses.  

They are already hopeful that they can be in business again with this project as it seeks to allow them enough time to trade with the money and turn it over for as loon as on year which can not be seen with the financial institution and local lenders in the community

Being in the service of Humanity officially for about 5 years, I have always wanted to see everyone engaged in meaningful activities especially youths and women, hence I have organized several Tuition free training and seminars over the years. I have done several studies and researches on the arbitrary hike in the price of commodities especially Agricultural Commodities and found out that these traders actually relied on loans with outrageous interest rate from individuals, groups and sometimes micro finance institutions. These loans literally ripoff the traders of their profits and part of the capital thereby exposing them to default and subsequently making them go out of business.

 The idea first came to light in June 2016 after training over 600 people in different vocational skill hoping I have done the needful, only for me to realize that about 5% of the trainees were able to start-up and put to use the training they have received from the Organization. This issue got me thinking on how to change it, that was how the contributory scheme was birthed.

Secondly, as our name goes ENTREPRENEURS NETWORK FOR YOUTH AND WOMEN EMPOWERMENT, the idea is to network all Entrepreneurs for financial viability and sustainability. 

This Project is very important to me because I am dedicated to the service of Humanity, I am a local resident of Oredo Local Government Area and I have interacted with some of the victims and couldn’t help but share their pain as some of them now have health issues (High Blood Pressure) as a result of the disaster. 

I am a good fit for this project because it is dear to my heart and I have a team of qualified professionals comprising of:

Business Development Team responsible for training our entrepreneurs i.e. developing a realistic and workable business plan and ensuring that they thrive in their businesses and attain excellence in the delivery of their products and services.

Information Technology Team responsible for our web services and social media services

Accounting Team responsible for all accounting records for proper documentation

Administration Team

Marketing Team

When I started my 6 months pilot project in Oct. 4th 2015 where I train over 600 people, I was apprehensive where the funds would come from knowing that this type of service requires a Public Private Partnership though I already got the venue, facilities and people, the running cost was then a huge challenge because it was a tuition free training and I was new in the services my visibility was little so I thought I might not be able to complete the training. But with the absence of partnership the training was a huge success. 

In the course of training the people in my pilot project, I had formed a structure that takes in new trainees. I found out that the trainees that already got some knowledge about their training were hording the knowledge they have received, this happened in almost all the vocations we had on going at that time. I waded into the issue and and called an emergency meeting. I told them a story of a man that found money on the road side and wouldn't share with his companion knowing that the money was from someone else who lost it and probably may be looking for it. So I asked them if they had the knowledge before they came to my Organization and they answered NO, then I told them "freely have you received so give freely. That meeting changed their scope of view and the appreciated my judgement.