The Lagos MSMEs Recovery Fund report has revealed that 64 per cent of the micro, small and medium scale enterprises (MSMEs) affected by the destruction of properties by hoodlums during the #EndSARs protests were women-led businesses.
According to the report, there was a need for improved awareness for business interruption insurance for MSMEs in the state, adding that insurance companies should create affordable products for MSMEs.
It noted that a significant number of businesses did not have business bank accounts and the grants from the LSETF were paid into the personal accounts of the business owners.
The report revealed that business registration, formalisation of operations and adequate record-keeping improves the chances of small businesses to access business support programs and credit from financial institutions. It, therefore, recommended increased training for MSMEs on business formalisation.
According to the report, “There is a need for policies targeted at MSMEs to be custom made, in order to accommodate the different business categories and growth stages of these businesses.
“Government and non-governmental agencies should periodically undergo a SWOT (strength, weaknesses, opportunities and threat) analysis before seeking partnerships for projects.
“This ensures that proposals take into cognisance the peculiarity of the requesting agency and adaptation of the needs and demands of the donor organisation.
“There is need to create awareness on the need for insurance, partner with brokers and insurance companies that can create affordable structures to pay a premium.”
Speaking on the report, the Lagos State Government, Mr. Babajide Sanwo-Olu, called for the deepening of the recommendations of the Lagos MSME Recovery Fund report by developing a second phase of the report in order to lift millions of Lagosians out of poverty and support small businesses in the state.
Sanwo-Olu, who disclosed this during a virtual launch of the report recently, noted that the study which was carried out to identify SMEs affected during the #EndSARs protest brought to the fore some of the things the state government needed to take into consideration in its policy implementation.
“From this report, it is evident that there is need for small businesses to enter into partnerships and affiliations, and organise their businesses into one form or other, so that they can formalise themselves around associations, and sectors, to ensure that they have people that can speak on their behalf and make them become a strong voice in the industry,” he said.
The governor also disclosed that the report revealed how undocumented many small businesses were, stating that it was a challenge and opportunity for the state government to take forward, therefore they are asking for registration around the Lagos State Residency Card.
