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COVID-19: A litmus test for SMEs performance and survival

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 By Najafi Auwalu Ibrahim

We are experiencing the highest rate of changes in history, leading to a lot of disruptions, envisions, chaos, and opportunities. Before the coming of notorious pandemic COVID-19, SME’s business failure is on the rise especially in developing countries like Nigeria.

This has skyrocketed the Nigerian unemployment rate from 5.5% in January 2015 to 23.1% in November 2019 with a projected rise to 33.5% in 2020.

And it is expected to double as a result of the COVID-19 pandemic. The current situation has become entrepreneurs’ judgment day, when many debatable issues will be sorted, which might give rise to new ones. Previously, most people see entrepreneurship as “having excess money”, “a chance”, “about connection”, “just being born by nature” or “character”. But, we are today faced with a problem in which none of the above can save any business, hence, threatening many jobs, business survival, and even the economy of various countries around the world.

It is my submission that the entrepreneurial journey requires more than what has been listed above; character inclusive. Don’t get me wrong, entrepreneurship requires wherewithal such as equipment, finance, and passion to achieve success.  

But success in today’s entrepreneurial journey requires discipline and perseverance. Success is not a person, it’s an event”. These events are made up of very small stones developed and put together strategically over a period of time.

 We might not be responsible for the effect of COVID-19 on us and our businesses, but we will be responsible for failing to get back stronger and better. The choice is ours.

As we face COVID-19 and its effects on businesses and jobs, it’s an opportunity for “acclaimed entrepreneurs” to know where they stand. According to Michael Gerber “we have entrepreneurs, we have managers and we have technicians“. The entrepreneurs will from this trivial condition identify an opportunity and capitalize on it to remain relevant, ensure survival and sustainability. This is one of the major difference between entrepreneurs and others i.e. their tenacity and the absence of fixed success ideology. The entrepreneurs will not give up despite being faced by one of the adversity of the 21 century, but rather will persevere to redefine and reshape the purpose of their business to ensure its survival and growth.

What does this means?

It means we all, either as individuals or businesses would be affected by COVID-19, but that should not be an end to our life, hopes and dreams.

We all need to think outside the box or even draw a new box to survive this trying moment. It’s possible, though not easy, hence, the need to fight valiantly to become victorious.

How can we do it?

Let me start by quoting George Bernard Shaw who says “The reasonable man adapts himself to the world; the unreasonable one persists to adapt the world to himself. Therefore all progress depends on the unreasonable man.” For us and our business to survive post-COVID-19 we need to do the unreasonable, change our strategy, make difficult decisions, and also push ourselves. Normally, entrepreneurs are known to be proactive, flexible and self- educative among others. The current pandemic requests for more to survive and grow, hence, the following are some of the major to-do list needed by individuals and businesses in this trying moment:

i.

We need to be aggressive with our plans: It’s ok to look foolish in the short term for us to win in the long term, hence changing our plans might result in short booing but will lead to cheering in the long run. COVID-19 has created a lot of chaos, and other new things which can be fun, except for people who are afraid of change. Let’s remember that it takes guts to make change, which defines how progressive we are.  The fact is, most of our decisions might not be felt by our team, because they may look delicate as compared to when things were normal. At this junction, we all have to temporarily feel the insanity that comes with the situation, but most importantly we should carry our people along in taking any decision. That is, the decision making process should be collaborative and inclusive.

ii. Differentiate between controllable and uncontrollable factors: What we do always have consequences (intended and unintended), the decisions we make and actions we take all have weight. However, certain factors such as government policies, COVID-19 virus cannot be controlled, but our plans and decisions can. So, knowing the difference will give us the chance to consolidate and position our business solidly for the future.

iii. Spend the money for the right reasons i.e. drastically reduce cost: We need to cut bait on our losses, we all know them, the ones we have been defending hoping they will come around but secretly we know they never will. This is differentiating between having and must have, doing this will give room for new ideas that win, for success to present themselves. More so money should be spent to either survive or to grow as to actualize new opportunities.

iiii. Create certainty for yourself, the business and the customers: We should be beacon of hope to ourselves and also extending same to our business and customers. These include showing them that we really know how a business should be run based on our actions and inactions. The whole point is to keep them happy as well as assure them that the future will be bright. This requires more discipline, work ethics and the likes to ensure we create certainty at least within our business, industry and the community.

v. We should look deep into our existing customers: We need to carefully and deeply watch, listen, and respond to our customer’s needs now, more than before. This will give them the assurance that we are still capable of adding value to them. Many will start looking for new customers, but the real entrepreneurs will focus more on their existing customers, making more contacts to know how their preferences, income, and needs have changed and assured them of our readiness to serve them well. In essence, now is the time for consolidation and positioning for the future. Hence, our focus should find out how we can help our customers and make them feel that we are on their side. This will make the customers happy and more confident in us.

vi. Avoid putting more cash when it’s clear the business is sinking: though we need to withstand the pressure and tolerate a lot of risks when the shot is going against us, still we should never hold on to a loser. The moment it doesn’t feel right, you let it go and get away from it. Many will ask what happens to the notion that “entrepreneurs don’t quit”, to me is not quitting but jumping out of a ship, the moment it is actually going to sink. This gives you the opportunity to start a new challenge.

In conclusion, though the situation and the market are delicate, we need to be deliberate in our actions. So lets us all get out there to do what needs to be done. We all need to be game-changers in our lives and businesses to survive post-COVID-19.

Najafi Auwalu Ibrahim, PhD teaches Entrepreneurship and Venture Creation in the Department of Bus. Admin,
Bayero University, Kano.
najafauwal@gmail.com

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Business

Dangote Donates Bags Of Rice To 48 Charity Groups

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Alhaji Aliko Dangote

 

Continuing its National Food Intervention Programme, the Aliko Dangote Foundation has facilitated the distribution of thousands of bags of rice to beneficiaries and vulnerable Nigerians in the Federal Capital Territory, Abuja, with no fewer than 48 charity organizations and orphanages involved in the process.

According to the company’s spokesperson, Anthony Chiejina, the initiative represents a continuation of the Foundation’s commitment to supporting the government and the Nigerian populace in alleviating economic hardship within the country.

Mr. Chiejina noted that following the National Flag-off events in Kano and Lagos, the Foundation initiated the distribution of one million bags of rice throughout all the local government areas in Nigeria last month.

The coordination of the distribution exercise in Abuja is being undertaken by the 1Ummah Foundation, led by Mrs. Azeeza Hassan-Jibril.

Speaking to newsmen, Mrs Jibril said some of the groups that are supporting the ADF in the distribution exercise are: Hope for survival Children’s Home Gishiri, Child to Child Charity Foundation, Gajiya Charity Foundation, Mission for Education, Social and Health (MESH), JADAFIA Group, Network of Women with Disabilities (NWD), Dagam Pilame Community Association, Eeqra Foundation/Orphanage, Leprosarium-Yangoji, Support our troops (SOT) Foundation for widows, Karmajiji Disabled Colony, Bimbola Nutrition and Health Foundation, NASFAT Foundation, and JIBWIS Group among others.
Mrs. Jibril said the donation will greatly and positively impact on the beneficiaries in Abuja.

Reacting, Lead Program Officer of the Mission for Education, Social and Health (MESH), Mrs Khadija Oladipupo, said the rice donation has helped “nourish and uplift those in need within our communities.”

“Together, we’re making a meaningful difference in the lives of our population, especially those in need,” she said.
In her response, the Chief Executive Officer (CEO) of the Gajiya Charity Foundation, Hafsat Umar Gimba, expressed gratitude, describing the intervention as a generous assistance.

She said: “Receiving the items you sent has brought immense relief and comfort to the less privileged in the society during these hard times. Your kindness and compassion have touched their hearts profoundly. The rice provided have eased their burdens and provided them with the necessities they desperately needed.

“Knowing that there are individuals and organizations like ADF and 1Ummah who care deeply about the well-being of others fills me with hope and renewed faith in humanity. May you continue to be blessed abundantly for your noble work, and may your kindness inspire others to lend a helping hand to those in need.”

In the same vein, Administrative Secretary, Movement for Islamic Culture and Awareness (MICA), Adeniyi Akeem Akanbi, said: “we sincerely appreciate your support for the rice given us to share among our members and people of Lugbe environs. We say Jazakah lahu kayran to the Dangote foundation and pray Allah reward the organization abundantly.”
According to the President of Network of Women with Disabilities (NWD), Lois Auta, “Your commitment to supporting marginalized communities, particularly women with disabilities, exemplifies your dedication to social responsibility and compassion. Through your donation, you have not only alleviated the immediate needs of those in our network but also demonstrated solidarity and empathy towards our cause.”

Meanwhile, the President of the JADAFIA Group Mrs. Rakiya S Bamalli said: “I want to express our heartfelt appreciation for the generous donations provided by the Aliko Dangote Foundation during the holy month of Ramadan.

“The contributions have enabled us to expand our Ramadan outreach programs, including the distribution of food packages, iftar meals and essential supplies to families and communities facing hardship. This has made a significant difference in our efforts to provide relief to those in need within our community.”

Responding, representative of the Bimbola Nutrition and Health Foundation Mr. Femi Akosile said: “We take this moment to appreciate Aliko Dangote Foundation for the provision of 10kg bags of rice for distribution to the less privileged and vulnerable groups.

“Your contribution has made a significant impact on our efforts to support those in need in our community. The rice has been distributed to families and individuals who are experiencing food insecurity. We want to sincerely say that your partnership and commitment to making a positive difference in our community are truly inspiring, and we are honored to have had the opportunity to work with you.”
















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How Aliko Dangote supported businesses in Nigeria-Sambajo

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President of the Dangote Group Aliko Dangote has been described as a rare gem and kind hearted industrialist for nurturing trading and commercial activities in North and across Nigeria for almost four decades.

Speaking when he visited the Dangote pavilion at the ongoing Kano International Trade Fair, Alhaji Salisu Sambajo, said: “ I can say confidently that Aliko has been supporting us for the past 40 years, and he has lifted us up when our businesses where going under.”

Mr. Sambajo is a Kano based international business tycoon, and chairman of the Sambajo General Enterprises Limited. He’s considered one of the biggest business names in northern Nigeria.

“Aliko’s support in growing commercial activities in the North and all over the nation cannot be quantified. The history of Nigeria’s commerce, and indeed of industrialization, cannot be completed without his name topping the list. It’s only God that can reward him,” he said.

The business mogul added: “I am telling you this confidently because I am one of the beneficiaries of his generosity. No one can deny his kindheartedness and support, and God is with such people.”

He recalled that Mr. Dangote had committed billions of naira through Bank of Industry for the development of small businesses in Nigeria, adding that the Fund was expected to create one million jobs.

The business mogul also recalled that Mr. Dangote had supported the Federal Government with billions of naira during the 2012 flooding in Nigeria.

“During the Covid-19 pandemic, we read it in the news that Aliko donated billions of naira. All these are coming from one person. Nigeria should be grateful to him,” he said.

He added that: “ Also remember that at the peak of the Boko Haram crisis, Aliko Dangote had donated a housing estate worth billions to the Internally Displaced persons in Borno State. I can go on and on. His interventions are so numerous.”

According to the businessman, “Aliko has since stopped working for himself. All he has been doing is to lift people out of poverty. I remember whenever we recorded losses, Aliko will lift us up again and again. I don’t want to go into specifics. He’s a very kind and generous person. He deserves all our respect and it’s a big honour that God created such a man in Nigeria.”

Mr. Sambajo said it is not for nothing that Mr. Dangote, is Nigeria’s biggest private sector employer.

The business mogul traced relationship with Mr. Dangote to over 40 years, adding that he has been a great philanthropist who has his country and Africa at heart.

Mr. Sambajo described the upcoming Dangote Refinery as a legacy project that will positively impact the country’s economy.

Dangote Group is the major sponsor of the ongoing 44th Kano International Trade Fair.
















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Airlines Opens

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