First Bank of Nigeria Ltd initiated SMEConnect to promote sustainability of Small and Medium scale Enterprises (SMEs) growth in the country. AMAKA IFEAKANDU looks at the benefits and impacts as well as the eligibility criteria to get listed.
FirstBank of Nigeria Limited, a leading financial services provider, is one of the nation’s banks that are passionate about helping Small and Medium scale Enterprises (SMEs) grow on all fronts.
The bank has introduced different products targeted at the specific needs of SMEs amongst which are SMEConnect, loan products designed to finance the activities of SMEs under the U-First Scheme.
Creation of SMEConnect
First Bank specifically designed SMEConnect to promote the sustainability of SMEs through their exposure to a variety of benefits like information/knowledge on how to expand their business, whilst taking it to the next level. It also created to bring under one umbrella relevant resources, products and services aimed at helping SMEs. It is a platform where FirstBank connects SMEs to beneficial offerings covering financial and non-financial services built around seven key pillars to create a functional ecosystem for SMEs to thrive.
Challenges of SMEs
Based on engagement with its customers, internal and external surveys and reports by Small and Medium scale Enterprises Development Agency of Nigeria (SMEDAN) and NBS, First Bank observed that SMEs are plagued with challenges ranging from poor business structures, lack of infrastructure, poor market penetration, limited access to information and professional services, inconsistent government policies, poor capital structure amongst others that impede their business growth. These, in turn, affect their ability to access finance.
Other challenges facing SMEs include high cost of production, limited access to long term loan, weak value chain such as supply, distribution, logistics, time to market etc, poor managerial and technical skills, lack of access to international markets and labour intensive production process.
Target
SMEConnect was birthed out of the need to bridge the gap and connect SMEs to resources, products and services that will enable them to overcome these challenges, hence the seven pillars of First Bank SME proposition, including capacity building, finance, market, resources, infrastructure, talent for business development, policy and advocacy. SMEConnect serves as a medium of connecting SMEs to these solutions from the comfort of their offices, homes, and anywhere they are operating from globally. The uniqueness of the platform lies in the fact that these offerings are either free or substantially discounted.
The creation of SMEConnect platform is an evidence that First Bank is committed to providing the Nigerian SMEs with the support needed for growth.
Features
The SMEConnect has special features such as the business diagnostic tool which has been specifically developed to evaluate individual business and give the SMEs operator a business effectiveness score, it goes further to tell the person where he/she has done well and what you need to improve on. Other features include blogs, e-newsletter, and useful webinar content
Benefits
Beyond financial support, FirstBank through FirstConnect offers strategic advisory services, business seminars, periodic information updates as well as information that will guide people in growing their business. Connecting to First Bank SMEConnect platform, customers will have discount opportunities provided by other SMEs in various sectors of the economy and the FirstBank Business Diagnostic survey etc.
Others
The SMEConnect has free business advisory services through Firstbank business diagnostic tool The FBN Corporate customers will have access to advertise, showcase their products/services and interact with your own customers and other SMEs on the platform for free.
The bank’s SME customers will have discount on business development resources such as Go booking a business coach and also Connect to free capacity building workshops, seminars and webinar. Currently customers of the bank will enjoy up to 34 per cent discount when they request for business coach on SMEConnect. They will as well get updates on policies and regulations impacting on SMEs.
Special offer
This product has special offers packaged for its customers. The offer ranges from capacity building, finance infrastructure and market research. These unique packages will help customer nurture business and enjoy great offers at amazing rates
Track record
Despite challenges experienced while using online platform, First Bank has registered 4,225 businesses on the SMEConnect portal and there are 20,880 users on the platform since the platform was created
Scope of SME coverage
FirstBank’s scope of SME services covers small/medium scale manufacturing firms, merchants like suppliers, distributors etc, professional firms such as law, consulting, audit etc, agriculture, churches, mosques and NGOs whose annual debit turnover is between N5 million and N500 million.
Seven pillars to connect SME
First Bank’s seven pillars that will connect SMEs to run varying degrees of entrepreneurship and activities through trainings, workshops, seminars, business clinics and webinars.
Apart from providing direct and indirect funding for SMEs throughout the business life-cycle through grants, debt/loans and equity, it connects SMEs with integration into large distribution networks by providing connect to facilitate trade, customers, distributor channels, suppliers, large corporate bodies.
It also connects SMEs into infrastructural resources such as technology, internet services and workspace. The pillar further helps to connect SMEs to a pool of professionals covering key areas such as accountants, lawyers, digital marketers, consultants as well as connect SMEs with productivity tools, accounting tools etc. and inform SMEs on Government policies and how they impact SMEs.
Uniqueness of the platform
The unique selling proposition of SMEConnect is the congregation of value-adding products & services on one platform for easy access and at rates (prices) that are competitive and in most cases discounted.
Requirement to get listed
Stating the pre-requisites for SMEs to be listed on the portal business, the FBN said the customers must be registered and have a corporate account with FirstBank to list their business on the business hub and access all the beneficial offerings on SMEConnect. However, individuals and businesses can register to be users of SMEConnect without listing their business.
The industry spread of these businesses SMEConnect is open to businesses operating across all sectors.
Businesses that want to get listed on the business hub in addition to being registered and having a corporate account with FirstBank, must accept the terms and condition of the platform.
Also, there are some exceptions as businesses that deal in cryptocurrencies, sports betting and others that do not align with First Bank terms and conditions (T&Cs) are currently not allowed to be listed on the business hub.
The basis for the creation of the SMEConnect portal having banked SMEs for over 127 years, was because First Bank recognises that SMEs need more than financial services to thrive and grow their businesses.
