The outbreak of coronavirus which has adversely impacted global economy may by and large erode 10 years of investment in Micro, Small and Medium Enterprise (MSME), the majority of whom are women, experts have said.
In recent years, increased focus has been placed on developing solutions to the marginalisation and exclusion of these groups, and certainly, some progress has been made. However, with the onset of the ongoing pandemic, restricted movement, closed borders, broken supply chains, reduced patronage and business activity has resulted in many individuals who work in the informal sector, and consequently, rely on daily incomes for survival, to regress into poverty.
“Our commitment was let them just be in business so that we do have a sector to invest in the long term. Aside from the grant facility, we then restructure our investment perspective to make sure that it is more relief oriented and so we are looking at the requirements women business have to provide are not further exacerbating the problems their businesses face,” Thelma Ekiyor managing partner, SME.NG said.
looking at the immediate impact of COVID’19 on women in businesses across the spectrum, Ekiyor said the firm surveyed 30 states through online platforms.
“We discovered that the needs were more in Urban areas than in rural areas and we thought how do we cater for those needs. We said let’s take care of their immediate needs. We developed a grant facility just to make them survive the short term and the challenge of staying in business,” she said.
Aside from the grant facility, she said they restructured their investment perspective to make sure that it is more relief oriented.
Speaking on a webinar discussion on the challenges faced by the informal sector, especially women, amidst COVID-19, Toyin Adeniji, executive director of Micro-Enterprises, Bank of Industry (BOI), said COVID-19 has worsened an already fragile sector. “I say fragile because it works within an ecosystem and quite a complex one at that because there are many pieces that goes into that ecosystem.
Adeniji noted that there has been disruption in the sector, shortage of revenues or earnings, inability to go for funding in anyway, inability to connect with their customers and capital erosion.
“We need to stay close to them. We need to make sure that that whole concept of exclusion is something of the past. So inclusion is key. They need that inclusion. They need to operate on the financial platforms that exists. They need to be identified. We need to build data. Now that we are using a lot of technology, a lot of digital, they need to start building their records,” she said.
Akin Oyebode, special adviser, investment, trade and innovation, Ekiti State, said there is just an economic reason for supporting women in business especially small businesses.
“The big issue is how do we improve access to technology first in many of these communities because it gives an opportunity for commercial activities to happen,” Oyebode said.
She said there is a broad band penetration conversation that needs to be heard to ensure that rural and sub urban communities are not disconnected from trade circles.
Olayinka David-West, senior fellow, operations, information systems and marketing division, Lagos Business School (LBS) who moderated the discussion said, “When we put all these together and we add the financial impact of COVID-19 on this economic sector , we see that financial health and well being is even more endangered because they are already fragile and vulnerable”
