Small and Medium Enterprises sector is
known to have high potential to drive the industrial transformation and
development of the nation’s economy just as it has done in other
developed countries.
As a result, several incentives in terms of subsidised equipment and low interest funds are being provided to support them.
However, experts stress the importance of managerial skills when it comes to establishing businesses and growing them.
Although, the acquisition of technical
skill has been described as the driving force behind SME’s success, the
effective application skills as well as business management expertise
are equally important.
It has been discovered that millions of
people are focusing on acquiring the skills necessary to establish a
business on a daily basis only to find themselves at a loss when it
comes to effectively utilising the skills.
Although young business people complain
of inadequate start-up capital and funds for business expansion, most
investors opine that the lack of passion and expertise to manage a
business, especially in a challenging economy like Nigeria, is a major
survival determinant.
In order to increase profit margin,
attract and retain customers and build a strong business brand, experts
have highlighted some skills that business managers cannot do without.
These are:
Interpersonal skills
As much as possible, entrepreneurs need to work closely with other people, even if it is an owner-manager business.
According to business consultants, even
if the entrepreneur is unable to employ anyone, the suppliers,
short-term or long-term contractors, the distributors and clients should
be viewed as team members.
A business consultant, Mr. Sola
Aderibigbe, says that business managers are expected to work closely
with people in their team, solve their problems so that the business can
be managed better.
For entrepreneurs who have employees
working with them, Aderibigbe says that such employees should be
regarded as partners and given appropriate training where there are
skills gap.
He says, “Keep your employees motivated
and let them play some managerial role from time to time. Engage them in
conversations and seek their ideas in moving the business forward.
“In order to do all of this, managers
must be approachable, compassionate and diplomatic, and have good
communication skills to listen to and reward their staff. Business
managers are responsible for keeping everybody informed of changes and
reasons for such changes should be communicated.”
Time management and organisation
Experts say that entrepreneurs should
understand that the time they invest in their business is essential to
its survival and profitability.
Aderibigbe says entrepreneurs can
achieve effective time management by committing to specific tasks daily
and ensure that is completed.
He adds, “Regardless of distractions
that you encounter daily, make a commitment to do at least one
productive thing every day. This means that the task should result in
income for the business immediately or in the future.
“This could be an email to your list of
prospective clients to attend training, or introduce a new product or it
could be writing an article for your blog or website to be shared to
your followers.
He says that business managers should be
able to organise and prioritise tasks because this will contribute to a
speedy growth for the business.
Financial management skills
People who are unable to manage finances appropriately have no business doing business, experts say.
Aderibigbe says, “If you are unable to
manage money, then you can’t manage a business. Because you have to
monitor what the funds are spent on every month. You should be able to
manage the business’s daily cash flow to ensure that the financial
requirements or obligations are met.
“Entrepreneurs need to learn how to
delay gratification, be disciplined, learn to prioritise and separate
personal expenses from business expenses. Have a savings plan for your
business.”
Information Technology skills
In the world of technology, new skills
are constantly required and for entrepreneurs who work with other
corporate organisations through proffering IT solutions, experts advise
upgrade of these skills on a regular basis.
An IT expert, Mr. Segun Banire, says
data analytics information is also important, as it allows business
leaders to know what forces that affect the market at every point in
time.
According to him, knowing how to work
with big data platforms will help IT workers gain stronger reputations
from their work without needing to worry about other pressing skills.
Problem solving skills
Experts say in establishing a business,
the entrepreneur must be able to meet the immediate needs of the target
market by solving their problems. They say the ability to do this will
stand them out because most start-ups emulate their competitors without
creating their own niche.
While citing the example of online shops
in the country, an entrepreneur, Mr. Tunde Babatope, says these
companies have been able to satisfy the need for convenience in shopping
by providing a platform where goods can be bought online and delivered
to a clients’ doorstep.
He adds that the present trend in
e-commerce is a revolution that other entrepreneurs have taken up and
added more value to. Babatope concludes by saying that all successful
companies, products, or services enhance the lives of their customers by
eliminating a problem.
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