Of each two companies in Nigeria, one is family-owned, a examine by Moniepoint has said.
The report, launched on Wednesday, famous {that a} lack of governance construction and succession planning had been a few of the challenges going through household companies within the nation.
In keeping with the fintech agency, the way forward for family-owned companies remained vivid as a result of resilience of their operators.
A press release from the agency on the report mentioned, “Greater than half of Nigerian household companies don’t have robust digital capabilities with only a few seeing it as a precedence space. The shortage of clear governance and enterprise administration buildings, in addition to poor succession planning, are a few of the challenges that undermine the scalability of household companies in Nigeria.
“Key drivers that undergird loads of these enterprises embody robust money move with a view to making sure that they continue to be worthwhile, excessive ranges of belief pushed by shared imaginative and prescient and enterprise targets and cohesive cultural bonds the place one out of each two Nigerian companies bear the excellence of being a household enterprise.
“Moreover, the examine avers that the story of Nigerian household companies is one in every of resilience, adaptation, and enduring legacy. It posits additional that the way forward for Nigerian household companies is vivid with potential at the same time as extra enterprises embrace the instruments and methods for fulfillment in a digital age, supported by revolutionary pushed resolution companions.”
It said that as household companies evolve, they’d proceed to be on the coronary heart of Nigeria’s financial and cultural id, powering the nation’s economic system and shaping its future for future generations whereas ushering in a brand new period of progress, sustainability, and world competitiveness.
Just lately, the Particular Adviser to the President on Presidential Enabling Enterprise Setting Council and Funding, Dr Jumoke Oduwole, disclosed that there have been roughly 23.8 million household companies within the nation, accountable for hundreds of thousands of jobs and collectively contributing round $200bn yearly to the nation’s economic system.
In keeping with the Organisation for Financial Co-operation and Growth, SMEs present 60 to 70 per cent of jobs in most OECD member nations.
In Nigeria, SMEs contribute 48 per cent to the GDP and 84 per cent of jobs, in accordance with the Nationwide Bureau of Statistics.
Chatting with the rationale behind this newest examine, the Vice President of Communications and Public Relations, Moniepoint Inc, Edidiong Uwemakpan, famous that the choice to give attention to household companies was pushed by their important contributions to Nigeria’s economic system regardless of their various sizes and sectors.
“At Moniepoint, we satisfaction ourselves on being greater than only a monetary providers supplier; we’re an astute companion to enterprise homeowners, serving to them to be financially completely happy whereas making certain that our revolutionary options energy the desires of those enterprises. We imagine that the expansion of household companies instantly helps your complete economic system, which in flip basically extends our means to positively impression everybody else which aligns with our model’s mission,” she mentioned.
Stating Moniepoint’s dedication to serving to these companies embrace digitisation, he declared, “Our providers have helped a number of family-owned companies enhance their operations by means of simplified fee assortment, money move administration, and entry to capital.
“Our latest partnership with the CAC will additional catalyse expertise adoption for these companies whereas offering a basis for them to undertake higher record-keeping, monetary reporting and governance practices that are pivotal for his or her effectivity, productiveness and long-term viability, and in addition drive market entry and commerce facilitation into regional and world worth chains for them.”
