'SMEs can bring down high unemployment rate'

L-R, CEO, MARK-GEORGE Consultants, Olugbolahan Mark-George (left) and MD/CEO, First Investment Options Ltd, Dr Abdu Abubakar and Regional Manager, Diamond Bank Plc, Abuja, Abubakar Suleiman at the Diamond Bank Plc 27th BusinessXpress Enterprise Series held in Abuja recently.

A top flight industry expert Dr Abdu Abubakar has identified the micro, small and medium entrepreneurs (MSME), as the platform that can address the high unemployment rate in the country.

He therefore called on the government to open the business space by strengthening their capacity to grow the economy. Abubakar, the Chief Executive Officer of First Investment Options spoke at the 27th edition of the business enterprise series of business Express organised by Nigeria's leading commercial supermarket Diamond Bank Plc at the Nanet Suites Abuja, on Thursday.

He said: "MSMEs are very critical to the overall success of the economy. Government and the banks need to do more if the task of reducing the rising rate of unemployment must be realised. In other economies, governments deliberately put in place policies to assist the MSMEs andsuch things must begin to happen here if we are serious about tackling poverty and unemployment as they remain the largest employers of labour."

While praising Diamond Bank for the initiative coming as a give back to small business account holders, Abubakar said the bank need to further strengthen its Know Your Customers (KYC) strategies and target facilities that strengthen their capacity to continue to contribute positively to the economy.

Agreeing that over 90 percent of businesses collapsed as a result of avoidable errors, Abubakar listed some of the factors militating against the success of businesses to include fear of failure, living off the proceeds of the business, lack of performance measurement, lack of proper management structure which can be controlled, poor human capital, lack of risk management and failure to accumulate assets that could absorb minor losses among others.

Diamond Bank's Regional Manager Mr Abubakar Sulaiman said the enterprise series is to arm business owners with the right tools to continue to continue to operate profitably in the highly volatile business environment like Nigeria. He noted that MSMEs holds the key to the progress of the economy adding that the training is a support strategy initiated by the bank to support business development and to strengthen the economy.