By David Akinmola
Impact Investors Foundation (IIF) has said promoting strong collaboration among Enterprise Support Organisations (ESO) is critical to building MSME investment readiness to unlock more impact capital for economic growth in the country.
ESO is a group of professionals that provides support to MSMEs in Nigeria and is building a stronger ecosystem across the country.
This programme is building a strong network of diverse ESOs with a common goal to drive sustainable economic growth through entrepreneurship.
This, according to IIF, will increase MSMEs’ investment readiness which can unlock more impact capital to support MSMEs operations.
The foundation report, titled “The Mapping and Analysis of Enterprise Support Organisations (ESOs), unveiled at the ESO yearly forum theme “Scalable Pathway for ESOs in Nigeria to build MSME Investment Readiness Capacity” organised by the IIF in Lagos.
The report, however, offers an in-depth assessment of the current landscape of ESOs across key sectors in Nigeria, highlighting their crucial role in supporting micro, small, and medium enterprises (MSMEs), challenges, and opportunities and identifying funding sources to enhance their long-term viability.
The study of the enterprise support ecosystem was conducted with funding from UK International Development from the UK Government in the second phase of the RISA Fund’s Sustainable Systems for Research and Innovation Financing Project (SSRIF II), involved key informant interviews with representatives from government institutions such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Bank of Industry (BOI), among others, and online surveys with ESOs in the private sector.
Speaking at the forum, the Chief Executive Officer, IIF, Etemore Glover, observed that MSMEs need partnership, knowledge and funding, among others to thrive in Nigeria’s business space.
According to her, Small and medium enterprises are the backbone of the Nigerian economy, but investment readiness is frequently questioned. Despite building business traction and scaling plants, many MSMEs struggle to secure affordable financing,” she said.
Glover said that the 2023 national advisory board for Impact Investment and the NESG report highlighted the importance of partnerships in identifying regulatory issues around financing gaps in the NABI’s key sectors, health, education, and agriculture.
According to her, through a comprehensive range of services, strategic initiatives, and collaborative frameworks; the collaborative is empowering enterprise support organisations to drive economic growth through a supportive ecosystem where Nigerian enterprises can thrive, grow, and contribute meaningfully to the nation’s economic prosperity and societal well-being.
Commenting on the findings, Technical Country Lead, Nigeria, RISA Fund, Alice Dada, said, “This report provides a comprehensive view of Nigeria’s ESO ecosystem, mapping key players, their innovative offerings, and strategic priorities. By strengthening ESOs, we can unlock greater opportunities for MSMEs, foster economic growth, create jobs, and advance innovation in the country.
The report availed at the forum states that ESOs in Nigeria predominantly offer services in training and capacity building, access to funding, technology and product development, market development and management consulting.
The survey reveals that 68 per cent of the respondents prioritise market development, while 64 per cent focus on management consulting, pointing to a strategic emphasis on expanding markets and improving organisational efficiency.
The report further states that 52 percent of the respondents favoured business development services and business incubation/acceleration, underscoring the importance of nurturing innovation and supporting start-ups in Nigeria. The report highlights potential gaps in the provision of financial management (4 percent) and legal services (8 percent), areas critical for sustainable growth in the MSME sector.
Further, a staggering 80 percent of enterprises have limited access to capital, while 84 percent said the high cost of infrastructure is a major barrier to success. Additionally, 72 percent of enterprises are not adequately prepared for the market, emphasising the need for improved readiness programmes.
Budding impact investors such as My Food Angels, Sharesell and Ady Investment showcased their operational capabilities during the forum.
