In this post, we will proffer answers to questions about SMEDAN registration for SMEs in Africa. These answers will help you make an informed decision and further guide you through your registration process.
Having decided to register your business, below is a list of top 10 frequently asked questions to guide you through your registration journey.
1. What can SMEDAN do for SMEs in Africa?
- It provides you with information about raw materials, equipment, machinery, the market, and also activities of government agencies like NAFDAC, FIRS, SON, etc.
- Mentorship and monitoring services.
- Provides access to an improved workspace.
- Facilitates networking with other enterprises to improve production.
- Provides access to finance.
- Access to training in areas like account management, bookkeeping, quality control, etc.
2. What is SMEDAN’s mandate?
According to the body’s official website, the mandate can be summarised as follows:
- Stimulating, monitoring and coordinating the development of the MSMEs sub-sector.
- Initiating and articulating policy ideas for small and medium enterprises growth and development.
- Promoting and facilitating development programs, instruments and support services to accelerate the development and modernisation of MSME operations.
3. What can I do to obtain a loan from the bank?
- You must have an active account with the bank.
- You have to submit a loan application indicating the amount you are applying for and the purpose of the loan.
- Loan application should be accompanied by documents such as – financial data, business plan, feasibility study, and company’s information.
- As a business owner, you should invest a minimum of 25% of the total project cost and it does not include land.
4. What principles guide the operations of SMEDAN?
The guiding principles as stated by the operating body include:
- Outreach: The organisation reaches as many MSMEs as are crucial and imperative to achieve the goal of an MSME led economic growth, industrialisation and job creation.
- Sustainability: Deliberate creation of exit strategies, whenever necessary to avoid over-dependence on subsidy.
- Impact: Commitment to delivering measurable results.
- Efficiency: The body cherishes quality service delivery by the agency on the one hand, and the MSMEs on the other. This is done in the most cost-efficient manner.
5. What functions are performed by SMEDAN?
- It acts as a link between MSMEs and various financial sources, technical skills, and technology.
- Bridges the gap between MSMEs and the Nigerian government.
- It deals with poverty related issues by creating a favourable environment. This is carried out through the industrialisation of rural areas and also job provisions.
- The organisation creates an enabling environment for various MSMEs classes in Nigeria.
6. What does the SMEDAN MSME Registration Program entail?
SMEs in Africa looking to register for this program need to have a detailed understanding of what it entails.
The program has been designed to form a comprehensive database of every MSME within Nigeria. Once the registration process is completed, the registered business gets a Unique Identification Number (UIN).
In addition to this Identification Number, such business becomes eligible for a SMEDAN certificate. With the certificate, you have access to a conditional grant scheme of 50,000.
To receive a certificate, you have to be an MSME in Nigeria. That is, your business should employ a total of 250 employees or less. In other words, your business must fall under three categories. These are the Micro-Enterprise, Small Enterprise, and Medium Enterprise.
7. What are other financial sources available to MSMEs asides Commercial Banks?
- Co-operative societies
- Loans from family and friends
- Community Banks
- Government Development finance institution
- Microfinance schemes
- Personal savings
8. How can I generate a business idea?
Every business begins with an idea. Subsequently, this idea transcends into a product or service. When generating a business idea, ensure your idea is out to meet a need which prospective customers will be willing to pay for.
Ideas can be generated by reading books, journals, sharing thoughts with family and friends, etc. You can also build a business around your hobby and academic training. The most important thing is investing in a business you’re passionate about. Also, you must be willing to dedicate your resources towards building it.
9. How can I get a SMEDAN loan?
SMEDAN only helps with the facilitation of loans; it doesn’t give out loans. MSMEs can access loans from their partnering financial institutions as well as some other microfinance schemes.
Before businesses can access these loan options, however, they have to satisfy all required loan application conditions
10. Why should I register with SMEDAN?
SMEs in Africa require all the support possible to boost their businesses. Registering your business provides you access to several support programs that will help you raise funds for your business.
Furthermore, these programs will help you become more efficient. Still not sure about registering? Think about the possibility of being a direct beneficiary of the available programs and getting support for your business.
Some of the benefits that come with registration include:
- SMEDAN Unique Identification Number and Digital Certificate
- Access to financial services
- A conditional grant of 50,000
There you have it, answers to questions you might have with respect to registering your business with SMEDAN. Do you have any more questions that aren’t addressed in the FAQs above? Leave them in the comments section.