SMEDAN : UNVEILING SUBSIDIZED BUSINESS DEVELOPMENT SERVICES (BDS) FOR MICRO AND SMALL ENTERPRISES IN NIGERIA: PRODUCTS DEVELOPMENT AND MARKETING ENHANCEMENT SERVICES

BACKGROUND

SMEDAN, consistent with delivering  its mandate to the micro, small and medium enterprises (MSMEs) sub-sector has over the past several years, in conjunction with other stakeholders, promoted subsidized entrepreneurship capacity building to MSMEs as a down payment for realizing human capacity enhancement. The capacity of operators within the sub-sector has long been identified as one of the most limiting resource to achieving growth. While this efforts continue – online/offline, in-house and In complementation with certified BDSPs nation-wide, the Agency now identifies the cross-cutting thematic areas of products development and marketing services for focus/remediation.

The Products and Marketing Enhancement Scheme (PAMES), for micro and small enterprises (MSEs), was conceived in support of the above-mentioned challenges. Also, in its current Pilot phase, PAMES is designed around meeting the challenges of MSEs within the agri-business value chain. This is related to the fact that agriculture has been well-established as the sector-of-choice to drive non-oil diversification of the economy, wealth and jobs creation in the economy. It also provides opportunities for value chain linkages that generate sustainable livelihoods for the bottom-of-the-pyramid citizenry.

Services under this category, often require technical competencies that are beyond those readily available to MSEs. Unfortunately, these services are also often priced beyond the ability of most MSEs. Little wonder the sub-sector is filled with large numbers of struggling MSEs, which ultimately manifests in the the unacceptably high mortality rate associated with these entities.

2.       DEPLOYMENT OF BUSINESS DEVELOPMENT SERVICE PROVIDERS (BDSPs) FOR COMMENCEMENT OF ACTIVITIES

In fulfilment of the afore-mentioned, SMEDAN hereby announces the deployment of the following BDSPs, under the pilot scheme, effective from Tuesday, 1st February, 2022, viz:

i.            MECER CONSULTING LTD: SMEDAN Industrial Development Centre (IDC), Idu Industrial Estate, Idu, FCT (www.mecerconsulting.com; e-mail: mecerconsulting@gmail.com; Phone No: 08033144467) and

ii.            HYZIK CONSULTING LTD: SMEDAN Lagos State Office, Lagos State Small and Scale Industrial Estate, 24, Fatai Atere Way, Matori. Lagos (www.hyzikconsulting.com; e-mail: hyzikconsulting@gmail.  com; Phone No: 08050412264).

• Available full-time, expertise shall include: (a). Food technologist (or industrial microbiologist or bio-chemist), (b). Marketing (including exports marketing) expert, and (c). Secretary/Accounts staff.
• Business Centre services including use of photocopiers, computer sets, printers and modems for internet connectivity, are also available to the public, at cost, if needed.
• Other relevant facilities are fully-serviced offices, training/seminar halls as well as storage/ware-housing facility for products off-taker service facilitation.

3.       TARGET BENEFICIARIES
The scheme shall offer services, within the scope generally defined above, to start-up and existing MSEs, especially in the agri-business value-chains.

4.       SCHEDULE OF SERVICES & THEIR SUBSIDIZED COSTS:
Two different set of activities are distinguished under this programme, viz:

1. BDSP-led counseling or short-term study/consultancy on behalf of MSEs (interactions with MSEs shall normally be at BDSPs locations, preceding action on MSE’s behalf).
2. Third-party activities (i.e. services requiring the interventions of other actors beyond the BDSPs). This included laboratory analyses, Trademark registry fees, NAFDAC statutory fees et.c. The latter, however, includes when BDSPs are required to intervene at the MSEs’ location or office of one/several regulatory agency, on behalf of the latter.

• Under Track 1: (i.e. BDSP-led counselling), SMEDAN’s support generally range from 50 – 100%, leaving MSEs to pay between N3,000= – N10,000= only (or nil), depending on service demanded. Where necessary, requesting MSEs shall be required to fully pay up their complement, up-front. Please note that fees charged under this heading go to supporting the BDSP only.
• Under Track 2: (i.e. third-party activities), MSEs are expected to pay all relevant fees/charges, except for laboratory analyses which is supported by SMEDAN to about 50% of cost.

Activities, under this Programme, are presented in more detail below:

1)     Products Development

This is defined as a set of activities, required to move an entrant, value-added product to market-acceptable status. Two (2) distinct sets of activities are recognized, viz: BDSP-led guidance and third party interventions (i.e. laboratory analyses, equipment upgrade et.c). Deliverables are product shelf life and product taste/colour improvement.

Who needs this service?

MSEs with an existing/new agro-processing product; MSEs who have experienced product failure but keen to overcome it. MSE cost/product is N10,000 only. SMEDAN’s support for laboratory analyses is pegged at N30,000.

2)     Market Research (Products Development)

This is defined as a set of activities required to provide an informed guide of market-desirable qualities for a defined product/product segment. Such assessment may precede actual product development or for an existing, new, product (especially if such product have failed a previous market entry). No third party cost is envisaged under this definition. MSE cost/product is N10,000 only.

3)     Products Regulatory Approval

This is defined in relation to the set of activities required to obtain NAFDAC product registration number only. Two (2) distinct sets of activities are recognized, viz: BDSP counseling (including for filling application forms/requisite attachments, preparation of raw materials/water/final product samples for laboratory analysis, preparation of standard operating procedures, product labels/ packaging) as well as third party interventions (i.e. NAFDAC Registration fees, Trademarks Registry fees, laboratory analyses costs et.c).

Who needs this service?

MSEs about to apply for product registration with NAFDAC, or those who have already applied but need help to proceed further. SMEDAN support for BDSP counseling is 100% and about 50% for laboratory analyses (under third-party interventions), per product.

4)     Barcode Registration

This is defined as set of activities required to deliver GS-1 Nigeria products barcodes numbers, including guidance for application forms filling/requisite attachments prior to submission. Barcode registration can facilitate international product traceability and sales inventory operations, amongst others.

Who needs this service?

MSEs with new, market-ready agro-processing products; MSEs with existing products, especially those seeking to expand their market-base, offline/online/exports. MSE cost/product is N5,000 only (for BDSP-led Counseling only). Third party cost (i.e.GS-1 Nigeria fees et.c.) shall be borne by MSEs.

5)     Products Packaging

This is defined to include both primary and secondary packaging. BDSPs shall be required to help MSEs understand/implement the following viz:  Range of suitable packaging for the specific product; Relationship between packaging and shelf-life; Relationship between packaging and product appeal; Available providers of packaging service; Current cost of service/minimum order requirement of packaging service providers

Who needs this service?

MSEs with new, market-ready agro-processing products; MSEs with existing products, especially those who seek improved market acceptance for their products. MSE cost/product is N5,000 only (for BDSP-led Counseling only). Third party cost (i.e. packaging design and production cost) shall be borne by MSEs.

6)     Products Advertisement

Suitably-priced advertisement options for products of MSEs are radio, social media as well as handbills/fliers. BDSPs shall guide MSEs based, a listing of all relevant options/service provider and their cost implication (i.e. Facebook, Goggle advert and Whatsapp Biz with current cost b/w N7,000 – N15000 per month).

Who needs this service?

MSEs with new, market-ready agro-processing products; MSEs, with existing products, seeking to expand their market-base, offline/online. MSE cost/product is N3,000 only (for BDSP-led Counseling). Third party cost (i.e. advert design and hosting cost) shall be borne by MSEs. In addition, the SMEDAN Hub, shall be available free-of-cost for all MSEs products – within current hosting limitations.

7)     Entrepreneurship Training/Workshop

This is defined as entrepreneurship training spanning one to a few modules, at most. MSEs shall be required to approach BDSPs to register intention. BDSPs shall provide training for the selected module(s), for a minimum of 5 MSEs, at N3,000/module/MSEs/day (refreshment shall be provided during training). Similar charges apply for workshops (analyzing topical issues for MSEs).

Who needs this service?

New/existing MSEs who require to refresh on previous training (or be introduced to new perspectives), in order to improve overall delivery for their enterprise. Small business owners may also wish to support their employees to undergo such capacity building activity. Note that  SMEDAN continues to provide free-of-cost, entrepreneurship training/ workshops for MSEs, within budgetary provisions.

8)     Products Off-taker Service

As a complement to MSEs internal provisions, SMEDAN is pleased to avail small businesses another opportunity to get their value-added products to the consumers’ table. This activity shall be underpinned by an approved, formal, contract (from BDSPs to MSEs). The former (i.e. BDSPs) may deliver this activity through own networks and/or by syndication with established product off-taker(s). The service accommodates exports facilitation, as well as galleria/expo needs of MSEs.

Further, under this plan, it is expected that Service Providers/Off-takers shall have the power to select the range of traded products but cannot return such products to MSEs, once accepted in good conditions. Also, MSEs are obliged to deliver such products for sale to Service Providers/Off-takers on credit over a 45-day cycle, which terminates with payment. Compensation for Service Providers/Off-takers is in terms of percent of turnover/cycle.

Terms and conditions may apply.

Further enquires may be directed to the following

(9.00am – 5.00pm only)

i.            SMEDAN :  08137953029;

ii.            MECER CONSULTING LTD: Dr Franklin Akinyosoye, 08033144467;

iii.            HYZIK CONSULTING LTD: Mr Yinka Olatunbosun, 07035603113.