Fidelity Bank has urged Small and Medium-sized Enterprises (SMEs) in Lagos to adopt reliable digital solutions, strengthen their business structures, improve financial records management, manage operating costs and explore new markets to remain profitable and achieve sustainable growth amid rising costs, intense competition and changing consumer demands.

This was stated at the Bank’s SME Business Forum Lagos edition, held at Yaba, themed “Build to Compete: Positioning Lagos Businesses for Sustainable Growth,” which brought together entrepreneurs, large business owners and specialists as well as representatives from the government to discuss digital transformation, trade, financing and strategies for strengthening SMEs in the state.

The Executive Director, Lagos and South-West, Fidelity Bank, Ken Opara, said Lagos provides access to a large consumer market, financial institutions, technology ecosystem, talent and commercial networks, with data showing that the economy reached $27.3 billion in the first quarter of 2024, compared with $19.65 billion in the corresponding period, while its estimated size under purchasing power parity stood at $29 billion.

Opara who as represented by the General Manager, Ikeja Region, Jude Monye, said the figures highlighted the economic opportunities available to businesses operating in the state and the importance of improving their productivity and profitability.

He, however, noted that businesses could record impressive sales and still struggle to make profits because of the state’s demanding business environment, with rising and excessive operating costs, infrastructure constraints, weak cash flow, intense competition, changing consumer preferences, slow-moving inventory, pressure on working capital and difficulties meeting payment obligations.

The Executive Director cautioned SMEs against operating without appropriate business structures, including financial management systems and clear separation between personal and business expenses.

On export opportunities, the Executive Director said businesses seeking to enter international markets needed to improve production capacity, adopt internationally acceptable packaging, maintain proper trade documentation, comply with regulatory requirements and establish dependable logistics arrangements.

The Group Head, SME, Fidelity Bank, Okechukwu Ugoji, stressed the importance of understanding consumer spending patterns, economic trends and operating costs when making business expansion decisions in Lagos.

He advised business owners to assess the purchasing power of the communities in which they operate and identify areas where changing economic activities and investments could create new business opportunities.

Ugoji stressed that understanding local communities demand and spending capacity could help entrepreneurs determine where to locate their businesses, which products to offer and how to position themselves for future growth.

He also drew attention to the effect of economic inflation and rising input costs on SMEs, noting that businesses operating in highly competitive markets had limited room to increase prices without risking the loss of customers to other competitors.

He further encouraged business owners to examine their operating models, consider appropriate investments in technology and equipment and use available business solutions to address operational challenges.

Speaking earlier, the Divisional Head, SME, Fidelity Bank, Ugochi Osinigwe, said the forum was designed to provide entrepreneurs with practical solutions to their business challenges and enable the bank to understand their needs directly.

She described the forum as a listening platform through which the bank could obtain feedback from business owners and develop solutions that would strengthen their competitiveness, improve access to finance and support expansion into new markets.

Osinigwe encouraged participants across trade and distribution, manufacturing, maritime logistics, technology, the creative industry, hospitality and financial services to engage actively, share experiences and identify practical steps to improve their businesses.

She said the bank remains committed to supporting SMEs through partnerships, advisory services and financing solutions that would enable them to build scalable businesses. (The Guardian)