Kaduna:The Founder of KADA SMEs Hub, Hassan Yakubu, has highlighted the need for affordable loans and stronger government backing to support the growth of small businesses. In an interview in Kaduna, Yakubu emphasized that access to affordable financing is a significant challenge for small and medium enterprises, particularly in Northern Nigeria.
According to News Agency of Nigeria, Yakubu pointed out that many entrepreneurs have viable business ideas but face difficulties securing the funds necessary to establish and sustain their ventures. KADA SMEs Hub was established to assist entrepreneurs in learning how to establish, register, manage, and sustain their businesses, aiming to transform daily hustles into robust enterprises capable of weathering economic and operational changes.
Yakubu explained the importance of creating resilient businesses that can continue operations despite shifts in the business landscape and can endure circumstances affecting their owners. The hub, which started in 2023 with fewer than 40 participants, has seen significant growth, with over 400 participants by its fourth edition, including entrepreneurs from various Northern states. It plans to organize its fifth edition in 2027, circumstances permitting.
The KADA SMEs Hub has trained around 3,000 people directly and indirectly through partnerships with other entrepreneurship platforms. Beyond training, the hub offers mentorship, allowing participants to consult on business challenges and share success stories. It also conducts pitching sessions to help entrepreneurs learn how to present their business models effectively, with opportunities to win funds for expansion.
Yakubu criticized the lack of implementation and financing of government ideas to support SMEs, urging greater involvement from the government and development organizations in funding viable small businesses. He stressed that affordable funding would help entrepreneurs avoid high-interest commercial loans and that the government could collaborate with credible platforms to identify and support promising businesses.
He argued that competitions offering significant financial prizes could provide critical capital for SMEs, potentially more beneficial than costly commercial loans. Yakubu also called for a review of collateral requirements for SME financing, which often pose barriers to businesses with limited capital.
Yakubu urged entrepreneurs to engage in training programs, seek mentorship, and learn from experienced individuals in their fields. He advised against imitating businesses without understanding their operations and challenges. Stronger SMEs, he noted, would contribute to job creation and economic growth, indirectly addressing issues like insecurity by providing sustainable employment opportunities. He encouraged the government to support credible entrepreneurship platforms nationwide to bolster small businesses and promote sustainable economic development.