PwC MSME Survey 2020

Case study: Nuli Juice Company (3 of 3) "How can an SME owner, just starting out in business, who needs a place to rent for her restaurant, be asked to pay rent 5 years up front, cash, to secure this. This is unheard of in developed countries!" PwC MSME Survey 2020 PwC Issues / Problems Talent: I wish I could get a steady stream of capable and dependable hands to work at all our outlets. People tell me that "You are lucky, your people are good", but I know we need to be GREAT in Nigeria. I fear that Nigerians have grown so used to being served at such low standards, that what is normal or even considered 'not so great' service delivery to me, is really good for them. We cannot grow this way. We are in dire need of a talent pool of smart, educated youngsters that can think critically about situations and propose innovative solutions, all with the right values and integrity. Real Estate Culture: How can an SME owner, just starting out in business, be asked to pay cash upfront for 5 years' rent to secure the restaurant space. This is unheard of, in developed countries! SMEs cannot grow, if cash is tied down Yet that same SME knows they need the premises, if they expect to get the business off the ground. Why can't we have situations like in most sensible nations, where long-term leases are signed, but rent is payable on a monthly or quarterly basis. Why do private landlords have to further cripple businesses by this unfair practice? What has been your responses, or the actions taken to surmount these challenges? We move on. For one, I have had to give up equity in my business early on, to raise the necessary funding to grow. Have these solutions or actions helped your businesses in any way? Yes. The equity funding helped. But it's not enough. We need so much more. There are systemic changes that need to happen in Nigeria for us to truly thrive and take off the way we should! It is estimated that 40% of Nigerian entrepreneurs are women (one of the highest rates in the world) but approximately 23% of enterprises in the formal sector. What, in your view, can be done to move or bring in more women-owned businesses out of the informal into the formal sector in Nigeria? As the saying goes, "Cash is king". Indeed, finding capital to start and grow a business is one of the biggest hindrances to female entrepreneurs. In 2018, only 2.2% of the over US$96bn of Venture Capital (VC) funding in the U.S. went to female founders. In 2016, this share was higher at 2.5%, so we are actually worse-off in our efforts to level the gender playing field. This reflects the same situation in Nigeria, where women-owned businesses struggle to get the necessary backing to soar. So why does the investment world find it difficult to support our growth as women, in the way they support men? With less than 10% of the decision makers at VC firms being female, and majority of VC firm investors being male or non-black, I can understand why we face the predicament we do. Moreso, in the case of Nigeria, as long as we continue to wait on outside investors to come fund our young female entrepreneurs, we are doomed. So we need to be more deliberate about this. We need to own the capital so we can deploy it our way. This is why I am so passionate about ensuring Nuli is a success so that when I exit, I will have the wealth to give back in a meaningful way to other hard-working female-founders. Ultimately, as a female founder, I am part of a unique group that has chosen a road less-travelled. A group that gets 6x less capital than men, even though data shows we deliver higher revenues. A group that is frequently shut out of the room due to hidden and not-so-hidden social biases, yet finds ways to keep creating its own room to shine. I am proud to be a FEMALE FOUNDER in Africa and I am going to keep shining! June 2020 22

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