PwC MSME Survey 2020 slide image

PwC MSME Survey 2020

Case study: IBBA 36 Global Concept Engineer Ibrahim Balami IBBA 36 GLOBAL CONCEPT Overview of Business Historical background: IBBA 36 Global Concept was established in September 2001, when I finished my secondary education. I officially registered the company on March 23rd, 2013, after realizing that I would not make much progress running an unregistered business. Inspiration: My Inspiration for starting my business was the need I saw around me then. I was always going to the small kiosk to buy sugar for home use and I see the shop owner struggling to tie the sugar in plastic bags and still trying to attend to his customers. I also noticed the unhygienic conditions in which the sugar was being packaged, so I decided to start my sugar packaging business. I have not looked back since then. Products & Services: I currently run a flour mill where we produce semolina and wheat grits, provide engineering Services and machine fabrication for food processing as well, and also operate a corporate cleaning and janitorial service. "The Insurgency that ravaged the North-east adversely affected the business." Journey so far Size of the business: my business has grown from just one business in my house to 4 branches in various locations Number of employees: we have a total of 18 staff members Location: we are located in Maiduguri, the Borno State Capital Recorded Milestones Major Setbacks • I was able to expand my business from my house to a head office building from where we run our affairs. I was able to expand my flour mill from less than 500kg-capacity a day to 4.6-tonne capacity per day. • • The Insurgency that ravaged the North-east adversely affected the business. A failed contract | did for a state government agency here, where I lost a huge amount of money. Issues / Problems Production: Unstable prices of raw materials is one of the major problems we have. There is no price control on raw materials. Finance: it is difficult to access finance from the financial houses,. The Economy: the unstable economy has had serious effect on our business, especially in the engineering section, as we have to import some of the materials we use, and it is impossible to get the official exchange rate. Talent: it is actually difficult to get the right human resources to work with, most of the time you have to train them and when they become skillful, they leave. What solutions or recommendations could you provide to overcome the peculiar challenges of operating in this environment? They solution is for all business owners to be resilient, and find a way around their challenges. What stakeholders needed to act upon, or provide these solutions, and what they need to do: We need the government as critical stakeholders to improve the economic policies so that it can favour small businesses, and CBN should make the financial institutions give a certain percentage of loans to SME. PwC MSME Survey 2020 PwC June 2020 48
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