By Chinenye Anuforo
The importance of small and medium enterprises (SMEs) to the growth of any economy cannot be overemphasized. According to the World Bank, SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.
They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. The World Bank estimated that 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create seven out of 10 jobs. This is why, in 2022, Google launched its Hustle Academy, which provides SMEs with business and management education, mentoring and networking, with particular emphasis on preparing them to package their businesses in order to raise capital and take their business higher.
Since inception, the programme has graduated over 10,000 SMEs across Africa, among which 4,400 graduated from Nigeria with, a notable 74 per cent from the first year reporting marked business growth.
This year, the Google Hustle Academy graduated and celebrated 5,300 SMBs across Africa who participated in the academy training in Nigeria, Ghana, Kenya and South Africa. Nigeria recorded over 2,000 beneficiaries from this number and 15 of them got the N75 million Google’s Hustle Academy SMB fund set aside for the Nigerian market.
The fund according to Google was set aside to further empower the SMBs, apart from the ICT training, which they received to enhance their businesses.
Speaking during the Google Hustle Academy graduation event in Abuja, Olumide Balogun, Country Director for Google in West Africa explained that the graduation marks a continuation of the program’s impact, with over 10,300 entrepreneurs having participated since its inception in 2022.
He pointed out that his largest take-away, when reviewing the report and listening to the testimonials from the graduates, was that Africa’s SMBs, armed with the right tools and knowledge, can do anything they set their mind.
Balogun said rising inflation and the cost of living crisis has significantly impacted the sustainability of small businesses across Africa adding that International Finance Corporation estimated that there are at least 44 milion formal MSMEs in Sub-Saharan Africa, half of which require more finance than they can access to grow their businesses. “The finance qap is estimated at more than $400bn. Digital skilling and tools have a significant role to play here. Not only do SMEs that are digitally enabled report access to more customers and higher sales, but they also have lower costs than their analogue counterparts.”
He praised the passion and resilience shown by the SMEs noting that they are truly inspiring. “The Hustle Academy is a testament to what focused training and resources can achieve. We are not just celebrating their graduation today; we are recognizing their potential to reshape and invigorate the Nigerian business landscape.”
He stressed that SMEs are critical to Africa’s economic growth and job creation. “I am encouraged to see the impact of that digital skills programmes like Hustle Academy have in supporting these businesses”, Balogun added.
In a goodwill message, Tola Adekunle-Johnson, senior special assistant to the Vice President on Job Creation and SMEs, promised more support for the SMEs in the country.
He announced that the President, Bola Ahmed Tinubu, will soon inaugurate the SMEs Council as means to coordinate public-private sector collaborations to achieve more results.
Charles Odii, director general, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), congratulated the graduates for gridding the challenges in the ecosystem.
The DG announced the on-boarding of the Google Hustle Academy into SMEDAN licensed Business Development Service Providers (BDSPs) Scheme.
The BDSPs are Nigerians from the entrepreneurial ecosystem across the country that have met the requirements to practice their profession in a particular jurisdiction.
Speaking on the importance of ICT skills training for small business owners across Africa, the lead trainer at Google Hustle Academy, Mr. Gori Yahaya during an interview at the sideline of the event said the training offered at the Google Hustle Academy would further expose the SMBs to new and better ways of doing business, using emerging technology tools.
He said the SMBs that registered for the Google Hustle Academy have the zeal to learn new skills in ICT and they are committed to learning. “Our role as trainers is to impart knowledge about new trends in ICT skills on the trainees and to help them break the barriers that have prevented them from succeeding in their businesses. We give them the technology and the tools that will enable them grow their businesses in a much faster way, while they still sustain their business. Aside the ICT knowledge skills that we offer in the Academy, we also teach them how to pitch their businesses before any given audiences.”
Yahaya said the students were taught digital operations, trending digital tools to grow businesses, digital analytics, digital finance, digital marketing and funds management, among others.
He explained the students learn better through peer-to-peer learning system that has enabled the trainees to share ideas among themselves adding that successful entrepreneurs were also brought into the training class to share their business success stories with the trainees in order to encourage them and to boost their morale in achieving great things, despite challenges that they will encounter in their business journey
Speaking to Femi Bolaji, founder of Wauley Projects Limited, a graduate from Nigeria and one of the 15 fund recipients, he said, “Google Hustle Academy has equipped us with vital business knowledge, and being selected for the fund is a significant boost that will propel our business forward.”
Another beneficiary, Founder, Segun Funmi Foods Nigeria Limited and Segun Funmi Cancer Support Foundation, Mrs. Funmilola Agbayewa, said the training exposed her to new ICT tools like Google Business Tools, which she said, would help her to further grow her business with ease.
She added she would inject the money into her foundation and food business.
“I am a cancer survivor and in the process of researching on the kind of food to eat that will sustain me, I developed interest in establishing the Segun Funmi Foods Nigeria Limited and Segun Funmi Cancer Support Foundation, and today I am happy that I am giving support to cancer patients, and helping them get the right diet that will enhance speedy recovery,” Agbayewa said.