According to reports, the Small and Medium Enterprises Development Agency (SMEDAN), has signed a Memorandum of Understanding (MoU) with three companies to develop Small and Medium Enterprises (SMEs).
This will be done through crowdfunding, cashless services and insurance.
The three companies are TKFOL Financial Technology, MRAMINI Electronic Insurance and MRPAYFORME for financial technology Limited.
Speaking during the signing of the MoU in Abuja, the Director-General of SMEDAN, Dr Dikko Radda, said that the concept would enable SMEs have easy access to funds.
Represented by Mr Wale Fasanya, director, Planning, Monitoring and Evaluation in the agency, Dikko described crowdfunding as a welcome development.
While decrying difficulties faced by business owners to access funds from banks, Dikko urged SMEs to explore the opportunity provided by the services of the companies to grow their businesses.
“Our own is even more precarious, because of the risk involved most banks do not want to touch the micro businesses.
“It may not be so for small businesses and the medium ones but for micro businesses which we have in large numbers, it has been difficult for them to access funds from the banks.
“The issue of crowdfunding is very important to our businesses in Nigeria, especially micro businesses and now we have another category of businesses we call NANO in Nigeria.
“I think with what you are putting in place, our micro businesses will benefit largely from this,’’ Radda said
The SMEDAN boss also said that the MoU would take care of the issue of insurance for businesses.
“This can take care of some of the risks that are involved.