Lagos plans development framework for MSMEs
Lagos State Government has concluded plans to launch an initiative to develop a franchise framework for micro, small and medium enterprises in the state.
The government explained that the program is designed to expand the frontiers of the local market in line with the government's efforts to accelerate the growth of entrepreneurship in the state.
This was contained in a statement released Thursday by the Governor's Special Advisor on Sustainable Development Goals and Investment, Ms. Solape Hammond.
She noted that the fair was born out of the need to strengthen the existing public-private business ecosystem with the aim of developing the sub-sector. “Due to the need to strengthen the existing public-private business ecosystem with the aim of developing the sub-sector, the Lagos State Office of Sustainable Development Goals and Investment, in partnership with Franchisors and Distributors Forum, will launch an initiative titled: Franchising as an Investment Alternative in Lagos State: Capacity Building for 300 MSMEs in Lagos." She affirmed. She disclosed that the program targets MSMEs in classic franchise areas including product manufacturing, services, food and beverage, health and wellness and other personal care services, professional services, commercial investors/banks, cooperative societies, the media as well as other MSMEs and individuals within the value chains.The special adviser said that the pilot program designed to expose 300 MSMEs to the franchise business system will help these Lagos-based franchises develop their unique franchise model and help them prepare for investment.
According to her, there will also be a periodic funding forum for franchisors and franchisees to deepen collaboration opportunities. “Part of the plan is to identify 20 MSMEs with strong growth potential between 5 outlets in the first year and 10 over the next 30 months, and then provide the support for the structure and franchise growth, including including various intellectual property registrations," she revealed. Hammond, who explained that the business model is crucial for job creation, economic diversification, creativity and income redistribution, said the state has shown considerable interest in helping SMEs access affordable financial and institutional support they need to create wealth and jobs for youth. In his words, "Lagos being the West Coast's Micro, Small and Medium Enterprise (MSME) hub, with a concentration of 3,224,324 micro-operators and over 11,663 SME operators will benefit from this business model in the framework of efforts to build an inclusive economy". Noting that there is a need to have an equal platform for partnerships and linkages between operators and government agencies to uncover innovations and opportunities that will boost the economy , she said that the simplicity of franchising makes it a very good way to unlock the growth potential of MSMEs."There are great prospects for franchising to contribute to the development of entrepreneurship, to create more jobs, to move faster in training and skills development, to improve the quality of business, to improve the ethical climate of the national company, to strengthen the value brand for Lagos businesses, help businesses become more investable, benefit from the development of new small business technologies among other salient benefits,” she said. Speaking on the selection criteria, the special adviser said that in addition to having been in business for a period of 24 months with good management prospects, the MSME must have the potential to attract investors/franchisees with a progressive annual income. They must also, of course, be based in Lagos and willing to expand around and beyond the state.
Hammond stressed that the initiative will enhance the legitimate role of SMEs in creating wealth and jobs, reducing poverty and stimulating the growth of the national economy, as this administration is committed to build a 21st century economy. “We are optimistic that franchising would be a useful tool to achieve our economic goals as a state as it offers a viable model for developing MSMEs in Lagos,” she affirmed.
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Lagos State Government has concluded plans to launch an initiative to develop a franchise framework for micro, small and medium enterprises in the state.
The government explained that the program is designed to expand the frontiers of the local market in line with the government's efforts to accelerate the growth of entrepreneurship in the state.
This was contained in a statement released Thursday by the Governor's Special Advisor on Sustainable Development Goals and Investment, Ms. Solape Hammond.
She noted that the fair was born out of the need to strengthen the existing public-private business ecosystem with the aim of developing the sub-sector. “Due to the need to strengthen the existing public-private business ecosystem with the aim of developing the sub-sector, the Lagos State Office of Sustainable Development Goals and Investment, in partnership with Franchisors and Distributors Forum, will launch an initiative titled: Franchising as an Investment Alternative in Lagos State: Capacity Building for 300 MSMEs in Lagos." She affirmed. She disclosed that the program targets MSMEs in classic franchise areas including product manufacturing, services, food and beverage, health and wellness and other personal care services, professional services, commercial investors/banks, cooperative societies, the media as well as other MSMEs and individuals within the value chains.The special adviser said that the pilot program designed to expose 300 MSMEs to the franchise business system will help these Lagos-based franchises develop their unique franchise model and help them prepare for investment.
According to her, there will also be a periodic funding forum for franchisors and franchisees to deepen collaboration opportunities. “Part of the plan is to identify 20 MSMEs with strong growth potential between 5 outlets in the first year and 10 over the next 30 months, and then provide the support for the structure and franchise growth, including including various intellectual property registrations," she revealed. Hammond, who explained that the business model is crucial for job creation, economic diversification, creativity and income redistribution, said the state has shown considerable interest in helping SMEs access affordable financial and institutional support they need to create wealth and jobs for youth. In his words, "Lagos being the West Coast's Micro, Small and Medium Enterprise (MSME) hub, with a concentration of 3,224,324 micro-operators and over 11,663 SME operators will benefit from this business model in the framework of efforts to build an inclusive economy". Noting that there is a need to have an equal platform for partnerships and linkages between operators and government agencies to uncover innovations and opportunities that will boost the economy , she said that the simplicity of franchising makes it a very good way to unlock the growth potential of MSMEs."There are great prospects for franchising to contribute to the development of entrepreneurship, to create more jobs, to move faster in training and skills development, to improve the quality of business, to improve the ethical climate of the national company, to strengthen the value brand for Lagos businesses, help businesses become more investable, benefit from the development of new small business technologies among other salient benefits,” she said. Speaking on the selection criteria, the special adviser said that in addition to having been in business for a period of 24 months with good management prospects, the MSME must have the potential to attract investors/franchisees with a progressive annual income. They must also, of course, be based in Lagos and willing to expand around and beyond the state.
Hammond stressed that the initiative will enhance the legitimate role of SMEs in creating wealth and jobs, reducing poverty and stimulating the growth of the national economy, as this administration is committed to build a 21st century economy. “We are optimistic that franchising would be a useful tool to achieve our economic goals as a state as it offers a viable model for developing MSMEs in Lagos,” she affirmed.
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