Kunle Adelabu
Oke Godwin Olaoluwa, an economist, financial analyst and the co-founder of a research based NGO Advocacy for Economic Development (A-CED), has enjoined government to improve its investment in the Lagos State Employment Trust Fund (LSETF) and provide trainings for Small and Medium Scale Enterprises (SMEs) to help them out of the effects of the COVID – 19 lockdown.
The Co-convener of the Ikorodu Division Economic Summit (IDES) also asked the government to relax conditions attached to accessing loan, while also adding that the state government should focus more on the service economy and further its Smart City project.
He charged development-based organisations in Ikorodu like the IDES, Ikorodu Division Resource Development Group (IDRDG) and Ikorodu Chamber of Commerce to also assist small scale business owners in the division with trainings.
He stated this during an interview with THE IMPACT on how to assist SMEs out of the lockdown that has adversely affected their businesses.
“Like I wrote in my most recent article published on the impact platform (our site and other online platforms), the state government should scale up its investment in the Lagos State Employment Trust Fund and relax the conditions to allow for more small scale enterprises. They can also engage in training them to properly shape their businesses”, he suggested.
In view of the effect of the pandemic challenges on many sectors of the economy, Olaoluwa charged government to focus on service economy.
“Lagos State is a service run economy. The service sector contributes about 60% to the economy of Lagos state. The state government should continue its smart city project and concentrate on the informal sector.
Speaking on roles development – based organisations should also be playing in assisting SMEs, he stated that:
“These organisations can also assist in the area of training or providing relevant information to the small scale operators. So, basically they can help in the area of research”, he added.
While analyzing the effects of the lockdown as a measure to prevent the spread of the novel Coronavirus on small business owners, Olaoluwa stated that the operators are the most affected because they were unable to earn any income during the period.
“The small scale businesses are the most affected sector. Reason being that, the operators in the sector spend what they earn. They do not have that scale to either retain a part of their profit or save from their income. So, what they make as their daily or monthly income is from it, they cater for all their expenses for the period. So, during this Covid-19 period, their earnings is zero, as such there will be no money to cater for their expenses”.
Advising SMEs operators, the financial analyst stated that:
“They should restrategise their business plans. Also, they can go into partnership with like minds so as to scale up their businesses.
“They can co-habit with one another in a single space like creating a business hub. By doing this, they can share ideas and information”.
He also stated that government should commence opening of hospitality businesses to prevent further loss of revenue from the sector adding that operators must be made to adhere strictly with proper safety regulations.
While supporting the delay in the opening of schools, Olaoluwa stated that government should ensure that necessary safety measures are provided in academic environment and should also adequately enlightened the parents.
“Research has shown that children and teenagers may not have full proof immune system, hence, they need adequate protection. Opening school without proper safety precaution and adequate enlightenment of parents may be disastrous”.
