Supportive Advisory Services to SMEs in Nigerian Towns and Gowns: Myth or Reality?

Credit: Infoprations Analysis, 2018


Whenever economic growth and development are debated at public sphere be it in physical or virtual setting, people and organisations do not hesitate to churn out data about Nigeria. In recent times, statistics such as 96% of Nigerian businesses are small and medium enterprises compared to 53% in the United States and 65% in Europe have been brought to the public glare by the International Financial Corporation.
Citizens, policy makers and governments have also been informed that SMEs represent about 90% of the manufacturing or industrial sector considering the number of businesses. Not only this, the Nigerian government has severally told the public that there are SME clusters in the six geopolitical zones. Despite this, there is little or no support from governments, specialised and educational institutions.

Universities–SMEs Collaboration: What Nigeria is missing?

Once again, Dr. Akanimo Odon has told his colleagues and policy makers that Nigeria and her citizens are missing a lot by not supporting SMEs within the university environment. He made the submission while sharing his experience and observations from recent visits to over 30 African Universities. “I noticed in all of the Universities I have visited this year the presence of a commercial bank branch. When I ask Vice Chancellors (VCs) if they invited the bank to the University, the answer is always 'no, the bank sent a proposal to come into the University'. But then when I ask VCs if they have had any good engagement with the bank since being on campus, the answer is always 'No'.
Now that doesn't make any sense. If you told the bank ‘I am sorry you have been making money on campus, we need 10 research scholarships or leave the campus, what do you think would happen?’ When I speak with VCs about industry, their immediate thought is the big companies but do these big companies need universities? The ones who actually do are SMEs and they are in abundance in and around universities, but why are they never engaged? Is it the availability of industry or is it knowing how to engage for mutual benefit? So many questions revolving in my mind as I prepare to address over 40 VCs this week at the NUC/UOL Summit, and the African Union next week on bridging the gaps between academia and industry in Africa.
His narrative attracted mixed reactions from the professionals. The analysis of the reactions shows that lack of tailored course content to SMEs challenges, corruption and universities-industries versus industries-universities partnership engagement issue are the key factors obstructing the provision of supportive advisory services to SMEs in and outside the universities. Professionals note that Nigerian universities’ course contents are not designed to address the significant challenges SMEs are experiencing.
“SMEs provide challenges which students and staff can take on as research projects and provide solutions to,” Dr. Akanimo Odon stressed in his comment to a professional. Some professionals pointed out that corruption is impeding universities-SMEs collaboration on the basis that some elements in the system collect money from banks and do nothing to change the lots of small businesses.  

How to engage with the universities

The issue of who should initiate the partnership first also ensues from the discussion. One of the professionals decried the situation where universities are expecting SMEs to approach them. “Universities in advanced countries approach industries and tell them what they can offer to improve their productivity and revenue. Most of our universities do not deliberately engage industries.” Another professional adds that “education and its domiciled society prosper when “its town” meets “the gown”. Our gown is in its own cubicle, insulated from the realities of the town making its tonnes of research of no effect.”  
From the insights, it is imperative for the universities to create awareness of what they can offer SMEs, not only targeting high performing companies in the critical sectors. Beyond this, there is a need to revisit and reinvent course contents.

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