By JohnMark Ukoko, Lagos.
Wema Bank Plc is deepening financial literacy and optimization among its customers, particularly the Small and Medium Enterprises (SMEs), starting with a webinar themed “Unbundling Tax, Legal and Compliance Issues for SMEs” held recently.
The event featured facilitators who shared insight on how SMEs can upscale their business optimization across its stakeholder universe, had in attendance Head, Legal Services, Wema Bank, Hilary Ajodo; Fiscal Policy Partner, African Tax Leader, Price Waterhouse Coopers (PWC), Taiwo Oyedele; Head Online Sales, Digital Platform.
Speaking on legal challenges faced by SMEs, Ajodo said that business education and registration was essential for any serious _ minded entrepreneur to avoid folding up, entrepreneur thrive in business, according to him, when they have gained adequate knowledge of the business and decide on the nature of corporate entry to register.
Ajodo, said that entrepreneurs must endeavor to start small by registering their business as an enterprise before migrating to a limited liability company and finding ways of minimizing expenses in order to maximize profit.
He advised SMEs owners not to venture into businesses they are not sure of, sign any contract without adequate information, and avoid litigation as the first step in a dispute but explore alternative settlement means.
He advised entrepreneur to get insurance for their business assets, adequately prepare for unforseem trend by diversifying their business stream of income and being prepared for government policies that may affect any business.
WEMA banks Head of Legal Services warned that SMEs operators should obtain loans only from legitimate sources, ensure they have clearly stated business plan for profit maximization and join like minded business associations.
He urged SMEs to avoid capital mismatch approach, Wema bank as the best option to access business capital facilities.
On his part, Taiwo Oyedele of PWC highlighted the significance of sustainable evolution of businesses and regulation dynamics for success.
Oyedele explained that an entrepreneur must think about how to grow his brand beyond himself, by keeping his eyes open for opportunities.
He also called on SMEs owners to ensure they acquire financial literacy and composite business intelligence as this will enhance understanding of tax obligations regulatory compliance and contractual processes of businesses.
Oyedele also harped on the need for documentation and record keeping of business transactions.