Experts say MSMEs must build systems, data and governance to scale

Small businesses in Nigeria must prioritise structure, systems, and data-driven practices to scale in an economy marked by uncertainty and competition. This was the key message from speakers at the 2025 BusinessDay SME Conference and Awards held in Lagos on Thursday.

Systems, delegation, and people

During a panel on scaling operations, Josephine Ehimen, founder and CEO of Nett Pharmacy, said many small businesses remain at the same level because founders hold on to too many roles.
“Most small businesses depend too much on the owner. You are the accountant, marketer, and cashier. If you want to grow, your business needs to transcend outside you,” she said.

Ehimen added that even micro-businesses require systems that team members can understand and follow.

Adetola Akinola, founder of Glitz Group of Companies, described scaling as an outcome of structure, systems, and people working with the founder’s vision. She said founders should view succession as a growth tool rather than an exit plan.
“Organisations should move from being founder-led to being systems-led. We must learn that our businesses are separate from us,” she stated.

Governance and financial discipline

Chris Imumolen, an educationist and entrepreneur, said MSMEs should build internal governance from the start, even when the regulatory environment is difficult.
“I started my business with a one-man team. But over time, I saw the need to build structures,” he said. “Do everything necessary to build governance without waiting for regulations.”

Experts at the event also noted that documentation, data, and financial discipline remain essential. Access to finance was highlighted as one of the most persistent barriers for MSMEs.

Representing the Keystone Bank MD/CEO, Ganiu Adebayo said many loan rejections occur due to poor documentation.
“Let every transaction pass through the banking system. If they see the trend of your growth, they will approve it,” he said.

Supply chains and local inputs

Olumide Gbadebo, founder of Adunni Organics, said depending on a single supplier exposes a business to disruption.
“Your supply chain determines if you’ll be able to do well,” she said. “Have plan A and plan Z. Assume everything will go wrong and prepare backup suppliers.”

She urged MSMEs to source inputs locally to reduce exposure to foreign exchange pressures. “I cut everything I was using FX for. Nigeria has the best quality raw materials,” she said.

Gbadebo encouraged small businesses to plan inventory and invest in storage to buy in bulk when prices are favourable.

Collaboration, agreements, and intellectual property

Addressing growing competition, Flora Mbeledeogu, founder of MABA, urged small business owners to prioritise collaboration.
“When you start an organisation as a newbie, you cannot do it alone. Partnerships bring together ideas and help beat competition,” she said.

She cautioned founders to protect their intellectual property. “Anything you do must be documented in a partnership agreement,” she noted.

Growth, data, and digital strategy

Zaid Maalouf, founder of Pro ScaleUp, said growth carries risk and should be measured beyond revenue.
“You need to ensure that growth is not happening only in revenue. You are not in the business of selling more and making less money,” he said.

He stated that an MSME is on the right path if profits grow at a faster pace than revenue. “If you are growing very fast, please be cautious, you need to build solid foundations,” he added.

Isaac Oladipupo, co-founder/CEO of Afrilearn and Moneywise Africa, said data should guide decisions.

“People buy solutions to their problems, not products and services. Data tells you the truth about your business and should guide your decisions,” he said.

Adeshina Adewunmi, CEO of Trade Lenda, added that MSMEs should begin digital adoption by defining the value they want to deliver.
“When you are offering value, people will follow you and not necessarily because of paid ads,” he said.

He added: “Knowledge is the foundation. Many people jump into business because they need jobs, not because they understand the value they are offering.”