Nigerian small businesses must prioritise structure, systems, and data-driven practices to scale sustainably in an economy characterised by uncertainty and intense competition.
At the 2025 BusinessDay SME Conference and Awards held in Lagos on Thursday, experts highlighted that sustainable growth requires systems that withstand even the toughest economic conditions.
They said that MSMEs are not meant to stay small forever, but must scale sustainably through strong systems and data building.
Speaking during a panel on scaling operations, Josephine Ehimen, founder and CEO of Nett Pharmacy, noted that many small businesses stagnate because founders fail to decentralise responsibilities.
“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.
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Ehimen added that even micro-businesses need systems that team members understand and follow to create structure.
Adetola Akinola, founder of Glitz Group of Companies, described scaling as the outcome of structure, systems and people working in alignment with the founder’s vision.
According to her, founders must treat succession as a strategic 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.
Chris Imumolen, an educationist/entrepreneur, urged MSMEs to build internal governance early, even in a challenging regulatory environment.
“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 also noted that documentation, data and financial discipline are essential for MSMEs, while also citing access to finance as one of the most persistent barriers to MSMEs’ growth.
Ganiu Adebayo, representing Keystone Bank MD/CEO, noted that proper documentation is often the difference between approval and rejection.
“Let every transaction pass through the banking system. If they see the trend of your growth, they will approve it,” he said.
Olumide Gbadebo, founder of Adunni Organics, warned that dependency on single suppliers exposes businesses to collapse.
“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 localise inputs where possible to cut foreign exchange (FX) exposure. “I cut everything I was using FX for. Nigeria has the best quality raw materials.”
Gbadebo also advised small business owners to plan inventory and invest in storage to buy in bulk when prices are favourable.
While addressing the rising talent and product competition in the MSME sector, Flora Mbeledeogu, founder of MABA, encouraged entrepreneurs 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.
However, she cautioned founders on the selection of partners and the protection of their intellectual property. “Anything you do must be documented in a partnership agreement,” she said.
Zaid Maalouf, founder of Pro ScaleUp, said growth does not come easy and it comes with a big risk.
“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.
Maalouf stated that as a small business, if one’s profit is growing at a faster pace, then one is in the right direction.
He said the big risk with MSMEs growing fast is if they are building solid foundations. “If you are growing very fast, please be cautious, you need to build solid foundations.”
Isaac Oladipupo, co-founder/CEO of Afrilearn and Moneywise Africa, stressed that data is critical.
“People buy solutions to their problems, not products and services. Data tells you the truth about your business and should guide your decisions,” he stated.
Adeshina Adewunmi, CEO of Trade Lenda, encouraged MSMEs to begin their digital journey by defining the value they want to deliver and choosing the right channels.
“When you are offering value, people will follow you and not necessarily because of paid ads,” he said.
“Knowledge is the foundation. Many people jump into business because they need jobs, not because they understand the value they are offering.”
