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Expert tasks SMEs on human resources, exit plan

By Michael Eboh
An expert in the nation’s financial industry, Mrs Toki Magbogunje has lamented the high level of disloyalty and indiscipline among staff of Small and Medium Scale Enterprises (SMES), blaming it for the lack of growth and development of the sector.

Speaking at a Policy Dialogue seminar, with the theme: ‘Legal and Regulatory Preparation for SMEs’ organised by ValueFronteira Limited, in Lagos, Magbogunje, who is the Principal consultant of Toki Magbogunje and Company (TMC) and member, Advisory Council, Lagos Chamber of Commerce and Industry (LCCI), noted that the one of the major challenges confronting SMEs is a situation whereby many of their staff are working without focus, thus hindering the growth of their various companies.

She said, “This implies that, many of them are not committed to their jobs, mostly just marking time waiting for the next available opportunity to leave.

“To solve this ugly trend, employers in SMEs must develop and implement their HR policies and career paths to the core, so when people are employed, they can see where they will ultimately end up. Thus, SMEs should develop staff hand book that spells out staff job functions, routines and discipline.”

Magbogunje, who is also an intellectual trainer and consultant, lamented the increase in improper folding up of SMEs, advising owners of SMES against exiting their businesses unceremoniously.

According to her, “Owners of SMEs exit unceremoniously, instead of doing so legally, by carefully carrying out full evaluation of their present business worth, inviting new potential investors that could buy/take over the business, selling their equity holdings and completely getting out of the company, or selling of the business outrightly along with the idea that conceived the business.

“Though, many business owners might consider it an abysmal lack of confidence to spend any time thinking about leaving a company they started, but an exit strategy should not be seen as synonymous to a failed business, but rather should be based on one simple premise that at some point in the future, every owner or entrepreneur leaves their business voluntarily or otherwise and may want to receive the maximum amount of money or returns in order to accomplish personal, financial, income and estate planning objectives .

“Sometimes the exit may be forced upon an owner because he/she is bored of the business or otherwise, but if the process of exiting a business and succession is not done against an organised plan, then an entrepreneur stands the chance of not receiving the value however that may be measured, probably by the time, effort and money that must have been invested in the business over the years, as well as the idea that the business will provide the entrepreneur with income after she/he is no longer there may not be a reality any more.”


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