By Peter Egwuatu
PARTICIPANTS at the just concluded 2018 African Securities Exchange Association, ASEA, conference have agreed that Small Scale Enterprises, SMEs need to be nurtured before being listed on the Nigerian Stock Exchange, NSE.
But they believe that there is need for more of the SMEs to be listed on the Exchange to enhance liquidity and depth in the market.
The experts, who noted that Exchanges must offer their expertise to SMEs in the areas of advice and suggestions, also added that appropriate regulatory framework is needed from government and financial institutions to create institutional support to that segment of the market.
According to them, if SMEs are structured in such a way that they will appear more attractive with minimized risk profile, it would fast-track economic prosperity and ultimately generates more job opportunities for the youths.
Moreso, they suggested that SMEs should be ranked in order of performance to spur healthy competition among operators.
Speaking, Director, Project Finance, Afrexim Bank, Kofi Adomakoh, said research and information is very critical ingredients of the whole gambit of solutions to tackle SMEs constraints.
According to him, Exchanges must engage consultants to gather information and continuously advice in a quarterly basis on what is happening in the SMEs space and in specific aspect of the business.
He said: “Research and information is very vital. It is a critical ingredient of the whole gambit of solutions if you want to address SMEs solutions properly as regards stock exchanges. For Afrexim bank perspective, we on a continuous basis have a solicited grants and also commission consultants to gather information and continuously advice us through quarterly reports on what is happening in that space and in specific aspect of SMEs businesses.
“So we look at different sectors of the market that is viable and sustainable. You need to have a continuous process of getting that information because markets are dynamic and things are changing very rapidly. Research is important, many organization have a challenge spending money on research but research must be viewed as an investment.
“You need to collaborate with institutions who are researching .we collaborate on this research and when the information is available, we share amongst us. If you really want to push the growth of SMEs, it is really going to be based on exchange of data and information.”