By Princewill Ekwujuru
There are challenges of doing business in Nigeria, which Small and Medium Enterprises, SMEs envisage. In terms of the business environment, SMEs face challenges of infrastructure and finance. As presented in the World Bank ranking on the Ease of Doing Business, Nigeria lags behind. Among other challenges, the country lacks policy transparency and governance, these have made SMEs complain of difficult environment to do business, yet some individuals still forge ahead despite all the bottlenecks.
Background:
Mrs. Elizabeth Nwaizu, YesChilli boss
Mrs Elizabeth Nwaizu is the Founder of YesChilli Ventures, makers of YesChilli and Ginger sauce. She holds a BA English degree from the University of Jos and did her one year youth service at the Nigeria Television Authority.
After her youth service, she joined the Official Solicitor’s Office in the Ministry of Justice in 2003 as a Senior Case Manager in the Family Litigation Team which looked after the interests of vulnerable parents in Children Act Proceedings.
Nwaizu rose to become Divisional Manager of the Family Section in 2009, where she impacted the lives of clients and secured some useful decisions on their behalf in the House of Lords. She proceeded to England to broaden her horizon and returned to Nigeria in 2015 to give back to the society.
Motivation:
Having worked in the civil service for so many years, Nwaizu decided it was time for a change. “There comes a time in life when you begin to fancy a career change or you are not exactly or fully satisfied with what you are doing or you want a stretch or you get bored. For me, it was a combination of all of that. Plus I wanted to come back to Nigeria to give back and also to be close to my mother who is getting aged. So I needed to have something to do when I came back to Nigeria.
The job market is not buoyant so I decided to go into manufacturing and food has always been a passion for me. I just happened to be one of those lucky people that have been able to turn a passion into a living.
Product:
We make tasty, healthy indigenous convenience foods that are attractively packaged and competitively priced. Our first product which is the YesChilli and Ginger sauce has been in the market since January 2016. Presently, we are trying to establish the YesChilli brand.
Funding:
Nwaizu said she started the business with her savings. “I haven’t tried to access any funds because I will like to see the business grow organically first, and then when I hit the stage and need expansion, I will hopefully approach banks or private investors.
I know these funds are accessible but with stringent criteria. One is providing guarantors and when you have guarantors for a loan, you put them, their businesses and families at risk because if you don’t cover the loan, then they would have to fill that gap.
I don’t want to be in a position where I would put somebody else in that position. So for me, that will be a barrier for taking those loans because I do not have any collateral in Nigeria to put down against the loan
Challenges:
Well, I face the same problems as most Nigerian manufacturers. You spend quite a bit of your cash flow on generating power because the national grid doesn’t supply near enough of what is required. I spend about N15,000 a week on diesel.
As new start-ups, you know all the challenges new starters have like funding. I am the administration manager, production manager, production staff, I do the media content stuff, and I run the website, I design the label, I do product development. Basically, I am a jack of all trade when it comes to YesChilli.
One of the good things about this is that it helps you know your product inside out and then you acquire skills you didn’t know you could acquire. It’s been a fantastic experience for me.
The major challenge is creating awareness about the product, and I am severely handicapped because I don’t have a huge financial budget. In fact, my financial budget is about zero. Distribution is another challenge for the same reasons. We are slowly getting out there; we are in about 87 stores around Lagos and I am talking to one or two big shops presently, but I need to be talking to a lot more.
Future plans
Two years from now, I would expect YesChilli to be a relatively recognisable brand with at least four products in its range.
I am still trying to get even more territorial share of the convenience market. There are quite a few indigenous convenience food outfits, but our catch phrase is Healthy convenience foods, 100 per cent natural ingredients with no additives and no preservatives.
Vanguard News
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Original article: I ventured into manufacturing ‘cos’ job market isn’t buoyant.