Fidelity Bank has urged Small and Medium-sized Enterprises (SMEs) in Lagos to adopt reliable digital solutions, strengthen their business structures, improve financial record management, manage operating costs, and explore new markets to remain profitable and achieve sustainable growth amid rising costs, intense competition, and changing consumer demands.

The Bank stated this during its SME Business Forum Lagos edition, with the theme: “Build to Compete: Positioning Lagos Businesses for Sustainable Growth,” which brought together entrepreneurs, large business owners and specialists as well as government representatives to discuss digital transformation, trade, financing and strategies for strengthening SMEs in the state.

The Executive Director, Lagos and South-West, Fidelity Bank, Ken Opara, said Lagos provides access to a large consumer market, financial institutions, technology ecosystem, talent and commercial networks, with data showing that the economy reached $27.3 billion in the first quarter of 2024, compared with $19.65 billion in the corresponding period, while its estimated size under purchasing power parity stood at $29 billion.

Opara, who was represented by the General Manager, Ikeja Region, Jude Monye, said the figures highlighted the economic opportunities available to businesses operating in the state and the importance of improving their operations.

He, however, noted that businesses could record impressive sales and still struggle to make profits because of the state’s demanding business environment, with rising and excessive operating costs, infrastructure constraints, weak cash flow, intense competition, changing consumer preferences, slow-moving inventory, pressure on working capital and difficulties meeting payment obligations.

The Executive Director cautioned SMEs against operating without appropriate business structures, including financial management systems and clear separation between personal and business expenses.

On export opportunities, the Executive Director said businesses seeking to enter international markets needed to improve production capacity, adopt internationally acceptable packaging, maintain proper trade documentation, comply with regulatory requirements and establish dependable logistics arrangements.

The Group Head, SME, Fidelity Bank, Okechukwu Ugoji, stressed the importance of understanding consumer spending patterns, economic trends and operating costs when making business expansion decisions in Lagos.

He advised business owners to assess the purchasing power of the communities in which they operate and identify areas where changing economic activities and investments could create new business opportunities.

Ugoji stressed that understanding local communities’ demand and spending capacity could help entrepreneurs determine where to locate their businesses, which products to offer and how to position themselves for future growth.