The first female professor at Al-Hikmah University, Ilorin, in Kwara State, Moriam Aremu, has urged the Nigerian government and stakeholders to prioritise Small and Medium Enterprises (SMEs) if they are genuinely serious about rescuing and sustaining the nation’s economic sector.

Delivering the sixth inaugural lecture of the University, titled: “Taking SMEs to the next level: strategic human resource management to the rescue,” the professor of Business Administration posited that SMEs, when flourished, “can be the key to unlocking various golden opportunities to solve unemployment and economic problems in the country.”

Aremu hinted that SMEs contribute over 55 per cent of Gross Domestic Product (GDP) and over 65 per cent of total employment in developed economies.

She argued that the sector also plays a significant role in national development, contributing 60 per cent of GDP and over
70 per cent of total employment in developing economies.

She lamented that about 70 per cent of SMEs in Nigeria fail within the first five years of operation, calling for greater efforts to reduce the fatality rate of SMEs in the country.

“Taking SMEs to the next level is crucial for sustainable and inclusive growth and development because they fuel innovation and competition, sustain competitiveness in operating environment and represent the lifeblood of local economies and communities.

“SMEs are germane in enhancing economic development and are pivotal in the transition of economies to a digital and sustainable future,” she added.

Aremu, therefore, insisted that only the SME operators, among other critical stakeholders, can rescue and revolutionise the business through effective and efficient human resource management.

She urged stakeholders to partner with any interest that would take SMEs to the next level, because “if SMEs are given the deserved attention and SME owners embrace human resource management functions, the Nigerian economy will surpass expectations.”

Consequently, the varsity don urged SMEs to focus more on internal strategic management variables, such as training, recruitment processes, capital base, profit, and employment, to enhance business performance and sustainable development.

According to her, SMEs should continually employ the best Human Resources (HR) practices through effective recruitment
and selection to get the best ingenious employees that would exhibit positive traits to effectively foster team spirit, task cohesiveness, rescue and enhance
efficiency of SMEs.

“SMEs should adopt effective leadership in order to motivate employees, promote teamwork and employee willingness to accept responsibility in order to enhance productivity,” she pointed out.

According to her, social media marketing should be employed by SMEs to enhance performance, saying: “SMEs should see social media marketing as a means of competing globally.

“SMEs should always evaluate ingenious human resource accounting practices every year and compare them with previous years to assess performance with a view to ranking improvements where necessary to rescue the sector.

“SMEs should key into influencing consumers’ mood towards achieving better influence.

“Owners and managers of SMEs should pay adequate attention to product packaging and display if they desire greater improvement in their businesses. Product packaging and display significantly influence customers’ positive attitudes towards impulse purchases and their willingness to buy.

“SMEs should increase the awareness of the range of services/products available. SMEs should continue with a massive advertising campaign, and during the course of each advertisement, should make the customers know more about their products.

“For SMEs to be perceived and acknowledged as quality enterprises, they must invest adequately in product and
technology innovation. Management of SMEs should consider product and technology innovation to enhance performance.

“SMEs management should endeavour to further enhance advertising activities on social media, newspapers/magazines and television in order to have access to the global market,” she expressed among others.