In today’s unpredictable business climate, strategy is no longer a luxury – it’s a necessity. For small and medium-sized enterprises (SMEs), the difference between reactive survival and proactive growth often hinges on one powerful asset: data. Esther Oguntegbe, a seasoned strategy and execution consultant, believes data is the foundation of modern business intelligence.
The challenge is real: over 80% of micro, small, and medium enterprises in Nigeria do not survive past their fifth year, according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics. Yet, businesses that build strategies on data rather than instinct have a better chance at longevity. SMEs contribute substantially to a nation’s GDP and employment rates, making their advancement crucial to national progress.
“Data is the new raw material of commerce,” Esther explains. “But its value lies in how it’s interpreted and applied. Strategy begins when data becomes insight.”
Research shows that SMEs leveraging data analytics achieve 15–20% higher profitability than those relying on traditional methods. Even simple tools—like sales records, customer feedback, and social media metrics—can uncover patterns that inform smarter choices. For example, a small retailer using sales data can optimise inventory, reducing cash tied up in slow-moving stock. A bakery can use daily sales data to minimise waste and ensure fresh products.
Affordable digital tools are increasingly accessible, enabling SMEs to analyse trends and make informed decisions without large budgets. In fact, 77% of small businesses worldwide have adopted AI or analytics tools in at least one function, driving efficiency and growth.
However, Esther cautions that data must be handled with care. Incomplete or misinterpreted information can mislead, and compliance with privacy standards is essential. Human judgement remains irreplaceable: “Machines can process, but only people can understand context, ethics, and nuance. The best strategies combine both.”
Adopting a data-driven approach doesn’t require sweeping change. Esther recommends starting with one measurable goal—such as improving customer retention or reducing late payments—and building from there. “Start small, learn fast, scale wisely,” she says. “That’s how data becomes a habit, not a headache.”
In competitive markets, clarity is strength. By listening to what the numbers reveal and refining decisions through understanding, SMEs gain a quiet but powerful edge. “Data doesn’t just tell you what happened,” Esther concludes. “It shows you what’s possible.”
