Why We Need Small and Local Businesses

Hello and welcome to the final post of my March business series.

(Yes, I know it's now April😅)

I am glad that we were able to go on a little journey into the world of business and hopefully learn a few things. During the past 5 weeks, I've talked about how we can grow and support SLBs around us and I know around now some people are like, "Ok, Why and what's in it for me?"

Well, I'm glad you asked because that is exactly what I want to talk about today. Grab a snack, sit back, and relax as we dive in.

images from volunteer energy, tapinto.net, random acts of kindness foundation and healthline

The first two that I'd like to point out are independence whether financial or individual or competitiveness. The act of starting an SLB is a big deal so when people start their businesses, it is a big step towards their individual independence whether from parents or friends. Not only that but starting a business can also provide a moment of self-reflection as you choose what you want your brand to represent. When you think of the brands that you like from Gucci to Apple, they all have some distinct character that is associated with their brand and that is part of what keeps them competitive.

Quality is also important for starting businesses in winning the trust of customers and this keeps SLB owners accountable as they try to build a brand. No one wants to buy or invest in a business that is notorious for poor quality no matter how much character it claims to have. This serves as a built quality-control measure between different SLBs so SLB owners who are able to succeed in having both quality and character can start checking financial independence off their list because money flows towards value. This means that they no longer have to depend on a conventional 9-to-5 job just to survive and if I am part of the right generation, this is a good enough reason to start or support an SLB because diligent hands are God's workshop.

Plus you totally want to be that friend that helped your friend's business grow. If that isn't being God-sent, then I don't know what is.

Another important side-effect of supporting SLBs is rewarding creativity. Most times we think that businesses have to be conventional; like selling food, bags, cosmetics, or clothes. And even though these are good places to start, SLBs are ways that the young community of a country can express their talents by creating innovative solutions to issues in their community. We are all very familiar with the many problems of Nigeria. I challenge us that instead of seeing these issues as setbacks, we see them as motivation to innovative business ideas that can birth solutions to these issues. When it comes to SLBs, the sovereignty of the owner allows them to be as creative as they want to be. This makes them mediums through which we can tackle problems in our immediate or national environment. Of course, this can also be to the detriment of the business if it is not managed well but once the managerial aspect is covered, the sky becomes the limit.

A good example is Uber and Taxify (Bolt). Taxis and buses were a staple transport mechanism for many Nigerians and most people got to where they needed to be even if it meant that they might get a little bit late but someone decided to bring the transport to our doorstep. Who would have thought it would be a global success? A taxi that comes to your door. Wow! Those were rare and expensive when I was in elementary school but now I can attend interviews and conferences without having to worry about sweating in a crowded bus or the possibility of some fellow Nigerian spilling Zobo on me. Today, Uber and Taxify are million-dollar companies, just by meeting a need that even most people didn't even know they needed.

A really crucial benefit that I want to explore a bit more is diversification and national economic strengthening. The thing about SLBs is that they are a source of economic strengthening. Now I admit, I am not an economics expert but from what I have been reading in The Richest Man in Babylon, money is like water that flows in a stream. When you make a particular salary, it's not for yourself unless you say it is. The money you make is for the landlord, the clothes-seller, the pepper seller, Domino's Pizza, Mama moria, etc. At the end of the day, we claim to earn big amounts of money and then spend them all on items that may not add much personal value to us as human beings. In the same way, there is a problem because Nigerians are mostly working for international companies.

SLBs provide a way of keeping Nigerian money in Nigerian markets.

In today's markets, almost everything we want has an imported version of it and even though it seems high-class to only buy imported stuff, it is better to buy locally-produced materials.

Let us take an example. (You know it's inevitable at this point😅 )

Say I am a corn-farmer. On my farm, I grow and harvest corn to make two types of materials; boiled corn and raw corn. When I start off, I harvest 1000 cobs of raw corn. I boiled 250 and leave the rest raw. My plan is after I sell these two items for some months, I would be able to make enough profit to expand my farm's processing unit to add some equipment to make sweet corn. Unfortunately, because most people who shop prefer an imported option, I am only able to sell 100 cobs of boiled corn and 500 cobs of raw corn even though my produce is cheaper than the imported ones. This is the average monthly sale over the next 1 year. I am losing money from the spoiled produce because they are not being bought and I am struggling to maintain the farm talk less of expanding it. To make things worse, the store is planning on reducing the amount of produce they buy from me because they are also losing money since my produce which they bought are not selling and giving them a profit. Now let's pause here and reflect.

What is happening here is that Nigerians are spending their money on foreign goods where the bulk of the profit goes to company CEOs, execs, and workers outside the country while local businesses in the country are struggling. Some people might complain that they do not like local produce because they are low standard and even though I might disagree with that on some levels, part of the reason this is happening is we do not spend enough money on these businesses for them to improve their products.

The money we keep spending does not go to improve our communities so we continue to depend on these foreign commodities since they are "better". At least, better-funded.

But let's say for some reason, e.g a global pandemic, importation of corn stops because most of the ports are being kept open for only essential equipment like test kits and vaccines. During this time, I am able to continue supplying my corn produce to the store while other foreign produce is scarce because of the port shutdown. People start buying more of my corn produce and eventually I am able to recover from my losses. I have even gained some customers who like that they can get boiled corn that tastes "Nigerian". After some months, I am able to expand and release my first batch of sweet corn. This is a success especially since most sweet corn is imported and people are really craving sweet corn at this time.

I decide to be adventurous and try peppered sweet corn which becomes another hit especially with peppered fried rice at parties. I am able to expand this sweet corn section and also focus on getting healthier and sustainable ingredients like sugar from a neighbouring sugarcane farmer instead of imported granulated sugar. I can now employ a dozen more people to work in the processing units. I even hire a graduate food scientist from a nearby uni to help with formulating the next best sweet corn flavour. If all goes well, I can get some grinders in the next few months to start making a custom cornflour packet. Maybe I might even branch into corn syrup in the years to come. And these expansions will need people to go with them, I will have to hire 2 business administration graduates or secretaries to help manage the sweet corn and boiled corn branches of my business so that I can focus on the farm. Maybe I can even hire a technical assistant, an engineering graduate from the university to make sure the equipment is maintained properly. And all this happened just because I was given a chance to grow.

Things are looking up for the business but I can only pray that when the ports open people will still patronize me just as they are now.

You might have finished reading this and be like "Oga o, Kamikun knows how to write story". Thanks, I'll take it as a compliment😅 but what I want to draw our attention to is the effect of my expansion. When people purchased produce from foreign brands, there was no obvious improvement in their lives. They just bought what they needed and left. They were basically earning money so that they could give it to these foreign companies. But when they started patronizing a local business, its expansion led to the employment of over 15 people. Both unskilled and skilled who might have been jobless for a long time considering the Nigerian economy. I was also able to patronize another local business, a neighboring sugarcane farmer. If I continue to grow, I will employ more Nigerian graduates, the money I receive in profits will be spent on Nigerian graduates who will provide for or at least contribute to their families' income.

And the best part is, I am not the only local business in town, if more businesses are patronized, this will cause a domino effect where consumer money helps multiple businesses grow at the same time.

If you read this and were like, "This sounds a little too good to be true." Well, it isn't.

This is exactly what will happen when we start patronizing local businesses. But the choice is ours. We have to be intentional in trusting our local businesses enough to support them. Some might say, "Trust a Nigerian business?🤔🤨" My answer, "Why not?"

Do you have a concern about standards? Most of these international brands were started in the 1800s and 1900s. Do you know what that means? It means they've had decades of practice, trials & errors, and improvements that made them the giants they are today.

The truth is no SLB is going to be able to compete with an international brand at the supermarkets if we do not give them attention.

I'll be honest with you, I love international brands with all their sophistication, partly because of quality and partly because that's what I grew up used to. And I dare say some of us are in the same boat as me. Is it wrong to buy international brands? No. Is every local brand good? No.

But I am tired of hearing the same no jobs, no money, no food, no this, no that. I am tired of hearing lawmakers make empty promises about farming subsidies or SMSE loans or beta-trader schemes that seem to have little effect. I am tired of seeing the dollar, pound, and euro which were once equal to the naira cripple our bargaining power at home and abroad. And if being intentional and switching one of my food or household products at a time from an internationally made one to a locally made one can help reduce poverty among SLB and SMSE families, get my fellow youth jobs, reduce the corruption and improve our economy so that I can change dollar without thinking about my ancestors, then sign me up.

And yes, I know this is supposed to be a benefit of supporting SLBs post and it seems like I've somehow turned this back on us. I only wanted to reiterate that the support must come before benefit. So what happens? Our economy becomes stronger, we can rely less on government subsidies, maybe eventually find a renewable energy business that can save us from the horrors of constant fuel hikes. We can also cut all the excess packaging from shipping containers. Gosh! (Cause climate change is real, y'all and so is flooding) Plus it's usually easier to influence sustainable packaging in your local market. When we produce the goods, it is easier to make demands on what type of packaging you want rather than trying to convince a multi-national organization. Now before I go on a climate change rant😂, our graduates have better jobs and we can even export to other countries strengthening the Naira. The possibilities are endless only if we start looking inwards.

This week's inspiration

Well, friends, that's a wrap. I really loved writing about SLBs but also listening to some of your comments and concerns about our SLB culture in Nigeria.

If this is your first time visiting the blog, welcome!

I don't usually go after our heads like this (Ok. Maybe half the time but it's for a good cause, I promise😂) You should definitely read the other posts on supporting SLBs (that's what we call Small and Local Businesses) They're in the business category of the blog's post section. (Just click the menu, posts, and then hit that arrow in the blue column. I might have to post a navigation video at this point😅)

To all who have tagged along on this journey, a big thanks, and I hope you are inspired to start supporting SLBs in your community.

Don't forget to support the blog by sharing this post with your friends, family, and even strangers.

Spread the word. We really do have the power to create the change we want to see.

Happy Easter!

✌🏽 & 💝