In partnership with The Grooming Centre, a number one microfinance establishment devoted to constructing a vibrant and high-growth group poised to play a number one position in enhancing entry to monetary providers for the poor. Girls’s World Banking launched a venture in June 2024 aimed toward enhancing monetary entry for Girls-led Micro and Small Enterprises (W-MSEs) in Nigeria. This initiative mixed digital innovation and capability constructing, empowering ladies entrepreneurs by offering enterprise and digital monetary coaching whereas integrating them onto the SmartBiz digital platform. By enhancing their enterprise expertise and monetary administration, the initiative sought to bridge the hole between conventional finance and digital instruments, facilitating entry to credit score and fostering enterprise progress.
Our imaginative and prescient: empowering ladies entrepreneurs with the abilities they want
W-MSEs are essential to native economies, notably in underserved communities, however they typically face vital obstacles in accessing formal monetary providers, particularly credit score. To handle this, the venture centered on three fundamental aims:
- Improve digital monetary functionality and enterprise expertise: We carried out complete, tailor-made coaching periods to ladies entrepreneurs to enhance each monetary literacy and digital enterprise expertise. These periods taught individuals easy methods to handle money circulate, use digital instruments, and make knowledgeable selections for his or her companies.
- Monetary Inclusion By way of Smartbiz will increase: As a part of the initiative, individuals have been onboarded onto the SmartBiz platform, developed by The Grooming Middle, a digital platform, with the intention of constructing a monetary historical past and rising creditworthiness with lenders. This platform simplified mortgage origination and elevated entry to monetary sources.
- Construct a digital monetary footprint for credit score entry: By digitizing their monetary data by way of the SmartBiz platform, ladies might now show their creditworthiness, opening doorways to extra formal monetary alternatives.
Meet the individuals: various entrepreneurs with shared targets
By means of interviews with 20 ladies entrepreneurs, primarily aged 40-53, we discovered that almost all had not less than major or secondary schooling. Half of those ladies owned smartphones, whereas the others relied on primary telephones, which restricted their entry to digital instruments. Earlier than the coaching, individuals reported going through vital challenges, together with:
- Restricted advertising and marketing attain: Many relied solely on word-of-mouth advertising and marketing and confronted stiff competitors in native markets, resulting in decreased gross sales.
- Poor monetary administration: Most lacked formal techniques for monitoring funds, managing money circulate, or separating enterprise and private funds.
- Stock and capital points: Stock mismanagement and lack of capital hampered progress.
- Low digital confidence: Many have been cautious of digital instruments and most well-liked money transactions as a consequence of issues about fraud.
Pre-training challenges: “We didn’t know what we Had been lacking”
Earlier than taking part within the initiative, many ladies confronted vital obstacles. As one clothier from Lagos put it, “We didn’t know what we have been lacking till the coaching opened our eyes to new methods of managing cash.” These ladies struggled with monetary mismanagement, poor buyer outreach, and restricted entry to capital. The shortage of digital information additionally prevented many from exploring new avenues for progress.
Coaching: a transformative expertise
The coaching periods, lasting between one and three hours, have been concise however impactful. Delivered by Grooming Centre workers, the periods centered on instructing sensible expertise like bookkeeping, monetary self-discipline, and digital monetary instruments. Individuals appreciated the usage of native languages and real-life examples that made the coaching extra relatable. As one grocery vendor shared, “The trainers made every thing simple to grasp. I preferred that they spoke our language and gave actual examples.”
After the coaching, many entrepreneurs famous that they’d gained a clearer understanding of managing funds and working their companies effectively. Individuals additionally expressed a need for refresher programs to bolster their studying. As one clothier from Lagos stated, “We didn’t know what we have been lacking till the coaching opened our eyes to new methods of managing cash.”
Development in motion: “Now, I hold data and plan forward”
The coaching had an instantaneous influence on individuals’ companies:
- Improved mortgage readiness: Many entrepreneurs gained a greater understanding of recordkeeping, enabling them to trace earnings and bills successfully and plan for enterprise progress. One participant shared that, because of the coaching, “Now, I hold data and plan forward. I even employed two individuals to assist with my meals enterprise.”
- Monetary self-discipline: Individuals famous that structured financial savings and reinvestment of their companies grew to become frequent practices, main to higher money circulate administration.
- Customer support and battle decision: The ladies additionally developed stronger customer support and debt restoration methods, enhancing buyer loyalty and retention.
A number of individuals additionally expanded their companies by hiring workers to handle elevated demand, exhibiting how these improved enterprise practices impacted progress.
The SmartBiz platform: a key enabler with room for progress
SmartBiz, a brand new and progressive cloud-based platform not too long ago launched by The Grooming Centre, was a central a part of this initiative. This platform enabled individuals to:
- Monitor monetary efficiency
- Monitor mortgage repayments
Whereas the platform itself was typically well-received, adoption diverse. Some ladies discovered it simple to make use of, whereas others struggled with login points, navigation, and accessing options as a consequence of decrease digital literacy or restricted smartphone entry. As one garments vendor famous, “I preferred having the ability to examine my mortgage steadiness anytime. However logging in was onerous at first.” Nevertheless, those that efficiently engaged with SmartBiz appreciated its advantages, together with real-time mortgage monitoring and simplified monetary administration.
To help broader adoption, individuals urged:
- Peer studying by way of group-based onboarding
- Video tutorials in key languages, Yoruba, Igbo, Hausa, and English to make sure it’s accessible and inclusive for various audiences throughout areas.
- WhatsApp for suggestions and updates
- A simplified cell app and USSD options for non-smartphone customers
Mortgage utilization: driving enterprise progress
All individuals accessed loans by way of The Grooming Centre, which was primarily used to restock stock, increase companies, or diversify choices. The mortgage course of was clear and accessible, with minimal documentation required. One entrepreneur shared, “In comparison with others, Grooming’s curiosity is cheap, and I like that every thing is obvious from the beginning.” Whereas the mortgage disbursement course of took time for some, as a consequence of Know Your Buyer (KYC) checks, nearly all of individuals discovered the method simple and safe.
The 23-week reimbursement cycle was thought of truthful, and the rates of interest have been seen as extra inexpensive in comparison with different microfinance establishments, although some individuals hoped for even decrease charges.
Pilot outcomes
The pilot occurred over a 2-month interval between November- December 2024.
By means of the pilot we achieved the next:
- 22,078 micro ladies entrepreneurs skilled on enterprise expertise/Digital monetary functionality expertise
- 12,313 micro ladies entrepreneurs onboarded onto the Smartbiz platform.
Constructing on this success and momentum, we’ve got commenced roll-out throughout 600 branches inside Nigeria and hope to achieve much more ladies entrepreneurs and supply them with the essential expertise and entry to credit score they want.
Trying forward: scaling the influence
The pilot demonstrated the highly effective synergy between digital innovation and capability constructing. Nevertheless, to really scale the influence, the next steps are essential:
- Increase Digital Inclusion: Enhancing cell entry, together with unstructured supplementary service knowledge ( USSD) performance for non-smartphone customers, would broaden entry to the SmartBiz platform.
- Evolve the SmartBiz Platform: Iterating the platform primarily based on person suggestions would enhance usability and enhance adoption.
- Leverage Group Conferences: Utilizing group conferences to introduce and help SmartBiz would foster peer studying and enhance engagement.
- Refresher Programs and Mentorship: Steady studying by way of refresher programs and mentorship applications of easy methods to use the platform would maintain and deepen the abilities gained.
- Incentivize Well timed Mortgage Repayments: Providing incentives for repeat purchasers might encourage wider participation and sustained mortgage repayments.
Constructing a stronger future for girls entrepreneurs
With the help of The Grooming Centre and Girls’s World Banking, this initiative is empowering ladies to unlock new ranges of monetary and digital literacy, driving enterprise progress and reshaping futures. It’s a win-win for each Grooming Centre and their clients, whereas entrepreneurs acquire the instruments and information to develop, the establishment strengthens its relationship with extra financially succesful purchasers. These entrepreneurs, outfitted with the proper instruments and information, aren’t solely rising their companies but in addition contributing to a extra inclusive and sustainable monetary ecosystem. As one entrepreneur put it, “Earlier than this, I didn’t even know the place my cash was going. Now, I really feel in management—and my enterprise is rising.”
Our pilot has proven that by combining digital instruments with capability constructing, we will create lasting change for girls entrepreneurs in Nigeria. As we scale the initiative and increase entry, we intention to create long-term, sustainable entry to credit score for W-MSEs throughout the nation. By offering essential digital and enterprise administration expertise to ladies, we’re guaranteeing that girls are drivers of financial progress and lively individuals of their monetary futures.
