Businesses need to develop strategies to survive in a VUCA economy – Saba

Dr (Mrs) Afolakemi Joy Saba, the Executive Director, Multidisciplinary Finance Professionals (MFP) Global Services/Managing Consultant, Joyworth Consulting Ltd, has said it is imperative for businesses in volatile, uncertain, complex and ambiguous (VUCA) economies, such as Nigeria’s, to develop survival strategies.

Saba stated this during the 7th edition of the free public lecture series organised by MFP Global Services, held virtually on Friday, September 20, with the topic, ‘Business Survival Strategies in a VUCA World: The Nigerian Experience.’

She noted that from empirical evidence, business activities significantly affect the level of economic growth and development in any nation, through employment generation, reduction of poverty, creation of wealth and contribution to Gross Domestic Product (GDP).

Saba asserted that in today’s world, the VUCA economies such as Nigeria need to formulate business survival strategies to overcome the economic setbacks they face.

Some of the business survival strategies in a VUCA world, particularly Nigeria recommended by Saba include the provision of adequate and quality education and training and re-training of business owners and their staff members and the use of effective marketing and market positioning strategies such as right pricing, reliance on multiple products, high product quality, reasonable margin for products, excellent customer service, etc

Others are, “Using a flexible financial strategy like income diversification, informal crediting, cost-efficient techniques, good accounting systems; enhancing the propensity for employee retention and ensuring efficient infrastructure availability e.g. effective use of power supply, provision of alternative sources of power, better road network, etc.

“Individuals should volunteer to freely help Micro, Small and Medium Enterprises (MSMEs) through free training and support; government support to businesses such as provision of financial aid, workshops to provide training for skills acquisition and development, a better business environment, among others.

“Also, stakeholders such as policymakers, international organisations and local organisations such as MFP Global Services and others could provide support to Nigerian businesses by organising workshops and trainings on various survival business strategies; the Nigerian government should also endeavor to improve the economy by making the business environment palatable for growth, productivity, competitiveness, development and sustainability.

“Entrepreneurship, which anchors on creativity and commercialisation of one’s products or services, should be vigorously pursued by professional accountants and other professionals; need for the business owners and managers to decentralise their decision-making processes for quick responses. Since most of Nigeria’s problem is leadership, our leaders should make an intentional effort to reduce or even eliminate the VUCA environment in Nigeria.”

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A communiqué signed by Dr (Mrs) Chioma O. Ojukwu, a lecturer with the Department of Accounting, University of Port Harcourt and Rapporteur General of the MFP Global Services noted that the lecture series aims to enhance the professional capabilities and competencies of participants, especially professional accountants, finance professionals and other members of the public on topical national, finance and accounting issues.

The chief host of the event and President/CEO of MFP Global Services, Dr Prince Oyebade Oyedepo, in his opening remarks, stated that Nigeria’s economy has remained so fragile despite various policies introduced by the government, leading to widespread poverty and underdevelopment.

He said this is reflected in such indices as rising inflation, unemployment, insecurity, corruption, budget deficit and heavy reliance on external loans to finance budgets and low infrastructural development despite the rise in FAAC allocations because of inflation and devaluation of the currency.

Dr Oyedepo emphasised the need for professional accountants and others to continuously develop their capacity to update their skills and competencies in finding solutions to problems and to stay relevant.

He further stated that professional accountants have critical roles to play in strengthening the economy, saying this can be achieved by living by example, embracing entrepreneurship to create wealth and employment opportunities and to help in building the nation, being critical and intentional when advising the government not minding our affiliation without necessarily being confrontational and assisting the government at all levels in formulating homegrown policies that can stand the test of time and curb corruption and wastages, etc.

The Chairman of Session and Executive Secretary of the Association of Accountancy Bodies in West Africa (ABWA), Dr Abel Aig Asein, noted that government policy inconsistency and some new policies are driving firms out of business while emphasising the need for chartered accountants and other professionals to move from red ocean strategy to blue ocean strategy to navigate the current challenges.

Over 150 people were in attendance at the virtual event including the special guest and Past Chairman, Osun & District Society of ICAN and Executive Director, MFP Global Services, Chief Afolabi Igbaroola; Mrs Tolu Olatoyan; council members of the Institute of Chartered Accountants of Nigeria (ICAN) particularly Mr Abiodun Adedeji; current and past chairmen and executive members of some districts of ICAN and current and past chairpersons and executive members of Society of Women Accountants of Nigeria (SWAN); members of the MFP Group and captains of industry.