SETTING UP AND FINANCING
SMALL SCALE BUSINESS FOR
DOCTORS
Pharm. Ahmed I. Yakasai FPSN FNAPharm
Former Commissioner of Commerce and Industry, Kano
State
Managing Director/CEO
Pharmaplus Nigeria Ltd, Kano
Presented at the Maiden Meeting of Society of
Gynaecologists and Obstetricians of Nigeria (SOGON)
Northwest at AKTH, Kano
AUGUST 23,2014
INTRODUCTION
The process of starting a business involves
planning, making key financial discussions and
completing a series of legal activities. However, if
you are thinking of starting up a business, you will
first need to come up with a realistic ideas that
you can turn into a product or service. Again,
don’t just sit and dream about it; do something.
No matter how painstakingly you might look and
how painstakingly you plan it, this in itself is not
enough. To succeed as an entrepreneur, you need
passion. You need to believe in your project. And
you need to be willing to put your heart and soul
into making it work.
Entrepreneur develops a project and eat, drink and sleep
it. It requires hard work, integrity and determination.
FIRST THINGS FIRST; What you need to think about:
What will the business do
 Where can it operate
 Will I need premises
 Do I need people to make it happen or will I be
flying solo for some time
 Can I fund the business myself, or do I need financial
support
 How long will it take to get the business into profit
 Have I got what it takes to make to work.

Then;
1. Research! Research!! Research!!!
2. Don’t be afraid to make changes and take your
Idea back to the drawing board.
3. Write up a business plan.
4. Determine the legal structure of your business –
Decide which form of ownership is best for
you:
Sole Proprietorship
 Limited Liability Company
 Partnership

WAYS OF GETTING STARTED
There are a number of viable routes:
Start-up venture
Buying an established business
Buying into a business
Management buy out
Outsourcing
Franchising.

MICRO, SMALL AND MEDIUM ENTERPRISE
Definition of MSME in Nigeria
Size Category
Employment
Assets
(Excluding Land & Building)
Micro
Less than 10 People
Less than N5million
Small
10 – 49 People
N5million – N50million
Medium
50 – 199
N50million – N500million
Most of the Small Scale Enterprises are sole proprietorships, a
significant number are incorporated businesses.
MSME are collectively, the largest employees in
many low income countries, generally regarded as
the engine room of economic growth and bedrock
for wealth creation.
BUSINESS STRATEGIES FOR DOCTORS
Some of the best businesses for doctors include;
Research
Consulting
Technology
Other businesses.
1. Research:
Working for Medical Research Companies
Research related to a particular disease for
both private and public organisations
Clinical trials
Establishing a research firm.
2. Consulting:
Medical consulting may prove more rewarding
than medical practice
Medical consulting is more interdisciplinary in
character than medical practice.
Advisory services on healthcare
Recruitment/Training
Publishing of Healthcare Magazines, Books and
Newspapers.
3. Technology
Doctors with technology skills can put their
expertise to work to develop new medical
technologies. Doctors can have a partner with
computer or engineering background. For
example of medical technology companies include
medical
software/hardware
developments,
medical technology sales companies and medical
consulting firms.

Other businesses:
Fisheries
 Poultry
 Livestock production
 Bakery/Confectioneries
 Ice block making
 Importation
 Real Estate.

CASE STUDIES
DR. SONNY FOLORUNSHO KUKU, OFR
Dr Kuku is a world renowned Consultant Physician
and Endocrinologist. He holds several degrees and
Fellowships in medicine including 2 doctorates. He
has been the Joint Chief Director at the EKO
Hospital (Ekocorp Plc) which he co founded in 1978.
Dr. Kuku has also been a trustee and a
Distinguished Fellow of the National Postgraduate
Medical College of Nigeria and President and
Trustee West African College of Physicians and
President of Pan African Diabetes Study Group.
A past Chairman of the Committee of ProChancellors of State Universities and Committee of
Chairman of Federal Tertiary Hospitals, he was a
recipient of the First Distinguished Alumnus
Award University of Lagos in Lagos in 1991,
Ambassador of Goodwill Award City of Freetown,
Honorary Fellow of the College of Physicians South
Africa and Glasgow. He is a Fellow of the Nigeria
Academy of Science.
Dr. Kuku was conferred with the National Honours
of the Officer of the Order of the Federal Republic
of Nigeria (OFR) in 2003. He was a Director of
Midas Merchant Bank and is the Chairman of
Midas Stockbrokers Limited, Clina-Immunoassay
Lab and a Director of Ecobank Nigeria Plc and
Total Health Trust Ltd. He was the Chairman of
the Human Capital Policy Commission of the
Nigerian Economics Summit Group.
He became the first African Master of American
College of Physicians in 2005 and Honorary Life
President, Nigerian Society of Endocrinology 2007.
He is currently the president, King’s College Old
Boys Association, Chairman Board of Management
University College Hospital Ibadan, and the Board
of trustes, Otunba Tunwase National Paediatric
Centre, Ijebu-Ode.
A highly cited individual in bibliographic in the
world, including Who is Who in the World, he
holds several traditional titles including the
hereditary Oloriogun of Ijebu-Ode.
Professor E.A Elebute
Director
Prof. E. A. Elebute is the co-founder and pioneer
chairman of Hygeia Nigeria Limited. He is also a
Consultant Cardiothoracic Surgeon. He holds the
following qualifications: MA, MD (Trinity College
Dublin), FRCS (Edin), FWACS, FMCS (Nig).
Professor Elebute has been involved in the Nigerian
healthcare industry for 50 years and was
previously the Provost of the College of Medicine
of University of Lagos and the Chief Medical
Director of the Lagos University Teaching Hospital.
He served on the Board of Evans Medical Plc
(formerly Glaxo Nigeria Limited) for more than 25
years; and as Chairman of Glaxo Wellcome Nigeria
Ltd. He has been awarded the CON (Commander
of the Order of the Niger) by the Federal
Government of Nigeria.
FLYING DOCTORS – Dr Ola Orekunrin
A Nigerian health care entrepreneur
Provides, urgent helicopter, airplane ambulance
and evacuation services in Nigeria and other
countries across West Africa.
Pharm. Ahmed I. Yakasai
in South Africa
FINANCING OPTIONS OF SMEs IN NIGERIA
Small businesses use several sources available for
start-up capital:
Self financing by the owner through cash,
equity loan on his or her home and or other
assets
Loans from friends or relatives
Grants from private foundations
Personal savings – save one-tenth of
everything you earn.
Private stock issue
Forming partnerships
Fundraising
Banks
SME finance
- Nigerian Bank for Commerce & Industry
(NBCI)
- National Economic Reconstruction Fund
(NERFUND)
- Small and Medium Enterprise Credit
Guarantee Scheme (SMECGS)

- Small and Medium Enterprises Equity and
Investment Scheme (SMEEIS)
- Nigerian Export – Exim Bank (NEXIM)
- Bank of Industry (BoI)
- Agricultural Credit Guarantee Scheme Fund
(ACGSF)
- Microfinance Banks
- Commercial Banks
- Micro, Small and Medium Enterprises
Development Fund Launched on the 19th of
August 2014
Fidelity Private Medical Support Scheme
It is a product for private medical
doctors that offers facilities to purchase
drugs and hospital equipment (N3million).
-
Financing SMEs by International Development
Agencies:
- International Finance Corporation IFC (A
member of the World Bank Group)
- CDC – UK’s Development Finance Institution
(DFID) www.cdcgroup.com

Organisation for Economic Corporation and
Development (OECD)
- EB – 5 Investor Green Card in United States
of America ($5million - $1million)
- African Development Bank (AFDB)
- African Guarantee Bank Fund (AFDB)
- Exim Bank (USA).
-
CONCLUSION
If spending money brings you enjoyment you will
never be rich, but if making money bring
enjoyment, then your wealth is guaranteed.
Let me end my short presentation by illustrating
the following scenario:
Imagine two men, Alhaji Nour and Dr. Yakasai
1.
Dr. Yakasai – Is a medical doctor
– earns N3million per annum
– He has to show up to work regularly,
using the rare skills he has acquired through a very
expensive medical school education and years of
on-the-job training
– If he dies or goes into coma, his family
will receive little or no income because he is
unable to work.
2. Alhaji Nour, on the other hand, owns a N10million
limited service hotel that generates N3million per
annum for him.
– He pays a management consulting
company to set rates, staff the hotel and maintain
standards. He doesn’t have to run it.
– if he dies or is incapacitated, his
property will continue to mint money, drowning
the family in cash.
3.
In essence, Dr Ibrahim needs to take his
earnings from practicing medicine and build a
collection of cash generating assets that could
work alongside him, pumping out money as
he focuses on healing people at the hospital.
Lastly, I have a formula for your dissection
which will be helpful in becoming wealthy.
i.
ii.
Wrong formula:
Income minus Expenses = Savings
Right formula:
Income minus Investment =
Expenses
THANK YOU AND BE WEALTHY