Skip to main content

Why we need take SMEs more seriously in Nigeria



The Third National Development plan (1975-1980) defines a small business as a manufacturing or service organization whose employees are not more than 10. In all economies but more in developing and transitioning economies, there is now a consensus among state policy makers, development economists as well as international development partners that Small and Medium Enterprises (SMEs) are a potent driving force for their industrial growth and, indeed, overall economic development. Obewe Nwachinemere
(CEO, Livingstone mega industries)

The dynamic role of small and medium enterprises as the engine of growth in developing countries has long been recognized. Its accelerative effect in achieving macro objectives such as employment, income distribution, development and diffusion of local technology and management skills, and poverty alleviation has been documented in economic literature. SMEs are the source of about 70% of all economic development in advanced economies, accounting for the bulk of output in most of those countries. It has also proven to be a sustainable source of job creation, employing more than 50% of the work force. Regions or economies where enterprises have been actively promoted and encouraged, their poverty rates have declined, which begs the question as to why the Nigerian experience so far is far from the same reality despite the media hype from all and sundry in encouragement of small and medium enterprises. What have we not done right? How can we get back on track?

Comments

Post a Comment

Popular posts from this blog

Other thoughts on entrepreneurship It is relevant that an entrepreneur should have a written business plan before registering with the Corporate Affairs Commission (CAC). The business plan should include the nature of the business, the sales and marketing strategies as well as the financial background and profit statement. However, emphasis should be on what makes your business different from other available ones.
Post a Comment
Read more

Understand Priority!

It is important in life and especially business to prioritize ideas. Some questions that will help us as regard priority includes "when should this idea be implemented?" "Do I have all it takes to implement this idea now, if not, when will I have them?" "Won't it be late to implement this idea in so so and so time?" Etc. Many times, it's difficult to run/implement two or more ideas at a time but through priority we can still achieve them all though at different times. It also prevent tying up of capital and that may even affect both businesses. In priority, it's best to do the easiest first or one in which one has more expertise or one better research. In priority, a schedule is also important. When we ask the necessary questions, it would help us know how prepared we are for every idea we intend to implement less we start and encounter problem not anticipated. Some ideas are best implemented now than allowing them to wait while some are bet...
Post a Comment
Read more

it is not too late to start

A Nigerian musical icon, Late Fatai Rollingdollar sang his first and hit album at over 75 years, in fact some of his teeth were obviously missing. had he sang the song at a lower year, nobody will be willing to buy it. At that age, he succeeded in creating a niche for himself against the tensed competition of younger generations.
Post a Comment
Read more