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?