SMALL and Medium Enterprise SMEs play an important role in the Economy of Nigeria and other parts of Africa not only because of the numbers of the numerous establishments but also the variety of their activities.
SME(s) Contribute to rural development, as well as support large industries and serve as catalyst for innovations and adaptation.
SME(S) Can be regarded as a source of Constant renewal in commerce and industry and as well serve as a platform for competition and dynamism.
SME(S) shares the biggest part in Nigeria economy in terms of number, contribution to employment, output and investment.
Nigeria Economic growth is thus totally dependent on the `development of
SMEs in the private sector.
In Nigeria, South Africa, Egypt and other major developing African nations SME(s) has become the wellspring to strengthening national competitive advantage.
However our market research shows that SMEs are faced with challenges that hinder development potentials. They include inadequate access to capital to start or grow an enterprise, inadequate business skills to run or manage a business, fast changing technology to match business process, shortage in power supply, unavailability of large term credit from external sources and many others.
The financing problem of SMEs is the worst among these challenges.
The inadequate access to fund to start or grow sources is deeply rooted in demand and supply issues, macroeconomic foundations, and lending infrastructures of the country.
Government policy towards SMEs is insufficient to support SMEs.
For these reasons, emphasizing on SME development as a viable strategy for industrialization and economic development of the country is a key requirement.
More Small and Medium Enterprise Centre should be established to educate the general public and financial institutions to promote exchange of information, experiences and best practices in financing SMEs and promote the sector.
SME development centre or institutes should provide education and direct experience on business operations, entrepreneurial process and culture for students and tertiary institutions through their research sections in order to imbibe the right entrepreneurial spirit after tertiary education.
To get tips on how to start/establish SME Development Centre in your area contact
Henry: tel 08035063809 or email: skidinet@gmail.com
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