Problems and prospects of Small and Medium scale Enterprises in Nigeria

Abstract

Small and Medium scale Enterprises have been accepted worldwide as instrument of economic growth and development. No wonder that government, particularly in the developing countries has made tremendous efforts and establish policies to enhance the capacity of micro and small scale enterprises (MSEs). However, despite government institutional and policies support to enhancing the capacity of small and medium scale enterprises, small and medium scale enterprises has fallen short of expectations. This, then, generated serious concern and skepticism on whether SMEs can bring about economic growth and national developments in Nigeria. SMEs are faced with significant challenges that compromise their ability to function and to contribute optimally to the economy. This study examines the challenges and prospects of small and medium scale enterprises in Nigeria.  This study carried out extensive research on the subject from secondary sources and presented them in the researchers understanding on the subject.The phenomenal growth of small and medium enterprise in Nigeria is mainly due to the people’s quest to be self employed and not because it is easy to establish or manage. Financial constraints and Lack of management skill hamper the efficient performance of micro and small scale enterprises in Nigeria. In view of this, the researcher recommended that

government and other non-governmental organization should regularly organize seminars for potential and actual small and medium enterprise operators and create awareness of various schemes set in place by the government for the promotion and performance of SMEs in order to enhance wider coverage and patronage from all SMEs operators.

Table of Content

1.0          

Introduction

1.1         

Definitions of SME by Nigerian Institutions

1.2         

Types and classification of SMEs

1.3         

Importance of SMEs in Nigeria

1.4         

Problems and challenges facing SMEs in Nigeria

1.5         

Prospects of SMEs in Nigeria

1.6         

Government support agencies for SMEs

1.7         

Contribution of SMEs to Economic and Social development

2.1     Conclusion

2.2     Suggested

Recommendation

References