SMALL AND MEDIUM ENTERPRISES IN NIGERIA: AN OVERVIEW

Resources for SME in Nigeria

Lack of access to useful information to aid decision making is one of the causes of SME failure in Nigeria.

This section presents resources that help entrepreneurship research in Nigeria.

The resources are also useful for entrepreneurs and small business owners who want to carry out research for their businesses.

The Doing Business Report.

The Doing Business Project was launched in 2002 by the World Bank.

The Doing Business survey report is annual and contains information about the business environment.

If you need information about the business environment this report might be useful for you.

Particularly, it can help entrepreneurs to understand how government policies and other indicators can impact doing business in certain locations.

The report contains business regulations rankings across 190 countries.
In addition, the report provides data on selected cities within countries.

The information can help you to compare differences in business regulations between cities within the economy or region that has been ranked.

In Nigeria, data from the two biggest cities – Lagos and Kano are available.
Countries and cities are ranked according to ease of doing business using quantitative indicators such as:

  • Starting a business.
  • Dealing with construction permits.
  • Getting electricity.
  • Registering property.
  • Getting credit protecting.
  • Minority investors.
  • Paying taxes.
  • Trading across borders.
  • Enforcing contracts.
  • Resolving insolvency.
  • Labor market regulation.

In the Doing Business Report, you’ll get information about the business regulations that enhance business activity and those that constrain it.
For example, how easy are the procedures, time and cost when you want to transfer a property

The National Survey of Micro Small and Medium Enterprises (MSMEs).

The national survey of MSMEs in Nigeria is a National collaborative survey by the Small and Medium Development Agency of Nigeria (SMEDAN) and National Bureau of Statistics (NBS).

Three reports have been published so far in 2010, 2013 and 2017.
The report covers information about enterprises in Nigeria employing below 200 persons (i.e. micro, small and medium enterprises – MSMEs).

It covers all the 36 States of the Federation and FCT.
The key insights that the National Survey of Micro Small and Medium Enterprises (MSMEs) provide about entrepreneurship include:

  • Major economic sectors of enterprises and their contributions to the GDP in Nigeria.
  • The number of MSMEs in Nigeria according to sectors of the economy.
  • States with the highest numbers of enterprises in Nigeria.
  • Ownership status of enterprises in Nigeria.
  • The main challenges and constraints facing enterprises in Nigeria.
  • The contributions of the MSMEs to employment
    generation in Nigeria
  • Also, the report contains contribution of MSMEs to exports from Nigeria.
  • The the number of MSMEs owned on gender basis.
  • The report provides knowledge about enterprises in Nigeria.

Entrepreneurs and small business owners can make use of the survey findings, as a guide to doing business in Nigeria.

Global Entrepreneurship Monitor.

The Global Entrepreneurship Monitor (GEM) was launched in 1999.

The GEM annual surveys have been carried out in 99 countries.

Also, Nigeria became a member of GEM in 2010 and the first study was published in 2012.
The key insights that the Global Entrepreneurship Monitor study provide about entrepreneurship are:

  • Perceptions and intentions towards entrepreneurship.
  • Factors that are likely to influence decision to make entrepreneurship the first career choice.
  • Gender roles and dynamics in entrepreneurship.
  • GEM also provides insights about the rates of participation in business.
  • The reasons for establishing enterprises – Opportunity vs Necessity entrepreneurship.
  • Policy implications and recommendations.

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