Challenges Facing MSMEs In Nigeria

IT is the responsibility of government to provide employment and security for the people, among other things. However, since government cannot provide full employment for the people, what it does is to provide the enabling environment for non-state actors to bridge the gap. These non-state actors include small and medium scale enterprises, among others.

Small and medium scale enterprises are the “engine of growth and catalyst for socio-economic transformation of any country, especially in a developing country like Nigeria.

They are a veritable vehicle for the achievement of national macroeconomic objectives in terms of employment generation at low investment cost and enhancement of apprenticeship training.

But running small and medium scale enterprises in Nigeria is a most difficult thing because of the harsh economic environment. It is as a result of the harsh economic environment that many Small and Medium Scale Enterprises collapse or are operating on the margins. 

Small and medium enterprises

The increasing demand for consumer products has created a large market for small and medium enterprises in the country. Small and Medium Enterprises have contributed immensely to the growth of Nigerian economy, adding that the sector also contributed to the national objective of creating employment opportunities, training entrepreneurs, and generating income and providing a source of livelihoods for the majority of low-income households in the country.

However, a major challenge facing small and medium enterprises operators is lack of finance. Lack of capital has been identified as the most serious problems of establishing and running small and medium enterprise as other problems can be solved with adequate capital. 

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