According to the Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) national policy on MSMEs, enterprises may be classified by size, sector, organization, staff strength, technology, and location. From the perspective of policy and planning, size provides the most practical basis for classification.
|SIZE CATEGORY||EMPLOYMENT SIZE||TOTAL ASSETS (MILLION NAIRA)|
|MICRO ENTERPRISES||1-9||Less than 10|
|SMALL ENTERPRISES||10-49||10 – Less than 100|
|MEDIUM ENTERPRISES||50-199||100 – Less than 1000|
In Nigeria, MSMEs account for 84% of jobs, contribute 48.5% to the nation’s GDP, constitute 7.27% of exported goods, and have a population of about 17.4 million enterprises.
Among these 17.4 million enterprises, MSMEs constitute about 50% of total industrial jobs in the nation and 90% of activities in the manufacturing sector.
Most MSMEs are made up of sole proprietors, with about 73% of the total enterprise owners being sole owners, and the top 3 states in the federation with the highest number of MSMEs being Lagos, Oyo, and Kano.
BENEFITS OF MSMEs IN THE COUNTRY
- Source of job creation for the masses
- Development of workers for future industrial expansion
- A breeding ground of talents; Both entrepreneurial and managerial
- Provision of opportunities for growth of the economy
- Income-reduction disparity vehicle
MAIN ISSUES AND CHALLENGES OF THE INDUSTRY
- Insufficient funding to improve and grow the business
- Taxation issues
- Access to information or service
- Lack of skilled manpower
- Payment policies
- Overall business environment
- Finding customers
- Infrastructure deficit
Even though MSMEs account for about 84% of the total jobs across Nigeria, this sector is still under-developed and plagued by a myriad of problems; Nevertheless considering the numerous schemes deployed by the federal government in the past years.
To tackle these problems, a more holistic approach is needed to be employed in order to be able to boost the Nigerian economy, promote a healthier environment for MSMEs across the country, and provide more jobs for the masses across the country as a whole.