SMEs Remain The Hope Of Nigeria’s Economy – Entrepreneurs

Chief Executive Officer (CEO) of Insight Visualization Company (an architectural company), Mr. Samuel Effiong, has said that Small and Medium Enterprises (SMEs) remain the hope of Nigeria’s economy.
The CEO, who said this in an interview with The Tide in Port Harcourt yesterday, said the economy would be better if the SMEs would be well positioned and taken care of, adding that funding SMEs’ friendly policies will go far in achieving a healthy business driven environment.
This, he said, “would automatically boost the economy and make a better nation, and also reduce to the bearest  minimum the insecurity situation ravaging our nation”.
He reiterated the need for deliberate steps towards this end, saying that all the statements by leaders should be put into practice.
“Banks should also understand that SMEs form the major part of their customers, and that their growth would also bring more money to the banks”, he stated.
He expressed worry over the unbanked  population in the rural areas, adding that financial inclusion pursued by Central Bank of Nigeria (CBN) are yet to be achieved.
He, therefore, called on entrepreneurs to make efforts to improve themselves and also keep good financial records to enable them access loans and grants.
In his contribution, the     Managing Partner of DANJOY Enterprises, Mrs Joy Dan Eke, said business financing among other factors have continued to limit the growth and expansion of SMEs in Nigeria.
“The High Cost of Credit facilities in addition to high interest rates,  maintenance costs and the demand for duly registered collateral obligations have played a major role in limiting the performance of SMEs.
“Inconsistency in government policies and bureaucratic bottlenecks experienced in the administration of incentives and support facilities from all levels of government are not left out.
“Also, the presence of multiple taxes as a result of levies and other tax expectations from the Federal,  State and Local Government Areas play a great role in slowing down the growth rate of SMEs in the country.
“Lack of or limited infrastructures like power supply, good roads, transportation system, raw materials and export constraints further fight against enterprises’ success”, she said.
Stressing that Nigerian government needs to sit up like other countries if they want to solve the problem of SMEs, she noted that businesses are well financed in some parts of the country than other parts, a situation, she said, that needs to be corrected in the interest of economic development.
Another entrepreneur,  Mr. Chidi Ikeji, who deals on building materials, said other countries who understand the power of SMEs set things on ground to better the smooth running of businesses which in turn drive the economies of those developed nations.
He stressed that entrepreneurs in Nigeria are exposed to various challenges, such as multiple taxation, lack of friendly policies, and  insecurity.

By: Lilian Peters