Experts Seek Policies For MSMEs’ Dev

Experts on Monday under scored the need for key policy recommendations for Micro, Small and Medium Enterprises (MSMEs) development to focus on areas of financing, capacity building and structure.
They gave the advice at a webinar organised by the Small and Medium Enterprise Group (SMEG) of the Lagos Chamber of Commerce and Industry (LCCI).
The Tide’s source  reports that the theme of the event was: “Ensuring SME Growth in a Challenging Economy.”
The West Africa Tax Leader, Mr Yomi Olugbenro, stressed that these key areas would increase MSMEs’ contributions to the country’s Gross Domestic Product (GDP) and spur economy stability and growth.
Olugbenro said a credible financial system enabled by technology was paramount for funding and operating efficient settlement systems for MSMEs survival in the near future.
He noted that in spite of the various global economic disruptions, Small and Medium Enterprises (SMEs) were expected to survive if structural development could be established over time.
On structure, Olugbenro stressed the need for partnership with business consultants to provide SMEs with technical support and access to markets.
He also called for infrastructure-based policies that encompasses efficient power distribution to different industrial clusters.
“We must also build the capacity of entrepreneurs by providing capacity building support services focused on training entrepreneurs on relevant skills.
“The national education standards must be revamped to drive early exposure to entrepreneurship, and improve entrepreneurship education in state owned institution.
“SME loan portfolio must also be diversified following a gender and sector agnostic strategy,” he said.
In his contribution, the Director, Enterprise Development Centre,  Dr Peter Bamkole, said that a national survey during the COVID-19 pandemic revealed that 93 per cent of SMEs encountered several challenges which led to some businesses shutting down and downsizing.
He, however, noted that the seven per cent that thrived were businesses that were digitally enabled in their operations from raw materials sourcing to after sales services.
He stressed that henceforth, SMEs must be more collaborative among themselves, and reinvent their business models with operations carried out in a more efficient, innovative and creative manner for profitability.
“A significant number of those in the services sector should think of renewable energy to reduce cost of production.
“SMEs must add more value to their goods and services before exports, connect with SME across the continent to optimise the benefits of the Africa Continental Free Trade Area (AfCFTA),” he said.
The President, LCCI, Dr Michael Olawale-Cole, said most recent conversations around the role, challenges, and growth opportunities for MSMEs underscored their importance as the engine for growth of any economy.
Olawale-Cole represented by Dr Chinyere Almona, the Director General, LCCI, noted that United Nations statistics revealed that MSMEs account for 90 per cent of businesses, 65 per cent of employment and 50 per cent of GDP worldwide.
He, however, posited that SMEs were now more than ever in need of support, as they navigate the impacts of the COVID pandemic, insecurity, supply chain disruptions, and the climate crisis.