Again, experts identify lack of funds as major setback to SMEs

 As the significant feats of small and medium enterprises (SMEs) continue to blossom in most countries of the world, key SME players in Nigeria are taking steps as part of measures to salvage the financial challenges encountered by SMEs, an effect that will go a long way to allowing operators have access to funds, thereby giving room for wealth generation.

The benefits of targeted assistance to the SMEs sub-sector will stimulate the growth, promoting economic development and reducing poverty rate in developing countries, of which the World Bank and other multilateral agencies have long prioritised. Not having access to fund has long been identified as the major plight bedevilling the operations of small scale businesses, according to an expert.

There are expectations that millions of job will be created if small and medium operators will have access to fund from financial institutions, which will create more jobs and contribute immensely to the GDP. With the high level of over population and unemployment that have bedevilled the nation over the years, there is the need for SMEs to obtain loan from banks. Most of their operations have been hindered by lack of fund as most operators only get financial source from relatives to facilitate their business.

However, according to a survey on SMEs conducted by the Federal Bureau of Statistics across the 36 states, recently released by the Federal Government, the small and medium enterprises recorded 99 percent of all the firms operational in the country.

Furthermore, Lagos State recorded 17 percent of the total number of SMEs in Nigeria, by implication the highest number of SMEs are situated in Lagos State, with up to 32.4 million employees in Nigeria. Based on studies, the SMEs in recent years have nothing but incessant lack of funds for its operations.

To Amauba Cornelius, a shoe dealer, “for over five years a huge success has been recorded in his business. The propensity of demand and supply had been on the increase. Major cities in the country have been placing order for shoes. The work has been strenuous for us, we work all day and all night just to meet up with the demands of our customers across the states.”

JUSTICE GODFREY