SMEs hide their identities for fear of taxes – CAC

Due to high tax burdens on SMEs in Nigeria, many small business owners are afraid of operating openly, said Bello Mahmud,  registrar-general, Corporate Affairs Commission (CAC).

According to Bello, though it is generally said that there are over 37 million SMEs in the country, federal reports show there are only five million registered SMEs.

“Therefore, incentives have been set up to help these SMEs.  Some of these incentives are 50 percent reduction in registration fees, eradication of lawyers in getting certificates due to the overcharge or high cost of services rendered by these lawyers,” he said at the FATE Foundation entrepreneurship and enterprises development dialogue held last Thursday in Lagos.

Adenike Adeyemi, executive director, FATE Foundation, said “government at the federal and state levels need to be visible in terms of defining their targets for entrepreneurship growth. People need to know the programmes that are available and information available for creating platform for collaboration.”

During the panel discussion, Rocio Fonsecca, executive director, Start-Up Chile, said being a successful entrepreneur requires setting not more than one or two goals, which can be followed up effectively and efficiently to meet the desired results.

“More to this, thinking global is necessary as well as creating a right environment. It’s also necessary to change your mentality, and try to diversify,” Fonsecca said.

Monday Ewas, director at Small and Medium Enterprises Development Agency of Nigeria (SMEDEM), said it is important to create conducive business environment, urging entrepreneurs to consult widely, partner with credible people that will positively affect the quality of service being delivered to the client.

CHINYERE OKEKE