Southeast governments urged to encourage SME development

Governments of the Southeast geopolitical zone of the country have been urged to provide enabling environment for micro, small and medium enterprises to grow.

Victor Ugwu, south-east zonal coordinator of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) who gave this advice at the opening ceremony of the 2013 Abia State Small and Medium Investment forum, held in Aba, the commercial hub of the state, observed that governments of the region are paying lip service to SME development.

He affirmed that the states can increase their Internally Generated Revenue (IGR) if they support entrepreneurship growth in their areas. He identified multiple taxation and lack of infrastructure as some of the factors stifling business activities in the geo-political zone and advised the state governments to harmonise taxes paid in the area as well as invest more in road, water and electricity infrastructure,.

According to him, a situation whereby an entrepreneur provides his own factory, electricity, water and at the same time pay huge taxes to government does not encourage people to start or stay in business.

He did not also absolve business operators in the area, whom he accused of engaging in mundane practices, and urged them to register their business as well as partner with others to grow their businesses.

“We in SMEDAN believe that it is only through an efficient SME sub sector supported by government and led by the organised private sector and encouraged by other stakeholders that Nigeria can realise her true economic potentials.”

Records show that there are over 17 million registered small businesses in the country; however the sector contributes a paltry three percent to the country’s Gross Domestic Product (GDP).

Sam Kalu, chairman, Nigerian Association of Small Scale Industrialists (NASSI) Abia branch, organisers of the forum, affirmed that it was organised to showcase Aba-made products to the outside world as well as debunk the insinuation that made-in-Aba goods are inferior.

GODFREY OFURUM, Aba

“All my shoes are made in Aba, including sandals.  And they are not sewn. Some people say that if shoes made in Aba enter into water that it would pull off. That is not true, because Aba made shoes are of high quality,” he affirmed.