Advantages And Disadvantages Of Smes In Nigeria

The rural and cottage industries play an important role in rural areas, resource utilisation is enhanced, employment is generated especially for traditional artisans and the weaker sections of society (Industrial Development & Progress after Independence, 2010). MSMEs’ greater labour intensity means that job creation entails lower capital costs than in larger firms which are particularly important for developing countries and economies with high unemployment. The SMEs play a major role in economic growth in the OECD area, providing the source for most new jobs. Over 95 percent of OECD enterprises are SMEs, which account for 60 percent-70 percent of employment in most of the countries. Productivity, growth and consequently economic growth are strongly influenced by the competition inherent in the birth and death, entry and exit of smaller firms. These SMEs are located in the top 5 percent-10 percent of all growing firms. At present, SMEs contribute between 25 percent-35 percent of world exports of manufactures and account for a small share of foreign direct investment. More than 95 percent of enterprises across the world are SMEs, which accounts for approximately 60 percent of private sector employment. Japan has the highest proportion of SMEs among the industrialised countries, accounting for more than 99 percent of total enterprises (EIU 2010). MSMEs have emerged as a highly dynamic and vibrant sector of Indian economy in last 5 decades. The sector besides

Small to medium enterprises (SMEs) have become increasingly important to Zimbabwe 's economic growth. Given the increasing number of retrenches due to the economic downturn Zimbabwe experienced, SMEs offer the best alternative means of livelihood for most people. There is therefore, need to support the growth of this sector so that it contributes more meaningfully to national economic development. One of the major problems Practical Action Southern Africa has established as an impediment to the growth of SMEs is lack of proper working capital management systems. This presents a major constraint to their financial performance and their survival. Given the current economic hardships hampering economic progress in Zimbabwe the SMEs industry in one of the key industries where the economy is pinning its hopes. However due to the stringent requirements in the financial sector it is proving to be very difficult for the small firms to secure enough funds to sufficiently finance their operations,

(Business Management: a contemporary compilation). The Growing interest in the area of Entrepreneurship has developed in changing roles of small businesses. Small Entrepreneurship has great potential in developing countries. Due to Statistics and analysis of several countries, it is shown that Small Industries have grown faster than large industries. Large Industries lost jobs as Small Industries created workplaces. The Focus is on Small Industries which led to the main source of employment in the country.

They help in intensifying competition with the help of technology they master in increasing productivity and thus contributing in the development of the country, followed by economic growth.(Dr. Sangya Shrivastava 2013) Entrepreneurship has been given much emphasis by organizations and governments in recent years. It acts as a vehicle for small businesses. We can see the increasing level of economic development when more of the population gets involved in entrepreneurship which is basically self-employment. Entrepreneurship plays a critical role in the development of the economy as this is the key contributor to innovativeness and product improvement. It is one of the important ingredients to the creation of new employments and in the building of communities in ways of offering them jobs. By contributing to local charities, taking part in local business, investing in projects in communities, and creating and participating in different networks in entrepreneurship, they build up robust communities which contribute to the community development. Governments have struggled to develop policies which will enhance entrepreneurship by understanding the critical difference existing between small business owners and entrepreneurship. At the same time, a misconception about entrepreneurs and where entrepreneurs can be found can also help the local people to create the right picture of entrepreneurship and thus become aggressive and contribute to

This report offers a briefing of SME (Small and medium sized enterprises). Defines SME in terms of employee numbers and turnover. Explains to the reader why small business are important for UK economy and what impact SME has on it. Report opens up and helps to understand the advantages and disadvantages of creating the business, explains the risks entrepreneur must take in order to make it successful. It is useful for people who is thinking to open up their own business because report shows sides of the industry that never been consider and helps to understand what is required in case to succeed and drive the business into the global market. Enlightens three main ways of business that individual can start and shows both sides of the coin.

After gaining insights of the history of the development of the SMEs and the motivational factors of young entrepreneurs to establish a business, there is potential obstacles that young entrepreneurs might face in financial options from the start-up. SMEs have difficulties in having access to formal finance and are more financially constrained than larger enterprises. According to Beck and Demirguc-Kunt (2016)’s survey, “the probability that a small firm lists financing as a major obstacle (as opposed to moderate, minor or no obstacle) is 39% compared to 36% for medium-size firms and 32% for large firms.” The result shows that SMEs have a harder time than large enterprises in accessing to finance options. For a reason, Beck and

To prosper, small enterprises need comfortable business environment and regulations, adequate basic infrastructure services, access to short and long-term financing at reasonable rates, equity and venture capital, advisory support, and knowledge about market opportunities (Lukács, 2005). They typically suffer from weak entrepreneurial skills as well as deficiencies in accounting, production management, and business planning. As small enterprises develop, they increasingly need connectivity to export markets and the world economy (Lukács, 2005).

Small and medium-sized enterprises (SME’s) have proved to be the dynamo for the many economies of the world. SME helps in creating jobs, driving innovation, growth and economic diversification.

According to the data of the Department for Business Innovation and Skills of UK government, there are 5.4 million small and medium enterprises (SMEs) in 2015. Based on the official EU definition, if the staff headcount of the enterprise is less than 250 and the turnover is less than or equal to 50 million euro, which will be classified as medium sized enterprise. And for small and micro enterprises, their headcount should not be more than 50 and 10, the turnover has to be under 10 million euro and 2 million euro. Most of the SMEs contribute in the Construction section and there is a number of 956,000 SMEs estimated by the government. Furthermore, the industry of Professional, Scientific and Technical Activities (792,000), Wholesale and

In Kenya, SME’s are vital as they employ more than 87% of the labor force that contribute 18.4% of the National Gross Domestic product (GDP). (GOK, 2009).However, their existence in the Kenyan economy has not been without fair challenges that inhibit their growth, potential and offer them an average lifespan of five or less years in existence.

Speaking on the theme, ‘Nigeria Open for Business’, Elumelu, said capitals for business go where they are welcomed therefore for Nigeria to promote, attract and retain investment, it must position itself to promote domestic business which will in turn attract foreign

There are arguments that despite the importance of SMEs in all economies, particularly in the less developing countries, the SME sector is met with reluctance both by the government as well as individuals in the sector.

This chapter seeks to review available literature on microfinance, the Small and Medium Enterprises (SMEs) and Rural Banking in Ghana. It lays much emphasis on the research questions and objectives of this study.

Abstract: The growth and development of Small Scale Industries now known as Micro Small and Medium Enterprises (MSMEs) was at priority for the Government of India since independence. The Government have an expanded organisational structure to monitor and guide the growth of MSMEs. There are various policies, programmes and schemes provided by the Government to support and expand MSMEs growth. Statutory organisations like KVIC, Coir Industries, NSIC, SIDBI etc, are there for assistance, policy formulation and implementation. The growth pattern in MSMEs in India has a positive point, which indicates as the industries grew it lead to the growth and

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.