Small and medium enterprises development is believed to be the surest way of earning economic growth and development especially in developing countries. It however, offers multifarious contributions to the development of any economy. Some...
moreSmall and medium enterprises development is believed to be the surest way of earning economic growth and development especially in developing countries. It however, offers multifarious contributions to the development of any economy. Some of the contributions are provision of employment, revenue generation, utilization of local resources/raw materials, price reduction, training and development of unskilled labours, elimination of monopoly of large companies, etc.
It has simple structure and stay within the reach of as many people as possible. It is a cool room for those who do not have access to larger and more controlled organizations.
We can assume economic development in mind when the rate of employment is high. In business establishments in Nigeria, small and medium sector recorded more than 70% of the total employment, this is particularly encouraging. The problem of employment is regarded as one of the major problem of Nigerian economy that is why government comes up with a lot of programmes that support small and medium businesses/enterprises.
Sequel to the revival of small business sector in 1970’s Nigeria achieved a lot of things towards the development of the economy.
However, it is obvious that small and medium enterprise sector has certain common problems both internal and external. The managers’ inability to render the businesses successfully due to their limited education is a major threat to the progress and development of the sector. Surely, the rate of employment in addition to other will go high if the government can consider this sector favorably.
