Relevance of Small and Medium Enterprises in the Nigerian Economy: A Benchmarking Analysis

Relevance of Small and Medium Enterprises in the Nigerian Economy: A Benchmarking Analysis

Author by Dr. Andy Okwu

Journal/Publisher: International Journal Of Management Sciences

Volume/Edition: 1

Language: English

Pages: 167 - 177

Abstract

Obviously, the relevance of SMEs in the economy cannot be overemphasized and this has necessitated policy reforms and responses in many countries. This paper employed descriptive approach to assess the relevance of SMEs in state and national economies in Nigeria. The objective was to determine the extent of relevance of the SME sector in the economy of Nigeria. Some benchmarking assessment revealed that the SME sector in Nigeria has not been very relevant in the areas of enterprise creation, employment, contribution to GDP and export earnings as well as global competitiveness. The paper therefore concluded that more needs to be done by the government, the SMEs and other stakeholders to enhance relevance of the sector in the Nigerian economy. Consequently, it was recommended, amongst others, that the government should formulate and implement policies that foster industry cluster strategy, stimulate local demand for products of the SMEs by making it mandatory for the appliances and equipment needs of its institutions and agencies be 80% of products of SMEs in Nigeria amongst others


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