Major Challenges Faced
By SMEs Doing Business in Nigeria and Nature of these Challenges Includes;
ACCESS TO FINANCE
Funds are available, About N220 billion was set by CBN for SMEs
this year. But how does SMEs truly get access to this money? Are their
practical steps put in place by financial bodies to assist SMEs to access finance?
There are a lot of bureaucratic processes involved. Some banks are not genuine
with helping SMEs meet criteria to access funds. Also there are challenges on
High interest rates with financial institutions, Lack of adequate information for
SMEs on how to Access Finance. e.t.c.
ENTREPRENEUAL /MANAGEMENT SKILLS
Poor management trainings, some training are expensive and
genuine SMEs cannot afford them , poor management skill implementation, No
Mentorship, continuity of mentorship to track progress on the mentees
managerial skills are all challenges associated with this. Some SMEs are lazy
to learn these skills, don’t really understand the value and why they need these
skills, not to talk of implementation.
Lack of integrity amongst SMEs, No financial and personal discipline,
No personal development, SMEs are easily
distracted and cannot focus on a particular business, lack of creativity and
Policies and Reforms; instability of
government policies and reforms, multiple taxations.
One of such policies is that of the 1980s
when government specified that cocoa should not be exported in raw or unprocessed
form after a specified deadline. Many SMEs had to import machineries only for
government to reverse this policy. This negatively affected so many SMEs in the
Government has not done enough
to create the best conducive environment for the striving of SMEs.
The problem of infrastructures
ranges from shortage of water supply, inadequate transport systems, lack of
electricity to improper solid waste management.
SMEs growth heavily relies on the inefficiently
provided state infrastructures and cannot afford the cost of developing