Micro, Small and Medium Enterprises in Nigeria: Trend Analyses of Growth, Contributions and Challenges using SMEDAN and NBS Survey Reports.

Abstract

Micro, Small and Medium Enterprises (MSMEs) are considered as engines of economic growth in both developed and developing countries. However, in most developing countries there are dearth of policies to enable sustainable growth of MSMEs. With return of democratic governance in Nigeria, the government established the Small and Medium Enterprise Agency in 2003 for the development of MSMEs and the agency has released the report of the fourth edition of survey of MSMEs in 2021. Consequently, the main aim of this study is to undertake trend analyses of the growth, contributions and recurring challenges facing MSMEs over the period of the study 2010 to 2020. To achieve the aim of the study, secondary data on growth in number of MSMEs, their contributions to employment generation and Gross Domestic Product is collected from the survey reports. Descriptive statistical tools are employed to present collected data while Public Policy Analysis analytical framework underpin the study. Results indicated fluctuating trends in growth in number of MSMEs, employment generation and contributions to gross domestic product while recurring challenges are on the areas of financing, weak infrastructure among others. Obtained results have policy implications of the need for SMEDAN to strengthen the discharge of its duties and for government policy makers to take measures to overcoming the recurring challenges facing MSMEs in view of their importance in national development. Similarly, the government could use findings from this study towards further development of the sector through policy adjustments and putting in place new ones.