In times of economic downturn, MSMEs get hit the most but it takes calculated risk absorbers in form of well-tailored strategies to survive the business environment through those seasons.
For use at its Inaugural Annual Policy Dialogue Series, Fate Foundation in this fact sheet examines the state of the current MSME policy; how it affects all stakeholders and suggests ways of improving the Nigerian business environment.
Some worrisome trends such as rising exchange rates, dropping GDP growth, fall in oil prices and their corresponding impact on MSMEs are well discussed in the first few pages of the report. Then, the eleven (11) strengths of the revised MSME policy are stated. Exhaustively discussing the factors limiting the impact of the policy, the reader is brought to the core of the challenge. Low education amongst MSME workforce, lack of entrepreneurship education, abysmal IT education etc. are some of the key factors mitigating against the envisaged impact of the policy, according to Fate Foundation.
Furthermore, factors that would make the policy successful are exhaustively reviewed, namely: business registration, activities of Nigerian Regulatory Agencies and taxation. An inclusion of lessons that can be learnt from the MSME policies of India, Indonesia, and South Africa serves as a guide and model to a future revision of the current policy. Whilst naming factors for the success of MSMEs (education, assessable tax collection systems, book keeping/accounting, information, and mentorship) the leading non-profit in MSME Development concludes with key policy recommendations.
This publication is timely, resourceful and a quick reference point for awareness about the availability and scope of a policy driving small business growth in Nigeria. It is also a useful guide to governments and policy makers in making effective corresponding laws as well as informed decisions about MSMEs in future.
Publisher: Fate Foundation
Date of Publication: December, 2015