Small and Medium Size Enterprises in Nigeria: Problems and Prospects

The role of small and medium enterprises (SMEs) in economic development is undebatable. Therefore, identifying SMEs’ problems and finding solutions for these problems are vital for economic development and growth in Nigeria. With a 173.6 million of population, Nigeria is a highly populated low income country where a significant portion of it’s population is currently facing poverty. This is partly due to the inability of SMEs in creating jobs and employment in Nigeria. This thesis investigates the primary problems of SMEs in Nigeria through a survey study of SMEs in two major cities. The survey findings indicated that several reasons attributed to the limited contribution of SMEs to employment and economic growth. The most important of these problems are identified as the infrastructural weaknesses, limited access to finance, and the uncertainties in the economy are the most important problems of SMEs in Africa. Keywords: SMEs, economic development, poverty, Nijeria, access to fınance, weak infrastructure.