43% of Small Businesses Are Less Than Five Years Old – Report

By Abass Ganiyu
By Ganiyu Abass

Lagos, Nigeria – A recent report has revealed that 43% of small businesses in Nigeria are less than five years old, highlighting a vibrant entrepreneurial spirit despite the country's challenging economic environment. The study, conducted by the Nigerian Association of Small and Medium Enterprises (NASME), underscores the critical role small businesses play in driving economic growth and job creation.

The report, titled "State of Small Business in Nigeria 2024," surveyed thousands of small business owners across various sectors, including retail, agriculture, manufacturing, and technology. It found that nearly half of these businesses were established within the past five years, a testament to the resilience and determination of Nigerian entrepreneurs.

NASME President, Eke Ubiji, commented on the findings, stating, "This data is indicative of a robust entrepreneurial ecosystem. Despite economic hurdles such as access to finance, infrastructure deficits, and regulatory challenges, Nigerians are continually launching new ventures and contributing to the economy."

One of the significant barriers identified in the report is access to financing. Many small business owners cited difficulties in securing loans and investment, with high interest rates and stringent collateral requirements posing significant obstacles. To address this, NASME has called for increased support from financial institutions and government initiatives aimed at providing easier access to credit for small businesses.

The report also highlighted the role of technology in the growth of small businesses. Many young enterprises are leveraging digital tools and platforms to reach broader markets, streamline operations, and enhance customer engagement. The rise of e-commerce, in particular, has opened new avenues for small business growth, enabling entrepreneurs to operate beyond traditional physical boundaries.

However, the report also noted several challenges that need addressing to sustain this growth trajectory. Key among these are infrastructure deficits, particularly in power supply and transportation, which significantly impact operational costs and efficiency. Additionally, regulatory bottlenecks and bureaucratic red tape continue to hinder business operations and expansion.

Despite these challenges, the outlook for small businesses in Nigeria remains optimistic. Government initiatives such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and various state-level programs are increasingly focusing on supporting young businesses through training, funding, and policy advocacy.

The report calls for a collaborative effort between the private sector, government, and development partners to create an enabling environment that nurtures the growth of small businesses. By addressing key challenges and providing the necessary support, Nigeria can harness the full potential of its entrepreneurial talent, driving economic development and job creation.

As small businesses continue to flourish, their impact on the Nigerian economy cannot be overstated. With nearly half of these enterprises being less than five years old, there is a promising future for innovation and economic resilience driven by the country's dynamic and determined entrepreneurs.

Comments

Post a Comment

Popular posts from this blog

House of Representatives Ordered NNPC to Suspend Crude-for-Loan Deal

By Abass Ganiyu
Image
By Abass Ganiyu In a decisive move, the House of Representatives has ordered the Nigerian National Petroleum Corporation (NNPC) to suspend its controversial crude-for-loan deal, effective immediately. This directive follows mounting scrutiny and calls for transparency regarding the terms of the agreement and its implications for Nigeria’s oil sector and national finances. The crude-for-loan deal, which involves the exchange of crude oil for loans to finance various infrastructure projects, has faced criticism over its potential impact on Nigeria’s oil revenues and national debt. Critics argue that the deal may compromise Nigeria’s oil assets and expose the country to financial risks. The decision by the House of Representatives comes after a series of debates and hearings on the deal’s terms and its alignment with national interests. Legislators expressed concerns about the lack of transparency and the potential for adverse effects on the country’s financial stability. With...
Read more

Customers besiege banks to reactivate dormant accounts

By Abass Ganiyu
Image
By Joy Adekayero Many bank customers affected by the new Central Bank of Nigeria guidelines on dormant accounts rushed to their various banks on Tuesday to reactivate the accounts. Some of the customers, who spoke to the News Agency of Nigeria in Abuja on Tuesday, said they had to activate their bank accounts to avoid the mopping up of their little savings by CBN. Further inquiries by our correspondent confirmed the situation, with courtrooms also becoming crowded with requests to swear affidavits. A bank official at a first-generation bank informed The PUNCH that numerous customers and families had submitted requests to re-activate inactive accounts so as not to lose the money to the apex bank that intends to use them for investment purposes. The official said, “Yes, we have seen customers coming to the bank to reactivate their accounts. Even relatives and next of kin to dead persons have submitted applications to withdraw amounts left in the account of their loved ones. I...
Read more

EFCC Arraigns TSTV Executives for Tax Evasion and Money Laundering

By Abass Ganiyu
Image
ABUJA – The Economic and Financial Crimes Commission (EFCC) has arraigned the Managing Director and CEO of Telcom Satellites TV (TSTV), Dr. Bright Ikechukwu Echefu, along with the Executive Director, Dr. Felix Nnamdi Ignoanuga, at the Federal High Court in Abuja. They face nine charges, including tax evasion and money laundering. The EFCC accuses the defendants of failing to remit VAT, company income tax, and PAYE from their employees' salaries, diverting substantial funds for personal use. Additionally, they allegedly defrauded Senior Advocate of Nigeria (SAN) Turaki Kabir Tanimu of N960 million under false pretenses. The prosecution's charges highlight several instances where the defendants purportedly redirected significant amounts meant for government taxes to personal accounts. The EFCC claims that the defendants defrauded Turaki of large sums under the guise of securing loans for telecom equipment acquisition. These transactions were detailed with specific amo...
Read more