Industrial space, innovation seen repositioning Nigeria’s 41.5m MSMES
Entrepreneurship experts have identified provision of industrial space, innovation, removal of multiple taxation and collaboration as ways of repositioning millions of Nigerian small businesses in the face of Covid-19 pandemic.
Speaking at the webinar organised by the SME Group of the Lagos Chamberofcommerceandindustry entitled ‘Repositioning SMES for Growth in the New Normal,’ Segun Kuti-george, former chairman of the Nigerian Association of SmallScale Industrialists (NASSI), Lagos State chapter, noted that provision of industrial space has become a big issue for entrepreneurs, admitting, however, that Lagos State government is doing something in that direction.
“Many of our graduates want to go into entrepreneurship and they need space to produce,” he said.
For Benjamin Adekagun, tax consultant and deputy chairman of SME Group of the LCCI, tax collectors in Lagos State have been given targets to meet, forcing them to squeeze businesses in the state.
Nigeria has 41.5 million MSMES contributing 50 percent to the GDP and accounting for 86.3 percent of jobs (59.6million jobs in 2017), according to a 2019 report by the National Bureau of Statistics (MSMES) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Micro businesses make up 99.8 percent of the group, but they mostly lack the systems that will enable them to thrive. Covid-19 has worsened their plight, with some out of business and many seeking alternatives.
Lola Akande, Lagos State commissioner for Commerce, Industry and Cooperatives, said MSMES need optimisation, adaptation, innovation and collaboration to be able to stay afloat amid Covid-19 that could make or mar them.
Represented by Helen Adesina, director of commerce at the ministry, Akande noted that collaborators benefit by leveraging business contacts, while increasing their buying power or access to markets.
“For every new reality, there is a new set of problems. Smart entrepreneurs must visualise these new problems and create solutions for them.insodoing,valueisofferedand wealth is created as a result,” she said.
“Some of the innovations we have seen are completely virtual learning resources, virtual trade fairs, sanitising stations, re-usable face masks, among others. Innovation requires that businesses stay abreast of global and local trends and continue to acquire new skills to address them.”