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Challenges of Micro Small and Medium Enterprises in Nigeria - The Way Forward for Sustainable Entrepreneurial Development: A Study of Damaturu, Geidam and Nguru Local Governments in Yobe State

Journal: International Journal of Science and Research (IJSR) (Vol.9, No. 10)

Publication Date:

Authors : ; ;

Page : 615-622

Keywords : Challenges; MSME; Sustainable; Entrepreneurial; Development; Nigeria;

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This study was undertaken to explore the critical role of micro small and medium enterprises to the economic development and investigate whether the sector has performed its crucial role in driving the Nigerian economy. However, the rationale of this research is to examine the critical role of MSMEs to the economic development and challenges to their success and development. Qualitative research approach was used to gather data from an in-depth interview conducted with eight MSMEs and microfinance bank and small and medium enterprises development agency (SMEDAN). The analysis of the interview was conducted to identify the multifaceted challenges constraining MSMEs performance as a viable tool for economic development in Nigeria. The study reveals that MSMEs are the key drivers for economic prosperity by providing Employment, Self-reliance and contributing to the Nation’s GDP. However, in Nigeria the performance of MSMEs is far below expectation because of lack of access to finance and high-interest rate charged by some financial institutions like microfinance banks and lack of articulate coordination between the government agencies in providing the appropriate support to MSMEs. Similarly, the problem of Boko Haram insurgency have impacted negatively on the economic activities of MSMEs. To address the problems militating against the success of MSMEs in Nigeria. The federal government has to direct the apex bank (CBN) being the supervisory agency to ensure that microfinance banks are operating within the policy framework establishing them to increase credit access to MSMEs in order to deal with their financial challenges. The government also need to encourage entrepreneurial studies in polytechnic and universities emphasising technological studies that will motivate individual set up their business and thus creating employment opportunities. However, there was need for a broad spectrum strategy that will coordinate the activities of support agencies under one umbrel

Last modified: 2021-06-28 17:13:38