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Expert reveals why MSMEs are not growing well in Nigeria

The Managing Director of Wholistic Business Solution Limited, Mrs. Lanre Oniyitan has opened on why several startups collapse less than two years of takeoff.

In an interview during a sensitization programme organized by Bank of Industry (BoI) in Ogun State, the Business Development Service Provider (BDSP), said Micro, Small and Medium Enterprises (MSMEs) are not growing as fast they should due to due to poor training and easy access to initial capital.

She said “When somebody wishes to begin a small business because he or she has seen small cash without undergoing training, the business is programmed to fail within a short period because there is no skill to drive the growth of the money”.

Oniyitan however call for a separate tax regime for small business as a way of empowerment and early technical assistance.

She argued that giving SMEs a flexible tax regime will free investible funds to expand business and provide chances to deepen their quality, density and increase their turnaround time over time.

She added that apart from calling for a tax regime that would support MSMEs, there is need for an integration of the sector into the value chain, while recommending that about 10 per cent of public procurement should be handled by such businesses to aid their growth.

According to her, the present administration should prioritise developmental initiatives towards Micro, Small and Medium Enterprise (MSME) development by improving the ease of doing business.

Before now both government and several commercial banks have been growing commitments to work on developing innovative products and services to support MSMEs’ operations in the country, noting that promoting the growth of small businesses in the country is the fastest way to transform and achieve rapid industrial growth and development.