The Lagos Chamber of Commerce, Nigeria studies showed that only 21% of SMEs in Nigeria survive within 3 years. An now United Nations Industrial Development Organisation (UNIDO) has validated that number.
The United Nations Industrial Development Organisation’s Investment and Technology Promotion Office in Nigeria has called for the formulation of effective strategies to address the increasing inability of Small and Medium Enterprises to grow in the country.
According to the organisation, studies have shown that only 20 per cent of SMEs manage to survive in Nigeria.
The Coordinator, ARCEIT Programme, UNIDO ITPO, Bahrain, Mr. Afif Barhoumi, who made the observation at the opening ceremony of a four-day training programme organised by UNIDO ITPO Nigeria for selected Federal Government agencies, stressed the need for continuous enterprise development and investment promotion to key stakeholders.
“Although everybody in Nigeria desires to become an entrepreneur, only 40 per cent of the dreamers get to start, but no more than 20 per cent survive,” he said, adding that government Ministries, Departments and Agencies needed to entrench enterprise development and investment promotion as a key strategy to end the scourge.
“The training will also equip the SMEs with survival and growth skills needed to thrive and take advantage of investment and trade opportunities in local, regional and international business environments,” he added.
Government has to act to support SMES through enabling operating environment.