In any economy, small businesses have always proved beneficial to the economy. Not only do small businesses create wealth, but it also generates plenty of economic opportunities too. This is what the Nigerian small businesses have been doing for the Nigerian economies in the past few years. The innovation can further be strengthened by the intervention of both the government and the private sector. However, the challenges of small businesses are bigger too. To solve the issue, it is important to put enough effort into bringing innovations and interventions for good. This is what the Nigerian government is doing for the country’s small businesses too.

Landscape Of Small Businesses In Nigeria 

In Nigeria, small businesses play a significant part in generating employment. Consequently, its contribution is also high to the GDP of the country. Small businesses benefit the country’s citizens in terms of employment and income. On the other hand, it helps the government too by generating revenue for them. According to reports, there is a healthy balance between Nigeria’s MSMEs and income levels. Also, this health balance ensures a reduced level of informal activities, according to the World Bank. With the higher proportion of small businesses in Nigeria, the informal sector in the country will reduce. This can give birth to a healthy economy for the country. Nigerian businesses are smartly using social media platforms to capture audiences. For instance, many small businesses have WhatsApp Business accounts which they use to upload Cool Photos of their brand as WhatsApp Status. Such innovations are required to tap the untapped potential of the market. 

Also, there is a huge opportunity for the large corporations to work with the small businesses too. Large corporations do not have the path to tap the country’s local and traditional distribution channels. When large corporations work with small businesses, they get the opportunity to access the traditional distribution channels. In addition, small businesses in Nigeria are known for their competitive strategies. These strategies are different from those of large companies. 

Small businesses in Nigeria are the driver of the country’s economic growth. The scalability can expand economic development and growth. Thankfully, the Nigerian government realises this and it is working to provide a helping hand to the small businesses. 

The Government Of Nigeria Is Helping Small Businesses 

The Government of Nigeria has previously acknowledged that small businesses are helping to increase employability in the country. To help the small businesses, the government had previously launched MSMEs Survival Fund. The launch of these funds is sending the right messages to the different stakeholders that small businesses are essential for the country’s economic development. 

The MSMEs Survival Fund is a part of the Nigerian Economic Sustainability Plan. This fund includes transport support tracks, artisans and payroll support. The Survival Fund has previously provided economic support to small businesses during the pandemic. During the global pandemic, small businesses were particularly vulnerable to the economic wrath caused by the Covid-19 pandemic. This government scheme has helped save more than a million jobs in the country. The Payroll Support scheme has benefitted 300,000 individuals. 

Challenges Of Small Businesses 

Even though small businesses have a vast potential to grow and further help the country’s economic development, it has their own set of problems. The Nigerian small businesses’ major problems are financing and poor infrastructure. The banks of Nigeria can help small businesses by assisting them financially. 

In addition to that, small businesses also need cluster parks to operate correctly. This can be made better by improving road conditions and means of transportation. Also, small businesses should be helped with their funding. 

These small issues of Nigerian small businesses can also be sorted with proper evaluation, planning, and branding work. Financing options are something that small businesses should proactively look out for expanding. In addition, adopting technology is a must to walk side by side with the global small businesses. Automating is something that technology should also take care of. With these practices, the Nigerian small businesses can take care of themselves and actively contribute to the country’s economic development. 

Irrespective of the fact that whether a business is small or big, scalability is essential for capturing the market share. However, resources are often limited and in such a scenario, it is crucial to judiciously use the resources to walk ahead. 

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.