smes sector development under the obasanjo administration (may 1999 – may 2007): blessing or...

8/14/2019 SMEs Sector Development under the Obasanjo Administration (May 1999 May 2007): Blessing or Curse?

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SMEs Sector Development under the ObasanjoAdministration (May 1999 May 2007): Blessingor Curse?

Ugwushi Bellema IhuaDunnhumby Academy of Consumer ResearchUniversity of Kent, Canterbury


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Content

PreambleObjectives

Strides & SuccessesDrawbacks & BottlenecksSome Considerations

Conclusions


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PreambleIntroduction

Ugwushi Bellema Ihua, fondly called BellHails from Ahoada, Rivers State in the oil-rich Niger Deltaregion of Southern Nigeria.PhD Doctoral Researcher at the Dunnhumby Academy of Consumer Research, University of Kent.

Currently responsible for providing Consumer Insights toseveral SMEs within the South-East England region.Has worked in Audit, Management consulting and lecturedcourses in business, strategy, entrepreneurship and finance.Holds research interests in Knowledge Management,Entrepreneurship and SMEs sector development, ConsumerInsights, Youth Unemployment and Poverty Eradication.Contact me: [email protected] or [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Preamble

Why Small to Medium-Sized Enterprises? Their importance cannot be over-emphasised asthey have been identified as the economic huband engine-room of most developed economiesand the Asian Tigers;

They hold the key to transforming less-developednations;

They play tremendous roles in employmentcreation, provision of goods & services, and

wealth creation.Personal interest with the sector.


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Objectives

To X-Ray some of the SMEs Sector Policy Reforms inNigeria between May 1999 2007.

To identify and discuss some successes & drawbacksof the policy reforms.

To set in agenda, some points for consideration by thepresent administration.


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Strides and Successes

Overall AwarenessGovernments seriousness towards plight of SMEs.Enterprise re-orientation in Nigeria.

Spontaneous rise in workshops, conferences,seminars and expos targeted at the sector.Strengthening and giving voice to SMEassociations like NASSI, NASME, SMSI.Assertive statements on the need to develop the

sector as catalyst to the economic growth.


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Strides and Successes

Change from Community Banks to MicroFinance Institutions (MFIs).National Poverty EradicationProgramme (NAPEP) 2001.Re-Structuring the Corporate AffairsCommission (CAC) for effectiveperformance.States focus on SMEs sectordevelopment as part of their povertyalleviation strategy.


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Drawbacks and Bottlenecks

Economic DrawbacksImpending inadequate access to finance andcredit facilities. Change in the SMIEIS policy

guideline and associated problems.Inadequate infrastructural amenities such aspower, effective transport system, good roads,water and so on.Inadequate mass and co-ordinated markets.Inflation, interest rates and high cost of doingbusiness.Multiple and arbitrary tax regimes.


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Drawbacks and Bottlenecks Technical Drawback

Inadequate of skilled manpower resulting from lackof training and human resource development.Policy implementation problems: NAPEP, NDE,

Telecomms misunderstanding.Lack of motivation to stimulate the creative andinnovative abilities of our engineers, fabricators andscientists.Inadequate small business research efforts and thepure water mentality.

Inadequacy and affordability problems associatedwith business advisers and consultants on businessstrategy, marketing, branding, packaging, exportingand business modelling.


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Cases: Made in China Products


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Cases: Made in South AfricaProducts


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Ghanaian Experience: OnlineExporter


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Some ConsiderationsEconomic Considerations

More efforts needed in the area of funding of SMEs eithervia MFIs, banks, development institutions and so on.Government should do more to address the high-cost of doing business.Inflation and interest rates needs be tackled and reduced

to single digits.More needs to strengthen, support and properly equipour institutions and agencies such as SMEDAN, NAPEPwith the needed resources for more effective service.Efforts need to be stepped up towards providing betterinfrastructural facilities. Issues of energy, bad roads,alternative transport systems such as railways shouldtake priority in government activities.


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Some ConsiderationsSocio-cultural Considerations

Societal re-orientation towards respect for hardwork andhonest gains.Sincerity and openness on the part of policy makers,institutions, financiers and SMEs owners.Creation of more channels of information dissemination onSMEs incentives and policy benefits at the grassroots level.More needs to be done to address the challenges of unemployment and security concerns within the nation.Motivation, encouragement and appreciation of works of ingenuity by our fabricators, engineers and scientists inorder to spur them to be more creative and innovative.Entrepreneurs and owners of SMEs need to consider theirefforts as social responsibility to the community and thenation.


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Conclusion

SMEs continues to act as catalysts, engine-rooms andhubs of economic growth and development in developedand developing nations all over the world, and the case of Nigeria shouldnt be an exception.If our nation is determined to attain the UN MillenniumDevelopment Goals (MDGs) of drastically reducing thepoverty level, and achieve our national economic vision of becoming one of the top 20 industrialised nations by theyear 2015; then our focus should be on granting pivotalattention to the promotion, development, managementand growth of the SMEs sector.

Also seehttp://www.nigeriansinamerica.com/articles/1926/1/National-Economic-Reform
http://www.nigeriansinamerica.com/articles/1926/1/National-Economic-Reforms-in-Nigeria-Did-the-SMEs-Sector-Benefit/Page1.htmlhttp://www.nigeriansinamerica.com/articles/1926/1/National-Economic-Reforms-in-Nigeria-Did-the-SMEs-Sector-Benefit/Page1.html


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Thank you all for listening

smes sector development under the obasanjo administration (may 1999 – may 2007): blessing or...

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